Executive Summary for Wildcat's Sanctuary and Ranch:
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1.0 Executive Summary
Wildcat's Sanctuary and Ranch will be a business entity which applies 21st century technology and business practices to an ageless business
environment. Live business experimentation over the last 12 months has identified that this modern approach to a traditional business yields a substantial competitive edge and extraordinary customer appeal. The overall concept, once fully operational, will be highly successful, able to sustain a profitable company with the potential to expand exponentially. This business plan is submitted in an effort tosecure start-up funding in the amount of $200,000 to allow Wildcat's Sanctuary and Ranch to graduate from experimentation into a fully operational business entity. The funding request incorporates a healthy ratio of additional investment and operating capital. These are intended to provide the final pieces necessary to implement the plan while providing a safe and realistic ramp-up period towards a profitable future.
Wildcat's Sanctuary and Ranch is currently a home based business, located north of Orlando, in Seminole County, Florida, and is owned and operated by Christi J. Hubbard and family. A successful business career
culminating in a final position as U.S. Sales & Operations Manager for
Wildcat's Sanctuary and Ranch, in conjunction with over three years of
experience in the area of this business proposal, provides a foundation
of expertise and experience that further assures the success ofthis venture. The full implementation of this plan requires no further
employees, but does require land to be purchased for this business
location, thus providing for the lowest possible operating costs without sacrificing any revenue potential. Rather, it concentrates on providing a full range of traditional products (with a powerful and unique addition) through e-commerce, event attendance, and home based sales.
Highlights
1.1 Business Overview We will be aiding our Federal Government through contracts with them. We will be hosting Wounded Warriors and operating out of 3 different states: Seattle, Washington, Virginia Beach, Virginia, and Central Florida. We sell personalized products online and pet sit/house sit for our customers. It is of critical importance at the outset of reviewing this business
plan, that the reviewer be willing to break some general preconceptions
over the general nature of Wildcat's Sanctuary and Ranch business. Wildcat's Sanctuary and Ranch is not a farm. Wildcat's Sanctuary and Ranch is not a working horse ranch yet. Wildcat?s Sanctuary and Ranch is a Web-centric, event vendor, and retail location resale company. There are two traditional ways to help visualize Wildcat?s Sanctuary and Ranch: 1. A pet store, selling pet quality animals (in this case horses) to the general public. 2. A full line tack and equine supply store.
In example #1 above, this option simply does not currently exist for
the horse buyer (virtually every other type of pet, but not for horses). Hobby horse owners are forced to purchase horses through either: A) a "breed farm" offering a quality of horse well beyond the buyer?s needs and price range, or B) through a variety of "horse trader" outlets, none of which employ even a minimal level of acceptable business practice.
This leaves the buyer with the choice of paying too much for something
they do not need, or buying through unscrupulous sources that more often than not, lead to a bad (and dangerous) purchase.
In example #2 above, tack and equine supply companies are a traditional
and solid business. However, not a single tack shop takes maximum
advantage of the symbiotic requirements of the horse and the supply.
Every horse buyer is a potential tack and supply customer. Every tack
and supply buyer is a potential horse buyer. It is only logical, and an
unfilled market niche, to combine the two, thereby offering the buyer a
1-stop shopping opportunity.
Wildcat?s Sanctuary and Ranch will operate a retail location at our location. Wildcat's Sanctuary Ranch will attend equine events in Ocala, Florida; Kentucky, and other nearby equine events as a vendor. Wildcat's Sanctuary and Ranch will maintain a strong Web presence with an online catalog and shopping capability. Wildcat?s Sanctuary and Ranch applies modern business practices and technology to one of the oldest and most reliable markets.
1.2 Personal Credit Worthiness
In the critical area of personal credit worthiness, we ask the reviewer
to make particular note of this section and include it with all
considerations for this loan request. We have enjoyed a historically excellent personal credit history. Early in 1999 we began to identify the business opportunity that has since resulted in this business proposal and request for funding. We set our sites on this goal and began investing heavily, with every available personal resource, in the experimentation that has led to the current Wildcat's Sanctuary and Ranch formula. At times perhaps, we invested too heavily. During the course of 1999 and through the present date, we have had to carefully play the "cash flow game." At times we have fallen behind, and at times we have pulled ahead. At present we are even. We make note of this to the reviewer since we expect some degree of negative reflection to appear on a standard credit report. We would ask that the reviewer consider the level of dedication and investment that we have put forth prior to seeking a formal funding package, along with our credit rating prior to this time period. The key issue is that we have executed our personal finances responsibly in the past, and have only stretched our personal financial limits in pursuit of this opportunity. We hope you will consider these factors favorably.
