MBA P - SECTION B

JumpStart Adventures
Final Project Entrepreneurship & SME
Management



Submitted To:
Mr. Faizan Khalid

Submitted By:
Muhammad Asad Bin Faruq
Affan Cheema
Furqan Basit
Hamza Ziad



9/20/2014





Table of Contents
Executive Summary ................................................................................................................. 1
Industry Analysis ....................................................................................................................... 2
Porters Five Forces Mode ...................................................................................................... 4
PEST Analysis .......................................................................................................................... 5
Political ............................................................................................................................... 5
Economic .......................................................................................................................... 5
Social .................................................................................................................................. 5
Technology ....................................................................................................................... 5
Market Analysis ........................................................................................................................ 6
Market Segmentation ......................................................................................................... 6
Target Market Selection ...................................................................................................... 6
Competitor Analysis ................................................................................................................ 8
Competitive Analysis Grid .................................................................................................. 8
Marketing Plan ......................................................................................................................... 9
Business Name .................................................................................................................. 9
Mission Statement ............................................................................................................ 9
Unique Selling Proposition ................................................................................................... 9
Marketing Mix ....................................................................................................................... 9
1. Product/Service ........................................................................................................ 9
2. Price ............................................................................................................................ 9
3. Placement ............................................................................................................... 10
4. Promotion ................................................................................................................. 10
Management Team and Company Structure .................................................................. 11
Management Team .......................................................................................................... 11
Company Structure ............................................................................................................... 11
Organogram .......................................................................................................................... 12
Roles and Responsibilities ..................................................................................................... 12
CEO and Director Operations .......................................................................................... 12
Chief Financial Officer ...................................................................................................... 12
Chief Marketing Officer .................................................................................................... 12
Chief HR & Admin Officer ................................................................................................. 12
Senior Trainer....................................................................................................................... 13
Training & Activity Coordinator .................................................................................... 13
Senior Accountant ......................................................................................................... 13
Marketing Executive ...................................................................................................... 13
Admin Executive ............................................................................................................ 13
Operations Plan ..................................................................................................................... 14
Purchasing and Warehousing Bungee Equipment ....................................................... 14
Conducting Events ............................................................................................................ 14
Operations at the event ................................................................................................... 14
Conducting the jump ........................................................................................................ 15
Financials ................................................................................................................................ 16
Required Equipment:......................................................................................................... 16
Cords and Accessories .................................................................................................. 16
Rigging Gear ................................................................................................................... 16
Jumper Equipment......................................................................................................... 16
Rescue / Safety Equipment .......................................................................................... 16
Utility Equipment ............................................................................................................. 17
Cost of Land .................................................................................................................... 17
Expense Assumptions ........................................................................................................ 18
Year 1 ............................................................................................................................... 18
Year 2 ............................................................................................................................... 18
Year 3 ............................................................................................................................... 18
Revenue Assumptions ....................................................................................................... 19
Projected Income Statement .............................................................................................. 19
Assets ................................................................................................................................... 20
Liabilities .............................................................................................................................. 20
Critical Risks ............................................................................................................................ 21
Conclusion .............................................................................................................................. 21





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Executive Summary
This business plan is about starting a bungee jumping business in Pakistan that will be
named JumpStart Adventures. The plan has been made keeping in consideration
the population of this nation and its increasing demand for adventure sports. This
plan also keeps in view the current social, economic and political turmoil its going
through. The entirety of the plan covers an industry analysis that caters to the current
situation of the adventure sports industry, and the Porters five forces that govern it.
The plan further caters to a complete market analysis analyzes our target market,
then a complete marketing plan that would promote our business. After that there is
a completely defined organizational structure with clearly identified roles and
responsibilities of the staff and management. Further into the document there is a
complete operations plan which states how the business would run. Then of course is
the financials, which gives the reader a complete 360 degree analysis on what
would be the startup capital, yearly expenses and forecasted yearly revenues for
three years. The end of the business plan states the critical risks this business can run
into and the conclusion on how viable this business is.

