Business Plan 1

Business Plan: DanAir Flight Service

Daniel Whitford

Brandman University

DanAir Flight Service

1234 Airport Way

AeroCity, Washington, 98332

Phone: (360) 867-5309

E‐Mail: scenicairflight.com

Business Plan 2

I. Table of Contents

I. Table of Contents……………………………………………….…………………….2

II. Executive Summary………………….……………………………………………….3

III. General Company Description……………………………….……………………….6

IV. Services……………………………………………………………………………….9

V. Marketing Plan…………………………………...………………………………….10

VI. Operational Plan……………………………………………...……………………...16

VII. Management and Organization…………………….………………………………..18

VIII. Startup Expenses and Capitalization……………………………..…..……………..22

IX. Financial Plan…………………………………………………………...……….….29

X. Appendices………………………………………………….………………..……..36

XI. Alternative Strategy……………………….………………………………………..37

Business Plan 3

II. Executive Summary

DanAir, founded in 2012 is an aerial sightseeing business providing scenic flights over city,

island, and mountainous landscapes. DanAir’s principal office and flight origination is located in

Aero City, Washington.

Business Service

Provides three daily sightseeing packages offering the following services:

Package A: 30-minute flight to interest points over Aero City.

Package B: 60-minute flight to include package A plus island hopping.

Package C: 80-minute flight to include both A/B packages plus Mt. Baker fly-by.

Presently, DanAir is in the mature stage, with aerial routes established in northwest Washington

State. DanAir competes primarily based on frequency of packages offered. Our plans include

maintaining a 3-year period of stable growth.

The Market

Our market is centered on Canadian tourists, primarily males 35-55, who are well educated with

higher than normal incomes. The total market size was approximately 2.4 million Canadian

tourists visiting Aero City in the summer of 2012, a 4 percent increase from 2011. In identifying

our demographic, we believe we can capture 0.1% of that market size which will satisfy

breakeven analyses and cash flow projections.

Business Plan 4

Competition

DanAir competes directly with BLI Flight Services and WestAir. Alternatives to the service

include Hasselgrave Bus Tours and Washington State Ferry system. Our service is unique

because of our scheduled air packages. DanAir has a competitive advantage because no other

aerial service currently offers scheduled tour routes. DanAir does not anticipate new companies

to enter this market.

Risk/Opportunity

The greatest internal and external risks associated with DanAir today are the intangible factors of

sole proprietorship, and the possibility of incumbent price wars and matching services. Daniel

Curtis believes he can overcome these risks because of the identified demographic, maturity of

established routes, and newness of service. DanAir’s biggest recognized opportunities include

published aerial flights to fit a variety sightseeing tastes and budgets not currently available.

Management

The management and operator is Daniel Curtis who founded the company in 2012. With a

wealth of flying experience in the area, a Master’s degree in Aeronautical Science and an MBA,

DanAir is well positioned for operational and business success.

Operations

The only office is located at the home of Daniel Curtis. He currently performs all reservations

and related administrative tasks, while outsourcing the rental of aircraft and meeting clients at

the local airport. DanAir’s total full time staff during the tourist season is one person.

Business Plan 5

Capital Requirements

Daniel Curtis is seeking $71,410, which will enable him to commence start-up activities in

November 2012 through August 2013. These funds will finance the seasonal requirements of

aircraft rental, advertising, computer/IT, POS, and other new breakeven entrant costs. DanAir

does not expect to provide a dividend of excess profits, recapitalization, sale of company, or

public offering.

Financial Snapshot

DanAir projects first year sales of $89,700, and net income of $20,290.

2013 2014 2015

Units sold for package “A” 390 390 390

Sub-total ($) 11,700 11,700 11,700

Units sold for package “B” 130 130 130

Sub-total ($) 7,800 7,800 7,800

Units sold for package “C” 780 780 780

Sub-total ($) 70,200 70,200 70,200

Total Revenues ($) 89,700 89,700 89,700

Business Plan 6

III. General Company Description

Noted by Berk & DeMarzo (2011), a sole proprietorship “is a business owned and run by

one person” (p. 3). DanAir solely operated and piloted by Dan Whitford, is an airplane operating

business, which is focused upon bringing the freedom and wonder of flight to sightseeing

enthusiasts in the sky. This operation, utilizing one small Cessna-172 type aircraft shall embark

during daylight hours, up to three passengers on daily regularly scheduled flights from AeroCity,

Washington, flying over designated sightseeing spots and attractions, returning to the same

airport. The aircraft chosen for this business will be a Cessna-172Skylane, capable of 145-knot

cruise speed, a range of over 900 nautical miles, incurring an approximate operating cost

(fuel/maintenance) of $149 per flying hour (Cessna Corporation, 2012). As the sole proprietor of

DanAir, the pilot is fully licensed and current in all Federal Aviation Administration (FAA)

regulations and guidelines to operate a Cessna Skylane.

Although not all-inclusive, the target market for DanAir is those customers seeking a

different perspective, approximately 3,000 feet above the natural beauty of the western sections

Pacific Northwest. Operating over selected features of northwest Washington State, DanAir

sightseeing shall include small islands, mountainsides, and farmlands. Targeted demographics

for this service are photojournalists and tourists from Canada. In gaining a knowledge on how to

gain a customer Marcus (2011), noted “there are significant differences in customer wants and

needs based on age, income, gender, and so on”, further, “a firm may use its data to figure out

which groups of customers are profitable and which are not” (p. 192). In utilizing data available

through business prospectus and public records of other competitors, DanAir may pinpoint these

data as a useful tool to separate blocks of potential customers from non-customers. Additionally,

through contact information from various flying associations, aircraft rental companies, and

Business Plan 7

impromptu canvassing of similar sightseeing companies, DanAir can solicit opinion, generate

warm call contacts, and begin to place its brand to game-players in the industry and therefore

advertise its services as economical as possible.

Currently, there are two similar sightseeing flight services local at the airport in the

medium sized city of Aero City Washington, population 60,000 (DEX , 2012). These flight

services differ from DanAir size of aircraft, frequency of flights, non-published scenic routes,

and stop at other airports. DanAir offers smaller aircraft for only 2 to 3 passengers, has a

published scenic air route, operates on a daily basis, and returns to the same airport without any

stops during the trip. In addition, the competition generally offers its services only on sunny

weekends. Historically, the industry of scenic air travel in western Washington State is often

limited due to cloudy inclement weather, which substantially hampers business between October

through March. Industry and historical precedent suggest a typical flight pattern of cityscapes,

rural farmland, and lakes during peak hours of daylight, particularly in the summer months.

