Cathleen Kelley

Las Vegas, NV (USA)
Role(s):
C-Level Executive (CEO, CFO, etc.)

Ascension World Ventures LLC

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Location: Las Vegas
Industry: Hospitality
Year Founded: 2011
Number Employees: 1-10 people
Business Stage: Growth (not profitable)
Entity Type: Limited Liability Company
Description: Ascension World Ventures LLC is seeking an interest only loan in the amount of €1.5 million (Euros) at an interest rate of 17% (if funded by 6/30) 15% (if funded by 7/15) or 12% (after 7/15) for 36 month for the purchase of 8 new high speed glass bottom boats. AWV LLC will then offer them for lease/profit sharing with dive shop owners, starting in the Mediterranean and the Caribbean. Within the first 18 months construction of all 8 boats would be completed and they will be put into service with an asset value of €1,760,000.00 (at cost) or €2,500,000.00 (resale), with title to be committed as collateral for the loan. The first 18 months at interest only then starting in month 18 a principle reduction of €225,000 each 90 days plus interest. This plan allows for Ascension World Ventures LLC to purchase the fleet of 8 high speed glass bottom boats and partner with scuba dive shops to run them in key tourist locations with underwater attractions. This provides additional income to the dive shop owners with little money out of pocket, and, since they will provide the funds for running the boats along with the needed business setup (staff, insurance, fuel, advertising and already existing business and tax requirements) the dive/tour shops keep the requirements for Ascension World Ventures LLC minimal, allowing us to begin operations in multiple locations around the world. Ascension World Ventures LLC retains full ownership of the boats and the ticket sales are split 50/50 with the dive/tour shop owners. Minimum sales requirements will be built into the lease agreement and not meeting them will result in a payment equal to that minimum and /or return of the boat for reassignment to a different location. This also allows one boat to be used in several locations that have less than year round tourist seasons. Each boat is 40 feet long and is designed for 30 passengers and 2 crew. Market Opportunity Based on older versions of this same boat model operating in other places the following numbers are considered conservative: Two options depending on distance to the dive/viewing sites. 1Hour Trips (6 Per Day) The average price for the ticket is € 45.00 per adult and € 30.00 per child The average trip will be of 25 people aboard (20 adults / 5 children) and makes € 1,050.00 per 60 minutes duration Dive/Tour shops average 6 trips a day Total income € 6,300.00 /day 90 Minute Trips (4 Per Day) The average price for the ticket is € 60.00 per adult and € 45.00 per child The average trip will be of 25 people aboard (20 adults / 5 children) and makes € 1,575.00 per 90 minutes duration Dive/Tour shops average 4 trips a day Total income € 6,300.00 /day Expenses per Day The average distance is 15 km/ 9.3mi x 6 trips for total of 22.5km /13.95 miles x 4 trips = 90km/ 55.8 miles The regular fuel consumption is around 40 liters/day Based on the European prices it will cost about € 80.00 /day =Dive shop pays Staff: captain + sailor + ticket man = € 200.00/day = Dive shop pays The moorage in a marina per year is € 8,000.00 average depending on location= Dive shop pays The scheduled works for engine maintenance = AWV LLC Pays The repairs and next season preparations (refreshing the paint, new layer of the anti-fouling, changing the upholstery material if needed) = AWV LLC Pays Let’s consider the rainy/windy days and days for the maintenance will be about 65 days Thus 300 days a year the boat can operate 300 days of income at € 6,300.00 per day will generate € 1,800,000.00 annually. Using these figures, the Dive/Tour Shop’s 50% would be € 900,000.00 and the expenses (fuel+ staff+ moorage+ insurance) will take max € 100,000.00 leaving net profit of € 800,000.00 for zero up front outlay per year. This is going to be offered to several dive shops in each area but we will only select one per location to provide best results in the market. The use of the boat will be written as a lease agreement with the amount due equal to the agreed 50% of ticket collections. Please mind all the calculations stated here are not theoretical but based on the real boat operations in different countries for several years. Figures used for loan repayment and equipment purchase plan are based on an income per boat of only € 2,300.00 per day. Management Ascension World Ventures LLC would require minimal staffing since the main operations will take place under the dive shop ownership. Staff of CEO plus outsourced staff for site development and customer service, contract with company for yearly maintenance of the boats, and part time help if needed. CEO Cathleen Kelley already has outsourced staff trained and available to work on this project. She also has over 20 years experience running small businesses and developing operations planning and financial requirements. She has 12 years experience providing financial consulting for fortune 100 companies around the world. Competition These boats have a large advantage over traditional glass bottom boats including the ability to operate in shallow water and adverse conditions that others cannot operate in. Also with the high speed of these boats they can be relocated to other locations quickly, giving more flexibility than traditional boats. With the removal of a few bolts that hold the front hydrofoil on, they can also be moved over land on a flat bed truck/trailer. The boat manufacturer also produces trailers specifically designed to move the boat overland from one location to another. Designed with hydrofoil for up to 40 knot speeds, allowing shorter travel time than conventional boats, with more time spent at the actual viewing location resulting in more trips per day. Hull design and hydrofoil makes them sit on top of the waves, not in them- this allows operations in less ideal seas as well as almost preventing causes of sea sickness since the ride is smooth instead of choppy. Hull is almost unsinkable. Draft is less than 3 feet and can be beached if needed. Viewing area is in the front half to allow stopping over shallow as well as deep water. Outdoor viewing is good on back area with open air area for surface viewing such as whale and dolphin sighting. With weather enclosure, operations can continue in both bad weather and in colder climates than traditional boats. Largest glass with best range of vision up to 9 meters and in comfort for all passengers. Onboard toilet and other comforts for longer trips Underwater lighting system to allow for underwater viewing on night trips and to aid with night dives or murky waters. Great for dive trips to add additional passengers to view the divers without being in the water. Viewing for sites that have water temperatures too cold for most divers. Underwater photography with the glass design is ideal. The unique design of these boats is attention getting even before the public knows it is a glass bottom boat. This is a great advantage with advertising onsite. With underwater photo graphics it will be a great sales tool for ticket sales. Marketing Strategy Using existing successful dive/tour shops as the point of sale for the boat ticket sales and operations, we will utilize the built in client base and place in the community the shops have already built. Press releases will be sent out to all the local visitor centers and ticket sales locations. Also, a joint overall press release to travel agencies and other places that would provide travel information on this location. We will also provide prebuilt web pages that can be added to the shops current website or used alone to create sales. Risk Risk for this project is low due to the ability to relocate boats if not successful in the area assigned. Also in case of poor performance our risk is only as great as the established minimum revenue amounts in the lease contracts. Returns per boat is much higher than cost per boat, resulting in a short time to the breakeven point. Any delays in setup and startup are taken into consideration with the overall financial planning for the interest only load payments as well as repayment of the original capital. Even using figures of less than half the projected income per day and slowest rollout schedule, full repayment of the loan would be possible in less than 20 months with funds left for running of the business. The time frame of repayment at 36 months (as requested) leaves room for the unexpected and any delays in both boat delivery and setup time for getting all 8 boats to full production levels. Operations The operations would be run from offices in Las Vegas, NV for the corporations and supervision would be carried out based in Genoa Italy where the CEO would reside. The business would only operate as a US entity under and formed as an LLC for legal and tax purposes.