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Industry Analysis
The adventure sports industry of Pakistan is at its very initial stage and is proving to be
an extremely lucrative business opportunity. This industry is actually a subset of an
even larger Tourism industry which is currently in shambles due to our political,
economic and security issues. Over the span of 10 years, the adventure sports
industry has somehow shown a burst of new upcoming small businesses that provide
services such as trekking, rock-climbing, cave diving, and more recently scuba
diving and snorkeling in fresh waters in Islamabad and Karachi. This is mostly
because the demand for something new has arisen. The beautiful northern areas of
Pakistan have lost on its huge potential for tourism because of increasing security
concerns and the currently on going military operation in Waziristan that has caused
the terrorist to flee towards other provinces including FATA, KPK and further northern
areas. Before such conditions, the Northern Areas were the best place to have an
adventurous trip. But due to the current situation of Pakistan, a completely new
demand has arisen among the adventure seeking. That is, an interest in adventure
sports. People want to feel the thrill of adventure but in close proximity and security
of their homes. This is why the whole adventure club phenomenon has begun.
The services included in these clubs vary and are based on where their organization
is located. Adventure clubs based from Islamabad offer services like paragliding, cliff
diving, rock climbing, trekking and extreme trekking trips such as trek to K2
Basecamp. They also offer leisure trips to the north towards the safer regions and
these are the substitutes to the adventure sports or extreme activities. Now,
adventure clubs based out of Karachi have different services. Since the city is
connected with the Arabian Sea, they have beautiful coastlines with gorgeous
beaches, so they offer water sports such as jet skiing, Banana boat rides, ocean
swimming, fishing, snorkeling etc. Most adventure clubs, foundations or academies
as some proclaim to be are very small, unregistered and have close knitted
operations and organization structure. Most of these are operated out of Facebook
pages or websites with no actual offices. Only some of the very old travelling
companies that arranged domestic leisure trips have started providing adventure
sports activities in their packages, and have actual brick and mortar offices.
Since we are providing water sports activities and operating out of Karachi, our main
competition will be from that region. Currently Karachi has numerous players in this
business, new and old. The old and larger clubs offer huts for night stay, boats and
party yachts for long ocean excursions. These clubs have high initial capital with
costly operations. Karachi Beach Huts is an example which offers similar services that
are mentioned earlier. On the other hand is EMAC, a fairly new entrant in this
market, an adventure club based out of Islamabad, has recently initiated its services
in Karachi as well, and these services are no different than any other local
adventure club. They are offering jet skiing, fishing and scuba diving. Some these
clubs are specialized and offer activities related to one category such as the Gliding
Club only offers activities related to gliding i.e. Paragliding, Hang Gliding, and

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motorized gliding through trained pilots. Other clubs on the other hand have a
varied list of activities.
Another thing that is worth noticing that most of clubs dont have a base of
operations, they have regional offices, which operate all over Pakistan. Their
coordinators will find suitable locations for activities all over Pakistan, ranging from
Karachi to Khanpur Dam to Hunza valley, for activities such as rock climbing and
paragliding. This increases costs for out of city customers and makes it hard to
organize and manage the organizations operations.
Some of our direct competitors offering waters ports are:
1. Karachi Beach Huts
2. Adventure Water Sports Pakistan
3. Karachi Water Sports Club
4. EMAC
5. Far Adventures
They offer water sports such as banana boating, wake boarding, speed boat rides,
jet skiing and stationary parasailing.
Other indirect competitors include:
1. The Ultimate Adventure Club Ltd.
2. The Adventure Club
3. SAAP Adventures (15 years old)
4. The Adventure club
5. Falcon Adventure Club
6. Alpine club of Pakistan
7. Adventure Pakistan
8. Adventure Foundation Pakistan
Most of them are based out of Islamabad and Lahore, and offer services including
Rock Climbing, Paragliding, extreme trekking and camping etc.
Now, judging by this industry analysis and the trends, we can safely assume that
there is a good underserved market for bungee jumping that we can cater too. To
further assess the industrys attractiveness we will apply the Porters Five Forces
model. Height