1.3 Objectives Successful first benchmark operation to achieve the following
measurable results: 20 location customers, attendance at two horse
events, and 500 "Web Hits" per month resulting in: 1. $4,500/month in
tack & product sales at an average of 30% net for $1,350/month revenue.
2. $1,000/month in manufactured product sales at an average of 60% net
for $600/month revenue. 3. $20,000/month in horse sales at an average of 30% net for $6,000/month revenue. For an initial achievement benchmark of $25,500 gross, $7,950 net, per month.
1.4 Mission
Wildcat's Sanctuary and Ranch will consolidate and legitimize the
representation and sale of a complete line of horse products, including
the horse itself, in a safe and professional business environment. It is focused towards the needs of the pleasure horse owner, those most at
risk from the traditional horse selling business. Our success will be
built upon customer satisfaction brought about by complete business
integrity. We will remain constantly in search of new product offerings
which offer value to the customer and reasonable profit to Wildcat?s
Sanctuary and Ranch. We will utilize modern technology and methodology to insure Wildcat's Sanctuary and Ranch increases its visibility, customer base, and resulting success. Wildcat's Sanctuary and Ranch will establish itself as the company that set the new standard of business in the pleasure horse industry, and the one against which all others that follow will be compared.
2.0 Company Summary
Wildcat's Sanctuary and Ranch is a retail sales organization targeted at the needs of the middle to upper class pleasure horse owner/buyer. It serves this purpose in two primary ways. First, by providing a legitimate and professional horse buying experience, virtually unavailable anywhere else. Second, by providing a "1-Stop Shop" source for a complete line of products needed to support, care for, and enjoy their horse.
2.1 Company Ownership
Wildcat?s Sanctuary and Ranch will be wholly owned and privately held by Christi J. Hubbard, most likely as an LLC entity. The final business
form however, will be decided after consultation with a business
attorney to determine the most advantageous form given the specifics of
our business. The expense for this legal consultation and execution has
been included in the Start-Up Costs section of this business plan.
2.2 Start-up Summary
The following table shows the start-up funding requirements, and use
thereof, for Wildcat's Sanctuary and Ranch to become operational. It contains $68,500 in start-up expenditures, $14,500 in inventory investment, and $42,000 in operating capital for the first six months of Wildcat's Sanctuary and Ranch operation. To fund these requirements, we are seeking a ten-year loan of $200,000 for the business.
Start-up Requirements and Start-up Expenses Legal $1,150
Business Cards $100
Signage $250
Manufacturing Equipment $2,500
Consolidated Credit Card Debt $15,000
Laptop Computer System for Office $1,000
Tractor & Equipment $5,000
Building $3,500
Land Acquisition $40,000
Total Start-up Expenses $68,500
Start-up Assets Cash Required $42,000
Start-up Inventory $14,500
Other Current Assets $0
Long-term Assets $0
Total Assets $56,500
Total Requirements $125,000Start-up Funding
Start-up Expenses to Fund $68,500
Start-up Assets to Fund $56,500
Total Funding Required $125,000
Assets Non-cash Assets from Start-up $14,500
Cash Requirements from Start-up $42,000
Additional Cash Raised $0
Cash Balance on Starting Date $42,000
Total Assets $56,500
Liabilities and CapitalLiabilities Current
Borrowing $0
Long-term Liabilities $110,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $110,000
Capital Planned InvestmentOwners $15,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $15,000
Loss at Start-up (Start-up Expenses) ($68,500)
Total Capital ($53,500)
Total Capital and Liabilities $56,500
Total Funding $125,000
Start-up
2.3 Company Locations and Facilities
Wildcat?s Sanctuary and Ranch will be located and primarily operatedat our residential address in Seminole county, Florida until land has been purchased for this enterprise. It offers sufficient space to advertise and sell products for the business until land can be purchased to maintain, train, show, and sell the horses and product lines offered by Wildcat's Sanctuary and Ranch in a rural setting centrally located to the vast majority of Central Florida, as well as North Florida. As part of this business plan, Wildcat Sanctuary and Ranch intends to add a small tack shop and business office at this location. We also intend to purchase 50 ? 60 acres of additional nearby land for the keeping of additional horse inventory and the production of sufficient hay to feed the stock. Business done at this location only accounts for one segment of the overall operation. Wildcat's Sanctuary and Ranch will regularly attend horse events at Ocala, Florida; Kentucky, and other nearby equine events, (three of the most active horse competition venues in America) as a product vendor on a regular basis. Wildcat Sanctuary and Ranch will execute a third, major segment of its business via e-commerce, utilizing an active website featuring an online catalog for tack and equipment sales executed over the World Wide Web. This site is currently in production and will be listed and the reviewer is encouraged to visit for a working
demonstration of this segment of the Wildcat's Sanctuary and Ranch overall strategy.
