1.0 Executive Summary
The purpose of this business plan is the secure $1 million for the development of a yacht charter business based in Miami, Florida. MLD Charters LLC (“the Company”) was founded by Matthew Deutsch. Full scale revenue generating operations will commence in the second quarter of next year. The company will specialize in providing half-day in full day charters along the East Coast of Florida.
Operations
The Company’s operations will provide services to both individuals as well as corporations seeking unique excursions and fishing charters. Although fishing will be the primary aspect of the Company’s operations, the business will be able to provide sightseeing tours along the eastern coast of Florida given the immense beauty of this region.
As noted above, the company will provide both half-day and full day charters. Overnight services will not be available. For half-day charters, the company will charge $600 to $1,000. Full day charters will be a flat rate of $2m500.
The third section of business plan for discussed the operations of the business.
The Financing
As this time, the Company is seeking $1 million a debt capital to acquire the vessel that will be used for provide yacht charters. Matthew Deutsch will contribute $200,000 towards venture. This equity contribution will cover working capital, initial marketing, as well as furniture, fixtures, and equipment.
Moving forward, the company can easily secure additional capital if additional marine vessels are going to be integrated into MLD Charters’ fleet. This document assumes that this will not occur until after the fifth year of operation.
The Future
Through multiple forms of marketing, the company will establish itself as one of the preeminent yacht tour companies within Miami in the South Florida area. Moving forward, the Company may integrate additional vessel into its fleet. The Company may also provide services on an overnight basis. However, this would not occur until after the fifth year of operation.
The Company will conduct ongoing direct outreach with hospitality businesses in South Florida among their clients that have expressed an interest in ocean fishing and sightseeing tours.
Revenue Forecasts
2.0 The Financing
2.1 Funds Required
The capital sought this document will be allocated as follows:
2.2 Management and Investor Equity
Matthew Deutsch retains at 100% ownership interest in this yacht charter business.
2.3 Exit Strategies
Although Mr. Deutsch intends to operate this business for a significant period of time, there is a possibility that it may be sold for a significant price to earnings multiple in the future. In this event, a qualified business broker that specializes in yacht chartering and marine vessel businesses will be hired to manage to sale a third-party. Historically, yacht charter services typically have a sales premium equal to three times the prior year’s EBITDA.
3.0 Operations
As noted to the executive summary, MLD Charters will be actively involved with providing beautiful yacht charters throughout the east coast of South Florida. The Company’s charters are appropriate for individual getaways as well as for corporate events. As will be discussed in the seventh section of this document, the Company intends to work with numerous corporate retreat specialists in order to have highly predictable bookings for operations.
In regards to the pricing, the Company will typically charge $600 to $1,000 for a half day charter. This pricing will vary depending on season as well as the underlying cost of fuel. Full day charters will typically have a flat rate of $2,500.
Each charter will have a captain as well as an onboard crew to provide food and beverages to guests.
Safety will always remain as a paramount priority for MLD Charters’ operations. The vessel will be equipped with GPS as well as all state-of-the-art communications technology in order to ensure that each charter is done in a safe and secure manner. The Company will comply with all federal and state laws regarding yacht chartering and transportation using marine vessels.
4.0 Overview of the Organization
4.1 Registered Name
MLD Charters LLC. The business is registered as a limited liability company in the State of Florida.
4.2 Commencement of Operations
Revenue generating operations will commence in the second quarter of next year.
4.3 Mission Statement
To provide exceptional yacht charters that clients will remember for a lifetime.
4.4 Vision Statement
To become the preeminent yacht charter business within the South Florida market.
4.5 Organizational Objectives
• Once the capital in this document has been secured, properly acquire a yacht that can accommodate up to 20 guests.
• Implement numerous online marketing campaigns to create significant brand name awareness for MLD Charters in the coming years.
• Establish ongoing relationships with corporate retreat specialists that will have their clients use the Company’s services.
• Established relationships with event planning businesses that will have their clients use charters during the for celebratory events.
• Comply with all laws, domestically, Internet internationally, regarding yacht charters.
• Potentially acquire additional marine vessels for the Company’s fleet.
• Implement numerous safety protocols to keep their risks associated with yacht charting to an absolute minimum.
5.0 Market and Industry Analysis
5.1 External Environmental Analysis
This section of the business plan will document the yacht chartering industry, the current economic climate, the competition, and the demographic profile.
At this time, economic climate within the United States is moderate. Due to changing trade policies, as well as evolving fiscal policy, there has been a certain degree of volatility introduced to the market. However, the Federal Reserve and major central banks are taking appropriate measures to reduce the risks related to inflation while also fostering ongoing economic output growth.
It should be noted that the Company is primarily targeting upper middle income to upper income people as the primary target market for the Company’s yacht charters. Furthermore, business will maintain extensive relationships with corporate retreat specialists that will book their clients directly with the Company.