DanAir expands that model with distinctive packages tailored to those traditional sightseeing

spots often sought from raw data forecasting models.

The principle motivation for DanAir’s entrance into existing market of aerial sightseeing

rests upon several factors. Noted in Harvard Business Essentials (2004), “most of us are

motivated by intrinsic rewards; interesting, challenging work and the opportunity to achieve and

grow into greater responsibility” (p. 134). This valuable intrinsic state of interesting and

challenging work form the basis of why DanAir is in existence, and is interlaced with its mission

and values; the love and science of flight coupled with visually stimulating sights above the

ground. Noted further, “these intrinsic factors answer people’s deep-seated need for growth and

achievement” (Harvard Business Essentials, 2004, pp. 134-135). This deep-seated need for

Business Plan 8

achievement sprung from many hours of flight training and years of perfecting the craft, and the

excitement of aerial flight.

Mission and Vision Statement

“…DanAir’s mission is to maximize company profit by providing a stunning and unique

perspective of the natural beauty of the Pacific Northwest that is not normally found at ground

level. Designed for sightseeing enthusiasts and photo adventurers seeking to re-discover an

alternative perception in imagination, DanAir’s vision is to provide its customers with a

distinctive ever-changing topside view of islands, hilltops, mountains and other notable

characteristics of the local area…”

Noted by Russo (2010), a mission-driven company seeks to “simultaneously meet profit

goals that reflect the values of its owners” (p. 5). The values of DanAir exist for customers to

appreciate the love and science of flight, and to experience the freedom of blue-sky perspectives.

In order to achieve both a values based organization and profit motive for DanAir, targeted

customers sought include those who share this admiration of flight. Explained by Russo (2010),

values “constitute an organizational infrastructure that gives a company its distinctive character

and ethos” (p. 78). The values and vision of freedom of flight, the excitement of flying above

ground, and the possibility of rekindled imagination are at the heart of DanAir. The vision,

explained by Marcus (2011) is “where they would like to go and what they would like to be good

at in the future to achieve a comparative advantage” (p. 185). In selecting a vision linked with

the value of love of flight, DanAir’s philosophy will be matched with its mission in providing the

passion of its customers in seeking the distinctivness of aerial sightseeing.

Business Plan 9

IV. Services Offered

Noted by Marcus (2011), “superior information is the basis for meeting customer needs

effectively” (p. 190).The service provided by DanAir’s forecasting model is premised on past

experience with friends and colleagues, word of mouth (WOM) aerial flight attractions, and

traditional local area interest points not typically flown by competitors. Based on these data,

DanAir will provide three separate packaged flights, offering specific aerial flights depending

upon customer interest. Due to operating only in sunny weather, DanAir guarantees that all

attractions listed in the packages will be visible, with an ample amount of photo opportunities.

These packages, known as “A, “B”, “C” simply fulfill the following services of DanAir.

Package “A”: *30 minute flight from Aero City Washington to interest points over the city of

AeroCity and farmlands and rivers to the east of the city.

Package “B”:*60 minute flight from Aero City Washington to interest points noted in Package

“A” plus hilltop and small island views to the west of the city.

Package “C”: *80 minute flight from Aero City Washington to interest points noted in Packages

“A” and “B”, plus a fly-by to Mount Baker. *all flight times are approximate.

By intertwining a new venture to success and commitment, Marcus (2011) noted,

“propelled by increases in sales, new ideas are supposed to evolve through stages of introduction,

growth, and maturity” (p. 152). DanAir’s initial existence is to heighten the brand’s awareness

through its targeted customers of photojournalists and those seeking alternative sightseeing

services. The growth and maturity of DanAir is dependent upon factors such as increased

awareness of company brand, high demand from targeted customers who value the aspect of love

of flight, and customer interest from indirect, non-traditional customers, often found from other

Business Plan 10

sightseeing sources that cannot be fulfilled (bus, train, auto). Along with a mission centered on

the love of flight, and a value system that is predicated on a customer base who maintains the

same admiration, the reputation of DanAir’s ability to deliver a quality service is too paramount.

Noted by Chen &Krakovsky (2010), “reputation builds trust, helping people determine how

trustworthy their would-be trading partners are” (p. 120). In trading compensation for a quality

service, it is hoped that DanAir delivers what is expected from a customer, as well as making a

profit for increased upward mobility and future expansion.

V. Marketing Plan

DanAir Industry Breakdown:

Currently, there are five sightseeing companies in the region, broken down by bus, ferry,

and air services (Town of AeroCity, 2012). With the exception of the island ferry system, all

services in the local industry offer similar packages as DanAir. The industry is further broken

down by direct competitors of DanAir consisting of two existing air sightseeing rivals which are

engaged in “repeated and regular moves against each other”, additionally, as a new entrant,

DanAir must “estimate the extent to which the incumbents will retaliate” (Marcus, 2011, pp. 27-

28).

Changing Their Services:

Several sightseeing companies have made efforts to change their services in hopes of

capturing a larger Canadian tourist and local leisure market share. The firms began expanding

their services with increased tourist area visit frequencies and larger capacity modes of travel.

Hasselgrave Bus Tour has modernized its bus fleet to incorporate both a visual and video

Business Plan 11

representation, and WestAir Flight Service, a direct competitor, had recently increased the

capacity of their aircraft to accommodate larger group of customers.

Key Market Statistics:

Key players are:

Tourists from Canada seeking sightseeing services

Leisure customers from the local area

Customers from Hasselgrave Bus Tours

Customers from WestAir Flight Services

Tourists travelling on the Washington State Ferry system

DanAir Related Statistics and Facts:

With a varied and competitive market, DanAir will thrive by advertising and finding a

niche in the large Canadian tourist industry. The current goal is to provide a new and fun

exploration of the local area.

DanAir, as a new sightseeing entrant, has a competitive advantage because other existing

rivals do not provide the target market with aerial access identified in DanAir service

packages. This will give DanAir a great advantage in providing a service that is currently

unavailable to Canadian tourist and local leisure enthusiasts.

There is a demand in the current target market because the Canadian aerial tourist market

has not been developed utilizing published aerial routes.

Business Plan 12

As a new company, DanAir will have to face certain barriers for entry. Noted by Marcus

(2011), “some incumbents lash out at new entrants with price wars that dissuade potential

entrants from moving into the industry” (p. 28). Since DanAir’s is targeting a niche

market, competition and a flattening of sales are potential concerns for the future.