Products
3.0 Products
Wildcat?s Sanctuary and Ranch provides a unique "1-Stop Shopping" experience for the pleasure horse owner/buyer by providing a complete line of horse related products, including the horse itself, at our locations in Seattle, Washington, Virginia Beach, Virginia, Central Florida; as a vendor at horse events, and with a website offering online catalog and purchase capabilities.
3.1 Product Description
Wildcat?s Sanctuary and Ranch is involved in the marketing and sale of three primary categories: 1. riding horses. 2. Full line of resale products. 3. Limited line of Wildcat's Sanctuary and Ranch manufactured products.
1. Riding horses.
This is the single greatest area of opportunity for Wildcat?s Sanctuary and Ranch, and the foundation for our business. It has been identified as an empty, but much needed, market niche. The number of people who wish to buy a horse, or horses, for family use in Florida, given the rural nature of our state, is countless. These people currently have four choices of places from which to buy:
Private individuals who are selling a horse. This usually
involves a poorly trained animal with bad (dangerous) habits in
potentially poor condition. Horse auctions in which there are nearly
no rules of business integrity and only the most experienced horse
people have any hope of discerning a good animal from the majority of
poor animals that are sold through auction. "Horse Traders" who are,
I am sorry to say, some of the most unscrupulous salespeople I have ever encountered. To the last they employ a variety of tricks, drugs, and misrepresentations; in essence, doing whatever is necessary to make a sale. Horse Ranches which sell only registered and bloodline stock
that, while typically well trained and conditioned, are priced for
competitive use far beyond the reach or needs of the typical buyer.
We have discovered that by working with a few select sources, we are
able to purchase exceptional riding horses at very reasonable prices. We can then apply Web marketing and professional business practices to
offer these horses for sale at a comfortable profit margin. Customers,
most of who have been "burned" in previous purchase attempts through
the sources listed above, are relieved when they encounter our business
practice. They are more comfortable with the standard business ethics we apply, satisfied with the price, and anxious to tell others to make
their future purchases through Wildcat?s Sanctuary and Ranch. The sale of horses will take place almost entirely at our residence.
2. Full line of resale products.
This is probably the most traditional aspect of the Wildcat's Sanctuary and Ranch business plan. We have found a variety of horse related product distributors and manufacturers anxious to have us resell their products. Specifically we have reached agreement with: Quixtar, Southern Wholesale Tack, full line of horse tack and care products. Cheval Publishing, HorseBiz and PedigreeBiz equine & farm management software. Pelikan Industries, distributor of 2.4 GHz wireless CCTV systems, ideal for barn & mare monitoring. These initial relationships have been established over the last three months, primarily to experiment with the willingness and terms of the providers. Having successfully completed this exercise, we plan to attend "Equitana," the largest equine trade show in the world, this coming June, to establish additional relationships for resale products. The resale of products will take place primarily as we attend horse competition events around the state of Florida, secondarily via our online catalog on our website, and third, to local residents and customers who visit our facility for the purchase of horses.
3. Limited line of Wildcat?s Sanctuary and Ranch manufactured products.
We have identified a variety of horse and farm products that can be
easily manufactured at our location with minimal investment in metalwork equipment and material. Examples that we have already identified include portable corrals, portable stalls, hay feeders, saddle-racks, and modular barns. Most of these items, and many more to be experimented with in the future, can be manufactured and sold direct to the public at prices far below the mainstream products they will imitate while simultaneously providing an exceptional profit margin to Wildcat?s Sanctuary and Ranch. The resale of our Wildcat?s Sanctuary and Ranch manufactured products will take place primarily as we attend horse competition events around the state of Florida, secondarily to local residents and customers who visit our facility for the purchase of horses, and third, via our online catalog on our website. We have selected these three primary revenue opportunities specifically for each one's ability to support the other two while complimenting our three primary sales strategies of Web commerce, event selling, and home retail location.