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Porters Five Forces Mode

HIGH
Rivalry Amongst Exisitng Firms
The adventure sports industry is
constantly growing and we have seen
a recent burst in upcoming adventure
companies. This increase has caused
an intensity in rivalry and we have
seen price wars that could effect our
business although they are our
indirect competitors not direct.
HIGH
Threat of New Entrants
A major hiccup in this business is the startup cost.
Bungee jumpong requires huge costs that can prove
to be a barrier, but most established tourism and
adventure sports companies can easily bear that cost
and enter into this market, once they can analyze that
this is a viable business.
HIGH
Bargaining Power of Supplier
Since there is no local manufacturer or
supplier of bungee equipment, we
would be heavily dependant upon
imported goods. Plus, the custom
platform that needs to be build will
also require specialized contruction
service which would prove to be very
expensive.
LOW
Threat of Substitues
There is no alternative to our service and only one
substitue for expeiencing free fall and that is cliff
diving, Even that has limitations and one cannot cliff
dive from the heights that you can bungee jump .
LOW
Bargaining Power of Buyer
Since there is no current alternattive to
our service. In our situation, we are the
only ones providin g a unique service
that no one else is providing, and we
have the first mover advantage, so we
can easily set the price.

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PEST Analysis
Political
Pakistans political situation is in shambles right now. The current government is
threatened by other political parties to step down because they are claiming that the
current government has been elected through rigged elections. On the basis of these
allegations, political parties have started protests throughout the nation and mainly in
the capital city of Islamabad. Due to these protests local businesses have suffered
consistent inoperability leading to losses. Situation in Karachi is also affected as most of
the people, or some of our potential customers are taking part in these protests and are
not available for taking part in activities that we are providing.
Economic
Since the protests and the inoperability of businesses, economic activity has suffered a
huge blow. Adventure sports are putting their services on hold due to unavailability of
potential clientele or they themselves are taking part in these protests. Some have
postponed their services because of the increasing security risks. Construction rates
have sky rocketed due to the inflation increase and the overall price hike in raw
materials that is used in construction.
Social
The social situation of Karachi does somehow works in our favor. The service that we
provide hardly takes an hour or two out of a persons life. Given the current working
conditions of office going people, they do need a break to let go of everything and
enjoy. There are few entertainment venues that provide services in Karachi that may
provide high satisfaction in such less time. We on the other hand provide exactly that.
Another plus factor is that Karachi people are more adventure seeking as we have
noticed and increasing trend of Karachites travelling to places like Islamabad or the
northern areas to take part in extreme adventure seeking activities.
Technology
Technology everywhere has an upward trend. We are now seeing more advance
architectural designs for buildings and this gives us great relief that making a bungee
jumping setup is now possible in Pakistan. We have noticed increased safety
precautions in entertainment venues such as on the beach with state of the art
equipment. The technology present in Pakistan is now more than capable of setting up
our bungee jumping venture; it will be expensive but possible.


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Market Analysis
Market Segmentation
We have divided the market into subsets of customers with common needs or
characteristics.
We identified the groups of customers in the market that are similar enough that the
same product/service will appeal to them.
Based on the customers whom we intend to serve, we segmented the market on the
following bases:

Target Market Selection
Segmentation Base Selected Variable
Age 25-35 years
Income 100,000 - 200,000 PKR
VALS Experiencers


Age
Income
VALS (Values and Lifestyles)

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While selecting the Target Market for our business, we considered the following criteria:

1. Identifiable:
We ensured that the basis of segmentation could easily be identified and understood.
2. Sizeable:
Despite catering the needs of a niche market, we ensured that our customer base was
large enough to be profitable.
3. Stable:
We made sure that our target market did not comprise of people wo were falling fads.
This is important because fads are not long lasting and therefore, future positive cash
flows cannot be guaranteed. The usage pattern of our Target Market is fairly
predictable because the love for thrill is instinctively built in adventure seeking people.
4. Accessible:
We made sure that our Target market can be reached in an economical way. For
example, we can easily touch them through AdWords and AdSense. Also, digital
marketing via a Facebook page can also be done.
5. Congruent with the Companys Resources:
Even if preceding four criteria are met, our companys resources would be limited. So
we ensured that our Target Market is large enough to be profitable yet small enough for
our resources.
Identifiable
Aligned with
the
company's
objectives
Accessible Stable
Sizeable

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Competitor Analysis
The sources of our Competitive Intelligence are:
Studied competitors web sites
Interviews with customers about what motivated them to take services of our
competitors
Competitive Analysis Grid
Competitor Price Thrill Repute Accessibility
EMAC Disadvantage Advantage Disadvantage Advantage
Ultimate
Adventure Club
Disadvantage Advantage Even Advantage

Adventure Club
Pakistan
Disadvantage Advantage Disadvantage Even

Far Adventure
Club
Disadvantage Advantage Even Even

None
Direct
Competitors
EMAC
Adventure Club
Pakistan
Ultimate
Adventure Club
Indirect
Competitors
Far Adventure Club
Future
Competitors

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Marketing Plan
Our Marketing Plan focuses on how we will market and sell our services.
Business Name
JumpStart Adventures
Mission Statement
To give our customers an unforgettable adrenaline filled experience that no other
activity with utmost safety.
Unique Selling Proposition
Safety
Many people like to see people jump off a cliff, battle with raging waves or but they
would never experience free fall themselves. Why? The biggest barrier to this is the
question: Is it safe?
Our adventure club not only offers certified and experienced trainers but also the safest
gear.
Marketing Mix
1. Product/Service
We will market our services by highlighting the benefits of using them rather than their
features. The write-up we have designed for the promotion of our service is:
JumpStart provides an exhilarating adrenaline rush that no other activity can compare
to. JumpStart gives thrill seekers an unforgettable experience of freefall of 200ft (60
meters)!
Whether you jump on your own or in tandem, we will give you an unforgettable
experience. All JumpStart crew are highly trained and complete regular refresher
courses through an independent trainer
Come experience what thousands of jumpers each year find as a thrill of a lifetime!
2. Price
Looking at our projected financials, we have decided a price 7,000 PKR/jump. The
niche Target Market which we have chosen is not price sensitive and has good
purchasing power so this price is justified.

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3. Placement
We are going to make our office and bungee jump platform on Karachi beach. This is
because it is close to the posh areas such as DHA and sea view where most of our
Target Market is located. Also, open natural location is ideal for such activities.
4. Promotion
We would be using digital marketing for the promotion of our business. We will have an
online booking facility on our website. Our Customer Service Officer will be available
over the phone and at our site office.
Since we are going to be the first ones to offer this service in Pakistan, we are expecting
slow sales at the start. To counter this, we would share testimonials from people who
have tried bungee jumping before.





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Management Team and Company Structure
Management Team
1. Affan Cheema
CEO and Director Operations
Affan is an electrical engineer with 10 years of practical experience in the power
industry. He enjoys adventure sports and is a self-proclaimed adrenaline junky
who loves pushing the limits of anything. This venture is very close to him as he
craves that such activities should be present in Pakistan.
2. Furqan Basit
Chief Financial Officer
With over 15 years of experience in investment banking, Furqan is the best there
is in analyzing and source funding for new promising business ventures.
3. M. Asad Bin Faruq
Chief Marketing Officer
Asad has 8 years of marketing experience and has helped numerous companies
achieve leading roles in their respective industries by providing them with great
strategic marketing plans. Also a huge fan of adventure sports and wants to start
a new era for the adventure seeking in Pakistan.
4. Hamza Ziad
Chief HR & Admin Officer
An industry veteran, Hamza has over 10 years of professional experience in the
field of human resourcing. He has a very keen eye for finding the right people for
the right business.
Company Structure
Our company structure would be of a Private limited company according to the
Companies Ordinance 1984, with ownership divided equally among the four Chief
Officers. Registration of our business is extremely importance as it will help us in getting
startup loans from banks or venture capitalists and the lease/rent of the land that we
plan to operate on.


