Oasis Recreational Center Ltd
Introduction
Oasis is a recreational company that is set to take recreational activities in New York. With already established tourism culture in Niagara, the company will easily trap the visiting tourist and even the locals. There is a variety of recreational activities, which the firm will capture to ensure a wider base of customers. The firm is set to have very creative and innovative personnel that will bring to market new ways of entertaining clients.
Mission
Oasis Ltd is plans offer the best and current recreational facilities and emerge as the leading recreational center in Niagara and beyond.
Vision
The primary objective of Oasis Ltd is to provide recreational facilities to both locals and international tourist. There will be boats, swimming facilities, accommodations, hotels, rental houses, and large ground where there will be live bands. The firm will be covering Niagara Falls, where people will be watching towers, boat trips in very turbulent water and many more. Seminars and training rooms will also be available for formal and informal activities as the secondary activities.
Business Objective
- Provide a place for formal and informal vacations
- Raise some revenue for the shareholders by the end of the first operating year.
Planning Assumptions
Capital assets of Oasis Ltd are as shown in the table 1 as at may 1, 2014. Company will not be able to realize the benefit from land sales. Lease improvements on land are listed as shown. Others include furniture, equipments, and cost of boats and other office equipment.
Projected Suppliers and inventories that will be used in the opening day are also provided as seen in the table 3 and table 4
Illustration below shows the spending by Oasis Recreational Ltd for both the beginning month and the subsequent ones. Table 7 illustrates the financial assumption expressed in various percentages.
Sources of finance and capital cost will be provided by Marx Marxism amounting to 30% and 10% from minor shareholders. Others include term loan and line of credit.
Loan amortization shown in the table 2 is for the coming 8 years. The sales expected to begin on April as May will the time to put things in order.
Risk Factors
Oasis recreational Ltd will be a legal entity with limited liability and, therefore, risk will be low.
Scenario Analysis
Both the success case and failure case are properly analyzed as shown below. The starting month will have some difficulties as the company will still be new, but since it will begin on April when the vacations begin, there will be a good turnout.
Financing
While planning for the finances, the company intends to get 30% from inheritance from Uncle Barry. This will cater for the three quarters of the needed amount. The remaining 10% will come from equity investment from local business people. This will be able to finance the project without looking for other sources of finance.
Conclusion
Oasis recreational center believes it will be able to pick up in most of its operations and grow to a greater potential in providing recreational services. The company is to extend to have various branches with a variety of services is the plan as soon as the company becomes stable.
