Business Plan for Scuba Diving Training Resort with Themed Cafe in Hong Kong

This business plan explores the opportunity of setting up a scuba diving training resort with a themed cafe in Hong Kong. It covers the market research, marketing plan, operations, financial assumptions and more.

Running Head: BUSINESS PLAN
Students ID:
Name of the University
Authors Note:
Task 4 (Word File)

BUSINESS PLAN
Executive Summary
Scuba diving training resort is an incredible leisure activity that will enable consumers to
explore and experience the view underwater. However, with the accompaniment of
popularity of scuba diving, scuba diving instructions sectors have a high development in the
past decade.
The objective of the report is to provide an elucidated research on the business
opportunity of scuba diving training resort along with a themed café accommodation facilities
in the Hong Kong marker thereby setting up a business to grab the opportunity. Based on this
set up the report explores the different service and product offered by the scuba diving
training resort along with the themes café, such as PADI training courses, open water training
and food service.

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Table of Contents
1.0 Business Background......................................................................................................3
1.1 Mission.............................................................................................................................3
1.2 Company History..............................................................................................................3
1.3 Business Objectives..........................................................................................................3
1.4 Marketing....................................................................................................................4
1.4.1 Market Research........................................................................................................4
1.4. 2 Marketing Analysis...................................................................................................4
1.5 Marketing Plan............................................................................................................4
1.5.1 Products and Services And Target Market................................................................4
1.5.2 Promotion...................................................................................................................5
1.5.3 Pricing Strategy..........................................................................................................5
1.5.4 Marketing Evaluation................................................................................................5
4.0 Operations............................................................................................................................6
4.1 Legal Requirements..........................................................................................................6
4.2 Management.....................................................................................................................6
4. 3 Organisational Structure..................................................................................................7
4.4 Professional Advisors.......................................................................................................7
4.5 Insurance And Security Factors........................................................................................7
4.6 Business Environment......................................................................................................7
4.7 Equipment.........................................................................................................................8

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4.8 Production.........................................................................................................................8
4.9 Critical Risk And Contingency Plans...............................................................................8
5.0 Financial Assumption...........................................................................................................8
5.1 Basic Information.............................................................................................................8
5.2 Start Up And Funding....................................................................................................10
5.3 Cash Flow.......................................................................................................................10
5.4 Profit Loss and Income Statement..................................................................................10
5.5 Balance Sheet.................................................................................................................11
5.6 Sales Forecast.................................................................................................................11
5.7 Analysis..........................................................................................................................11
6.0 Conclusion and Future Outcome........................................................................................13
7.0 Millestone...........................................................................................................................13
Reference List..........................................................................................................................14
8.0 Appendices.........................................................................................................................17
Appendix 1: Balance Sheet..................................................................................................17

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1.0Business Background
1.1 Mission
The mission statement of the resort is to produce the foremost standard diving
instruction course to the Hong Kong consumers and to offer high-quality personalised diving
related and themed cafeteria services for bringing the customers with a unique way to
perceive their safety with an explicable and adventurous experience.
1.2 Company History
The goal of the scuba diving training resort is to turn in to the leading market in the
scuba diving training sector within Hong Kong. In this context, it is a 3 years plan for the
start-up resort for developing the top diving centre in Hong Kong. However, the company
will start with scuba diving instruction by offering diving courses as the beginning point and
thereafter they will provide diving related service to the consumers along with the food
service. By doing so, they will increase the customer base and built loyalty amongst
customers thereby creating a symbolic culture for diving.
1.3 Business Objectives
Initial objectives
 To set up a branch at Hong Kong within a period of six months, in the second
six months they will set up a harry potter themed café within the premises of
the resort
 Develop the brand and expand the well-known popularity within the domestic
market followed by the diving instruction of their start up during the beginning
period.
 Offer scuba diving instructions at all coursing levels for the candidates taking
from open water diving instructors

