BUSINESS PLAN

Assignment 2: You Are an Entrepreneur!

Assignment 2: You Are an Entrepreneur!

Introduction

New start ups are often considered as easy for most of the young graduates, however, the task become daunting when people started to actually write up a plan. I have great deal of interest in tourism and traveling industry since childhood, which is the reason have in depth knowledge and understanding regarding the industry. Now, I have started to seriously consider turning my passion into a business, because I believe that one should do what he or she likes in order to become successful (Abrams & Kleiner, 2003).

In present day competitive environment, starting a new venture in any country is not easy, and industries like travel and tourism which are already saturated, the task become more intense. Like many other young entrepreneur, I am faced with the major problem of obtaining sufficient capital to support my idea. There are only two options of finance open to for a young entrepreneur, one is debt financing and other is equity.

Type of Product or Service

The travel agency will sell traveling packages to the customers of United States and Europe to all over the world. The company will offer range of traveling packages from general packages like holiday packages, group visit, and exotic locations for spending vacations to specialized packages like visits to historical sites for architectural students, business trips among others.

General Staffing Plan

Being the young entrepreneur, I do have a very much practical business idea, but this does not provide me the proficiency and efficiency in business related filed. This is the reason, first of all an external human resource firm will be hired to recruit skilled and qualified workforce to work on different departments of the company. However, the entrepreneur will ensure that every candidate will also be scrutinized by him, so that final decision shall rest upon his understanding (Mondy, Noe & Gowan, 2005). This will help in hiring the right person for the right job.

Project Financing

Being a young entrepreneur, I have decided to divide the risk by financing my start up 60 percent via equity and 40 per cent with debt, which will be acquired from different financial organizations. An estimated of 10 million startup capital is required to launch the business, out of which equity will be utilized as a source of capitalizing for 6 million, while the remaining will be collected from debt financing (Paramasivan & Subramanian, 2009).

Being a young entrepreneur having no proven practical experience in the field, it is not easy to gain the trust of the lender or investors to finance in the business (Bodie & Merton, 2000). Moreover, banks will not be proven much effective source to approve the loan, because of lack of proven expertise and experience in the field.

Almost 2.5 million has been generated by the entrepreneur through bank loans by mortgaging old property, and presenting the proposed return of the business. Moreover, the remaining 1.5 million were generated from the venture capital ...