Today, the franchise is one of the most effective business development strategies that allows you to start your own business with minor financial investments. This format is also applicable to the tourism sector. However, before taking the first steps in business development, a thorough analysis is necessary. That is, you need to make a detailed business plan of the travel agency with calculations. What it is, we tell you point by point in this article.
Where to begin?
A business plan is a detailed description of your project, including calculations and forecasts for the coming months and years. The document plays a key role in attracting potential investors, applying to the bank for a loan, interacting with partners, intermediaries and the team. It also serves as a guideline for you as the initiator of the project.
The business plan of a travel agency in Kazakhstan, as a rule, is developed with a perspective for three to five years ahead. But, given the rapid change in economic conditions, it can also be made for a shorter period, for example, for a year.
The main goal is to convince potential partners that the project represents an investment value and is able to recoup the invested funds and efforts.
What items must be included in the travel agency’s business plan?
When developing a business plan for a travel agency, it is important that it contains the following key elements:
Estimation of initial expenses
Describe the financing plan, include an audit and a list of start-up activities for a more accurate cost estimate. This item also includes current (often unforeseen) expenses and additional activities presented in the cost table. Accounting for unforeseen expenses is based on the similar experience of other enterprises in your business area.
Forecast of income and expenses for the first year
The business plan for opening a travel agency in Kazakhstan should contain a sales forecast and their cost for the first twelve months. It is important to assess future income and expenses based on the data obtained during the initial marketing plan.
Forecast for the next 3 years
Taking into account the growth of inflation, the future increase in prices for tangible assets and the forecast of an increase in the customer base are all mandatory items. It is also necessary to create a strategic plan to combat potential risks.
Cash flow forecast
This part includes an assessment of the required capital at the start and monthly operating expenses. Allocation of a reserve to cover risky events and identification of sources of financing. Calculating the point of self-sufficiency of a business based on real data.
Break-even point analysis
This item contains a calculation of the sales volume required to cover all monthly financial expenses. It is also important to estimate the break-even point and apply it for each month of the first year and quarterly for subsequent ones.
These points of the business plan will ensure the completeness and accuracy of the analysis necessary to attract investors and ensure a successful start of the tourism business.