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 For issuing over 200 diving certification in their level of entry, 40 in the early
stage and 400 DSD within the period of the foremost year while doubling the
cost in the next year to manage stability in sales forecast of the resort (Chow
et al. 2017).
1.4 Marketing
1.4.1 Market Research
According to the market research, it has been found that there is a certain problem that
may enter the diving training resort. In this aspect, an expert is well aware of the fact that
diving is the major factor for the diving instruction centre. Therefore, it takes almost half of
the annual period and cost around 5000 HKD for taking training courses and exams to turn it
into a professional standard of open water scuba diving training (Rowen 2016). Therefore, it
is evident that a qualified instructor is necessary for managing the resource.
1.4. 2 Marketing Analysis
The diving sector is an extremely tempting market and has a high capability to
explore and expand. There is an average level of emerging barrier in the market due to a
developing platform to safeguard the field from growing rivalry (Fjellström and Guttormsen
2016). However, the protective wall may not strong enough as competition is increasing in
the market.
1.5 Marketing Plan
1.5.1 Products and Services And Target Market
The product of the resort is straight forwards product that will be offering the PADI
training courses under the system of PADI. Apart from these, they will be proving open water
entry level circles and DSD courses for the students along with a variety of snacks items in

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their cafeteria. However, the target market for the scuba diving training courses is students
aged between 18 -30 years with moderate to high-income families (Burns 2016).
1.5.2 Promotion
From the market survey, it has been found that most effective promotional tool will be
through verbal communication or a suggestive opinion from a peer. This will help them to
build effective consumer bonding through the procedure of training by retaining increasing
customer base. Besides this, for attracting the target customers aged in between 25-45 years,
the company will be using social media sites such as Facebook, Instagram and local social
media sites in Hong Kong (Rath et al. 2018). In addition to this, they will also be conducting
campaigning, exhibitions with customised product design and social activities.
1.5.3 Pricing Strategy
Scuba diving training resort will be implementing high pricing strategy for offering
high quality of service for their customers. Based on the relevant market research the market
process for the courses will be ranging from 2500 HKD to 5000 HKD. The lowest price that
will be offered in the training courses will be 2000 HKD along with the cost of required
equipment (Chow 2017).
The highest prices including the package amenities and foods will be around 1000-
2500 HKD each day. Therefore, based on this, the company will set the process around 289
HKD for the DSD after cross-checking the market process to attract customers.
1.5.4 Marketing Evaluation
From the PADI statistics, it has been found that most of the divers are male with
nearly 28 years ago. This is a global diver’s base and not enough knowledge could be
evaluated to signify the significant group. The scuba diving training resort will target a large
number of group in between the age of 26 to 40 years old.

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The company believes that they will promote the culture of the ocean and create a
family type atmosphere for their customers. In terms of marketing, the company will be
offering quality and effective services through word of mouth by developing a satisfactory
relationship with the customer during the process of training.
Besides this they will be promoting their services through campaign activities,
exhibition, customised product designs, social networking sites for such as Weibo and we
iChat that is the most famous social networking site in Hong Kong. This social media field
has more than 3000 million active users in Hong Kong (Roche et al. 2016). Therefore, by
submitting 350 HKD certification fee and by maintaining the organisational business licence
the company will be able to set up the web page for the community members.
4.0 Operations
4.1 Legal Requirements
Apart from the main investment plan needed for the diving centre needs to deal with
some government business administration that is required to be applied. In addition to this
registration for PADI training centre cost 5000HKD annually (Cheung et al. 2017). In this
context, the other employees including various insurance have been estimated to be
10,000HKDeach of the year.
4.2 Management
It is the federal state of Hong Kong that is responsible for managing the coastal areas.
In terms of practice, much of the development and control management system of the coastal
facilities and the physical setting will be handled by the local government (Giglio 2016).