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Organogram

Roles and Responsibilities
CEO and Director Operations
He will be heading and managing the entire operations of this company.
Chief Financial Officer
He will be managing all the inflows and outflows of cash and keeping our expenses in
check.
Chief Marketing Officer
He will be responsible for the entire marketing strategy and promotion of our company.
Chief HR & Admin Officer
His responsibility would be to bring in top quality human resources that would actively
benefit the company.
JumpStart
Advenutres
Pvt Ltd.
CEO and
Director
Operations
Senior
Trainer
Training &
Activity
Coordinator
Training &
Activity
Coordinator
Chief
Financial
Office
Senior
Accountant
Chief
Marketing
Officer
Marketing
Executive
Chief HR &
Admin Officer
Admin
Executive
Tea/Office
Boy
Security
Guard
Security
Guard

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Senior Trainer
The trainers responsibility would be to train Training and Activity Coordinators on how
to operate and setup bungee equipment. He will also train them on how to conduct
bungee events.
Training & Activity Coordinator
Their responsibility would be to manage and organize customers. They will help
customers wear the bungee gear and assist them throughout the activity.
Senior Accountant
His responsibility would include receiving and keeping a transparent record of all the
payments that are received from the customers and to track all the expenses the
company would bear.
Marketing Executive
His responsibility would include publicizing and promotion of events through all
available channels that is social media, radio, and print media and bring in customers.
(TVCs will be exploited in the future because of their high costs).
Admin Executive
His responsibilities will include procurement of bungee equipment and managing all the
issues related to our office from handling stationery to managing office/tea boys.
Office / Tea Boy
The office boy will be responsible for assisting the employees with everything they
require, from bringing them lunch to making them tea.
Security Guard:
The security guard will be responsible for the security of the office premises and the
grounds. The two security guards will work in shifts, Morning and evening.


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Operations Plan
Purchasing and Warehousing Bungee Equipment
Bungee jumping equipment will be purchased from international vendors with
warranties and safety certifications. Purchasing will include the following steps:
1. Find the best vendors certified vendors.
2. Get quotations of the equipment you require.
3. Select the one with best price.
4. Get approval from senior management.
5. Place order after approval.
All equipment will be placed in our dedicated store room present in our office space.
Conducting Events
All events will require a lead time of three weeks. There will be a limited number of
customers per event so that everything could be easily managed under high scrutiny of
safety trainers for diminishing safety concerns. Events will be conducted and organized
in the following steps:
1. Publication of event on Radio, Social Media and print media prior 3 weeks to the
event.
2. Two weeks will be allotted for booking your place at the event.
3. 25 % advance payment (refundable) will be required for advance booking.
4. On the spot passes will only be provided if there is availability and on premium
price.
5. Once booked, all confirmed participants will be emailed a printable pass with
their entry code, timing and location prior 1 week of the event.
6. All equipment will be checked for proper functionality and safety prior 1 day to
the event.
Operations at the event
Once all the participants arrive at the location following should be conducted in that
order:
1. The participants will be obligated to sit through a safety brief which would be
delivered by our Senior Trainer.
2. It will be followed by a brief on the activity itself and how it would be
conducted.
3. Participants will be asked to tell whether they have the following conditions:

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a. High Blood Pressure
b. Heart Conditions
c. Pregnancy
d. Dislocations
If the participant has any of these they will not be allowed to participate. These
questions will also be in the signup form for this activity.
4. Then they will sign an affidavit that in case of any mishap the company will not
be liable for any loss.
5. Once we are done, participant can either volunteer to go first we can ballot
their names out.
Conducting the jump
The following steps should be followed when conducting the jump in the designated
order:
1. Participant will be geared up by the coordinator
2. Senior Trainer will check whether the participant is properly geared up for the
jump. He will also make sure the gear being used is properly functioning and
nothing is amiss with it.
3. Participant is ready for the jump.
Throughout the event, a designated camera man will be taking high dentition pictures
of the whole event and the participant.