3.2 Competitive Comparison
The most obvious and general competitive edge possessed by Wildcat?s
Sanctuary and Ranch is the concept of "1-Stop Shopping." There is a wealth of sources from which to purchase any of the items that we will be offering. However, we are not aware of a single source that has brought together all of the various products necessary to own a horse. This is particularly attractive to the pleasure horse buyer as they typically have a very limited scope of knowledge and are grateful (and willing to pay) for consolidation. Another major competitive edge possessed by Wildcat?s Sanctuary and Ranch is the experience and expertise of its management in business practices. A long and successful career in professional sales, marketing, and operational management gives me a foundation upon which to build this business that is extremely foreign to nearly all of the competitors. As is true in many businesses, it is often the experienced business person who is successful at a given venture while a person with an extensive background in an area fails. I have the unique ability to provide a competitive edge in simple business and marketing practices that the customers will recognize, appreciate, and reward, but of which the competitors, quite frankly, do not have a clue. Nowhere is this truer than in the cornerstone of Wildcat?s Sanctuary and Ranch, the resale of horses. It can not be stressed enough how wide open this large and profitable market is for the successful institution of professional selling practices. "Horse Trading" is a no-rules business as most who have ever purchased a horse have found out, and those who sell horses know. The most common theme among people who have contacted us during our experimentation stage is how grateful and appreciative they are of this approach. Finally, the computer and Web skills we possess, particularly in contrast to our competitors in this business, offer asubstantial competitive edge. Our ability to generate marketing
material, create and publish digital images, and create and edit our own website provides tools that are necessary by default in today's business environment. Horses, tack, and equipment can be purchased from many sources. However they can not be purchased through a single source and are not represented with business, marketing, and sales expertise. Not, that is, until Wildcat?s Sanctuary and Ranch receives this funding package and opens for business!
3.3 Sales Literature
One of the hidden assets of the Wildcat?s Sanctuary and Ranch management team lies in their ability to create and publish quality sales literature independently. The best example of this capability, and the central point for all future marketing efforts, is the Wildcat?s Sanctuary and Ranch website. We encourage the reviewer of this document to visit this site now for a full review of these capabilities at:
Every facet of this website, its design, creation, upkeep, and
modifications are accomplished entirely by Christi J. Hubbard and sons
without the use of any external resource. Display literature for events
will also be produced on our home business computer system. Our computer knowledge, digital photographic equipment and expertise, graphic skills, and marketing experience makes this not only a realistic goal, but insures that we are able to create and modify appropriate and effective sales literature as needed, without delay, to respond to any immediate marketing need.
Market Analysis Summary
4.0 Market Analysis Summary
Ideally located on a state highway in central Florida, Wildcat?s
Sanctuary and Ranch has access to a major market. It is our opinion that every rural household member living on five or more acres of property is a potential Wildcat?s Sanctuary and Ranch customer. The 1996 Census Projections reflects a total population of 3,358,044 persons living in 1,286,607 households. Of these, 39.8% live at a rural address making for 512,070 households with a total of 1,336,501 potential customers. In addition however, Wildcat?s Sanctuary and Ranch has also had positive contact from people in Texas, Kentucky, Virginia, and the Carolinas. That said, we believe our total available market to extend well into all of the states surrounding Florida. Of course, the Web marketing segment of Wildcat?s Sanctuary and Ranch is virtually unrestricted by location and therefore provides access to the multi-million dollar equestrian market. Americans have had, and continue to have a love affair with "The Horse" since the beginning of our economy. WILDCAT?S Sanctuary and Ranch will apply maximum effort and all of our cumulative skills to leverage this love affair on a local, regional, and national level.
Strategy and Implementation Summary
5.0 Strategy and Implementation Summary
The successful Strategy and Implementation of Wildcat?s Sanctuary and Ranch relies on the culmination of a lifetime of education and experience. We will utilize these life assets to execute the content of this plan beyond the projections contained herein. Broken into its simplest terms, the Wildcat?s Sanctuary and Ranch strategy and implementation is based on these simple executables: 1. Five primary marketing methods: Website. Print. Event. The Internet. Referral.
