Profit and loss forecast 24 Forecast cash flow 25 Supporting documentation 26 Business Plan Summary The DUDS is located Mat. Hothead, offers magnificent views up Swindlers Valley through to Marry Slide and beyond. Easy access to and from bus stop 8 on the main road and also via the back road off-season. Direct access across the main road from the lodge steps to the Davenport access trail that leads to the base of the village chair. The lodge is well designed and constructed, room configurations and facilities are well received by users of the lodge, resulting in non-members regularly choosing o book accommodation at DUDS in preference to other lodges. Ample dining and lounge space such that even when the lodge is fully booked occupants are comfortably accommodated when dining or relaxing. Member responsibility for lodge management and routine lodge maintenance has operated successfully for the past 38 years of lodge occupancy without the need to fund the services of a resident lodge manager or the need to provide accommodation facilities for lodge management.
The club currently has in excess of $200,000 in cash reserves invested in interest bearing bank deposits. Banks approached by the club have indicated their willingness to provide funding for future lodge development. The DUDS has annually increasing revenue. DUDS has extensive records of annual fixed and variable costs which when factored by inflation allowances gives us a high level of confidence in our expense forecasts. The Business Organization name: Upside Down Ski Club Inc. Organization structure: company BAN / CAN: O 123 456 789 / 123 456 789 SST Registration: (yes / no) yes Organization location: 10 Rosella Road, Detonates, 3108 Date established: 01/07/1971 Organization owner(s): Sheldon Cooper Organization History: 1971: Formation of club with 48 foundation members 2004: Expansion of membership from 48 to 52 full members 2009: Generational changeover initiative to facilitate a smooth transition of ownership and administrative control from the founder generation, who are reaching retirement age, to the second generation.
The Future Goals/objectives: The basic objective of the DUDS is to ensure the long-term survival of the club and its lodge facility at Mat Hothead by providing an accommodation experience that exceeds the value expectations of both club members and non-member lodge visitors. In order to achieve this objective five goals and milestones have been identified together with related quantifiable targets that should enable the club to progressively assess progress towards the achievement of its desired objective. The five goals and milestones selected were chosen as the means to address the key issues that emerged out of the SOOT analysis and are as follows: Renewal of the lease for a minimum period of thirty years. 2. Increased year round occupancy with a consequent increase in operating Income. Engage with generation X and Y club members and generation X and Y children ND relatives of club members with a view to effecting an orderly transition of both membership rights and responsibility for the management of the club and the lodge facility from the older generation to younger relatives.
Develop an enhanced financial reporting and cost management system to provide timely and accurate financial reports and reliable budgets. Enhance the value proposition offered to users of the lodge by upgrading and expanding the lodge facility whilst pricing accommodation at a level that ensures a positive value for money accommodation experience. The Business Business details Products/services: Full service luxury hotel style egg Kirk’s Self catered luxury apartments egg Absolute Self catered medium priced apartments egg Fountains Self catered economy apartments egg Earlier Fully catered club lodges Partially catered club lodges Self catered club lodges Business premises Business location: The outstanding location with frontage to the Great Alpine Road affords sweeping views across the Mat Hothead ski runs and Swindlers Valley. Convenient skier access to the Davenport Access Trail is a major advantage as is local transport since the lodge fronts on to the number 8 bus stop.
Clearly the LCD lodge occupies a superb location that enriches the experience offered at affordable prices. Organization chart Products/services Product/Service Description price Annual membership fee Member fee $750 Full service luxury hotel style Full service hotel room $1050 Self catered luxury apartments Full luxury furnished apartments $700 Self catered medium priced apartments Full furnished apartments $500 Self catered economy apartments Simple furnished apartments $300 Fully catered club lodges Fully catered $200 Partially catered club lodges Partially catered $150 Self catered club lodges Self catered $100
Market position: SIDES positions itself in the low cost, self catering segment of the market and principally targets snow sports enthusiasts, both individuals and family groups who are seeking a comfortable and sociable club experience. The traditional market has been and continues to be the club membership and their friends although a class of membership, the associate member, has been created focusing on the summer season potential. The DUDS facilities have also attracted both school and interstate group bookings. The lodge is scrupulously maintained with attractive and extensive dining and entertainment facilities.
Unique selling position: the superior location of the lodge in relation to outlook and access to the village transport system and the Davenport access trail. The appeal of the current lodge design, fit out and room configurations that attract high occupancy levels during the snow season from members, non- members and group bookings. The reliance on members to manage the operation of the lodge the high level of competence and years of experience of members responsible for the management of the club the strong financial position of the club and the ability to finance improvements to the lodge from surplus cash flow. Anticipated demand: The following chart shows the 2012 usage and the potential for further bookings in both the summer and winter periods. Bed Night Occupancy and Yields for year ending 30/9/2012 Usage Actual Member 1755 280 2035 Non Member 802 120 922 Capacity 3638 8738 12376 Yield 70. 29% 4. 58% 23. 89%.