Service

The services that DanAir offers are focused upon bringing the freedom and wonder of flight to

sightseeing enthusiasts. Tours packaged to particular tastes, customers may choose sightseeing

services ranging from cityscapes, islands, hilltops, and mountain areas.

Features and Benefits

DanAir is the exclusive provider of non-stop aerial sightseeing in the local area.

DanAir provides the sole flight sightseeing service with published flight schedule.

Customers

The targeted markets are tourists from Canada and leisure sightseers from the local region. This

demographic may not be concerned with weekend timeframes, yet places a premium on the

value of this service.

Demographic profile:

According to U.S. Department of Commerce statistics, nearly 9 million Canadian visitors

have visited the United States in 2012, a four percent increase from 2011. Canada also

represents the largest generator of tourists visiting the U.S. among 20 other nations (U.S.

Deparment of Commerce, 2012). Current customer demographic profile for DanAir:

Business Plan 13

Age: The average age of a Canadian tourist visiting the local area is 49. The age group

35-65 represented 76% of Canadian travelers visiting Washington State. In 1970, the

median age of the population was 28, in 2050 it will be 38 (Marcus, 2011).

Location: 30 minutes from the Canadian province of British Columbia

Tourist income level: Average annual income is $55,000 per year.

Leisure expenditure: Canadians spend $181 per person per trip, $369 per party per trip

with an average party size 2.04.

Education: On average, Canadian tourists have completed some post-secondary

education.

Other: Sixty one percent of overnight Canadian trips to Washington were made for

pleasure or recreation purposes.

Other: Vacations remain the most frequently reported trip purpose among Canadian

travelers to Washington, followed by visiting friends and relatives.

(University of Minnesota, 2012) (Washington State Department of Community,

2007).

Competition

Leading Air Sightseeing Services  Customers

Rank 2010 2011 %change1 WestAir Flights 2,177 1,955 12.72 BLI Flight Service 1,855 1,804 73.2

Business Plan 14

Competitive Analysis

FACTOR DanAir Competitor: WestAir

Competitor:BLI

Competitor: Analysis

Importance to

Customer

Service Weakness Strength StrengthEstablished

Niche5

Price Strength Weakness Weakness Higher priced 2

Quality Weakness Strength Strength Larger aircraft 4

Selection Strength Weakness WeaknessNon-established

routes5

Service Weakness Strength StrengthStops at other

airports5

Reliability Strength Weakness WeaknessWeekend

operation only5

Stability Weakness Strength StrengthEstablished in

area2

Expertise Weakness Strength Strength More pilots 4

Company Reputation

Weakness Strength StrengthCertified by local BBB

5

Advertising Weakness Strength StrengthEstablished

Website/Airport presence

5

Image Weakness Strength StrengthReferred by

other customers5

Promotion

The overall concept and design of DanAir sets the stage for its promotion. Marketing will stress

the fun you can have with us as the distinctiveness and quality of tours sets us apart from the rest.

Strong public relations combined with well-placed, well-designed, and distinctive advertising

will appeal directly to people who are our prospective customers, Specific Marketing:

Business Plan 15

Web page based promotions

Targeted print media in free trade, pilot and tourist magazines

Networking through a membership with region’s Business Association

Networking through alliances with area Chambers’ of Commerce

Networking social events with fellow pilots, friends and competitors

Attend Vancouver trade shows that cater to targeted demographics and lifestyles

Post locally produced flyers on public bulletin boards in areas near DanAir’s airport,

tourist hot spots, and Canadian border entry points

Network through participation with Aircraft Owners and Pilots Association (AOPA)

Establish a repeat customer database and incentive program for return and new customers

Business Plan 16

Pricing:

As a Follower in the aerial sightseeing business, DanAir’s pricing is determined by our

direct competition, fair profit margin, and perceived value to the customer (Wasserman, 2009).

The competition’s price of aerial sightseeing ranges between $80-150 per person depending on

length of flight and destination. By setting our price at the level based on the individual cost of

selected packages, we can appeal to the budget conscious traveler as well as those in which price

is not an option. With a potential market of over 2.4 million people per year, we are basing our

first year figures on servicing 1,500 customers per year or less than 0.1% of the potential tourist

and local leisure residents in the area (Tourism Vancouver, 2012). DanAir will rent aircraft for

its services at a rate of $85 per hour, therefore the profit margin will range from 52% for package

A, to 66% for package C. *based on a capacity of three customers per trip.

Package A: $30 per person/Package B: $60 per person/Package C: $90 per person. These

prices are within the noted $181 per tourist leisure dollar spent in AeroCity.

Proposed Location

DanAir services are provided at the same airport as other flight sightseeing firms,

therefore is able to observe their operations and take advantage of the advertising coattails of the

leading two competitors. Web based operations and telephone reservations will be conducted

from home, with no need for space leasing options at the airport. Customers simply meet a

DanAir representative in the General Aviation section of the airport at the reserved scheduled

published time.

VI. Operational Plan/Business Objectives

Business Plan 17

DanAir’s daily operation will consist of two blocked published timeframes during the

day, one in the morning and one in the afternoon, March through August. Between the hours of

8am through 11am and 2pm through 5pm, DanAir will provide reserved customers a choice

among packages (A/B/C).

Created services

In an effort to understand the supply chain process of ideation to recycle, Dr. Helen

Eckmann noted, “who will manufacture, ship, package the new product or service” (nd).

As a business owned and run by one person, DanAir will coordinate all web and

telephone reservation requests, aircraft rentals, schedules, and operate the aircraft during

the published timeframes.

Quality control will consist of customer quality questionnaires and room for

improvement/suggestion forms in order to gauge the attractiveness of future DanAir

services.

Customer service will consist of meeting customer expectations by providing a unique and

comfortable sightseeing experience while maintaining initial lower flight costs.

Inventory control: DanAir will lease its aircraft during sightseeing operations and will

maintain lower overhead controls by scheduling services and making reservations from

home.

Business Objectives

Expansion

Business Plan 18

Noted by (Russo, 2010), “growth all too often comes with problems” (p. 96). With that

reference in mind, DanAir plans to maintain current its aircraft rental agreement, flight

schedules, and sole proprietorship status for minimum of three years.

Alliance Goals

Noted by Marcus (2011), “companies change position via mergers, acquisitions,

divestitures, and alliances” (p. 6). DanAir does not plan to change its initial position of

providing scheduled packages and blocked two a day timeframes within the next three years.