5.2 Industry Analysis
There are 1,000 companies that actively provide yacht charters with the United States. Each year of these businesses generate $1.5 billion revenue while employing 20,000 people.
This is a mature industry in this future growth rate will be similar to that economy as a whole. One of the common trends within this industry is to use numerous online platforms that provide bookings among people seeking private yacht charters. MLD Charters will take advantage of this trend in order to ensure that the business can operate as close to 100% operational capacity as possible.
5.3 Customer Profile
The following demographic profile will be used during the course of marketing operations:
• Household income of $200,000+
• Will spend $600 to $2,500 per excursion
• Lives within 50 miles of the MLD Charters location (among local guests)
5.4 Competitive Analysis
This yacht chartering business plan has been developed specifically as a sample. In the event that this was going to be developed specifically for a client, a thorough competitive analysis regarding all other yacht charter enterprises within the target market would have been completed.
6.0 Key Strategic Issues
6.1 Sustainable Operations
MLD Charters will have sustainable operations as a result of the following:
• Matthew Deutsch will concurrently serve as the captain for yacht chartering engagements, which will reduce costs.
• The Company is operating in Miami, which has substantial population density as well as enormous tourist traffic on the yearly basis.
• The Company will foster ongoing relationships with corporate retreat specialists that will provide a predictable stream of bookings.
• The business has sourced the marina for vessel storage that will be provided on a cost-effective basis.
• Management can effectively control operating cost given that fuel and related inputs were only purchased when a booking is made.
6.2 Basis of Growth
The Company will expand via the following methods:
• Integration of additional vessels into the Company’s fleet.
• Expansion of operations to include overnight charters.
• Continued expansion of the number of relationships that the Company has with corporate retreat and travel specialists.
7.0 Marketing Plan
7.1 Marketing Objectives
• Maintain a wide-ranging online presence that leverage is multiple forms of marketing.
• Enrollment platforms that provide charter bookings.
• Conduct direct outreach with major corporate events firms as they will provide a steady stream of referrals and direct bookings.
7.2 Revenue Forecasts
7.3 Revenue Assumptions
Year 1
• First year revenue will reach $866,000.
• Gross profits will reach $767,000.
Year 2
• Revenue will increase to $935,000.
• Gross profits will reach $828,000.
• Total income will increase by 8%.
Years 3-5
• Revenue will reach $1.17 million by Year 5.
• Anticipated gross profits will reach $1.04 million.
7.4 Marketing Strategies
The Company we use multiple forms of advertising in order to ensure that its fleet operates at 100% capacity. As it relates to the Company’s website, this platform will undergo substantial search engine notation so that individuals that have expressed an interest in yacht chartering in the Miami market can quickly find the business. The platform will feature e-commerce functionality so that bookings can be completed directly through the website. The website will also feature media rich content – including walk-through tours of the Company’s vessel, information about the business, information about the Founder, and the availability of yacht charters.
The Company will also use multiple booking platforms that are specific for boat/yacht chartering, as well as general travel websites when applicable. This will ensure a steady stream of referrals and bookings. There are numerous platforms that operate in a similar capacity to Airbnb, but are specific for boat and yacht chartering.
The Company will also conduct extensive direct outreach with corporate retreat specialists in corporate travel specialists that will directly place bookings with the business. Given that Miami is a major destination for corporate events, Management sees a substantial opportunity to establish ongoing relationships with these entities.
Concurrent to this, the Company will also establish relationships with travel agencies that will place their clients with MLD Charters for half day in full day excursions. The business will also conduct outreach with hospitality businesses in Miami and South Florida that will provide referrals (including commission-based relationships).
8.0 Organizational Plan
8.1 Organizational Hierarchy
8.2 Personnel Costs
9.0 Financial Plan
9.1 Underlying Assumptions
• The Company will secure $1 million of capital via a business loan.
• The Founder will contribute $200,000 towards venture.
• MLD Charters will achieve a compounded annual growth rate of 8%.
9.2 Financial Highlights
• A vast major majority of the company’s capital will be invested in a marine vessel.
• The business will be able to effectively control its operating costs given that major input inventories are only acquired when bookings are made.
9.3 Sensitivity Analysis
The Company’s revenues can be moderately impacted by challenging economic climates. As noted earlier, the Company is specifically targeting corporations as well as higher income earning people as the primary group of demographics. Furthermore, the business has very low operating cost as a function of its revenue. As Matthew Deutsch will serve as a captain the vessel, this will substantially reduce costs while ensuring that the business can remain profitable.
9.4 Source of Funds
9.5 Financial Proformas
A) Profit and Loss Statement
B) Common Size Income Statement
C) Cash Flow Analysis
D) Balance Sheet
9.6 Breakeven Analysis
9.7 Business Ratios