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Financials
Required Equipment:
Cords and Accessories
SR.No. Equipment Name Quantity Cost ($)
1 Bungee Cords (45-70KG) 1 969.71
2 Bungee Cords (71-90KG) 1 1006.11
3 Bungee Cords (91-115KG) 1 1051.57
4 Cord Protective Cover 3 656.67
5 Bungee Cord Bumper Pads 3 537.00
6 Bungee Cord Storage Bag 3 225.00
Total Cost 4446.06 USD
Rigging Gear
SR.No. Equipment Name Quantity Cost ($)
1 Peguet P160GS Screw Link 1 40.80
2 SMC 21001 Steel Carabiner 4 136.80
3 SMC 18505 Aluminum Carabiner 2 42.00
4 SMC 18501 Aluminum Carabiner 8 129.60
5 SMC 18504 Aluminum Carabiner 2 42.00
6 SMC 17001 Non-Locking Aluminum Carabiner 6 61.12
Total Cost 452.32

Jumper Equipment
SR. No. Equipment Name Quantity Cost ($)
1 Ankle Harnesses 2 390.00
2 Ankle Harnesses Safety Line 2 34.00
3 Singing Rock Worker Seat Harness 2 271.90
4 Petzl Voltige Chest Harness 1 56.95
5 JT Helmet 1 49.99
Total Cost 802.84
Rescue / Safety Equipment
SR. No. Equipment Name Quantity Cost ($)
1 PMI 04053 Rappelling Gloves 2 56.00
2 Rock n Rescue Pickoff Strap 1 31.25
3 CMI SRACK 2B Brake Rack 1 100.65
4 Petzl B17W Ascender 1 79.95
5 Petzl Pantin Foot Ascender 1 74.95
6 Rescue Hook Knife 2 120.00

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7 PMI Rescue Rope (200ft) 1 259.00
8 Rock n Rescue Rope and Equipment Bag 1 102.75
9 High Fall Safety Air Mattress / 100 1 10,400.00
Total Cost 11,224.55
Utility Equipment
SR. No. Equipment Name Quantity Cost ($)
1 Continuous Loop Slings 24 (61m) 6 42.60
2 Nylon Tubular Webbing 100 ft (30m) 1 108.50
3 Rock n Rescue Utility Pads 3 60.00
4 Rock n Rescue Equipment Bag 1 110.00
Total Cost 321.10
Total cost of bungee equipment is USD 17,246.87/-
Total of one time cost of equipment for a 30M Crane Setup with
earth base is PKR 1,759,181/-*
Cost of Land
Size: 4 Canals commercial property near the coast of Karachi DHA Phase 8
Land will be rented at Rs. 150,000/- per month.
Initial Deposit:
Security: Rs. 200,000/-
Advance: Rs. 400,000/-
Assuming Total Cost of Construction: Rs. 10,000,000/-

Initial Total Cost of Land & Construction
Rs 1,600,000/-
Total Startup Cost = Cost of Equipment + Cost of Land + Cost of Construction + Expenses
= 1,759,181 + 600,000 + 10,000,000 + 3,972,000
Total Startup Cost = Rs. 16,331,181/-

*1 USD = 102.63 PKR


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Expense Assumptions
Year 1
1. Salaries Expense Year 1:
a. Senior Trainer: Rs. 45,000/-
b. 2 Training & Activity Coordinator: Rs. 15,000/- each
c. Senior Accountant: Rs. 20,000/-
d. Marketing Executive: Rs. 20,000/-
e. Admin Executive: Rs. 20,000/-
f. Office / Tea Boy: Rs. 8,000/-
g. 2 Security Guards: Rs. 8,000/- each
Total Monthly Salary expense: Rs. 151,000/-
Total Yearly Salary expense: 151,000 x 12 = Rs. 1,812,000/-
2. Monthly Rent Expense: Rs. 500,000/-
a. Yearly Rent Expense: 500,000 x 12 = Rs. 6,000,000/-
3. Monthly Operating (Admin) Expense: Rs. 10,000/
a. Yearly Operating (Admin) Expense: 10,000 x 12 = Rs. 120,000/-
4. Monthly Marketing Expense: Rs. 20,000/-
a. Yearly Marketing Expense: 20,000 x 12 = Rs. 240,000/-