2. Four primary product lines: Riding horses. Major tack & equipment.
Minor tack & supplies. Wildcat?s Sanctuary and Ranch manufactured product. 3. Three primary outlets: At our home facility. At horse events. On our website. 4. Two primary assets: Professional business skills and experience of Christi J. Hubbard. Horse knowledge and expertise of Christi J. Hubbard. 5. One primary need: Funding to allow this plan to become a reality. Together, we (Christi J. Hubbard and sons) possess every bit of experience, knowledge, ability, and proven history, to execute each of the key issues identified above. The only thing lacking is the financial resources to bring the Wildcat?s Sanctuary and Ranch plan to fruition. Provide that single missing piece and the reviewer of this document will be "throwing the switch" on a long term, successful business entity known as Wildcat?s Sanctuary and Ranch.
5.1 Sales Strategy
We will be utilizing experienced sales skills to close sales once we
are in contact with a prospective customer. 1. For retail horse sales
this will be accomplished through experienced pre-qualification and
matching of horse to rider, utilizing our riding expertise to show the
best aspects of the horse, and practicing basic sales skills to close
the sale. 2. For event sales this will be accomplished through standard
"retail counter sales" skills and technique, along with the all
important location, location, location (at the event with a captured
target audience). 3. For Web sales this will be accomplished through the creation and maintenance of a pleasurable, convenient, and comfortable Web catalog and online purchase capability.
5.2 Value Proposition
Wildcat?s Sanctuary and Ranch offers the prospective or limited horse owner the opportunity to purchase a quality riding horse, along with all of the extras and essentials that are both necessary and desirable, in a uniquely professional and ethical business environment.
5.2.1 Sales Forecast
The following table and chart provides an extremely conservative
forecast of Wildcat?s Sanctuary and Ranch projected sales over the next three years. It shows a steady but realistic annual growth as Wildcat?s
Sanctuary and Ranch gains wider recognition in Florida for riding horses, and nationally for tack and supply. The following are anticipated positive influences over the attached forecast that have not been calculated in. Refinement of our overall product line presenting reduced Per Unit Cost. Increased discounts from our existing vendors resulting from quantity purchases. Increased discounts from new vendors seeking to gain our business. Potential exponentially increased sales with the successful implementation of a Web strategy. Potential exponentially increased sales with successful manufacturing and production of Wildcat?s Sanctuary and Ranch Manufactured Products.
Sales Forecast
Sales Forecast
FY 2009 FY 2010 FY 2011
Unit Sales Riding Horses 124 175 200
Major Tack & Equipment 268 350 500
Minor Tack & Supplies 410 600 1,000
Wildcat?s SANCTUARY and RANCH Manufactured Products 162 200 300
Total Unit Sales 964 1,325 2,000
Unit Prices FY 2009 FY 2010 FY 2011
Riding Horses $1,600.00 $1,600.00 $1,600.00
Major Tack & Equipment $300.00 $300.00 $300.00
Minor Tack & Supplies $10.00 $10.00 $10.00
Wildcat?s Sanctuary and Ranch Manufactured Products $100.00 $100.00 $100.00
Sales Riding
Horses $198,400 $280,000 $320,000
Major Tack & Equipment $80,400 $105,000 $150,000
Minor Tack & Supplies $4,100 $6,000 $10,000
Wildcat?s Sanctuary and Ranch Manufactured Products $16,200 $20,000 $30,000
Total Sales $299,100 $411,000 $510,000
Direct Unit Costs FY 2009 FY 2010 FY 2011
Riding Horses $1,120.00 $1,120.00 $1,120.00
Major Tack & Equipment $210.00 $210.00 $210.00
Minor Tack & Supplies $7.00 $7.00 $7.00
Wildcat?s Sanctuary and Ranch Manufactured Products $25.00 $25.00 $25.00
Direct Cost of Sales Riding
Horses $138,880 $196,000 $224,000
Major Tack & Equipment $56,280 $73,500 $105,000
Minor Tack & Supplies $2,870 $4,200 $7,000
Wildcat?s Sanctuary and Ranch Manufactured Products $4,050 $5,000 $7,500
Subtotal Direct Cost of
Sales $202,080 $278,700 $343,500
Sales Monthly
Sales by Year 5.3 Marketing Strategy
The Wildcat?s Sanctuary and Ranch Marketing Strategy relies on a variety of exposure methods, all targeted to yield maximum exposure from minimum expenditure. They include: Effective utilization of the Internet and our website will be a key factor in every marketing activity. It is our website that makes the most immediate differentiation between Wildcat?s Sanctuary and Ranch and competing horse sellers. Cost effective print advertising in metropolitan newspapers, regional rural publications, regional horse publications, and association directories with the primary goal of driving traffic to our website. Attendance as a vendor at local horse competition events. With our proximity to three of the most active horse competition venues in America (Kentucky, Ocala, Texas) we have the unique opportunity to attend major equestrian events with the expense of overnight travel. This will yield the opportunity to sell our tack and equipment products, while in the ideal situation to identify potential horse customers and invite them to visit our home facility. We will also utilize "e-blasts" by combining an internally kept database of contacts with an outgoing merged email message highlighting current offerings, specials, and informational tidbits. Finally, we will never underestimate, and intend to leverage to the fullest extent, simple positive word-of-mouth marketing. Every horse owner typically knows several other horse owners, and/or spikes the horse owning interest in others. Wildcat?s Sanctuary and Ranch will leverage this highly effective marketing method by providing an exceptional customer buying experience and pleasurable business practice.
5.3.1 Positioning Statement
For the pleasure horse owner/buyer who wishes to own or add a horse but
is not an expert in horses or horse care, Wildcat?s Sanctuary and Ranch offers an ethical and professional "1-Stop Shop" to provide for all of their needs. Unlike the competitive forces in the market, Wildcat?s Sanctuary and Ranch brings a complete line of products together with the horse itself while providing a safe and comfortable business environment.
5.3.2 Pricing Strategy
Wildcat?s Sanctuary and Ranch will follow three primary pricing strategies in accordance with the three primary product lines: 1. Riding Horses. Our prices for quality riding horses have already been experimented with, and well accepted by the target audience. We are able to price our horses substantially below the "registered bloodline" price asked by the standard horse ranch because our buyers have no need or desire for competition or breeding quality horses. However we have also found that we are able to price our horses above the prices asked by private individuals, horse traders, and auctions because the customer puts a substantial value on the level of comfort they gain by purchasing their horse from Wildcat?s Sanctuary and Ranch, applying professional business practices. We have been able to regularly achieve a 30% markup on the resale of our horses. 2. Resale Products. Our prices for resale products will be established just below the published list price put forth by our suppliers. This price comparison is made directly with our suppliers who typically sell online. In comparison with local retailers our prices are well below their own. In context of our resale discounts this typically equates (interestingly enough) to an average 30% markup over the discounted price we pay to our providers.
3. Wildcat?s Sanctuary and Ranch Manufactured Products. Products that we are able to manufacture ourselves result in the most attractive pricing proposition of all, to both us and the customer. Horse products, as with most special interest products, enjoy a ridiculous margin through standard outlets. Of the products we have investigated we find that we are able to produce like products for approximately 25% of the typical retail list price, mark them up an additional 60% above cost to produce, and still offer them for sale at approximately 15% less than the competing retail outlets. This provides a very nice profit margin and revenue stream from a limited product line. The overall pricing strategy is "VALUE." Value in the quality of products, value in the pricing of the products, and value for the businesspractices and methodology employed to sell the products.
5.4 Future Strategy
Not included within the tables, charts, and projections of this
business plan is a future retail location from which Wildcat?s Sanctuary and Ranch will continue and expand its' operation.
The retail location will increase retail tack sales without any
negative impact on event or Web based sales. Retail tack buyers are
accustomed, even prefer, to travel a slight distance to make saddle and
tack purchases. The distance to, and rural location of, Wildcat?s
Sanctuary and Ranch will only serve to increase the perceived value of their purchase. The retail locations, inclusive of a horse "show & sell lot" will further solidify the image of Wildcat?s Sanctuary and Ranch as a truly unique and attractive entry in the horse sale business. The growing reputation of Wildcat?s Sanctuary and Ranch coupled with the solidified image as a retail location will also increase retail horse sales. The retail location is targeted for opening during the third year of Wildcat?s Sanctuary and Ranch operation, 2011, unless business factors indicate an accelerated schedule. Given proper execution, there is no reason for the long term future of
Wildcat?s Sanctuary and Ranch not to include multiple locations. The same formula detailed within the context of this business proposal could certainly be carried to a number of other locations, initially in
surrounding states, in which a major metropolitan area exists in a
primarily rural geographic area; for example Louisiana, Kentucky,
Virginia, & Texas would be prime targets for future expansion. It is
not beyond reason to envision a chain of Wildcat?s Sanctuary and Ranch
locations offering a full line of tack and equine supply, along with the only legitimate riding horse sales companies in existence.
Should the reviewer of this plan feel that an accelerated schedule for
the opening of the first Wildcat?s Sanctuary and Ranch retail location is warranted, additional financial analysis will be provided detailing that scenario.
Management Summary
6.0 Management Summary
Wildcat?s Sanctuary and Ranch will be co-managed by Christi J. Hubbard and sons; owner of Wildcat?s Sanctuary and Ranch. The combination of our talents and experience is one of the key assets to Wildcat?s Sanctuary and Ranch. Christi J. Hubbard. Successful 20 year career in sales, law enforcement, marketing, distribution management, operational management, and senior management culminating in current position as manager of U.S. fax sales and operations for Wildcat's Sanctuary and Ranch. Knowledge and experience base regarding all aspects of the horse. Exhibits exceptional expertise in: breeds, breeding, bloodline, medical care, conformation, desirability, and marketability, training, and personality traits of the horse. The combination yields an extremely solid management team!
6.1 Management Team Gaps
The only significant weakness in the Wildcat?s Sanctuary and Ranch management team lies in financial analysis and accounting principles. We intend to address these critical issues in the following ways: Continued business relationship with Janet Shreve, financial consultant of Puronics Water, located in Longwood, Florida, to provide accounting services and financial counseling. Janet has handled our financial
affairs for over five years and has an in-depth knowledge and historical perspective on our financial needs and goals. Personal study in financial analysis and basic accounting principles. Identification of and participation in, local seminars and/or classes in financial
analysis and accounting principles.
Financial Plan
7.0 Financial Plan
As has been stated throughout the content of this document, the
financial analysis charts and tables contained herein have been built
with two primary factors at the forefront of consideration: 1. To
provide an extremely conservative outlook for Wildcat?s Sanctuary and Ranch based on minimum performance expectations rather than a "blue sky" outlook. 2. To provide a healthy foundation for a long term business operation while supporting the financial needs of the home portion of a home based business. Corners have not been cut, expenses have not been hidden. Rather, this document and loan request has been specifically designed to secure the right amount of start-up funding to ensure a long and successful future for Wildcat?s Sanctuary and Ranch. We intend to seek, and welcome, continued education, counseling, and adjustments to this Financial Plan throughout the future of Wildcat?s Sanctuary and Ranch.
7.1 Important Assumptions
The accompanying table lists our main assumptions for developing our
financial projections. The majority of the assumptions are based on raw
average estimates suggested by the software program used to create this
business plan. As Wildcat?s Sanctuary and Ranch moves into full operation these figures will be monitored and adjusted according to actual business conditions. Three Key Factors: 1. Personnel Burden is listed, and will remain, at 0. Wildcat?s Sanctuary and Ranch will be owned and operated solely by immediate family. 2. Inventory turnover is listed at 12 to reflect one month of inventory in stock at all times. However, horses are typically "turned" within seven days, and all but a very limited inventory of tack and equipment will be ordered and shipped directly from the source upon customer order. 3. Wildcat?sSanctuary and Ranch does not sell on credit terms. This is the norm (almost without exception) in the horse industry. Wildcat?s Sanctuary and Ranch will only offer credit card purchases as an alternative to cash/check payment.
General Assumptions
General Assumptions
FY 2009 FY 2010 FY 2011
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 25.42% 25.00% 25.42%
Other 0 0 0
7.2 Break-even Analysis
The following table and chart show our break-even point.
Break-even Analysis
Break-even Analysis
Break-even Analysis
Monthly Units Break-even 69
Monthly Revenue Break-even $21,312
Assumptions: Average Per-Unit Revenue $310.27
Average Per-Unit Variable Cost $209.63
Estimated Monthly Fixed Cost $6,913
7.3 Projected Profit and Loss
Two Critical Issues regarding the following Wildcat?s Sanctuary and Ranch P&L Statement: 1. The entire P&L statement, which stems from the Sales Forecast, is intended to reflect an extremely conservative projection. It does not indicate the full potential of Wildcat?s Sanctuary and Ranch given the level of management and expertise that serves as the foundation of Wildcat?s Sanctuary and Ranch. Rather, it has been created, by intent, to demonstrate the absolute minimum performance level expected during the period. 2. It is of critical importance to note that, being a home based business and the sole source of income for our family, the expense portion of P&L contains virtually every expense, business and personal, conceivable. It does include such minute details as groceries, medicines, gas, daily cash, revolving credit, even "fast food," etc. A note to the reviewer: It is a simple matter to inflate sales projections, deflate cost of goods sold, and hide expenses for purposes of a business plan. Rather, since we are relying on this venture to provide the livelihood for our family, we have chosen to evaluate and present it far below the best case scenario. We hope that the reviewer of this document will take this into full consideration.