Operation rollout

Promotional strategy outlined in the marketing section will commence December 2012

through April 2013, with reservations being accepted after the first of the year. Anticipate full

flight schedule operation to commence March through August 2013, the traditional end of tourist

season.

Revenue Projection

2013 2014 2015

Units sold for package “A” 390 390 390

Sub-total ($) 11,700 11,700 11,700

Units sold for package “B” 130 130 130

Sub-total ($) 7,800 7,800 7,800

Units sold for package “C” 780 780 780

Business Plan 19

Sub-total ($) 70,200 70,200 70,200

Total Revenues ($) 89,700 89,700 89,700

VII. Management and Organization

The management and day-to-day structure of DanAir will be organized by the owner

Daniel Curtis, with no other employees or outsourced services, except rental of the sightseeing

aircraft, which will be provided by a competitor, BLI Flight Service. With no immediate plans

of expansion or other personnel intervention, the business and management lifecycle of DanAir

will utilize the exclusive decision-making authority of the owner.

This lifecycle, constructed within an organizational development structure, will utilize a

short-term startup stage, applied to build a clientele base and weather volatile aspects of

traditional startup issues. Secondly, the predictability phase, used as a catalyst in sustaining what

was built and learned within the startup stage, and finally the declining phase of the business,

seen as an overall and gradual ending to DanAir (Eckmann, Dr. Helen, nd). Included as a part of

the process are capital for marketing, website upkeep, reservation database, operation of leased

aircraft, and other incidentals.

The overriding strength of DanAir is the operational portion of the owner’s 20 years of

experience in flying the published aerial routes offered in DanAir packages. Daniel Curtis, who

holds a Master of Aeronautical Science degree from Embry-Riddle Aeronautical University, is

fully certified by the FAA to operate the three passenger Cessna Skylark aircraft. Daniel also

anticipates completing a Master of Business degree from Brandman University by December

2012, and is gaining a business-like acumen in financial planning and reporting, data analysis,

Business Plan 20

and organizational dynamics. Coupled with the operational experience and his advanced

business knowledge, Daniel is well positioned as sole proprietor of DanAir.

DanAir’s leadership structure is modeled on an organic management contingency theory

and less on a mechanical, hierarchical and centralized organizational standard, such as Daniels’

initial flight training school. Admired for its less ridged approach, culture of inclusion, and high

value to the love of flight, DanAir is loosely modeled within this standard. Explained by Marcus

(2011), an organic management contingency model is based where “employee motivation is less

dependent on economic rewards; it arises from employees’ sense of belonging and their

identification with the organization’s mission and values” (p. 56). Additionally, the ethical

standard of DanAir recognizes is a value system of love and excitement of flight and sharing it

with those who appreciate an alternate sightseeing experience. DanAir’s ethical structure is

constructed on fairness of and value of services rendered at a competitive price.

Backup plan

As a potential weakness of the business, there are no contingencies or back-up plans in

the event of not being able to provide DanAir services. If reservations were accepted,

customers will receive their money back due to sickness, weather, other limiting factor,

or default of business, which prevents the scheduled tour to occur. Customers, at their

own discretion may reschedule a flight for a later date with no penalty. In the case of

foreseeable default or bankruptcy of DanAir, future reservations will cease to be made

and all monies owed to customers for services not rendered will be returned.

Outsourcing

Business Plan 21

The aircraft provided by DanAir will be outsourced utilizing rented equipment from a

competitor, BLI Flight Services, piloted by Daniel Curtis. By renting an aircraft at a flat

rate, mirroring the standard contractual agreement of renting a car, all damage insurance,

aircraft storage fees, mechanical and preventive maintenance shall be borne by BLI

Flight services, which is included as part of the rental fee.

Professional and Advisory Support

Legal advice will be provided by the owner’s personal attorney Liz Curtis free of charge.

She will also assist in document preparation, such as state tax registration, general

business license approval, occupational permit, business entry registration, business

insurance forms, EIN identification, and annual federal income tax withholding

preparation (U.S. Department of Labor, 2012).

QuickBooks Pro 2012 software accounting program will be installed to assist DanAir in

monitoring transactional invoices, billing, excel customer worksheet information,

receipts, and industry-specific report templates.

Banking will consist of a standard small business checking account, maintaining a

minimum balance of $1500, monthly maintenance fee of $8.00, with 250 deposit and

debit transactions free each month (Peoples Bank, 2012). First through third year DanAir

revenue forecast is projected to sustain $7,475 average per month.

Mentors and key advisors consist of DanAir’s personal attorney, aerial sightseeing

colleagues and pilots from other competitors, and friends within the airport community

and its hierarchy.

DanAir Organizational Chart

Business Plan 22

Job Description: Proprietor

Responsible for marketing, reservations, aircraft scheduling and availability, customer

database entry, billing, accounting, piloting packages per customer request, collecting payment

and distributing applicable aircraft rental fees of DanAir. Additionally, responsible for timely

submission and updating of various federal, state documentation, as well as consulting with an

attorney in all aspects of DanAir business documents, licensing and permit updating,

supplemental insurance, tax forms and deadlines, and other duties required.

VIII. Startup Expenses and Capitalization

Elements of a business plan consist of several major sections, included among general

company description, products and services, and marketing, a crucial component of the plan is its

financial factors. Stated as a principal factor, Entrepreneur magazine, noted the importance of

the “capital needed to start a business and expand” (nd). Entrepreneur (nd) also emphasized key

Business Plan 23

areas in administrative, advertising, and other expenses for a start-up firm to capitalize upon and

further mitigate the historical risks associated with a start-up organization.

DanAir Start-up expenses:

Business Permits/Licenses: DanAir is required to obtain an initial Washington State

Seller of Travel License, at a cost of $217.00. In addition, a $15.00 processing fee for a

state business license is also required (Washington State, 2012).

Aircraft rental: DanAir will rent aircraft from an on-site competitor for the duration of

the summer tourist season. Anticipate a monthly rental schedule to commence May

2013. The hourly flat rate of rental is $85.00 per flying hour. Operating 6 hours a day

five times a week, totals $10,200.00 for a 20-day monthly schedule (BLI Flight Services,

2012).

Information Technology (IT): It is essential that a fully integrated and functioning

computer hardware and software system support expected larger storage capacities of

customer databases, billing information, and marketing initiatives. An IT consultant will

analyze current home hardware wiring elements and software information capacity.