Total Expenses Year 1 are Rs. 5,052,000/-
Year 2
Assuming 10% overall increase
Total Expenses Year 2 are Rs. 5,557,200/-
Year 3
Assuming 10% overall increase
Total Expenses Year 3 are Rs. 4,369,200/-




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Revenue Assumptions
1. Monthly Sales Year 1:
a. 5 Bungee jumping events per month
b. 25 people per event
c. No. of Monthly Customers would be: 25 x 5 = 100; Customers per year: 100
x 12= 1,200
d. Ticket Price per customer: Rs. 7000/-
e. Per Month Revenue: 7000 x 100 = Rs. 700,000/-
Revenue Year 1: 700,000 x 12 = Rs. 8,400,000/-
2. Assuming an overall 25 % increase in customer base per year
a. Year 2 Customers: 1,500
b. Ticket price (inflation check): Rs. 7,800
Year 2 Revenue: 7800 x 1500 = Rs. 11,700,000/-
3. Assuming an overall 25 % increase in customer base per year
a. Year 2 Customers: 1,875
b. Ticket price (inflation check): Rs. 8,200
Year 3 Revenue: 8200 x 1875 = Rs. 15,375,000
Projected Income Statement
Profit and Loss Projection (3 Years)
JumpStart Adventures All values are in PKR 000s
2015 2016 2017

Sales PKR 8,400 PKR 11,700 PKR 15,375
Gross Profit PKR 8,400 PKR 11,700 PKR 15,375

Operating Expenses
Salary PKR 1,812 PKR 1,993 PKR 2,193
Rent 6,000 6,600 7,260
Admin 1,200 1,320 1,452
Marketing 240 264 290
Total Expenses PKR 9,252 PKR 10,177 PKR 11,195

Net Profit Before Tax (852) 1,523 4,180
Income Taxes - 228.42 627.01
Net Profit After Tax (852) 1,294 3,553


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Assets
1. Bungee Equipment
2. Bungee Platform
Liabilities
1. Salaries Accrued
2. Accrued Rent
3. Accounts Payable (If Any)
4. Tax Payable
5. Debt (Long Term Loans from banks)


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Critical Risks
Following could be the critical risks of our business:
1. The most critical risk would be of a mishap. Despite all of the safety checks and
guarantees, one cannot foresee and avoid the Act of God. If any accident
occurs due to equipment failure or human negligence, it would mean a death
of a participant. This would seriously hurt our companies image and the
customers would lose trust in our service
Conclusion
As it is clearly depicted by the P&L statement we can easily achieve profitability by the
second year in operation. By this we can conclude that at no significant growth after
2017, this business will manage to earn PKR 17.1 Million* by 2022 and will cover its startup
costs by 2021.













Notes:
*Revenue of 2017 x 5 years = 3,553,000*5 = Rs. 17,765,340/-

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References:
http://www.kt8merch.com/store/pages/adventureclub
http://en.wikipedia.org/wiki/Dangerous_Sports_Club
http://prezi.com/pox2lw4fq2f-/what-are-the-different-types-of-material-used-in-
bungee-cords/
http://normandierentals.com/normandy-activities/bungee-jumping-from-the-
souleuvre-viaduct/
http://en.wikipedia.org/wiki/Bungee_jumping
http://www.adrenalindreams.com/PDF/Bungee_Equipment_Crane_30M_Earth_B
ase.pdf
http://www.startupbizhub.com/starting-your-own-bungee-jumping-business.html