TRAVELING U.S. INC.
1500 Pepper Ridge
Haysville, KS 67060
Traveling U.S. Inc.'s business plan is unique, in that it is based upon the production, marketing and distribution of a completely new product, an automated travel information kiosk The business owners plan to capitalize on this need in the market. The owners present investors with a solid plan to fill this market need.
- EXECUTIVE SUMMARY
- MANAGEMENT
- MARKET ANALYSIS
- MARKETING STRATEGY
- FINANCIAL PROJECTIONS
Executive Summary
Introduction
This business plan is confidential and is used to introduce prospective investors to Traveling U.S. Inc. (The Company). The Company is in the process of developing David Ford's Travel Guides as a business opportunity and to expand the installation of its products and services throughout the United States.
It is The Company's goal to raise $3,500,000 in equity capital needed to further develop its prototype product, expand its marketing operations and penetrate the marketplace.
The Company owns all rights to its trademarks and the service marks. The Company will be responsible for the overall management of the production and marketing of the products and services, training and advertising coordination.
Statement of Purpose
Traveling U.S. Inc. is interested in developing David Ford's Travel Guides as a business opportunity and to expand the installation of its products and services throughout the United States.
The Company's mission is to open a network of salesmen (corporate and/or independent contractors) for the purpose of installing, and servicing the David Ford's Travel Guides. This will be accomplished in an atmosphere where the sales force will receive the ultimate in quality products and services. It is The Company's goal to revolutionize advertising in the motel, hotel and hospitality industry in the United States. The Company's expansion will eventually be worldwide. Management, services and cost controls will be keystones to The Company's success. The services will be provided by knowledgeable, well-trained management and support personnel.
The Company
The Company was founded by its President, David Ford, a consummate entrepreneur who combined his business management ability with his sales and marketing expertise to create David Ford's Travel Guides.
The Product
The products consist of a computerized Marquee prototype approximately four (4) feet wide by seven (7) feet tall which will be a free standing unit. The top half will contain ads that will be approximately four (4) inches by five (5) inches, allowing for fifty (50) advertisers. Advertisements will be on transparencies which will be back-lit with fluorescent lighting. Each grouping of advertisers will be color coded. A telephone will be on the base of the unit, hooked up to the advertisers via an automatic dialer allowing the user to be connected to the advertiser. The ads will put the advertiser's customer just a fingertip away from the products and services they need while traveling on business or pleasure. The Marquee advertisers may include: limousine services; pizza delivery; florists; car rentals; quick print shops; movies; theaters; dry cleaners; museums and other attractions.
A manufacturing agreement will be prepared by Traveling U.S. Inc. and Manufact U.S. Inc. (MUI), a Hutchinson, Kansas manufacturing company. Keith Wilson became President of MUI in 1985. MUI was organized in 1967 by Hungarian refugees as an FAA repair station which specialized in meter movements. In 1969, Jim and Kathy Wilson purchased the firm which, at that time, had 800 square feet of manufacturing space and three employees. Today, the plan consists of 15,500 square feet and has over 100 government contracts valued at over $1.5 million.
MUI is currently capable of delivering 42 units per month and has committed to do this beginning eight (8) weeks after approval of the prototype. Costs for the units are currently estimated to be $5000 each. When orders exceed MUI's current capacity it will increase its manufacturing capability accordingly.
The Company's Markets
The U.S. travel and hospitality industry consists predominantly of small businesses. It is a large and growing sector of the U.S. economy. According to the U.S. Travel Data Center's annual National Travel Survey, U.S. residents took 1.3 billion person-trips in 1991 (one person traveling 100 miles or more, one way, away from home in one day, or staying out of town one or more nights). The travel market in the U.S., including hotel and motel accommodations, amounted to over $327 billion in 1991. There are more than 28,000 lodging properties with 97 million hotel and motel rooms in the U.S. Although hotels and motels will be our initial marketing target, there are over 11,000 hospitals in the U.S. which can use David Ford's Travel Guides. Also the over 300 convention bureaus in the U.S. will be targeted. Other markets are being investigated.
With the increasing number of "economy" type motels and hotels (no frills, no restaurants, etc.), The Company envisions a booming market for its David Ford's Travel Guides.
The Company's Objectives
The Company's prime objectives are to establish and maintain its leadership in providing its clients quality products and services through a network of corporate and independent salesmen in order to quickly penetrate major markets in the U.S. Within two years, The Company's objectives are to go public and to provide a consistently high rate of return to its stockholder investors.
Short Term Objectives
- Develop a competitive Marquee prototype
- Study the potential U.S. market for Traveling U.S. Inc.
- Use select and discrete advertising to invite a qualified response
- Pre-qualify independent contractor and sales prospects
- Integrate independent contractors into the system
- Install 500 units in the first full year of operation
- Install 2500 units in second year of operation
- Install 3000 units in third year of operation
- Go public in the second or third year of operation
Long Term Objectives
- Pursue productive and profitable growth objectives
- Obtain prominent market position in the United States
- Place a minimum of 500 new units the first year
- Place 2500 new units the second year
- Place 3000 new units the third year
- Have a total of 6000 units operating by the end of the third year
- Obtain prominent market position worldwide
Strategy for Meeting the Competition
To our knowledge, only one other company currently offers a program similar to The Company's program. Although there is limited competition, it is accepted that once recognized for its profit potential, competition will be severe. It should be remembered that The Company has a leading management and marketing edge on current and future competition and has worked out many of the problems which future competition will have to face.
The strategy The Company employs for meeting the competition includes continuous research and development of product selection, marketing, and service.
Trademarks and Copyrights
The Company will register its Trademark with the U.S. Patent and Trademark Office (PTO).
The Company's Corporate Commitment
To implement market penetration throughout the United States, The Company has and is prepared to continue to invest the dollars and staff time required to develop its corporate expansion program.
Equity Financing
The Company plans to issue 15 million shares of stock. Its goal is to sell 7 million shares at fifty cents per share (.50) for the first raise to $3.5 million.