Cost: $600.00 (Beit Consulting, 2012).

Computer security Software: Update home computer security system with an emphasis

on protecting valuable customer data information. Cost: $125.00 (AVG Internet

Security, 2012).

Computer/Printer: A separate and dedicated and computer and printer system is required

to store personal customer information and to print advertisements, flyers, brochures, and

correspondence for DanAir. Cost: $1,429.00 (Dell Computers, 2012).

Business Plan 24

Accounting software: An essential accounting system such as QuickBooks 2012 will be

installed to assist in monitoring billing, transactional invoices, excel customer data

worksheet information, receipts, and industry specific report templates. Cost: $232.00

(Amazon, 2012).

Federal Aviation Administration (FAA) Medical License: Explained by the federal

aviation governing body, a civilian pilot “must hold at least a third-class medical

certificate—when exercising the privileges of a private pilot certificate” (Federal

Aviation Administration, 2012). Current medical certificate expires December 2012.

Cost: $250.00 (Federal Aviation Administration, 2012).

Banking Fees: A requirement for DanAir financial transactions is the establishment of a

small business checking account, and the ability to debit and deposit cash or credit.

Minimum monthly amount required is $1500.00 plus $8.00 monthly fee. Cost: $1508.00

(Peoples Bank, 2012).

Legal Fees: Required assistance in document preparation for business insurance forms,

Employer Identification Number, federal income tax withholding forms. Estimated Cost:

$55.00. Preparation assisted by Liz Whitford, DanAir personal attorney.

Business Organization fees: Recurring annual membership dues in Aircraft Owners and

Pilots Association, (AOPA), Whatcom County business association, and the Chamber of

Commerce. Networking with fellow pilots and businesses in the local area essential.

Cost: $100.00.

Telephone expansion: A dedicated telephone line and number for exclusive use of

DanAir will provide uninterrupted and professional assistance to its customers. Three

Business Plan 25

hundred minutes per month with service to DanAir targeted Canadian customers are

included. Cost: $33.00 (Vonage, 2012).

DanAir Logo design: DanAir will utilize a distinctive logo design to advertise and

attract customers to its brand services, and capture wide recognition from business cards,

stationery and DanAir polo shirts. Cost: $1199.00 (Logobee, 2012).

Postage: Anticipate mailing 511 business letters detailing DanAir operations December

through January to those customers in higher income Canadian neighborhoods, local

businesses that cater to tourist, travel and tourism associations, and statewide

competitors, prior to tourist season which begins in May. Cost: $225.00 (Stamps.com,

2012).

Brochures: As a requirement to reach as many targeted customers as possible, 500 tri-

fold brochures, utilizing Logo Bee’s design and locally developed literature on DanAir

facts and services will be placed (with permission) in tourist hotspots in the city, hotels,

as well as the local airport and Canadian border outlet stores. Cost: $186.00 (Vista Print,

2012).

Flyers: Locally produced handouts with DanAir logo, website, phone number and

services provided will be placed on bulletin boards at the local airport, train depot, ferry

station for arriving Canadian visitors, the local university, and the local outlet store,

which caters to Canadian shoppers. Estimated cost: $150.00.

Travel expenses: An essential element in garnering DanAir customers is face-to-face

contact and networking with like businesses and organizations. Trade shows, business

luncheons, and AOPA meetings often require attendance to validate any meaningful

Business Plan 26

network and business card contacts. Anticipated fuel and auto maintenance costs for

regional business travel expenses from November through February, $500.00.

Website development: As a requirement to broadly advertise and establish the DanAir

brand and keep pace with local competitors, a user-friendly website will be launched in

November 2012 to assist those seeking additional information on DanAir Packages,

pricing, and scheduling times. Information on this website will be available through

Word of Mouth (WOM) interactions at business meetings and trade shows, mailers and

flyers, and carefully placed DanAir brochures. Cost: $635.00 (WebcreationsUS, 2012).

Business Cards: A requirement at trade shows, meetings, business networking, and other

professional social events, business cards provide a snapshot of information necessary to

build a client and industry-networking database. Cost: $60.00 for 4,000 cards (Vista

Print, 2012).

Flight documents/equipment: Standard pilot items used by competitors needed for flight

are updated area charts, aircraft performance checklists, headset, and pilot log.

Anticipated cost: $100.00.

Trade show events: Entrance fees for pilot seminars and conferences, aircraft

symposiums, airport-sponsored events are a requirement for effective networking with

like industry professionals in the aerial sightseeing business. Traditionally held January

through March, these events are widely advertised and attended by competitors prior to

the start of the summer tourist seasons. Anticipated costs: $150.00.

DanAir shirts: To present a professional appearance while meeting customers at the

airport for flight, trade show events, local business and tourism association meetings,

Business Plan 27

DanAir will purchase 10 Khaki colored Arrow Classic Fit dress shirts with embedded

logo. Cost: $250.00 (Kohl's, 2012).

Point of Sale (POS) system: In order to facilitate the receipt of funds, it is essential for

DanAir to accept both cash and credit as a form of payment. The handheld POS will be

utilized prior to each scheduled flight, and a receipt will be available for both cash and

credit card type payments. Cost: $1499.00 (EBay, 2012).

Grand Opening Event: To capture a wide clientele and a like business-networking base,

a one-day grand opening will be held at a nearby airport hotel conference ballroom

approximately 30 days prior to commencement of operations. Info packets, brochures,

refreshments and hors d’oeuvres, and an overview of each sightseeing package will be

discussed. Cost: $2000.00 (Hotel Bellwether, 2012).

Business Liability Insurance: An essential element, business liability insurances helps

defray costs of medical expenses, equipment damage, and attorney fees. Cost: $250.00

(Nationwide, 2012).

Contingencies: A rule of thumb noted by a like company recommends a 20% cash

reserve to buffer unexpected or higher costs, such as fuel, associated with a start-up

business. Cost: $2,196.00 (BLI Flight Services, 2012).

Capitalization

DanAir fiscal year begins November 2012 with the majority of its startup costs occurring

November through January, with operating costs beginning May 2013. Data such as revenue,

cost of sales and expenses were utilized in the organization’s 12 month Profit and Loss

Projection, which showed specific timeframes of loss and profit for DanAir, Specifically:

Business Plan 28

DanAir projects a $3,301 (cash-flow deficit) upon first fiscal year inception through

April 2013. This is due to high typical start-up costs, and industry standards in travel

for tourism conferences, membership in flying organizations, usually held in January.

