HUNTING RANCH Members: Shawn Hyshka Scott Redekopp Trevor Simpson Tyler Wilkinson.
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Transcript of HUNTING RANCH Members: Shawn Hyshka Scott Redekopp Trevor Simpson Tyler Wilkinson.
HUNTING RANCHHUNTING RANCH
Members:
Shawn Hyshka
Scott Redekopp
Trevor Simpson
Tyler Wilkinson
Introduction Introduction
Borderline Ranch is an Elk and Deer Borderline Ranch is an Elk and Deer hunt farmhunt farm
Located near LloydminsterLocated near Lloydminster
Provide a safe, fun hunting Provide a safe, fun hunting experience, while promoting nature, experience, while promoting nature, adventure and a active lifestyle.adventure and a active lifestyle.
Operations and Human Operations and Human Resource PlanResource Plan
Organization StructureOrganization Structure
4 Board of Directors, 2 internal, 2 external
President
Supervisor of hunting operations
Accountant
Guides
Area PlanArea Plan
2 Sections2 Sections 1 mile x 2 miles1 mile x 2 miles Edge of property Edge of property
on river or lakeon river or lake Springs abundant Springs abundant
in areain area 400 acres fenced 400 acres fenced
off for deer off for deer hunting and 880 hunting and 880 acres for elkacres for elk
Building and Floor Building and Floor PlanPlan Site Plan Site Plan
-Building 50’ x 50’with -Building 50’ x 50’with three different roomsthree different rooms
-Storage, lunch, handling -Storage, lunch, handling room with coolerroom with cooler
Development PlanDevelopment Plan No specific 5 year planNo specific 5 year plan Assessment done on a yearly basisAssessment done on a yearly basis Dependant on Dependant on
profitability/customer base profitability/customer base Future ConsiderationsFuture Considerations
- Building a 4 star lodge on site- Building a 4 star lodge on site
- Hiring/Firing Staff, cook- Hiring/Firing Staff, cook
- Year round lodging options - Year round lodging options
Work Plan- What Happens in a DayWork Plan- What Happens in a Day
GuidesGuides– Up early to pick up Up early to pick up
huntershunters
– Drive to the hunt farmDrive to the hunt farm
– Guide hunters until lunchGuide hunters until lunch
– Help prepare lunchHelp prepare lunch
– Guide until dark Guide until dark
– Assist in other Assist in other maintenance, skinning etc.maintenance, skinning etc.
– Return hunters to hotelReturn hunters to hotel
PresidentPresident
– Organizing clientsOrganizing clients
– Ordering animalsOrdering animals
– Hiring employeesHiring employees
– MarketingMarketing
Capital BudgetCapital Budget
Land Cost $240,000
Building Cost:
Structure $67,000
Electrical/Plumbing $11,500
Fencing $240,180
Gravel on site $4,440
Total Building/ Land Costs $559,720
Equipment CostEquipment CostTruck $20,000
Quads (6) $50,000
Trailer $750
Snowmobiles (2) $12,000
Guns (2) $4,000
Kitchen Appliances $2,500
Table $300
Heater $1,450
Fuel $2,500
Cooler/Fans $4,250
Stainless steel table $500
Cutting Knives/saws $1,350
Barbeque $400
Camera and Equipment $1,200
Misc. (tools) $2,300
Total Equipment Cost $103,520
Capital Budget Capital Budget SummarySummary
Land $ 240,000
Building $ 322,640
Equipment $ 103,520
TOTAL CAPITAL REQUIRED: $ 664,120
Cost of Goods Cost of Goods ManufacturedManufactured
Direct Materials Direct Materials
Animals $361,250Animals $361,250
Direct Labor $89,154Direct Labor $89,154
Overhead $40,223Overhead $40,223
$490,627$490,627
Cost of Goods SoldCost of Goods Sold
Beg. Inventory = $0Beg. Inventory = $0
+ C of GM = $490,627+ C of GM = $490,627 Cost of goods available for sale- $490,627Cost of goods available for sale- $490,627- Ending Finished Goods Inventory- $55,000Ending Finished Goods Inventory- $55,000
C of GS is $435,627C of GS is $435,627
Human Resource PlanHuman Resource Plan
StaffStaff– Board of DirectorsBoard of Directors
Includes President, Accountant and 2 othersIncludes President, Accountant and 2 others Salary- President $45,000Salary- President $45,000
– Accountant $10,000Accountant $10,000 Job description- Assist in important management decisions Job description- Assist in important management decisions
and provide capital to the farm.and provide capital to the farm.
Human Resource PlanHuman Resource Plan
StaffStaff– Guides Guides – Salary- $500/group (3 days)Salary- $500/group (3 days)
Trained in CPR, First Aid, Trained in CPR, First Aid, Firearm safetyFirearm safety
Must have valid driver’s Must have valid driver’s licenselicense
Knowledge of hunting, Knowledge of hunting, skinning skinning
Friendly attitude Friendly attitude Job description- Assist Job description- Assist
hunters in all aspects of the hunters in all aspects of the hunt from start to finish.hunt from start to finish.
