BUSINESS PLAN

Far Horizon



Abstract

The purpose of the plan is to develop a positive feasibility of designing and constructing a 4 to 6 berth, approximately 60 ft, sea go sailing yacht. This report presents a comprehensive analysis of the industry and the potential for profitable expansion. Moreover, it elaborates the marketing and strategic objectives of the company along with an assessment of internal and external factors in the SWOT analysis. Recommendations on the basis of financial feasibility are also presented in the end.

Table of Contents

Abstractii

Table of Contentsiii

Overview of the Company1

Economic Outlook1

Industry analysis1

Marketing Plan2

Marketing Objectives2

Marketing Strategies2

SWOT Analysis2

Strengths2

Weaknesses3

Opportunity3

Threats3

Gantt Chart4

Financial Plan4

Cash Flow Forecast5

Conclusion and Recommendations6

References7

Far Horizon

Overview of the Company

Far Horizon has been trading successfully for fifteen years and is now poised for expansion. Starting out as a supplier to the marine leisure market, the company subsequently began the manufacture its own sailing dinghies, initially for novices. The company has been a huge success in building dinghies and small yachts over the past eight years. Encouraged by the success so far, it has decided to broaden its customer base to include the more experienced yachtsman. Far horizon enjoys a strong financial base and a stable and loyal workforce. However the credit crunch caused a dramatic loss of confidence in some sectors of the leisure market and you predict future sales to be somewhat sluggish. Despite the continuing pessimistic economic outlook, it is a good time to embark on a bold new venture.

Economic Outlook

One of the most significant factors to be considered before making any decision or investment in venture is the analysis of the economic environment. It is imperative to assess whether the expansion is economically feasible and realistic. The economic indicators like growth rate, inflation, fiscal and monetary policy have the potential to impact any business. Therefore, it is important to analyse the economic climate, the marine vessel sales industry, the customer profile, and the competition that the business will face as it progresses through its business operations (Dimitrios, Ioannis, 2005). In times of recession, the Boat and Yacht Dealer may experience a decline in revenue as people spend more on necessity goods and cut back on major purchases such as boats and yachts. However, the Company's target market includes high net worth clients and agencies. These entities always have funds to purchase big ticket items due to the fact that they have tremendous economic stability.

Industry analysis

The marine industry is experiencing a growth stage in the international arena. The increasing population of individuals taking retirement at an early age has resulted in an increasing amount of leisure time. Moreover, it has been observed that individuals are spending more and more of their leisure time in water based activities. The growth of the industry is also vindicated by the growth in the industries producing pleasure crafts and mega yachts in recent times (Breitman, Lucas, 1987). This increase in the number of recreational boats worldwide is creating additional strain on the existing infrastructure thereby increasing the demand for medium and large sized ...