Eco Resort, Nature Sanctuary and Centre for Yoga & Meditation
All our groundwork and research over the past year gives us confidence that involvement with Wild Dharma Eco Resort will bring rewards, including financial rewards to all stakeholders.
The start-up funding for Wild Dharma Eco Resort will come from the owners and investors. The project requires start-up funding of PHP 25,000,000 from investors.
The owners are seeking PHP 25,000,000 in additional funds to finance this venture. Most of the expenses will be for securing the property and resort construction. We are offering 25% stake of the net profits in return. Every PHP 1,000,000 of investment will buy an investor 1% share in the net profits of the business. Investors will start receiving their share in the third year, and would be eligible in the fifth year to opt for a buy-out option of their shares by the owners.
PROJECTED PROFIT AND LOSS
The following table and chart shows the sales revenue for each month of the first year and the projected sales revenue for the next 5 years. These revenue streams are room sales, food & beverage, yoga & meditation centre, Spa & healing centre and other activities like island hopping tours.
We have conservatively projected sales; the first year is projected at 10% occupancy. The business revenues are seasonal with the highest revenue generated between November and June. We have assumed some quieter months from July to October due to the rainy season. In the future we also intend to utilise the quieter months for longer retreats and trainings.
We expect to become profitable in the second year, as satisfied customers become repeat customers, and word-of-mouth spreads, and we establish our position in the market. The revenue will continue to increase in coming years due to increased publicity and also the opening of the San Vicente international airport which will increase numbers to the area and give guest easier access to our resort.
PROJECTED CASH FLOW
The cash flow projection shows that provisions for ongoing expenses are adequate to meet the needs of the company, as the business generates sufficient cash flow to support operations. The table also shows projected investment returns paid out to all eco-investors starting on the third year.
The table shows start-up expenses which include acquisition of property and Stage 1 of resort construction. Stage 1 will consist of constructing the number of cottages, villas and facilities needed to service our first 2 years of projected operation.
The table also reflects additional funds invested in the second year that will go towards Stage 2 construction and completion of Wild Dharma Eco Resort.
PROJECTED BALANCE SHEET
The balance sheet shows healthy growth of net worth (growing capital and equity), and a strong financial position. The net worth grows over the years as shown in the following table.