Business idea... What think... seriously.

[Monkeydonkeyratmagic]

So I hate working for someone. I want to be rich and be my own boss.

So I've found a venture firm that will spot me up to 2M. I've found a cruise ship that can take 370 passengers.. recently all fitted and kitted out for 1.2M pretty big tbh.

I have a rough business plan to operate cruises in the summer and dock it in London by the Belfast in winter and run part of it on airb&b and part long term rent (council tax and service charge free for cheapskate professionals)

So all of that aside... and the fact I need a crew for it and someone who knows how to drive one.

Anyone have any experience or insight they can offer to get a bank to hand this kind of cheese over? Needs to be around 1.5M to get it operational and fully stocked and staffed. Expected turnover circa 400k a week in the summer (200k winter)

Thanks.

Matt

[ph001]

I'd take a good hard look at your costs as 370 people will take a lot of looking after. Turnover = vanity, profit = sanity. Sounds like a huge risk to me if you have no experience in it.

[Monkeydonkeyratmagic]

I'd take a good hard look at your costs as 370 people will take a lot of looking after. Turnover = vanity, profit = sanity. Sounds like a huge risk to me if you have no experience in it.

I know all about running hotels. Used to do in the alps and Greece for about 9 years. Most of this is just a floating hotel that moves.

[ph001]

I know all about running hotels. Used to do in the alps and Greece for about 9 years

Ah, well that makes all the difference. I think as long as you have got a spreadsheet together with best case, and worst case costs then you can make a good decision. That's a ton of money to borrow though! Any way you can start off with lower overheads and work your way up?

[RustyZ4]

To get any bank or investor to hand over 1.5m or various parts thereof, you will need more than a rough business plan, with exact costings, down time strategies, daily running costs, insurances, I could go on,, I have run a business for 30 years and more and more I seem to be spending my time meeting new government employment or HSE rules, employing the right people is a battle at the best of times,

But if you are prepared to work hard, ride your luck sometimes, and don't think you will be a millionaire in a year, you have to give it a go, but any investor is going to look at what you stand to lose compared to them, cos the basics are the more you have to lose, the more likely it will succeeed

[buzyg]

Are you putting up any of your own money? I have never borrowed more than 2\3 what I can put in myself on a business loan. The banks will look at what you have to loose along with what they have to loose. The more they have to put in the higher their risk, the higher the rate will be? A sound business plan well documented is always a good place to start. You need to demonstrate that you know what you are talking about. If you can do that then 1.5 m is not a huge amount these days. Good luck..

[Monkeydonkeyratmagic]

Business plan is completed. Been at it all weekend.
Gross revenue is at best is circa £8.9M. Total costs are coming in at roughly 2M PA. This is excluded port fees which are around 1-3K per day.

The ship technically is an expedition ship / Ice class 1A. The routes I've planned out are Docking in London - Edinburgh - Svalbard - North pole waters (Most expensive sailing, midnight party at Solstice) and round the north west passage east to west, down the coast of Alaska, and then on down to Cape Horn, Antarctic peninsula. Multiple itineraries.

These cruises are currently insane money, and I firmly believe they should be. My workings are currently 67% of the going average rate inc full catering.
Found how to source staff, crew and even a captain (former Navy) insurance is planned to include business interruption to cover refunds and loss of revenue in case of mechanical failure and full hull and sinkage loss (I work for a very large insurance broker who covers Marine and Aviation so had a good chat with an expert on this)

Submitting the proposal today... Will see what happens I guess. The loan itself would be secured on the ship. So my guess is after a years payments the ship covers more than the balance of the loan. Seeking a 4 year term.