Lookout Below! 1 Introducing… Lookout Below! Presented by Mike Splane
Lookout Below!1 Introducing… Lookout Below! Presented by Mike Splane.
Dec 17, 2015
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Lookout Below! 1
Introducing…
Lookout Below!
Presented by
Mike Splane
Lookout Below! 2
Monterey Bay
There’s a world down there
Mysterious...
Hidden…
Inaccessible…
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What’s
Under
That
Quiet
Surface?
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Hungry Predators
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Creepy Crawlers
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And Much More
You can’t see the forest.
You can’t travel through it.
Or can you?
Introducing…
Submarine Tours of Monterey Bay
The Ultimate Underwater Experience
Lookout Below! 10
Lookout Below!
Provides underwater
tours in customized
submarines.
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Our Plan
Beginning in 2006, Lookout Below! will be operating a 48 - passenger submarine in the Monterey Bay.
We will test the concept and develop operational procedures and marketing methods in 2005.
Used tourist submarines are available.
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Like This One
Voyager off Oahu
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Voyager – Interior View
Subs are roomy, safe and comfortable.
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Why should you invest?
2004 - Over 50 subs operating worldwide.
30 million passengers.
Perfect safety record!
A 95% satisfaction level.
Risks are low!
Submarines make money!
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We Solve These Problems
Monterey Bay Aquarium– Artificial environment – Crowded. Long waits.
Tour Boat Operators– Can’t see anything
Scuba Diving– High Cost: $200-300 – Need: training, athleticism, special equipment
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The Market is Huge!Five Million Monterey Tourists
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With No Direct Competition
Building barriers to entry is our main challenge.
Ideas to use as barriers: • Promote govt. regulations • Build Aquarium relationship• Control of key advertising
media placement sites• Agreements w/sub builders• Some confidential ideas.
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The Aquarium is Overcrowded
1,700,000 visitors each year
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Crowds Line Up For Tickets
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We can sell tickets at $50
• We asked potential customers. • We compared prices for other tours.• We looked at our expenses.
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The Basic Revenue Model
Per TripWe have 48 available seatsWe sell 40 seats per trip (average)Tickets sell for $50Revenue per trip = 40 * $50 = $2,000
Per YearOpen 300 days per year. Run 6 trips per day.Total annual trips = 300 * 6 = 1,800Annual revenue = $2,000 * 1,800 = $3,600,000
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Rough Profit Estimate
Ticket Revenues $ 3,600,000Payroll Costs
(Industry Average + 50%) $ 1,000,000Sales Expenses
($10 per passenger) $ 720,000 Operations Expenses
($2,000 Day) $ 600,000Annual Net Profit $ 1,280,000
Sales Margin = 35.5 %
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Development Timeline
Test Stage
2005 - Operate one mini-submarine
Operations Stage
2006 - Operate a large submarine
Expansion Stage
2007 - Add tours
2008 - Add a second submarine
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Most preliminary workhas been done.Business plan √
Marketing surveys √
Feasibility analysis √
Financial analysis √
Operations schedule √
Staffing schedule √
Industry research √
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The Next Steps
Recruiting the management team Developing community relationships Obtaining licenses and permits Raising money Building infrastructure Purchasing assets Selling to Customers
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Planned Management Team
Actively seeking:
A Marketing Manager
An Operations Manager
Mike Splane - Founder
Business Professor
Experienced Travel
Industry Controller
Knows the area/market
MBA in Entrepreneurship
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Asset Requirements
Testing Phase
Purchase a mini-submarine: $ 265,000
Inventory and Start-up Expenses: $ 535,000
Year 1
Purchase a used submarine: $2 million
Year 3
Purchase a new submarine: $5 million
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Financing Desired
Model 1 - Spend a year in testing2005 - $1 Million2006 - $2 Million2008 - $2 Million
Model 2 - Skip the testing phase2005 - $2.5 Million2007 - $2 Million
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The Pay OffPro Forma Summary
Details Available on Request
Year Passengers Revenue Annual ProfitOne 38,808 $ 2,197,185 $ -732,906Two 83,808 $ 4,698,778 $ 1,024,778
Three 143,964 $ 7,975,347 $ 1,034,981Four 181,440 $ 9,994,377 $ 2,531,585Five 194,400 $ 10,693,986 $ 4,083,565
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Investment InformationContact:
Mike Splane
(408) 924-3533San Jose State University
College of Business
One Washington Square
San Jose, CA 95110
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