1 License Proposal to the Port San Luis Harbor District For License Period April 1 st to December 31 st 2012 Submitted to Port San Luis Harbor District Attn: Business Manager PO Box 249 Avila Beach, CA Submitted by THIRD DAY SAILING CHARTERS INC Stub Oak Ave Bakersfield, CA Proposed Website: Phone: Owners/Operators Contact Names: Richard and Lori Boren
2 Business Statement: The best way to educate people about the ocean environment is to get them comfortably out on the water where the change of view and scenery gives them a new perspective. Mixing entertainment and relaxation with education about the marine environment is the goal of Third Day Sailing Charters Inc. (TDSC). TDSC proposes to operate a sailboat day charter and marine educational tour business out of Port San Luis, California. The proposed vessel is a Hudson Force 50, 50ft Sailing Ketch with the ability to comfortably take up to 6 passengers on 2 hour, half day and full day sailing trips around the Bay, with an emphasis on marine education and raising awareness of local animal species and the rich marine environment of the bay. The Captain s Bachelor of Science degree from the University of California, Santa Barbara in Marine Biological Sciences along with his just completed 4 year cruise of Mexico s Sea of Cortez will allow the charter crew to provide more than just a day of fun on the water, but a day of education.
3 Simplified Business Plan: Simplicity not only works on a cruising sailboat, but it also works in business, so rather than trying to do too much and over extend ourselves, Third Day Sailing Charters Inc (TDSC) plans to keep things simple in year one, with plans to grow the business after developing a reputation for customer service and educational tours. Besides, in all honestly here, we are talking about a sailboat day chartering business and not a semi conductor or technology start up! Proposed Chartering Options: Based on reviewing charter rates and excursion options offered by the other boating charter businesses currently operating in Port San Luis and the surrounding coastal communities, we have put together what we believe to be a valuable offering to our potential clients. With 5 different options for our charters, we believe that we will have appeal to a wide audience and be able to get people out on the water that normally wouldn t have the opportunity. 1. Morning Charter: Approx 2.5hrs Mornings typically offer the calmest ocean conditions and will focus on near shore sightseeing mostly under power or motor sailing. Animal watching and marine education will be the selling point of a calm quite trip around the bay. 2. Educational Lunch at Sea Charter: Approx 2.5hrs Like the Morning charters, the educational lunch charters won t focus as much on the act and mechanics of sailing, but in taking in the panoramic views of being out on a classic looking sailboat and enjoying some simple sandwiches and snacks. This relaxing environment gives the opportunity for Captain led educational talks on topics ranging from the marine mammals found on the central coast, the rich kelp forests and their importance, along with talks on the general history of Port San Luis. 3. Afternoon Sailing Focused Charter: Approx 2.5hrs A 50ft sailing ketch needs a little wind to get moving, and with the typical afternoon winds of Port San Luis, the afternoon sailing charter will focus on sailing with all 4 sails up and flying with the boat being allowed to heal over a bit for the excitement. This option will target those looking for the thrill of sailing on a beam reach out and around White Rock and for the more adventurous sailing outside the protective wave and wind shadow of the breakwater.
4 4. The Standard Sunset Cruise Charter: Approx 2.5hrs No beach town is complete without the option for a sunset cruise around the bay. With the option for a take out dinner provided by one of the area s famous restaurants, this charter option isn t about the thrill of bashing to windward on a 55,000 pound sailboat, but about taking in the sights and enjoying the relaxation that comes from being on the water at sunset, with Jimmy Buffet music playing on the ships stereo. 5. Full Day Boat Chartering: 9AM to Sunset For those who want to spend the full day aboard learning to sailing, motoring, or just dropping anchor and relaxing off of Avila Beach, Pirates Cove or a sail to the Pismo Pier and back. From 1 to 6 people, the Captain and crew are at your service for the full day. Proposed Pricing: The local and surrounding coastal community boating charter businesses were reviewed to arrive at what we believe to be a good value to our clients, while providing TDSC with a fair and reasonable profit for our time and expense. Morning Charter 2.5hr: $30 per person $20 for kids Educational Lunch at Sea Charter: $30 per person $20 for kids Afternoon Sailing Focused Charter: $40 per person $25 for kids The Standard Sunset Cruise Charter: $40 per person $25 for kids Full Day chartering for up to six people: $600 Marketing and Promotion: Our best advertisement will be when people see our 50ft Ketch sailing around the bay with all 4 sails up! But in addition to the website we will advertise in the local tourist guides and place our informational fliers with hotels and tourist informational handouts. We would also cross promote our services with the restaurants that we would offer their food as a take out option.