StaffStaff– SupervisorSupervisor
Salary - $600/group (3 Salary - $600/group (3 days)days)
Trained in CPR, First Trained in CPR, First Aid, Firearm safetyAid, Firearm safety
Thorough knowledge of Thorough knowledge of hunting, skinning, hunting, skinning, outdoorsoutdoors
Job description- Organize Job description- Organize and monitor guides and and monitor guides and hunters to prevent hunters to prevent accidents and be aware of accidents and be aware of where everyone is at all where everyone is at all times. times.
Human Resource Plan Human Resource Plan
AccountantAccountant Salary- 10,000Salary- 10,000 Trained in accounting, Trained in accounting,
management management Thorough knowledge Thorough knowledge
of businessof business Job description- Job description-
maintain and control maintain and control money in a way that money in a way that makes the farm makes the farm profitable.profitable.
PresidentPresident Salary- 45,000Salary- 45,000 Job description- Front Job description- Front
man of company who man of company who has signing power and has signing power and makes important makes important decisions regarding the decisions regarding the management of management of company.company.
The Marketing MixThe Marketing Mix
Products/ ServicesProducts/ Services PricingPricing PromotionPromotion PlacePlace Segmentation Segmentation TargetingTargeting PositioningPositioning MarketingMarketing
S.W.O.T. AnalysisS.W.O.T. Analysis
Strengths/WeaknessesStrengths/Weaknesses Human ResourcesHuman Resources Physical ResourcesPhysical Resources Financial ResourcesFinancial Resources
Opportunities Opportunities
ThreatsThreats
Borderline Ranch Borderline Ranch CompetitorsCompetitors
Dunham’s high caliber Dunham’s high caliber ranchranch
Lloydminister, Lloydminister, SaskatchewanSaskatchewan
-5 star lodging5 star lodging
-home cooked meals-home cooked meals
-20 yrs of experience -20 yrs of experience and clientsand clients
Whitetail Whitetail $5,500$5,500
Elk Elk $4,950$4,950
Aspen Ridge Deer Aspen Ridge Deer RanchRanch
Bruno, Saskatchewan Bruno, Saskatchewan
-on site 3700sq. Ft. -on site 3700sq. Ft. lodgelodge
-world class walleye -world class walleye fishingfishing
-hiking and canoeing -hiking and canoeing in river available if you in river available if you
Whitetail Whitetail $5,500$5,500
Elk Elk $4,500 $4,500
McKen HuntingMcKen Hunting
Yorkton, SaskatchewanYorkton, Saskatchewan-2 hunting areas -2 hunting areas
-on site lodging-on site lodging
-ducks/geese hunting-ducks/geese hunting
-trout pond for fishing-trout pond for fishing
Full service starts at Full service starts at $1,000 and then extra $1,000 and then extra charge for whatever charge for whatever you shoot up to you shoot up to $25,000$25,000
Average price rangeAverage price range
Whitetail Whitetail $5,000$5,000
Elk $4,000Elk $4,000
Above prices U.SAbove prices U.S
Borderline RanchBorderline Ranch New hunt areaNew hunt area Whitetail Whitetail $4,500 Cdn$4,500 Cdn
Elk Elk $5,500 Cdn$5,500 Cdn
Marketing StrategyMarketing Strategy
Sales and Profit ObjectivesSales and Profit Objectives
Pricing PolicyPricing Policy
Selective MarketsSelective Markets
Selling and Advertising Selling and Advertising
Financial PlanFinancial Plan
ASSUMPTIONSASSUMPTIONS
- 29 groups, 20% revenue increase - 29 groups, 20% revenue increase
after year 5 and 70% elk huntingafter year 5 and 70% elk hunting
● ● FINANCINGFINANCING
Long Term Debt Input 339,397 Long Term Debt Input 339,397 Owner's Equity Input Owner's Equity Input 372,397 372,397 Total $Total $711,795711,795
Dividend PolicyDividend Policy
Reinvestment Policy if gross profit Reinvestment Policy if gross profit is less than 10x Working Capitalis less than 10x Working Capital
Returns seen in 6Returns seen in 6thth year year
● ● IRR= 17.0%IRR= 17.0%
● ● ERR= 13.2%ERR= 13.2%
Group BreakdownGroup BreakdownUnit Cost per Group 2006 2007 2008
4 deer $8000 $8160 $8320
Groceries $172 $176 $179
Bullets $10 $10 $11
Total Unit Cost of Direct Materials $8,182 $8,346 $8,510
Direct Labour $2600 $2600 $2600
OverheadHotel
$86$800
$89$816
$90$832
Total Unit Cost of Labour and Overhead $3486 $3505 $3522
Total Cost per Group $11,668 $11,851 $12,032
Expected Average Selling Price $22,000 $22,440 $22,889
Risk AnalysisRisk Analysis
Nickels and Nickels and dimesdimes
Marketing keyMarketing key Social trendsSocial trends Based solely on Based solely on
groupsgroups Canadian dollar Canadian dollar
strengthstrength
Net Income
Break-Even
Cash flow Break-
Even
Economic Break-
Even
88 80 135
ConclusionConclusion
With proper marketing and With proper marketing and business planning Borderline can business planning Borderline can be a success.be a success.
Long term investmentLong term investment Unique and exciting venture for Unique and exciting venture for
owners and customersowners and customers
THANK YOUTHANK YOU
QUESTIONS?QUESTIONS?