Financial Plan
The following section outlines the financial goals, revenue and sales for the Company.
FINANCIAL SUMMARY
Bamboo YogaPlay has several revenue streams from its operations as an eco‐friendly resort. Income is generated
from the rental of the rooms, retail sales from the Bamboutique, rental of the restaurant and juice bar and sales of
a variety of services that include yoga and other arts classes, spa services and adventure tours. The Company
combines these services in packages to sell for individuals and groups. The main goal for Bamboo YogaPlay is to
get guests in the door to stay at the resort, because these guests will more than likely purchase one or several of
the other products and/or services that are offered.
The company earns significant
revenue from each of these
segments. In year 2, the first year
after expansion, the Boutique is
the leading revenue source,
followed by services, hotel rooms,
and outsourced services. As the
Company places greater emphasis
on retreats, the services division
grows quickly in revenue and
becomes the largest revenue
stream by year 4.
Operating currently with 3 rooms available, Bamboo YogaPlay is projected to make a profit of $19,843 in its first
year from gross sales of $58,297. After the planned expansion to 16 rooms, Bamboo YogaPlay will significantly
increase their overall capacity to generate income. In year two, after the expansion is complete, Bamboo YogaPlay
expects a profit of $143,549 from $465,214 in gross sales. In year 3, sales are expected to grow to $566,789 with a
profit of $206,236. In year 4, sales are expected to reach $698,730 with a profit of $299,668 and in year 5 sales are
projected to reach $787,248 with a profit of $373,123.
Bamboo YogaPlay has significant fixed as well as variable costs related to its operations. Staffing accounts for the
largest expense that the company must account for. Fixed staff costs total $108,144 annually after expansion,
including taxes and benefits. Employees that provide services, such as instructors or masseuses, are paid on a
commission basis. The hotel and boutique divisions of the business also incur material costs. For the boutique,
material costs total 55% of sales, which totals $20,323 in year 1 and grows to $120,042 by year 5. The provision of
hotel rooms also yields a cost of $1.55 per room per night, which totals $4743 by year 5.
In order to expand, the company is looking to raise approximately $700,000 to fund the cost of expanding the
resort. This expansion will increase the capacity from 3 rooms to 16 rooms, including 12 suites, which will greatly
increase earning potential.
SOURCES & USES OF FUNDS
Bamboo YogaPlay is currently seeking approximately $700,000 in funds from private investors, which will be used
to cover the costs of construction for the expansion of the resort. Bamboo YogaPlay will offer investors a
timeshare opportunity combined with a profit share opportunity in exchange for their investment. There are 50
shares available for a price of $13,350‐$15,300 per share. In exchange for 1 share of fractional ownership, the
investor will receive a TBD annual percentage of gross profits, as well as a free one‐week stay at the resort each
year. Investors also have the opportunity to purchase 25 shares and enjoy exclusive access to the entirety of
Bamboo YogaPlay facilities for one week per year. This option is designed for retreat coordinators, who can use
this exclusive access to host a retreat. Investors will also have the option to “save up” weeks over the years and
use them for a longer stay at one time.
PROFIT & LOSS STATEMENT
The following is a five‐year revenue, profit and profit margin forecast for the Company:
The Company’s profit and loss statement is presented below:
BREAK‐EVEN ANALYSIS
The following break‐even analysis shows the revenue necessary to break even in the first three years of operation. As shown below, the Company is expected
to break‐even in month 1, with minor losses in months 7‐10.
CASH FLOW STATEMENT
The following depicts Bamboo YogaPlay’s projected cash flow through the first five years of operations:
The Company’s cash flow statement is presented below:
BALANCE SHEET
The Company’s balance sheet is presented below:
