BUSINESS PLAN

PORSALANO RESORT
The Porsalano outlines how it will provide quality hospitality services, costeffectively, in a popular northern INDIA resort environment. This plan successfully
raised capital for property acquisition, renovation, and company start-up related
costs.

Contents
Five Objectives of Porsalano, Inc...............................................................................6
Ideal Property Location................................................................................................6
Mission Statement.........................................................................................................7
Management & Organizational Summary...............................................................9
Competitive Advantage................................................................................................11
Industry Keys to Success.............................................................................................11
Economic Environment..............................................................................12
Geographical/Competitive Environment....................................................12
Legal/Political Environment.......................................................................12
Marketing Strategies...................................................................................17
Target Markets - Consumer........................................................................17
Distribution Strategy..................................................................................18
Pricing Strategy..........................................................................................18
Service and Support Philosophy................................................................20
Evaluation & Control Strategies.................................................................23
Projected Balance Sheet................................................................................28
Table: Balance Sheet..................................................................................28
Questionnaire......29

EXECUTIVE SUMMARY
We seek funds for the acquisition and renovation of Porsalano, an adult-marketed,
17-room "boutique style" hotel specializing in a couples' "getaway" to provide
relaxation and recreation in Manali, a popular tourism spot. Moderately priced
between the high-line hotel properties and the older motel strips, Porsalano shall fill
an affordability niche not presently available in Manali.
Combined with an on-site lounge, grill, poolside beverage service, and morning
continental breakfast bar, we are seeking investment funds to renovate the hotel
building, build-out a piano bar/lounge area with dance floor, and construct an
outdoor pool adjacent to the indoor pool. With this refurbishment and other new
amenities, Porsalano will form the basis of a highly profitable hotel venture. We are
seeking funds to develop and expand the business in a phased approach, as
highlighted within this document.
The foundation for the plan is a combination of primary and secondary research,
upon which the marketing strategies are built. Discussions and interviews were held
with a variety of individuals involved with other similar businesses to develop the
proforma data, review the market potential, and competitive situation.
Renovation in the Prairie Style period, our hotel's design elements and furniture will
reflect this "organic" approach and provide an overall comfortable experience.
Porsalano shall specialize in meeting an individual or couple's needs. As growth
warrants, the 10-acre site would allow for future expansion of the lodging portion of
the resort.

Business Plan Purpose

Introduction
In today's highly competitive environment, formal business planning is an essential
element in achieving business success. A well-written business plan is primarily a
communication tool used to obtain financing. In certain instances, particularly with
our early stage company, this business plan also serves as a strategic plan.
Considering that lenders are inundated by numerous investment opportunities from
which they choose only a few, this business plan describes our story and how we
intend to grow. Porsalano, Inc. management team has made an in-depth analysis of
its opportunities and weaknesses and it has concluded that the company has an
excellent chance to succeed.
Methodology for Business Planning
Sophisticated business planning helps management answer questions, such as:
What will be our record of achievement?
How have we fared compared to our competitors?
Are we setting realistic and attainable goals and objectives?
Constructive and useful business planning requires a broad-based understanding of
changes taking place in the marketplace in which the company competes, or plans to
compete, and the ever-changing financial markets. In-depth technical skills in a
variety of disciplines such as financial analysis, sales and marketing, latest
technology, and managing growth are critical components in assessing a company's
opportunities and risks.
Developing the Business Plan
The management of Porsalano, Inc. has developed this disciplined planning
methodology to help the company anticipate its start-up costs and other critical
information to arrive at this realistic plan.

Guidance from Outside Professionals

We will seek legal assistance and advisors to develop the Porsalano concept. The
management of Porsalano, Inc. will maintain an active management involvement in
every aspect of daily resort operations. This plan reflects his vision.

Five Objectives of Porsalano, Inc.

1. Attract Rs. 10 Cr mortgage/investment capital;
2. Focus ideas and establish goals;
3. Identify and quantify objectives;
4. Track and direct growth;
5. Create benchmarks for measuring success.
Management is soliciting commercial finance partners who share its vision and
desire to participate in this exciting business opportunity in the resort community of
Manali, India. The integration of these disciplines results in extensive and innovative
services set in a unique Prairie Style surrounding for our prospective guests.

Ideal Property Location

The preferred location is a 10-acre parcel with 8 acres of woods. Of the 18 rooms, 3
are executive suites, with Jacuzzi tubs, and one of them will be converted to an onsite
manager's apartment. Each room has individual climate control, direct-dial phones,
and televisions. The facility has a large main lobby area, indoor pool/Jacuzzi/sauna,
lighted tennis court, 2-car garage, storage shed, ample parking, and all equipment
necessary for operation of the motel. The separate onsite manager residence and
meeting room complex will serve as a future lounge/grill space. The grounds are
beautifully landscaped.
The Hotel is situated on 9.43 beautifully landscaped, wooded acres. Approximately 7
of the 9.43 acres are wooded and undeveloped, which creates an opportunity for
significant expansion or potential for an entirely new enterprise.
This facility consists of one building, built in two phases: a 22- and 15-year-old twoand one- story wood frame 18-unit Hotel and manager's/owner's apartment, which
5

when combined, total approximately 14,787 square feet of living area. The 18-unit
hotel includes a lobby with a fireplace, reception area, storage area, laundry room,
bathroom, meeting rooms, a balcony, 18 room units, a men's and women's bathroom,
kitchen, a whirlpool/sauna room, an indoor swimming pool, and mechanical room.
The hotel has a partial basement and includes a laundry room with two washers and
two dryers.
The manager's apartment (future piano bar and basement bar/meeting room area)
offers a living room, kitchen, dining area, family room, half bath, and gift shop on the
first floor with 3 bedrooms and 2 baths on the second floor. The home has a concrete
block basement that is partially finished with a recreation room and a 3/4 bathroom.
The exterior is cedar and the roof is pitch and pebble. The building is seated on a
poured concrete and a concrete block foundation. Interior walls are concrete block
and drywall. The flooring is carpet and ceramic tile. There are casement windows and
wood storms and screens. There is a basement area under the living quarters and a
portion of the hotel.
Other improvements include a 2-car garage with 2 electric door openers. A detached
storage shed is located to the rear of the manager's apartment. Land improvements
include parking lot with 23 parking spaces, concrete sidewalks, a lighted tennis court,
street signage, and beautiful landscaping with a mature variety of trees and shrubs.
Mechanical systems include five gas hydropic, two gas forced air furnaces, electric
baseboard heat, individual heat, and central air for each unit; 120-gallon hot water
heater, 600-amp electrical service, intercom system, two central vacs, water softener,
sump pump, 4-camera security system, cable television, smoke alarms, and
telephone system.

Mission Statement
Porsalano, Inc.'s mission is to provide quality hospitality services to our guests in a
comprehensive and cost competitive manner, providing the finest accommodations
in Manali, India.

Company Business Plan Objective

This business plan serves to detail the direction, vision, and planning to achieve our
goal for providing superior and comprehensive hotel and lounge services. Our plan
objectives are:

Attract Rs. 3 Cr bridge loan to secure Rs. 10 Cr property mortgage

Focus ideas and establish goals

Identify and quantify long-term expansion

Track and direct growth

Create benchmarks for measuring success

Porsalano shall fill a niche not presently available, namely a moderately priced
(under Rs. 10,000per night, summer rate) resort. Combined with an on-site lounge,
a grilled food service, an indoor and outdoor pool bar, and a morning continental
breakfast offering, we shall differentiate ourselves by becoming a "boutique style"
resort versus simply another hotel. With the construction of an outdoor pool adjacent
to the present indoor pool/whirlpool/sauna complex and our other refurbishment
and new amenities, Porsalano will form the basis of a highly profitable venture set in
a Prairie Style environment.

COMPANY SUMMARY
Key Advisors to the Company
Porsalano, Inc. has additional key staff members and advisors to assist during the
development, planning, and initial planning phases. They include an architect
trained at the CEPT University, Ahmedabad, CPAs, and former managers of bar
and Bed and Breakfast style properties.
Management & Organizational Summary
The Medusa Group will manage all aspects of the business and service development
to ensure effective customer responsiveness. Qualified resort associate professionals
will provide additional support services. Support staff will be added as guest and/or
patron load factors mandate.

Corporate Development Plan

For purposes of this Business Plan document, Porsalano, Inc.Phase I and Phase II
for developmental growth are defined below:
Phase I
This phase involves preparation and development of Porsalano. Until the ideal
property is acquired, Porsalano, Inc. offices will be housed at Mumbai, India. The
property will establish its own Prairie Style identity, management directives, and
capital. Incorporating a total quality management approach and a guest appreciation
program, Porsalano will develop key repeat guests and lounge patrons. Through
word of mouth and advertising, our reputation as an affordable "boutique style"
resort shall grow.
Property renovation will include the makeover of 18 to 17 rooms (with 3 suites) and
the conversion of the present onsite property manager's house to lounge gathering
space. New construction includes a bar room addition, extra parking lot build-out,
and an outdoor pool. [Phase I capital (start-up) funds are documented later on in this
business plan.] It is anticipated that the funding and transfer of this property will
happen in early 2013.
Phase II
Continue implementation of sales, advertising, and marketing strategies developed
in Phase I. Identify and pursue additional guest markets, i.e. Internet room
guarantee services. Porsalano shall evaluate its room occupancy position to
determine if a facility expansion is warranted. Porsalano anticipates additional
support staff would be needed at the proper time (Phase II). This Plan does not
contain funding needs for this Phase.

HOTEL & LOUNGE OVERVIEW

Establishing a hotel and lounge business clientele will take some time, as the
research revealed word-of-mouth /recommendations /referrals and value as the
primary way in which hotel and lounge services are selected by new guests. People
who are completely new to the area, or who have few established connections, may
look to the Yellow Pages or other advertising and Social networking websites to
establish available services, then call for information or pricing.

Competitive Advantage
Currently, a mid-size "boutique" resort niche is vacant in the Manali market, with
present lodging on the high end, averaging Rs. 10,000 per night (and up) down to
older Hotel properties of Rs. 3,500 per night. Several B&B establishments may fall
into the middle, however, Porsalano, as a resort-style property, will serve its niche by
itself and cater to a customer oriented market.

Industry Keys to Success

1. A property designed for the guest and/or lounge patron
2. Frequent Guest Award Program
3. Controlled overhead and operational costs
4. Regular and ongoing guest feedback
5. Latest technology/software capacity
6. Weekend lounge (piano bar, dance floor) entertainment
7. Unique, timeless and comfortable environment
8. Dedicated management and associate support staff

10

MARKET ANALYSIS
Porsalano, Inc. like all businesses is affected by forces and trends in the market
environment. These include economic, geographical, competitive, legal/political, and
technical.

Economic Environment
Positive forces include the generally prosperous economy that is currently in place,
full employment, rising wages, and low inflation, leading more people to be able and
willing to spend money and to get away for some time. The close locality of Shimla
market is an affordable alternative to a flyaway destination.

Geographical/Competitive Environment
The area would have several golf courses, two ski hills, water recreation activities,
numerous dining establishments, various retail and specialty shops, art galleries,
theatre entertainment venues, and the beauty and serenity of Manali, India.
Porsalano shall fill a niche not presently available, namely a moderately priced
(under Rs. 10,000 per night), resort-type establishment. Combined with an on-site
lounge, a grilled food service, an indoor and outdoor pool bar, and a morning
continental breakfast offering, we shall differentiate ourselves by becoming a
"boutique style" resort versus simply another hotel.
Our Prairie Style surroundings will attract and retain guests who appreciate such
refined environments.

Legal/Political Environment
The MEDUSA Group management will not move the project forward until it has
obtained an option to acquire one of the Manali liquor licenses. As faced by all
businesses, the proper insurance needs shall be met and all operations and policy
manuals shall be reviewed by appropriate legal experts. The facility will obtain all the
necessary building permits prior to construction. Present facility zoning allows for
this proposed use, including a bar, cabaret, grill, and dance floor space.

11

Technology Environment
Computer programs greatly simplify the financial recordkeeping for today's
businesses. As a small business, Porsalano will need to watch its expenses closely. By
utilizing the existing software packages available in the hotel industry, including:
room and facility management database, controlled bar and inventory measuring
systems, and room key cards that allow patrons to charge directly to their room
account, this technology shall assist management in controlling costs, reducing cash
management, and maximizing revenue. The MEDUSA Group shall attract the
resources necessary to train and operate the system in order to generate the reports
and manage the inventory.

12

COMPETITIVE ENVIRONMENT
A listing of the hotel properties in Manali, India is as follows
- Holiday Inn (Rs 21,000 and above)
- Snow Valley Resort (9000 and above)
- Manali INN (16,000 and above)
- Manali Heights (13,000 and above)
- Manali Resorts (15,000 and above)

Bed & Breakfast (B&B)

Dahlia House
The Mixer House
Precious Times Inn
Hotel properties in adjacent communities are not listed, however, they do advertise
in the Yellow Pages and any other social media.
Porsalano hotel and lounge is attempting to carve out a fourth segment in the lodging
market; that of a "boutique" style, high-line property at mid-line pricing geared
towards adult couples and not marketed to families.
A review of competitors' marketing strategies reveals no one targeting this market
segment. Hotel and lounge is a referral-driven businessnew business can be
obtained by encouraging and rewarding present guests to refer future guests.
Networking within business and civic groups is important; even if the business
results are not immediately felt, it is an excellent public relations opportunity. Live
piano, or jazz style trio, on the weekends will add excitement to the resort and draw
community residents and guests from other properties.

13

Market Research
A hypothetical behavior sequence model for a new customer (future guest)
contemplating using a hotel and lounge service for the first time might look
something like the following (based on discussions and interviews with potential
guests):
Individual or couple decided to getaway for a few days. This may happen as a result
of a need for a change of pace, vacation, or a celebration purpose. The need can arise
anytime year round. Even in the late fall and winter months people are thinking
"getaway" to break the weather doldrums.
Individual or couple investigates hotel services. In most cases, this means they will
consider first any recommendations that they are knowledgeable of through prior
association (relative, friend, or social group). If the individual or couple is new to the
area or otherwise has not made any close connections with people, he/she would
look in the Yellow Pages for a listing, website or perhaps look in a newspaper for
advertising and in any social media.
Acting on the advice of friends (or own knowledge), the individual or couple will call
the recommended property to obtain information that will help him/her decide if
this place is the best for them. Criteria for selection include: (1) amenities (pool, onsite food service, non smoking rooms, bar lounge area, etc.); (2) reputation (what
kind of persons usually stay here?); (3) Physical plant (how recent the renovation,
upkeep, etc?); (4) courtesy (professional and attentive staff?); and (5) pricing (is the
place affordable?).
Based on the information received, the individual or couple makes a decision and
either schedules an appointment to view the property or makes a reservation.
The individual's satisfaction with his/her decision and with the service itself is largely
a function of their interaction with the staff during their stay. Everyone associated
with Porsalano will do everything possible to ensure a satisfactory experience for the
guest, so that future business (and a future referral) is not at risk.

14

Marketing strategies will build on this model, taking advantage of precipitating

events, fostering word-of-mouth recommendations, and creating satisfaction
through interacting with the future or present guests.

Summary of Opportunities and Threats in the Environment

Overall, the environment appears very positive for Porsalano, Inc. The forces driving
market demand, mainly economic and geographical, are strong, with more people
staying closer to home for shorter getaway trips and their comfort level of visiting
Manali, one of the North prime travel destinations. On the negative side, there is
competition, and it will take a while for Porsalano to get "established" in its market
niche.

15

STRATEGY & IMPLEMENTATION

The business is driven by referrals and repeat business, so for the first few years
Porsalano will need to be aggressive in attracting new guests. The marketing strategy
is subject to change upon guest feedback and surveys.

Marketing Strategies
Target MarketsGeographical: The major cities within a three-hour drive of the
property.

Target Markets - Consumer:

New visitors travelling to the area

Middle- and upper-income bracket

Returning visitors to the area

Businesses needing to hold small overnight planning and strategy sessions

Area wedding parties

Couples

16

Positioning and Product Strategy

For its guests, Porsalano will be positioned as a new, beautifully landscaped, naturefilled, unique atmosphere hotel with a bar lounge service that fits an adult "getaway"
market niche. A full range of referral services (i.e. restaurant recommendations,
shopping, taxis, area attractions) will be made available and tailored to the needs of
the particular guest.
Business services range from room phones that are Internet jack ready and telephone
answering message service for each room to on-site fax services and meeting room
space (lounge sitting area and cabaret room). Porsalano will aim to attract business
guests and their partners needing to hold planning or strategy sessions away from
the office in new and comfortable surroundings, in order to even out revenues
throughout the week.

Distribution Strategy
Unlike products that are produced, then distributed, and sold, hotel and lounge
services are produced and consumed simultaneously in a real-time environment.
Thus, distribution issues center on making the services available in a convenient
manner to the greatest number of potential guests. Porsalano will maintain a front
office staff member throughout the night so guests are able to get answers to any
question or service when they need it. This flexibility is especially attractive to the
business traveller. Clients will be able to contact Porsalano by telephone, fax, and email.

Pricing Strategy
Rooms per night fees have been developed. The fee schedule takes into account
seasonal rates that are common in the area. For businesses and other large group
functions, pricing can be discounted depending upon the number of rooms reserved.

17

Example lounge pricing and grill food offerings are also noted.
Example fees:
Room Fees
Winter Rates (November through April):
Regular Rooms

Rs10200

Suites

Rs18000

Summer Rates (May through October):

Regular Rooms

Rs12000

Suites

Rs24000

(Includes Continental Breakfast, use of indoor and outdoor pools, and exercise
equipment room.)
Telephone Rates (set at going company rate)
Hotel Safe Storage Fee (per day)

Rs600

Liquor and Drink Fees

(Sandwiches include fries, onion rings or chips.)
"Top Shelf" Brands

Rs2400-6000

Specialty Drinks

Rs1800-4800

Import Beers & Wine

rs700(beer)- 2400(wine)

Domestic Beers

Rs495

Draft Beer

Rs360

Juices, Bottled Water, and Soft Drinks

Rs240

Grill Menu
Rib-Eye Steak Sandwich

Rs499

Cheese Vegetable Grill Sandwich

Rs299

Burger (1/4 pound)

Rs149

Fried Cod Fish Sandwich

Rs399

Salads

Rs249-549

Chicken Tenders

Rs449-949
18

Cheese Sticks (with sauce)

Rs249

Service and Support Philosophy

By giving careful consideration to customer responsiveness, Porsalano's goal will be
to meet and exceed every service expectation of its hotel and lounge services. Our
guests can expect quality service and a total quality management (TQM) philosophy
throughout all levels of the staff.

PROMOTION STRATEGY
Promotion strategies will vary depending on the target market segments. Given the
importance of word-of-mouth referrals among all market segments when choosing a
"getaway" hotel or small business meeting location, our efforts are designed to create
awareness and build referrals. A cost-effective campaignfocused on direct
marketing, publicity, our frequent guest reward program, and advertisingis being
proposed.

19

Marketing Plan
New Business Segment
A direct marketing (direct mail) package consisting of a tri-fold brochure, letter of
introduction, and reply card will be sent to a list of potential guests. This list can be
obtained from Yellow pages and just Dial. The above will be compiled from tax
records (by upper-income geographical areas, Secretary of State Incorporation
registrations, business license applications, and announcements from newspaper
clippings).
The brochure and letter introduces Porsalano, stresses the importance of having a
good time in comfortable surroundings, provides information on our resort services,
and describes what sets us apart from other area hotel and lounge properties. The
initial mailing may contain a promotional offer: the opportunity to receive a 10%
discount on the first night's room rate.
Approximately two months after the mailing, an additional letter shall be sent. The
potential guest would be asked to address any questions and the follow-up would
remind them to drop in for a property tour on their next trip to Manali. Additionally,
new businesses will be targeted and sent information.
The cycle would repeat itself with new target communities and select businesses and
would continue through the first year. After that, additional mailings would be
conducted, as needed, based upon occupancy goals.
Porsalano, Inc. will also consider developing a one-page newsletter to be mailed
quarterly to past guests and prospects in the database. The newsletter can be used to
update clients on hotel and lounge and area-related developments, but also serves as
a reminder of what sets Porsalano apart. The newsletter can be produced in-house
and for the cost of paper and a stamp creates a lot of goodwill among guests and
business prospects.

20

Publicity and Public Relations

A news release will be sent to area newspapers and magazines announcing the launch
of Porsalano, Inc. and lounge. Area talent searches will be conducted to secure
weekend cabaret room entertainment.
The MEDUSA Group will join the Manali Chamber of Commerce as a means of
networking in the community. They will make themselves available for speaking
engagements at other community or civic organizations as a low-cost way of
increasing awareness and building goodwill in the community.

Guest Reward Programs

For present guests: "Stay 6 nights and get the seventh night for free" promotion and
as a means of building business by word-of-mouth, present customers should be
encouraged and rewarded for referring future guests. This can be accomplished by
offering a small "rebate" (5% or 10% rebate on first night stay) to current customers
who successfully refer a new guest.

Advertising
Advertising is utilized primarily to attract new guests and serves to build awareness
and name recognition of the resort in general, which is important for word-of-mouth
referrals ("Oh yes, I've seen that resort's ads before.")

Periodic advertising in target market area newspapers will afford Porsalano,

Inc. name recognition benefits. From quarter page ads announcing its
entertainment line-up to business card-sized logo ads.

Yellow PagesManali Telephone Directory. Research indicated that new

visitors or people who don't have many personal acquaintances to ask about
hotel and lounge services will look to the Yellow Pages to establish a list of
potential hotel and lounge services to call. Even a small 2" 2" boxed ad can
create awareness and attract the desired target client, above and beyond the
ability of a simple listing. Yellow Pages cover the relevant market area,
delivering over 30,000 copies to residents and business.

21

Telephone Book Cover. A business card-like ad on the plastic cover which is

placed over any telephone book enables the business name/logo to be seen
virtually 24 hours a day, 365 days a year. Covers are distributed bi-annually
free of charge to residents and businesses.

Restaurant PlacematsOpportunities exist for a business card-like ad to be

placed on the paper placemats used in area restaurants (shelf-life of the ad is
about six months), or for special (holiday) events taking place at a restaurant
(1-off opportunities).

Additional places to post flyers/business cards or for a business card ad

include bulletin boards in public buildings (grocery stores, senior centers),
and playbills for local theatre groups.

Along with the above, all the other social media.

Web Plan Summary:

The company is still in search for a Domain name and would like to have a
website name www.porsalona.in

The Website will be tracing all the visitors and would even be customer
friendly to use

It would also include Pre- Booking and all the ongoing offers during seasons.

Evaluation & Control Strategies

Objectives have been established for Porsalano so that actual performance can be
measured. Thus, at the end of its first year, Porsalano should have:

Rs. 3 Cr in total revenue

Anticipate 60% occupancy rating

Each subsequent year new objectives will be set for these benchmarks and actual
performance will be measured against them. If actual performance falls short of
objectives, investigation will be made into the cause, and plans will be adjusted
accordingly.
22

In addition, it is recommended that Porsalano keep track of the source of all new
guests ("Where did you hear of us?") in order to measure the effectiveness of each
type of promotion. Each subsequent year's budget should adjust spending toward the
types of promotion that reach the most new clients.
Customer satisfaction is most directly reflected in the year-to-year customer
retention percentage. All lost customers should be investigated to find out why they
left. A customer satisfaction survey may be considered after three to four years in the
business.

23

FINANCIAL PLAN
Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required

Rs92,70,000
Rs1,82,30,000
Rs2,75,00,000

Assets
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Total Assets

Rs1,75,00,000
Rs7,30,000
Rs7,30,000
Rs1,82,30,000

Liabilities and Capital

Liabilities
Current Borrowing
Long-term Liabilities
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Total Liabilities

Rs1,75,00,000
Rs1,75,00,000

Capital
Planned Investment
Marty Snyderman
Luke Roth
Additional Investment Requirement
Total Planned Investment

Rs50,00,000
Rs50,00,000
Rs1,00,00,000

Loss at Start-up (Start-up Expenses)

Total Capital

Rs92,70,000
Rs7,30,000

Total Capital and Liabilities

Total Funding

Rs1,82,30,000
Rs2,75,00,000

Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Rental Shop Setup
Property Down payment
Lodge Setup
Store Setup
Insurance
Total Start-up Expenses

Rs2,50,000
Rs20,000
Rs3,00,000
Rs25,00,000
Rs25,00,000
Rs10,00,000
Rs25,00,000
Rs2,00,000
Rs92,70,000

Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets

Rs7,30,000
Rs1,75,00,000
Rs1,82,30,000

Total Requirements

Rs2,75,00,000

24

Sales Forecast
Sales
Rooms
Food
Ski Rentals
Clothing
Total Sales
Direct Cost of Sales
Rooms
Food
Ski Rentals
Clothing
Subtotal Direct Cost of Sales

Year 1

Year 2

Year 3

Rs2,15,00,000
Rs60,50,000
Rs66,00,000
Rs29,00,000
Rs3,70,50,000

Rs2,80,00,000
Rs70,00,000
Rs72,50,000
Rs35,00,000
Rs4,57,50,000

Rs3,00,00,000
Rs90,00,000
Rs80,00,000
Rs41,00,000
Rs5,11,00,000

Year 1
Rs29,75,000
Rs11,85,000
$83,200

Year 2
Rs35,50,000
Rs15,00,000
$101,000

Year 3
Rs45,00,000
Rs19,00,000
Rs64,00,000

Year 1
Rs18,00,000
Rs21,00,000
Rs55,00,000
Rs19,50,000
Rs17,50,000
Rs24,00,000
Rs36,00,000
9

Year 2
Rs19,50,000
Rs22,50,000
Rs60,00,000
Rs21,50,000
Rs19,50,000
Rs26,00,000
Rs3800000
22

Year 3
Rs21,00,000
Rs24,00,000
Rs63,00,000
Rs23,00,000
Rs21,00,000
Rs27,50,000
Rs39,50,000
22

Rs1,91,00,000

Rs2,07,00,000

Rs2,19,00,000

Personnel Plan
Manager
Assistant Manager
Lodge Staff
Food Store Staff
Clothing Store Staff
Maintenance Staff
Cleaning Staff
Total People
Total Payroll

Pro Forma Profit and Loss

Year 1
Rs3,70,50,000
Rs41,60,000
Rs41,60,000

Year 2
Rs4,57,50,000
Rs50,50,000
Rs50,50,000

Year 3
Rs5,11,00,000
Rs64,00,000
Rs64,00,000

Gross Margin
Gross Margin %

Rs3,28,90,000
88.77%

Rs4,07,00,000
88.96%

Rs64,00,000
87.48%

Expenses
Payroll
Sales and Marketing and Other Expenses
Depreciation
Leased Equipment
Utilities
Insurance
Lease
Payroll Taxes
Other

Rs1,91,00,000
Rs30,00,000
Rs7,14,000
Rs13,00,000
Rs12,00,000
Rs28,65,000
-

Rs2,07,00,000
Rs40,00,000
Rs7,14,000
Rs13,00,000
Rs12,00,000
Rs31,05,000
$0

Rs2,19,00,000
Rs50,00,000
Rs7,14,000
Rs13,00,000
Rs12,00,000
Rs32,85,000
-

Total Operating Expenses

Rs2,81,79,000

Rs3,10,19,000

Rs3,33,99,000

Profit Before Interest and Taxes

EBITDA
Interest Expense
Taxes Incurred

Rs47,11,000
Rs54,25,000
Rs16,68,750
Rs9,12,700

Rs96,81,000
Rs1,03,95,000
Rs15,25,000
Rs24,19,800

Rs1,13,01,000
Rs1,20,15,000
Rs13,75,000
Rs29,77,800

Net Profit
Net Profit/Sales

Rs21,29,600
5.75%

Rs57,09,200
12.48%

Rs69,48,200
13.60%

Sales
Direct Cost of Sales
Other Production Expenses
Total Cost of Sales

25

Projected Balance Sheet

The following is the projected balance sheet for three years.
Table: Balance Sheet
Pro Forma Balance Sheet(Rs)
Year 1

Year 2

Year 3

1,571,850
7,00,000
22,71,850

59,27,750
16,00,000
75,27,750

82,79,200
26,50,000
1,09,29,200

1,75,00,000
7,14,000
1,67,86,000
1,90,57,850

1,85,00,000
14,28,000
1,70,72,000
245,99,750

215,00,000
21,42,000
1,93,58,000
3,02,87,200

Year 1

Year 2

Year 3

1,98,250
1,98,250

15,30,950
15,30,950

17,70,250
17,70,250

Long-term Liabilities
Total Liabilities

1,60,00,000
1,61,98,250

1,45,00,000
1,60,30,950

13,00,000
147,70,250

Paid-in Capital
Retained Earnings
Earnings
Total Capital
Total Liabilities and Capital

1,00,00,000
(92,70,000)
21,29,600
28,59,600
1,90,57,850

1,00,00,000
(71,40,450)
57,09,200
85,68,800
24,599,750

1,00,00,000
(14,31,250)
69,48,200
1,55,17,000
3,02,87,200

28,59,600

8,568,800

1,55,17,000

Assets
Current Assets
Cash
Other Current Assets
Total Current Assets
Long-term Assets
Long-term Assets
Accumulated Depreciation
Total Long-term Assets
Total Assets
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Subtotal Current Liabilities

Net Worth

Projected Cash Flow

Pro Forma Cash Flow(Rs)
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
New Current Borrowing
New Other Liabilities (interest-free)
New Long-term Liabilities
Sales of Other Current Assets
Sales of Long-term Assets

Year 1

Year 2

Year 3

3,70,50,000
3,70,50,000

4,57,50,000
4,57,50,000

5,11,00,000
5,11,00,000

26

New Investment Received

Subtotal Cash Received

3,70,50,000

4,57,50,000

5,11,00,000

Year 1

Year 2

Year 3

Expenditures from Operations

Cash Spending
Bill Payments
Subtotal Spent on Operations

1,91,00,000
1,49,08,150
3,40,08,150

2,07,00,000
1,72,94,100
3,79,94,100

2,19,00,000
2,12,98,550
4,31,98,550

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent

15,00,000
7,00,000
3,62,08,150

15,00,000
9,00,000
10,00,000
4,13,94,100

15,00,000
10,50,000
30,00,000
4,87,48,550

84,11,850
15,71,850

43,55,900
59,27,750

23,51,450
82,79,200

Expenditures

Net Cash Flow

Cash Balance

27

Financial Plan Assumptions

The following assumptions will be incorporated into Porsalano, Inc. proforma
statements.

All operating costs are based on Porsalano, Inc. management research of

similar operating companies.

Automated informational and bar control systems will reduce Porsalano, Inc.
staff requirements.

Developmental start-up costs are amortized over a five-year period.

Room Occupancy Rate at 60%.

Property manager are fixed salary expense basis.

All fixed and variable labour costs should rise annually at 2.5% per year.

All revenues are figured to rise annually at five percent. Fixed annual,
administrative, and office expenses rise at an annual rate of one half of one
percent.

28

Questionnaires
A. For families
Name: ________________________________________________
Age: ________ Sex: Male/Female
Occupation: ______________________________
Range of Annual income
Less than 6 Lacs

6 Lacs to 12 Lacs

12 Lacs to 36 Lacs

More than 36 Lacs

How frequently do you travel for vacations?
Rarely

Once a year

Twice a year

A Lot

(Please tick mark whichever is applicable for the following question)

1. What other amenities would you like the resort to provide?
Souvenir Shop

Spa

Game Parlor

Children Amusement

WiFi

Sight-seeing

Medical Practitioner

Park
Outdoor Games

2. Apart from the already served Indian, Chinese, Continental and Italian what other
cuisines would you like to be served at the restaurants?
Thai

Mughlai

Kids Special Menu

Mexican

African

Fast-Food

Mediterranean

29

(Please rate the following question from 1 to 5 with 1 being the least satisfied and 5
being very satisfied.)
1
3.

How would rate the location and

landscaping of the resort?

4.

How good you think are you with the

amenities provided for family and kids?

5.

How good are you with the room

services and facilities?

6.

How secure do you feel with the resort

security system?

7.

How would you rate our ease of

payment with respect to banking
facilities?

8. Would you like the resort to design a special packages/tours for a family of 2
Adults and 2 Children?
Yes

No

9. Would you like the resort to Plan Your Travel right from your home-station and
back?
Yes

No

30

B. For college students

Name: ________________________________________________
Age: ________ Sex: Male/Female
Education: ______________________________
How frequently do you travel for vacations?
Rarely

Once a year

Twice a year

A Lot

(Please tick mark whichever is applicable for the following question)

1. What other amenities would you like the resort to provide?
Gym

Spa

Game Parlor

Adventure Sports

Outdoor Games

WiFi

Sight-seeing

Medical practitioner

2. Apart from the already served Indian, Chinese, Continental and Italian what other
cuisines would you like to be served at the restaurants?
Thai

Mughlai

Burmese

Mediterranean

Mexican

African

Mongolian

(Please rate the following question from 1 to 5 with 1 being the least satisfied and 5
being very satisfied.)
1
3.

How would rate the location and

31

landscaping of the resort?

4.

How good is the theme and ambience of

the resort?

5.

How good is the room services and

facilities?

6.

How secure do you feel with the resort

security system?

7.

How would you rate our ease of

payment with respect to banking
facilities?

8. Would you like the resort to organize events, workshops and festivals?
Yes

No

9. Would you like the resort to Plan Your Travel right from your home-station and
back?
Yes

No

C. For professionals
Name: ________________________________________________
Age: ________ Sex: Male/Female
Occupation: ______________________________
Range of Annual income
Less than 6 Lacs

6 Lacs to 12 Lacs

12 Lacs to 36 Lacs
32

More than 36 Lacs

How frequently do you travel for office related work?
Rarely

Frequently

Often

A Lot

(Please tick mark whichever is applicable for the following question)

1. What other amenities would you like the resort to provide?
Gym

Spa

Welcome Kit

Exclusive events

Outdoor Games

WiFi

Sight-seeing

Medical practitioner

2. Apart from the already served Indian, Chinese, Continental and Italian what other
cuisines would you like to be served at the restaurants?
Thai

Mughlai

Burmese

Mexican

African

American

Mediterranean

(Please rate the following question from 1 to 5 with 1 being the least satisfied and 5
being very satisfied.)
1
3.

How would rate the location, ambience

and landscaping of the resort?

4.

How good you feel is the Conference

Hall and the facilities provided?

5.

How good you think is the room

33

services and facilities?

6.

How secure do you feel with the resort

security system?

7.

How would you rate our banking

facilities and ForEx Management?

8. Would you like the resort to organize professional events and workshops exclusive
for your organization?
Yes

No

9. Would you like the resort to Manage the Conference by providing an entire
package of logistics support, travel, stay and food?
Yes

No

Bibliography
http://www.foodandhospitalityworld.com/sections/mark
et-section/1338-v-resorts-plans-to-open-10-resorts-byyear-end

http://www.fortunehotels.in/resort/MussoorieFortune_The_Savoy/Guide.aspx

34

 http://india.businessesforsale.com/indian/search/Hotels
-for-sale

http://www.99acres.com/property-in-kulu-manali-ffid

http://manali.citrushotels.com/

http://www.tripadvisor.in/Hotel_Review-g297618d736513-Reviews-Citrus_Manali_ResortsManali_Himachal_Pradesh.html

35