November 2012 sees the highest percentage of spending for the 12-month P&L period

due to start-up costs (48%), followed by January and February with a large-scale grand

opening social event and POS purchase.

Dan air projects a $4,744 (cash-flow profit) beginning May 2013, which is the start of

actual operations. Revenue projected May through August remains constant with all

three aerial packages, and no remaining start-up costs.

DanAir business practices mirrors like competitor BLI Flight Services in advertising,

promotion, and ramp up of services November through March, with operations beginning May

through August. However, large start-up costs place additional competitive burdens on DanAir

through the remaining fiscal and operating year.

Startup Expenses Report

Admin Expenses 232.00

Aircraft rental61200.0

0

IT Consultant 600.00

Computer security software 125.00

Computer/Printer 1429.00

Accounting fees 232.00

Business Plan 29

FAA Medical License 250.00

Banking fees 1508.00

Legal and other professional fees 55.00

Total Admin Expenses14631.0

0

Advertising and Promotional Expenses

Business Organization fees 100.00

Telephone networking 33.00

Logo Design 1500.00

Postage 225.00

Brochures 186.00

Flyers/mailers 150.00

Travel Expenses (clientele meetings) 500.00

Website development 635.00

Business Cards/Stationary 60.00

Total Advertising/Promotional Expenses 3088.00

Other Expenses

Flight documents 100.00

Trade Show events 150.00

DanAir Shirts 250.00

Point of Sale system 1499.00

Grand opening/Social Event 2000.00

Business Liability Insurance 250.00

Business Plan 30

Total Other Expenses 4249.00

Reserve for Contingencies 2196.00

SUMMARY STATEMENT

Startup Expenses

Administration expenses14631.0

0

Opening inventory 0.00

Advertising/promotional expenses 3088.00

Other expenses 4249.00

Contingency fund (20% of total) 2196.00

Working capital 0.00

Total Startup Expenses24164.0

0

IX. Financial Plan

Described by the Small Business Administration (SBA), breakeven analysis is “used to

determine when your business will be able to cover all its expenses and begin to make a profit”

(U.S. Small Business Administration, 2012). Based on this description, a firm must take into

account its fixed and variable costs. For DanAir, the majority of its costs are fixed (i.e. aircraft

rental, computer/printer, insurance), with little anticipated variable costs during first year of

operation. Additionally, a breakeven analysis should also include assumptions such as monthly

average per unit sales price and per unit costs.

Business Plan 31

The anticipated amount required to recover 12-month costs for initial DanAir operations

is $71,410. This breakeven amount was researched with the assistance of Cheryl Rabone, a

manager of like-business, who specializes in aerial sightseeing trips. When asked about typical

start-up costs, Rabone, noted “the big costs for us was promotion, IT services, and of course the

planes” (2012). Further describing costs, “of course rent on space at the airport, legal

documents, insurance are also things to think about” (Rabone, 2012). In review of DanAir

Break-Even costs Rabone stated “those look about right, the rental cost for the planes may go

up” later concluding, “since you’re on your own its nice that have no employee costs, but that

can change if you expand” (Rabone, 2012).

Cost items previously detailed in section IX, the breakeven analysis assumptions are

based upon research and interview of a like-business model, and are highlighted below:

Break-Even AnalysisDanAir

Cost Description Fixed Costs ($)Variable

Expenses (%)

Aircraft rental $ 61,200

Advertising 2,704

Computer/Printer 1,429

IT 600

Apparel 250

0.0

Car and travel 500

Accounting and legal 232

Telephone 36

Insurance

Business Plan 32

250

POS 1,499

Postage/Stationary 225

0.0

Licenses 250

Other (Organization Member dues)

100

Other (Logo design) 1,500

Other (website production) 635

Miscellaneous expenses -

0.0

Owner’s draw -

0.0

Total Fixed Expenses $ 71,410

Total Variable Expenses 0.0

Breakeven Sales level = $

71,410

Cash Flow Projection

Particular to the life-blood of a start-up firm, cash flow is an essential management tool

utilized to forecast if a business has enough currency to maintain operations, identify potential

shortfalls in cash balances in advance, and used as a key indicator of vitality of the organization.

Noted by Johns Hopkins University, a cash flow projection can “demonstrate your ability to

maintain a positive cash balance through the start-up phase of your business” (2012). Queried on

cash flow projections Rabone asserted, “since we’re basically seasonal, we had a large shortfall

of cash for 18 or so months, we didn’t get back to breakeven till our third year, our positive cash

flow usually follows our tourist season” (2012).

Business Plan 33

An important tool in a firm’s fiscal health management system, a cash flow projection

identifies when expenditures are too high or when a firm may consider rearrangement of short-

term investments to deal with a cash flow deficits. As part of DanAir’s business plan, a 12-

month Cash Flow Projection will give the firm a much better idea of how much capital

investment our business idea requires and where monies may be better efficiently distributed. As

a sole proprietorship, the key importance of a cash flow forecast is the ability to ensure DanAir

can sustain its highest monthly expense; cost of sales. Further assumptions are based on current

cost of operating at full passenger capacity per trip, specifically:

Pre-Start cash flow from personal savings: $2,000

Estimated cash flow surplus: March through August

Estimated cash flow deficits: November through April

Estimated cash flow breakeven point: None during first year of operations

End of year cash flow anticipated balance: $20,387

Funding

Stated by Landes (2011), various methods such as private funds, small business credit

cards, equity loans, traditional bank business loans, private venture capitalists and the federal

government all provide an avenue for funding a start-up company. Factors including credit

worthiness, assumed customer acquisition and sales rates, and the ability to pay back the loan are

decision identifiers noted prior to negotiating further capital in reaching DanAir’s breakeven

point. Funding for a start-up, according to Rabone, included “we got a traditional business loan

and the owners put up some good collateral and they were also a good credit risk” (2012).

Explained further, “this was hard to get, banks are tough when it comes to loans, it seems you’ve

Business Plan 34

got to already have some capital to even be considered, as a [sole proprietor], maybe a loan

through a federal program might work out” (2012).