5 SV THIRD DAY Boat and Crew:
6 Experience: After 15 years of a corporate executive lifestyle in the environmental controls and measurement fields, Mr. Boren decided it was time for a change. His wife Lori, a Stanford graduate working as a Physician Assistant in Pediatrics, agreed. So the house was rented; the kids ages 8 and 9 started home schooling and after a big yard sale and donating the family car to charity, on Sept 28 th 2008 the Boren family dropped their mooring ball in Port San Luis, and headed for the warm clear waters of Mexico. As their 4 th season of cruising Mexico and the Sea of Cortez comes to an end in April 2012, the Boren family s sailing and business skills see an opportunity to operate an educational sailing charter business in Port San Luis. A boat based business is not something new to Rich and Lori Boren. In 2008 the couple started Third Day Sailing Charters Inc.. In 2009, Rich and Lori formed Cruise RO Water and have been providing the cruising and boating community with Reverse Osmosis (RO) water making systems and a complete line of water and power products for the cruising vessels. Mr. Boren is currently enrolled in the Maritime Academy s US Coast Guard captain s class with a course completing date of April Both Richard and Lori have taken the following American Sailing Association (ASA) Sailing Coursework: ASA 101 Basic Sailing ASA 103 Basic Coastal Cruising ASA 104 Bareboat Chartering ASA 105 Coastal Navigation Richard M Boren Graduate of the University of California at Santa Barbara 1994 Bachelor of Science Degree in Marine Biological Sciences Lori A Boren Graduate of Stanford University in 1995 Physician Assistance Program
7 References: Capt Dan Ryder Ventura, CA Owner/Operator of Sail Channel Islands Sailing Charter and Instruction Website: Phone: Capt Trevor MacLachlan Seattle WA Owner/Operator of Seattle Sailing Charters Website: Phone: Capt Kirk Miller San Francisco, CA Owner/Operator of Captain Kirk s Sailing Adventures Website: Phone: Charles F Hammel Business Partner and Owner of Boramel Inc. DBA Cruise RO Water and Power Website: Phone: Lisa Davis Bakersfield, CA Owner Aeros Environmental Inc Phone:
8 Charter Captain Profile: Capt Dan Ryder will be the acting Captain for Third Day Sailing Charters until which time Mr. Boren completes his USCG Captain Certification, which is pending. Captain Ryder is a licensed U.S. Coast Guard Captain with 40 years of sailing experience. He's sailed the East Coast, the West Coast, the Caribbean, the Mediterranean as well as numerous lakes in the Midwest and has spent the last 15 years sailing the Pacific coast. Capt. Ryder has skippered a wide range of vessels through the years, from a 14' Hobie Cat on the Atlantic to serving as Underway Command Duty Officer on U.S.S Nimitz in waters from the Persian Gulf to the North Sea and North Atlantic. A copy of Captain Ryder s USCG license is provided. Year Round Charter Operations: With the charter vessel being permanently moored in Port San Luis and always weather permitting, Third Day Charters plans to offer charters year round. It is anticipated that the traditional summer season will be our busy time, but as those of us from the local area know, Port San Luis is beautiful in the fall and even the winter months between storm events. Having an activity draw during the low tourist season to the Port will not only be good for Third Day Sailing Charters, but good for the local economy and other local businesses. Advanced reservations and booking will always be sought and encouraged through our website and advertisement/media spots. But during the classic tourist times, especially on weekends, we will place a greater emphasis on what we call sail-up 2-hour trip client. These will be people that didn t come to the area with the plan of taking a sailboat cruise, but then decided to take a trip after seeing our local Sailboat Charter Tour literature. Permission will be sought from the District to place Sailboat Bay Tour signs with tour information, similar to the ones used by Patriot Sports Fishing on the Pier to help bring in these types of clients. The reality of winter storms coming into Port San Luis means that as much as we would like to offer trips and tours year round, sometimes Mother Nature won t allow it. So when the large and expected winter storms arrive, we have plans to move the charter vessel into the nearby protection of Morro Bay and then to resume our chartering once the weather is safe and calm.
9 Port San Luis Logistics: With Port San Luis not having a traditional passenger loading and unloading dock, the preferred method of passenger loading and off-loading will be done utilizing the charter vessel s 6 person ridged inflatable. Passengers will load into the ridged inflatable at one of the Port s floating docks and then be transported to the sailboat in much the same way the current water taxi now brings people to and from the moored boat. This approach has the safety advantage of not having to maneuver the 50ft sailboat near the pier and allows the charter guests to undergo the ships safety briefing while the sailboat is still attached to the mooring. The sailboat will first return to the mooring and then transport the passengers back to shore using the same approach. Revenue Projections: Based on researching similar sailboat charter operations in Ventura, Oxnard, Santa Barbara, and the San Francisco Bay area, it is reasonable to forecast gross revenues for Third Day Sailing Charters of $4000 to $5200 per month. As an example, making 20 3-hour charter trips with 5 passengers would generate $4000 in gross revenues and two $600 full day charters a month would generate $1200 in gross revenues. Taking into account 90 weather days, that we would not be able to operate during the year, yields estimated yearly gross revenues in the range of $36,000 to $46,800. The Districts estimated yearly revenue would then be $3,600 to $4,680 as calculated based on a 10% share of gross profits. Basis of Success: While $36,000 to$46,800 per year in projected gross revenue may not seem like a large amount for a business forecast, the fact that this revenue can be generated at an extremely low overhead (approximately 7% of gross revenues) makes Third Day Sailing Charters a solid and viable business and a potential asset to the community. However, the motivating factors of why Rich and Lori would like to operate Third Day Sailing Charters in Port San Luis will also play an important part in the company s success. Simply put: Love Over Money. The 10,000 nautical mile, 4 year cruise of Mexico that the family is now completing was a life changing experience and one they want to enthusiastically share with others through their love of sailing and the ocean environment.