Initial Funding Requirement
To introduce our idea, we have outlined the preliminary amount of funding needed to start our project. The major costs relate to the costs of obtaining and managing the houseboats and other materials, as well as professional costs. Below is a breakdown of the costs involved:
| Item | Cost per Unit | Total Cost |
|---|---|---|
| Houseboat (8×40: 1 bedroom with bath, split unit & kitchen) | $50,000 | $2,000,000 |
| Maintenance cost per unit | $500 | $20,000 |
| Material & labor cost | $40,000 | |
| Total Cost | $2,060,000 |
This source of funding will help to cover 40 houseboats so that each of our units will be equipped and maintained appropriately; it will also help in acquiring houseboat materials and manpower. This allows our project to have a required budget that will allow us to provide a premium luxury experience right from the outset.
Projected Revenue
Our projected revenues are based on several major income sources, such as marina rental income, the number of sales per unit per night, and also upcharges for other services. Below is a detailed breakdown of the projected revenue:
| Revenue Stream | Amount |
|---|---|
| 10-year lease of the marina | $80,000 |
| Sales per night per unit | $200 |
| Total sales per night (40 units) | $8,000 |
| Upcharges (jet ski rental, boat charter, food/drinks catering) | Variable |
Thus, these revenues are a clear representation of the potential income sources within the scope of our project, providing a sustainable and balanced financial strategy. Given the niche selling proposition of our floating homes and other luxury services, which are paralleled by none, we firmly believe in linear and sustainable sales revenues’ growth.
Net Income
With an initial investment of $2 million, we expect to earn at least $1 million in net income annually. These numbers can be high because of effective upselling of services such as jet ski rentals, boat charters, and food and drink catering. The fact that its financial perspective looks bright underlines the fact that our business may generate great revenues.