With little collateral and unknown credit history, DanAir will apply for a business loan

from the Small Business Administration (SBA), for the 12-month breakeven analysis amount of

$71,410. The SBA, which is an Congressionally mandated agency of the Department of

Commerce, currently provides 16 small business loan opportunities based on need and other

specific demographics of the population (women, minorities, farmers, veterans) (U.S. Small

Business Administration, 2012). Assuming the SBA fully backs DanAir’s business plan, an

appropriate funding program such as the SBA Patriot Express for small businesses for veterans

will be utilized. Specific highlights of this loan program include:

Less stringent credit requirements than traditional bank business loans

Funds for start-up costs

Funds to infuse working capital

Workshops and training in managing your business

Further, “Patriot Express loans feature the SBA’s lowest interest rates for business loans,

generally 2.25 percent to 4.75 percent over prime depending upon the size and maturity of the

loan” (U.S. Small Business Administration, 2012). This is contrasted against the average interest

rate for a traditional business loan, which is generally seven to eight percent interest (Bender,

2011). Therefore, if approved for the Patriot Express SBA loan, DanAir projects a savings of

$4,106 in interest paid over a traditional bank business loan.

Risk Management

Business Plan 35

Stated by Hirai “entrepreneurship is neither easy nor risk free, that’s exactly why more

than half of all startups fail within a few years” (n.d). This sentiment reflects DanAir’s risk

management framework, which is to identify risk, uncertainty, and mitigate their effects.

Companies bankrupt when cash flow and total current liabilities exceed total liquid assets, which

further complicates a firm’s operating ability to achieve a breakeven equilibrium. Various

internal and external factors accompany risk management for a start up firm, such as market

change, competitor retaliation, financial predictions, and changing legal and regulatory matters

(Hirai, n.d). A firm must engage in a common sense and honest approach in recognizing and

mitigating the most obvious risks in a cost effective manner, as well as develop a culture of

responding to unanticipated developments.

Risk factors intertwined within breakeven analysis, cash flow, and funding assumptions

are included in a risk management framework, specifically:

Assumed

Breakeven Analysis (Fixed Cost): The cost for aircraft rental is $61,200, which totals

85% of DanAir start-up costs. DanAir utilizes current rental rates as part of its current

business plan. Therefore, if rental prices rise during the breakeven period, DanAir may

institute higher rates for its customers to mitigate unforeseen higher rental costs.

Cash Flow Projection (Personal Cash Investment): A $2,000 pre-start cash flow asset

from personal savings may not be available due to unforeseen personal issues or other

financial needs outside of DanAir. To mitigate this risk, a $2,000 escrow account may be

established in the name of DanAir solely for the purpose of start-up cash flow infusion.

Business Plan 36

Cash Flow Projection (Cash surplus): Assumed are positive cash flow receipts from

capacity filled tour packages A/B/C during busy tourist months of March through

August. Mitigating the risk of no-show customers, DanAir may institute a reduced flight

rate for customers already at the airport and previous guests of DanAir; however, the firm

does not have a viable contingency plan at this time for unfilled seats.

Cash Flow Projection (end of year cash balance $20,387): Along with receipts from cash

sales and payments for start-up operations, the largest financial risk assumption is placing

a high amount of funds ($7,728) during the pre-operation phase of DanAir, November

through February, where no positive funds are being collected. This risk may be spread

more evenly through surplus months of operations (March through August), however

high cost items such as advertising and computer costs cannot be rearranged from non-

surplus months.

Funding (satisfactory credit requirements): Obvious for a start-up firm seeking a

business loan are stringent credit worthiness requirements such as sufficient income,

income to debt ratio, credit score, and sound business plan. Prior to pre-operation phase

startup in November, DanAir will obtain a free credit report to address any potential

pitfalls in credit worthiness. If pitfalls do exist, DanAir may re-schedule both pre-

operation and operation dates to accommodate necessary banking credit alignment

requirements.

Funding (fully backed business plan): Although prepared as a business oriented and

sound financial document, if the SBA declines funding due to an array of business plan

problems, such as the service offered, marketing/operating plan, management and

organization, and finances, DanAir will reorganize the business plan for submission to a

Business Plan 37

later date, and either reapply to the SBA, seek alternative financing (venture, personal

investment) or shut down with an undetermined timeframe for revaluation.

Contingencies: (Tangible): As a sole proprietorship, DanAir relies on the health of its

owner, Daniel Curtis, who must maintain FAA medical clearance to perform the duties as

a licensed pilot. Therefore, if Daniel Curtis fails mandated FAA medical verification, he

may be forced into an operating hiatus until the condition is resolved or waived by a

medical professional. If unable to continue operations due to an expired or invalid

medical certificate, DanAir will cease operations.

X. Appendices

12 month Profit and Loss projection

Business Plan 38

Cash Flow statement

Business Plan 39

XI. Alternate Strategy

In an attempt to understand the behavioral economics of a business plan forecast, Chen &

Krakovsky (2010) noted “in many situations, there’s no historical data or the data contains no

patterns useful for forecasting” (p. 193). Therefore, variable forecasting methods described by

Chen & Krakovsky such as guesstimation, number crunching, collective intelligence, utilized as

a financial building block in the creation of business plan (2010). In the event the business plan

is not accepted, an alternative strategy may be developed “as a means to accommodate

unexpected conditions or events, such as economic recessions or catastrophic events” (Jeanty,

Business Plan 40

2012). Although not all-inclusive, DanAir alternative strategy rests upon three major areas of

concern:

Funds: In the event to secure alternate funding, DanAir may be infuse personal capital by

securing monies from proceeds through refinancing current home mortgage, selling high-value

assets, and early withdrawal of 401k account funds.

Key rental provider: In the event the primary aircraft renter (BLI flight services) ceases

operations, the secondary lessor (WestAir) shall become primary renter. If all aircraft rental

operations cease, DanAir will suspend operations and undertake a cost benefit analysis (Berk &

DeMarzo, 2011) of purchasing its own aircraft.

General economic conditions: In the event of volatile economic conditions either cut or

increase, passenger requests substantially, DanAir will add or decrease flight schedule frequency

to reflect the current local economic climate. Financial adjustments will also be made breakeven

analysis, Profit and Loss projections, and cash flow databases.

Business Plan 41

References

Amazon. (2012, September 24). Software. Retrieved September 24, 2012, from Amazon.com:

http://www.amazon.com/dp/B005FIWULY.

AVG Internet Security. (2012, September 22). AVG Internet Security Business Edition.

Retrieved September 26, 2012, from AVG: http://www.avg.com/us-en/internet-security-

business.

Beit Consulting. (2012, September 22). Business Solutions. Retrieved September 23, 2012,

from Beit Consulting: http://www.beitconsulting.com.