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4. 3 Organisational Structure
Figure 1: Organisational structure
(Source: Giglio et al. 2016)
4.4 Professional Advisors
The ongoing maintaining of the diving wrecks will be funded by the dive permission
with help of professional advisors. The dive permission on the location will be HKD 20 each
that is equivalent to 320HKD annually based on the estimation.
4.5 Insurance and Security Factors
In this context, the other employees including various insurance have been estimated
to be 10,000HKDeach of the year.
4.6 Business Environment
Unlike the commercial environment, the business environment of Scuba diving
training resort will be located in the downtown of Hong Kong, at a suburban region that
CEO
SALES
TEAM
COMMUNIT
Y
MANAGER
DIVING
MANAGER
MARKETIN
G TEAM
EQUIPMEN
T HANDLER
CTO

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might be easily availed by the customers and the price of transportation will be cheap in
relation to other transport facilties.
4.7 Equipment
A set of diving equipment will be used for the business including, mask, snorkel, fins,
BCD, weight process, regulator, SPG, wetsuits along with boots. The expected cost of the
equipment will be nearly 8000HKD. The scuba diving resort will be buying 10 sets of
equipment at the early phase. Therefore, the cost of the resources will be around 50,000 HKD
(Lee et al. 2015).
4.8 Production
Equipment and service production is at a certain level related to inventory. For
maintaining a low cost of production the resort will keep a low cost of supply chain
production (Weijerman et al. 2016). Therefore, the most frequently used production store will
be based on fin, masks and diving computer.
4.9 Critical Risk and Contingency Plans
There are certain critical issues that may enter the diving training resort. In this aspect, an
expert is well aware of the fact that diving is the crucial factor in the diving instruction centre.
Therefore, it takes a lot of time and cost around 5000HKD for taking training courses and
exams to turn it into a professional level of open water scuba training (Smyth et al. 2015).
These activities can drop down the productivity. In order to tackle this, the company has to
keep an additional insurance investment to deal with the divers and instructors thereby
avoiding loss.
Evidence of Market research

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A semi structured interview have been conducted from 50 tourist who were invited to
participate in the interview. The research found an in depth relations in between perceptions
of diving customers in accordance to their experiences and satisfaction from scuba diving
training practices. The divers were asked to indicate their level of satisfaction in the
questionnaires. From the interview it has been found that 63% (18-30) of age and 25% (31-
40) of the respondents were satisfied with the idea of scuba diving training and themed
cafeteria. Moreover, 17% of them who have responded that they are interested in
participating in scuba diving training in Hong Kong and 16% are interested to communicate it
to their friends through word of mouth.
Figure 2: Age group and percentage of respondents
(Source: Smyth et al. 2015)
5.0 Financial Assumption
5.1 Basic Information
The main product for the state up period is the beginning course and DSD services. In
this, direct cost will be including cost of the instructor, textbooks along with PADI, certificate
application cost. The cost for the beginning course will be around 400 certificates and 450

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DSB. The estimation will be around 35 students with 42 DSD in each month with a fixed
wage of 15000 HKD distributed for each student with 33 HKD (Lee et al. 2016).
Scuba diving training
Resources Cost
Employee wages 5000
Marketing 500
Depreciating cost 2500
Rental cost 3500
Transport 1500
Operational expenditure 1200
Others 500
Total 14700
Employee wages
Marketing
Depreciating cost
Rental cost
Transport
Operational expenditure
Others
Total
0
2000
4000
6000
8000
10000
12000
14000
16000
Financial Investment
Chart 1: Financial investment of scuba diving training centre
(Source: created by self)

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Themed cafeteria
Revenue Year 1 Year 2 Year 3
Food 15,000 20,000 27,000
Drinks 4,000 10,000 12,000
Others 13,000 15,000 18,000
Variable cost
Salaries 120,000 130,000 140,000
Dishes and cutlery 700 800 1000
Cleaning supplies 12500 15000 19000
Food Drinks Others Variable
cost Salaries Dishes and
cutlery Cleaning
supplies
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Investment for the Cafe
Year 1 Year 2 Year 3
Chart 2: Financial investment for themed café
(Source: Created by self)

