Business Plan 2009

BreakFree Events Inc.

Business Plan 2009

Presented by:

Carmen Brown Robyn Evans Christie Thomson-Barks Brittany Walter

Mission Statement

• To offer and array of party and travel experiences, that are not currently available in Saskatoon, and build a strong brand image through continuous marketing and promotional activities.

Our Service

• Coordinate events for university students

• 6 Renovated busses for operation– 3 Former School Buses– 1 Shuttle Bus– 2 Greyhound / Coach Buses

Our Service

• Organized Pub Crawls• Personal Pub Crawls• Stampede Trips• Rider Trips• Ski Trips• Trips to Mexico

Our Market

• University Students– Aged 19 – 25

• With discretionary income• Focus on the opinion leaders

Promotion

• Direct Marketing– Sales Rep, Bus visibility

• Print Media– Sheaf

• Electronic Media– Our Website, Facebook, Twitter

• Merchandise– Swag

• Give Away Events– VIP Packages

Our Competition

• Organized Pub Crawls– No one in Saskatoon

• Personalized Pub Crawls– The Sutherland Hotel and bar, Ryly’s Club, The

Pat• Rider Trip

– No one in Saskatoon• Stampede Trips

– No one in Saskatoon• Ski Trips

– Alpine ski and sport club (U of S)• Mexico

– Travel Agents

Competitive Advantage

• Experience / Atmosphere– Guaranteed Young Group of people– Variety of unique events

• 6 Modern Party Busses– Liquor service our Shuttle busses

• BreakFree Hosts at all events

Behind the company

• 4 owners/managers– Master’s students ~ Future CA’s– Extensive experience in event planning

and logistics

• Support Staff– Bus Drivers– Hosts / Captains

Revenue Model

• To charge a premium price based on our unique experience offered

• Charge by person• Charge by event

Capital Budget

Type of Capital Expense Quantity Year 1 - Total Capital Cost

Year 3 - Total Capital Cost

Leasehold Improvements - building - 30,000.00 - Coach Bus - 58 passenger capacity (Used) - Restroom 2.00 302,000.00 - School Bus - 46 Passenger capacity (Used) 2.00 64,000.00 32,800.00 School Bus - 28 Passenger Capacity (Used) 1.00 9,500.00 - Shuttle Bus - 24 Passenger Capacity (Used) 1.00 31,000.00 - Bus Modifications:Coach Buses 50,000.00 - School Buses 75,000.00 25,000.00 Shuttle Bus 75,000.00 - Total 636,500.00 57,800.00

Capital Expenses

Profit Projections

2009 2010 2011 2012 2013 2014

Revenue 31 342 385 468 509 560 COGS 11 116 135 161 190 209 Gross Profit 20 226 250 307 320 352Operating Expenses 72 222 236 241 249 256Net Profit Before Tax (51) 5 14 66 71 96

(60,000)

(40,000)

(20,000)

-

20,000

40,000

60,000

80,000

100,000

2009 2010 2011 2012 2013 2014

Net Profit

Financial Model• Debt and Equity Financing• Debt to be paid off in 10 years.

Required Equity Investment 300,000 Assumed: Required Return for Investors 25%Assumed: Growth Rate of Company 5%NPV of Investment 98,831 Internal Rate of Return 29%

Analysis of Debt-Equity Financing (in '000's)2009 2010 2011 2012 2013 2014

Debt 388 340 336 282 228 174 Equity 300 300 300 300 300 300 Ratio 1.29 1.13 1.12 0.94 0.76 0.58

Business Plan 2009

BreakFree Events Inc.

QUESTIONS?

Presented by:

Carmen Brown Robyn Evans Christie Thomson-Barks Brittany Walter

Financial ModelSix Year Profit and Retained Earnings Projection 10%

BreakFree

2009 2010 2011 2012 2013 2014

RevenueOrganized pub crawls 6,000$ 21,000$ 24,000$ 27,000$ 30,000$ 33,000$ Personal pub crawl 1,500$ 21,500$ 24,725$ 28,434$ 32,699$ 35,969$ Rider Trip -$ 73,150$ 73,150$ 67,100$ 67,100$ 73,810$ Stampede Trip -$ 46,400$ 69,600$ 92,800$ 92,800$ 102,080$ Ski Trips 23,200$ 139,200$ 139,200$ 185,600$ 185,600$ 204,160$ Mexico -$ 40,500$ 54,000$ 67,500$ 101,250$ 111,375$ Revenue 30,700$ 341,750$ 384,675$ 468,434$ 509,449$ 560,394$

Cost of Services SoldOrganized pub crawls 1,044 3,654 4,176 4,698 5,220 5,742$ Personal pub crawl 522 7,830 9,005 10,355 11,908 13,099$ Rider Trip - 30,484 30,484 27,776 27,776 30,554$ Stampede Trip - 14,044 21,066 28,088 28,088 30,897$ Ski Trips 9,064 27,192 27,192 36,256 36,256 39,882$ Mexico - 32,340 42,840 54,180 80,430 88,473$

Gross Profit 20,070$ 226,206$ 249,913$ 307,081$ 319,770$ 351,747$

Financial ModelFive Year Marketing Cost ProjectionBreakFree

2009 2010 2011 2012 2013

Marketing CostsWebsite 3,000$ Signage 5,000$ -$ -$ -$ -$ Host Promotion 5,400$ 14,400$ 15,840$ 17,424$ 19,166$ Brochures / Flyer 500$ 1,000$ 1,000$ 1,000$ 1,000$ Radio Promotion 6,000$ 24,000$ 24,000$ 24,000$ 24,000$ Promotional Swag 2,000$ 5,000$ 5,000$ 5,000$ 5,000$

Marketing Cost - Total 21,900$ 44,400$ 45,840$ 47,424$ 49,166$