Comprehensive Business Plan: Scuba Diving Training Resort in Hong Kong

This report outlines a comprehensive business plan for a scuba diving training resort in Hong Kong. It begins with an executive summary, detailing the business opportunity of establishing a scuba diving training center with a themed café. The plan covers various aspects, including the mission, company history, and business objectives, such as offering PADI training courses and themed café services. The report includes a market analysis, marketing plan, and operational details, addressing legal requirements, management structure, and equipment. Financial assumptions are presented, including start-up costs, cash flow projections, profit and loss statements, and a balance sheet. The plan also incorporates a marketing evaluation, risk assessment, and contingency plans. Furthermore, it includes a milestone timeline, appendices, and references to support the business strategy. The report aims to establish a leading scuba diving training center in Hong Kong, targeting students aged 18-30 with moderate to high-income families.

Running Head: BUSINESS PLAN
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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
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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)