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5.2 Start Up And Funding
According to the planned timeline of the company, the first centre for dive will be
launched in the third month. It has been estimated that the diving centre will be opening
during the month of May during summer when customer demand is high (Li et al. 2016). In
addition to this, it has also been estimated that they will be able to complete the target for
their first year that is 300 open water training certification and 500 DSD by taking into
consideration the level of customer a seasonal factor. However, the unit price will be 3,000
HKD per open water certification and 280 HKD for DSD along with a profit margin of
63.4% and 66.1% (Fan and Hsu 2014).
5.3 Cash Flow
Month Jun July Aug Sept Oct Dec Jan Feb Mar Apr May Total
OW 12 25 45 45 40 5 5 5 15 10 10 217
DSD 25 45 55 85 60 15 `15 15 10 15 25 350
Feb Mar Apr May
0
5
10
15
20
25
5
15
10 10
15
10
15
25
CASH FLOW
OW 12 25 45 45 40 5 5 DSD 25 45 55 85 60 15 `15
Chart 3: Cash flow chart

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(Source: Created by self)
5.4 Profit Loss and Income Statement
Month May Jun July Aug Sep Oct Total
Revenue
streams
54,000 102,000 165,000 170,000 172,000 155,000 818,000
Cost 18,500 35,000 65,000 62,500 64,000 58,000 3,03,000
Profit
margin
32,400 65,000 103,000 110,200 100,500 100,200 5,11,300
Operating
cost
16,500 15,000 15,300 15,200 16,200 15,500 93,700
Profit prior
to tax
18,500 55,500 95,000 95,200 82,000 82,200 4,28,400
1 2 3 4 5 6
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
54,000 102,000 165,000 170,000 172,000 155,00018,500
35,000
65,000 62,500 64,000 58,000
32,400
65,000
103,000 110,200 100,500 100,200
16,500
15,000
15,300 15,200 16,200 15,500
18,500
55,500
95,000 95,200 82,000 82,200
PROFIT LOSS
Revenue streams Cost
Profit margin Operating cost Profit prior to tax
Chart 4: Profit Loss and income statement

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(Source: Created by self)
5.5 Balance Sheet
(Refer to appendix 1)
5.6 Sales Forecast
May Jun July AUG SEPT
SALES 24,280 54,400 95,000 101,500 101,500
BREAK
EVEN
-233830 -185,000 -85,000 13,250 112,500
5.7 Analysis
It has been estimated from the revenue and profit loss statement that the forecast
result will be meeting the objective for the first year. In this context, the higher level of a
profile will be expected in the next year after the resort is built on success along with the
generation of increased sources of revenue. All these additional revenue resources will be
added to equipment retailing, cafeteria settings, diving packages and other settings (van
Putten et al. 2016).
However, the cash flow has been estimated to be better since the percentage of capital
investment will be smaller in relation to the preliminary cost. Moreover, the following phase
of fund cost from the first partners will be held in Mar 2019, and based on this the cafeteria
will be set up with the help of the same model.

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6.0 Conclusion and Future Outcome
Therefore, from the evaluation of the scuba diving training sector, it has been seen
that there is the high opportunity of scuba diving in the Hong Kong market. The size of the
market is quite attractive with a highly competitive environment that implies opportunities as
well as growing benefits for the entire marker. The goals and objectives have been planned in
accordance with the business model and strategy of business followed by an operations plan
to reach growth.
Therefore, giving training course is the fundamental goal of the business that intends
to establish a dive-oriented service provision with a themed café to retain more consumers.
The future market of the company has the capability to reach a developed phase followed by
a period of 5-6 years. However, the company needs to keep researching the market.
7.0 Milestone
September 2018: Successful company registration will be prepared with a positive
cash flow during the first three months of the year,
December 2018: Employees will be hired as per the requirements and qualification
along with the expansion of infrastructure.
March 2018: The dive centre will be launched successfully followed by the
preparation for the operational model for future expansion
June 2018: Divers will be registered for introducing overseas services to customers
from different diving sites around Asia.
Sept 2015: Prepare the themed café within the diving resort, with the expansion of
branches to become the leading field in scuba diving training as well as food facilities.

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Herpetologica, 11(1), pp.85-89.

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8.0 Appendices
Appendix 1: Balance Sheet

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