Cash Flow Projections
The following tables represent a general example of what a Waitangi West Alternative Lifestyle Community
Co-operative's cash flow sheet might look like if the within described Carbon Farming, Tourist Development aspect,
Member Support Mechanisms and Service Sector Co-operative are linked to the Offshore Marketing Strategy
This page is meant to give a general understanding of the massive potential
that exists for those who are astute sufficient to get in first and reap the rewards
The Offshore Marketing Strategy
It would not be prudent to divulge here the precise mechanics of the Offshore Marketing Strategy that has been mentioned several times throughout these pages. However, the following brief overview will provide a better understanding on how employing this option might be extremely beneficial to a Community Co-operative if the eco-tourist development aspect described herein is undertaken.
The Waitangi West Community Co-operative will be a New Zealand registered entity that will function under New Zealand regulations in all respects. The Offshore Marketing Strategy will be initiated and managed by the Managing Consultant Company (referred to in 'Profile') from it's base in The Seychelles and will function (entirely independent of the New Zealand entity) in accordance with the regulations of that country.
That company will undertake - at no cost to the Co-op - all marketing (employing its own highly effective global reach mechanism) under an agreement with the Co-op, whereby the Co-op will enjoy a guaranteed 95%, all inclusive, and paid up at least three months in advance, occupancy for all tourist accommodation units for 9 months of each year, and at premium rates.
Understand before we proceed that this mechanism has no relationship to Time-Share or Package Deals and will not be in competition with any of the local tourist businesses - it will in fact foster them - or any mainstream tourist business worldwide. It will not require or rely on traditional tourist type promotion and no travel agents will be involved. Furthermore, all Co-op revenue will be in place many months prior to the scheduled client arrival date - as detailed above - allowing for precise provisioning and overall logistics preparations.
That customer base will be predominantly mature mobile adults as singles, couples and groups. Each booking will include return airfares, a 30 day first class occupancy that includes all meals and snacks, all soft beverage, transfers, access to all relevant facilities, plus $3,000 per person additional spending credits that must be used onsite. Any client that does not arrive at some time during the reserved period will lose the privilege to do so and without any negative effect on the Co-op revenue.
The entire operation will be based on a credits/debits process; there will be no cash transactions possible and as such precise accounting will be possible for all aspects.
General Overview for a 30 Family Community Co-operative
|
Description |
NZ$In |
NZ$Out |
|
Walk-in/Walk-out 'going concern' in 30 'Portions' at $540,000 per Portion |
-16,200,000 | |
|
Surveying and subdivision as required for 30 x 125 acre member private allotments, 1 x 125 acres for (say 30 room) lodge, 1 x 50 acres for community centre and 1 x 125 acres for (say 30 unit) resort, along with layout for roads forests and other facilities. |
-80,000 | |
|
If contractor is used to plant 4,000 acres (1,620 h/a) of seedlings: Approximately 203 stems average per acre (500 per h/a) to achieve a 30% crown cover. |
-500,000 | |
|
Reduce flock by 8,000 sheep |
450,000 |
|
|
Cost of (say 30 room) lodge + Community Centre + (say 30 unit) resort |
-12,000,000 | |
|
Roads, wind turbines, power reticulation, water treatment plant, landscape and other ground works |
-1,000,000 | |
|
Carbon credits at government valuation for first 5 years from date of planting 4,000 acres. (4,000 x 11 x $25.00 x 5) |
5,500,000 |
|
|
Total number of guaranteed bookings: |
||
|
Unit tariff for lodge @ $250.00 p/day |
9,600,000 |
|
|
Unit tariff for resort @ $400.00 p/day |
15,400,000 |
|
|
Food & beverage allowance @ $250.00 per person (average 2) |
38,500,000 |
-15,400,000 |
|
Subtotal: Tourist Aspect alone |
69,450,000 |
-45,100,000 |
|
Spending Credits that must be used within the community. ie: The community centre shops and facilities, beverage and sundries not included above, fishing, sightseeing, whale watching expeditions, vehicle, bicycle, boat and other rentals and so on. The allowance is $3,000 per person (average 2). |
15,400,000 |
Cost can be set at max 25% |
|
Total: |
11,550,000 |
|
|
The Service Sector Co-operative, comprising of say 40/50 people, is contracted on the basis of a set 30% share of the net return from the tourist facilities. Its function is to handle 1. general management 2. reception & logistics 3 ;servicing of units 4. catering service 5. laundry and cleaning 6. grounds maintenance 7. security monitoring 8. repairs and general maintenance. Capital costs met by the Mother Co-op. |
-15,800,000 | |
|
Subtotal: Community Co-op share of overall net returns, allowing that 60% of the Spending credits goes into member support mechanisms and the balance goes into general revenue. |
13,150,000 |
|
|
Let's average the cost of members' private villas at $600,000 each |
-18,000,000 | |
|
Now let's calculate the Mother Co-op net return for the 6th year of operation - not including the significant returns enjoyed by memebers who have community support mechanisms: |
8,450,000 |
|
|
Adding the first five years' net $13,150,000 to the 6th year's net $8,480,000 = $21,630,000 (if taxes are not considered) it is clear that not only has the entire property acquisition and the tourist aspect development been recovered, but the cost of the members' homes has also been recovered and each member owns outright 1/30th of the entire development, which from that point on will continue to produce huge returns that the members will share equally. Plus there is a nice little surplus of more than $3.5 million to share around too. |
13,150,000 |
|
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