Bender, J. (2011, July 1). Small Business. Retrieved October 3, 2012, from Chron.com:

http://smallbusiness.chron.com/average-interest-rate-small-business-loans-15342.html.

Berk, J., & DeMarzo, P. (2011). Corporate Finance: The Core. New York: Prentice Hall.

BLI Flight Services. (2012, September 12). Flights and Tours. Retrieved September 22, 2012,

from BLI Flight Services: http://www.bliflight.com.

Cessna Corporation. (2012, September 2). Performance and Specifications. Retrieved

September 3, 2012, from Cessna: http://www.cessna.com/single-engine/skylane/skylane-

performance.

Chen, K.-Y., & Krakovsky, M. (2010). Secrets of the Moneylab: How behavioral economics can

improve your business. New York: Penguin.

Dell Computers. (2012, September 25). Technological Solutions-Small and Medium Business.

Retrieved September 25, 2012, from Dell: http://www.dell.com/us/business.

Business Plan 42

DEX. (2012, February). Yellow Pages. Official Directory . AeroCity, Washington, United

States of America: DEX.

EBay. (2012, September 26). BIP-1300 Mobile Point of Sale POS. Retrieved September 26,

2012, from EBay.com: http://compare.ebay.com/like/110880162406?

var=lv&ltyp=AllFixedPriceItemTypes&var =sbar.

Eckmann, Dr. Helen. (nd). Eckmann reflections on Planning, Leading, Organizing, Controlling.

Entrepreneur. (nd). Elements of a Business Plan. Retrieved September 23, 2012, from

Entrepreneur: http://www.entrepreneur.com/article/38308-1.

Federal Aviation Administration. (2012, September 24). § 61.23 Medical certificates:

Requirement and duration. Retrieved September 24, 2012, from Electronic Code of

Federal Regulations: http://ecfr.gpoaccess.gov/cgi/t/text.

Harvard Business Essentials. (2004). Manager's Toolkit: The 13 skills managers need to

succeed. Boston: Harvard Business School Press.

Hirai, A. (n.d.). What kills startups? Retrieved October 6, 2012, from Cayenne Consulting:

http://www.caycon.com/what-kills-startups.php.

Hotel Bellwether. (2012, September 26). Meetings and Events. Retrieved September 26, 2012,

from HotelBellwether.com: http://www.hotelbellwether.com/meetings-events.

Jeanty, J. (2012, March 4). What Is Strategic Contingency Planning? Retrieved October 9, 2012,

from Houston Chronicle: http://smallbusiness.chron.com/strategic-contingency-planning-

25052.html.

Business Plan 43

Johns Hopkins University. (2012, October 4). Cash Flow Projections. Retrieved October 4,

2012, from jhu.edu: http://www.jhu.edu/bpc/resources/cashflows.html.

Kohl's. (2012, September 26). Classic Fit Shirts. Retrieved September 26, 2012, from

Kohl's.com: http://www.kohls.com/kohlsStore/mens/shirts_polos/dressshirts/classic.jsp.

Landes, L. (2011, December 12). How to fund your start-up business. Retrieved October 4,

2012, from Forbes.com: http://www.forbes.com/sites/moneybuilder/2011/12/12/how-to-

fund-your-start-up-business.

Logobee. (2012, September 24). Logo Design order. Retrieved September 24, 2012, from

logobee.com: http://www.logobee.com/logo-design-order/logo-design-order.php.

Marcus, A. A. (2011). Management Strategy: Achieving Sustained Competitive Advantage.

New York: McGraw-Hill.

Nationwide. (2012, September 27). Business Liability Insurance. Retrieved September 27,

2012, from Nationwide.com: http://www.nationwide.com/small-business-liability-

insurance.jsp.

Peoples Bank. (2012, September 21). Small Business Checking. Retrieved September 22, 2012,

from Peoples Bank: http://www.peoplesbank-wa.com/index.cfm?page.

Rabone, C. (2012, October 3). Manager Flight Services. (D. Whitford, Interviewer).

Russo, M. V. (2010). Companies on a Mission: Entrepreneurial Strategies for Growing

Sustainability, Responsibility, and Profitability. Stanford: Stanford University Press.

Business Plan 44

Stamps.com. (2012, September 24). Postage rate increase. Retrieved September 24, 2012, from

Stamps.com: http://www.stamps.com/usps/postage-rate-increase.

Tourism Vancouver. (2012, September 11). Fast Facts. Retrieved September 12, 2012, from

About Vancouver: http://www.tourismvancouver.com/vancouver/fast-facts.

Town of AeroCity. (2012, September 12). Tourism. Retrieved September 13, 2012, from Town

of AeroCity: http://www.cob.org/services/business/tourism-grants.aspx.

U.S. Department of Commerce. (2012, September 11). Office of Travel and Tourism Industries.

Retrieved September 13, 2012, from Welcome to OTTI: http://tinet.ita.doc.gov.

U.S. Department of Labor. (2012, September 22). Business Licenses and Permits. Retrieved

September 22, 2012, from U.S. Small Business Administration:

http://www.sba.gov/bgsearch/permitme2_0.do?q=98229&bcat=0.

U.S. Small Business Administration. (2012, October 2). Retrieved October 2, 2012, from

SBA.gov: http://www.sba.gov/content/breakeven-analysis.

University of Minnesota. (2012, September 10). Canadian Travelers. Retrieved September 11,

2012, from Tourism Center:

http://www.tourism.umn.edu/ResearchReports/MarketSegments/Canadian/index.htm.

Vista Print. (2012, September 26). Custom printed brochures. Retrieved September 26, 2012,

from Vistaprint.com: http://www.vistaprint.com/custom-brochures.aspx.

Vonage. (2012, September 25). Vonage Calling. Retrieved September 25, 2012, from Vonage:

http://lp.vonage.com/searchnonbrand?LPID=SearchPhone.

Business Plan 45

Washington State Department of Community. (2007). Canadian Travel to Washington State.

Olympia: Washington State.

Washington State. (2012, September 23). Fees: Sellers of Travel. Retrieved September 23,

2012, from Department of Licensing: http://www.dol.wa.gov/business/travel/tfees.html.

Wasserman, E. (2009, November 1). How to price business services. Retrieved September 11,

2012, from Inc: http://www.inc.com/guides/price-your-services.html.

WebcreationsUS. (2012, September 26). Web Design. Retrieved September 26, 2012, from

WebcreationsUS.com: http://www.webcreationus.com.