Pricing strategy: We have different pricing for peek and off-peek seasons: The DUDS recognizes the competitive nature of the market place and has adopted a pricing structure to provide comfortable and complete self-catering accommodation at a reasonable cost to members and non-members. Annual axed operating expenses are largely covered by membership subscriptions and booking rates are calculated to generate an annual surplus for replacement of fittings and fixtures, annual maintenance expenses and long- term lodge development programs. Member pricing Accommodation rate per bed night Summer $15 Low season weekend $15 Low season Sun-Tours $15 High season weekend $20 High season Sun-Tours $20 Members have a maximum bed night allocation at these rates. Any over quota bookings are at non-member rates Non-Member pricing Summer $25 Low season weekend $40 Low season Sun-Tours $40 High season weekend $75 High season Sun-Tours $70
Value to customer: Easy to book and pay, great service and experiences. Growth potential: According to the statistics data, the growth will be 3% in the future. Insurance Workers compensation: Upside Down Ski Club Inc. Will provide Worker’s Compensation insurance for all employees and other persons deemed to be employees under the Workforce Act. A record of the insurance will be provided on the relevant form together with an attached copy of the current policy details issued by the insurer. Person responsible for processing claims: Amy Affray Fowler Workforce Office Details: Rehabilitation Co-ordination: Stuart Bloom Name of Rehabilitation Provider: Silver Hand 1. When an injury occurs: All injuries must be reported immediately and recorded in the Organization’s Accident Register in accordance with the company’s Workers Compensation Procedures. There are legal requirements to notify the company’s workers’ compensation insurer of the injury within the stated time-frames. Stuart Bloom will be responsible for co-ordination all efforts aimed at assisting the injured worker to recover and return to work as quickly and as safely as possible.
For all lost time injuries, Stuart Bloom will contact the injured employee within 4 hours of the injury being reported to ensure: That appropriate medical attention is received That the process of lodging a worker’s compensation claim is explained To prepare the injured employee for a safe and timely return to work consistent with medical advice. Nominating a Treating Doctor: All injured employees MUST nominate a treating doctor who will be responsible for medical management of the injury and will co-operate with the development and implementation of the Return-to-Work program. Provision for nominating the treating doctor is made on the approved Workforce medical certificate. . Involving a Rehabilitation Provider: When it becomes evident that an injured employee is not likely to resume their pre- injury duties or cannot do so without changes to the workplace or the work practices, the Manager of Upside Down Ski Club Inc. Ill consult with its workers compensation insurer, and the worker’s treating doctor to discuss the need to involve its accredited Rehabilitation Provider to assist develop and monitor the Return-to-Work Plan.
Public liability insurance: Public Liability insurance covers the costs and compensation to be paid by your organization if you are sued by someone. Personal Accident (Volunteers) insurance pays an amount to help a volunteer cover their costs while they are recovering if they are hurt when volunteering for you. It can also provide single payment for permanent disability or death. Professional indemnity: N/A Product liability: Membership includes a Insurance policy covering members for $500 in cash expenses and $1 million in public liability if injured whilst competing in an event. Business assets: The lodge is covered in the following events: Fire Lightning Explosion Earthquake Vandalism Damage caused by animal or tree Riot or industrial dispute Storms Wind or water Business revenue: N/A Risk management [List the potential risks (in order of likelihood) that could impact your business. Risk Likelihood Impact Strategy Increasing Cost of Skiing at Mat Hothead Likely High Negotiate with others to offer discount for Skiing customers Cost of Meeting Requirements for Renewal of the Lease Research and access Increased Competition from Other Club Lodges Medium Research other clubs and price/service match Climate Change Unlikely Ask people to be Green Economic Uncertainty Legal considerations Company are liable for any outstanding debts owed to your business.
It’s important to obtain legal advice before including this in your application. ) Upside Down Ski Club is a not for profit organization which is incorporated under the Associations Incorporation Act (1981) which limits the liability of the members and the Committee b) The club’s ability to borrow is determined by the size of the loan relative to the remaining term of the lease until expiration and the magnitude of the operating surplus relative to the cost of servicing the debt c) The Constitution of the club provides for the individual members to transfer their shares to another party subject to approval by the membership as voted n an GM d) The club does not pay dividends.
Operating surpluses are retained and invested in secure cash management accounts with one of the big four banks. Retained earnings are allocated to major maintenance projects or further development of the Lodge e) Official Records as maintained by the club include the following : Constitution of the Upside Down Ski Club Minutes of GM Annual reports of the President, Treasurer, Booking Officer, Work Party Convener, Provisioning Officer. Minutes of ordinary committee meetings The committee reports to members through annual reports circulated to embers with the notice of the GM.
Between GM meetings newsletters are sent to members to inform them of on-going activities Reporting to Government. An Annual financial report is submitted to the Victorian Government Revenue Office h) Certificate of Currency for Public liability Insurance. See Appendix F Copy of the constitution of Lanai Tan Ski Club. See Appendix G Technology (Software): The club website is now up and running and will enhance the initial appeal of the lodge relative to other club lodges offering similar services as well as improving the convenience of the booking procedure including he provision of an online credit card payment system. The website also has a link on the Mat Hothead website. Trading hours: Monday to Sunday, 6-10. Winter will be more profitable. Communication channels: telephone, mail, email. Payment types accepted: Any payment type.
Credit policy: Credit terms Standard credit terms are usually payments within 7, 14, or 30 days after the invoice date. Consider which of these is right for your business. Type of payment Any payment type is acceptable, but checks the costs involved with credit card transactions as you may need to add a surcharge to cover them. The most important point to remember is to make it as simple as possible for your customers to do business with you. Dealing with late payments Try to be as accommodating as possible, within reason. Your policy should appear on the credit application form, and should clearly state the consequences of late payment. This may take the form of withholding goods, not processing orders, and in some cases legal action.
You implement your credit policy with your credit application form and your collection procedures. Credit application form To help you decide which of your customers should be granted credit terms, a reedit application form/agreement sets out all the conditions of credit, as well as the rights and obligations of both parties. It’s also a good idea to create a set of guidelines to help your customers complete the application form. Essential components of a credit application are explained below. Comprehensive and complete details of all directors, partners and owners. At least three trade credit references, who are not banks, financial institutions and leasing companies. You should contact the trade credit references and ask questions about the trading history of the business and any problems the referees have experienced.