Profit and Loss
Pro Forma Profit and Loss
FY 2009 FY 2010 FY 2011
Sales $299,100 $411,000 $510,000
Direct Costs of Goods $202,080 $278,700 $343,500
Other $0 $0 $0
------------ ------------ ------------
Cost of Goods Sold $202,080 $278,700 $343,500
Gross
Margin $97,020 $132,300 $166,500
Gross Margin % 32.44% 32.19% 32.65%
Expenses Payroll $0 $0 $0
Sales and Marketing and Other Expenses $70,416 $70,416 $70,416
Depreciation $0 $0 $0
Depreciation $0 $0 $0
Leased Equipment $1,020 $1,020 $1,020
Utilities $5,520 $5,520 $5,520
Insurance $6,000 $6,000 $6,000
Rent $0 $0 $0
Payroll Taxes $0 $0 $0
Other $0 $0 $0
------------ ------------ ------------
Total Operating Expenses $82,956 $82,956 $82,956
Profit Before Interest and
Taxes $14,064 $49,344 $83,544
EBITDA $14,064 $49,344 $83,544
Interest Expense $10,404 $9,350 $8,250
Taxes Incurred $630 $9,998 $19,137
Net Profit $3,030 $29,995 $56,157
Net Profit/Sales 1.01% 7.30% 11.01%
Gross Margin Monthly
Gross Margin Yearly
Profit Monthly
Profit Yearly
7.4 Projected Cash Flow
The healthy state of the attached Cash Flow Table and Charts are, in
themselves, the primary justification for this business loan request.
This loan request is intended to provide a solid foundation for the
start-up and continued health of Wildcat?s Sanctuary and Ranch. As a home based business, virtually every personal and business expense has been factored in. This has been done to ensure that personal expenses (food & shelter) do not prevent Wildcat?s Sanctuary and Ranch from continuing operation. Rather, every calculation has taken these variables into account to ensure that the "home side" of our home business does not inhibit the "business side" of the business. The all important Cash Balance figure remains at a healthy level, and shows growth, for the full period of this business plan to guarantee continued operation. However it also provides for sufficient cash flow to take advantage of positive business opportunities as they present themselves, and/or to absorb unexpected negative influences.
Cash Flow
Pro Forma Cash Flow
FY 2009 FY 2010 FY 2011
Cash Received Cash from
Operations Cash
Sales $299,100 $411,000 $510,000
Subtotal Cash from
Operations $299,100 $411,000 $510,000
Additional Cash
Received Sales Tax, VAT, HST/GST
Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $299,100 $411,000 $510,000
Expenditures FY 2009 FY 2010 FY 2011
Expenditures from
Operations Cash
Spending $0 $0 $0
Bill Payments $268,094 $407,011 $458,443
Subtotal Spent on
Operations $268,094 $407,011 $458,443
Additional Cash Spent Sales
Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $11,000 $11,000 $11,000
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $279,094 $418,011 $469,443
Net Cash Flow $20,006 ($7,011) $40,557
Cash Balance $62,006 $54,995 $95,552
7.5 Projected Balance Sheet
The following Projected Balance Sheet was generated by the software
program used to generate this business plan. As called out in the
Management Gaps section, we are not well versed in its implications. We
welcome consultation on this subject. As we fill the management gap in
financial analysis, we will monitor and adjust this information
accordingly. Balance Sheet
Pro Forma Balance Sheet
FY 2009 FY 2010 FY 2011
Assets Current
Assets Cash $62,006 $54,995 $95,552
Inventory $32,527 $44,860 $55,290
Other Current Assets $0 $0 $0
Total Current Assets $94,533 $99,855 $150,842
Long-term
Assets Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $94,533 $99,855 $150,842
Liabilities and Capital FY 2009 FY 2010 FY 2011
Current Liabilities Accounts
Payable $46,003 $32,329 $38,159
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $46,003 $32,329 $38,159
Long-term Liabilities $99,000 $88,000 $77,000
Total Liabilities $145,003 $120,329 $115,160
Paid-in Capital $15,000 $15,000 $15,000
Retained Earnings ($68,500) ($65,470) ($35,474)
Earnings $3,030 $29,995 $56,157
Total Capital ($50,470) ($20,474) $35,682
Total Liabilities and Capital $94,533 $99,855 $150,842
Net
Worth ($50,470) ($20,474) $35,682
7.6 Business Ratios
The following Business Ratios Table was generated by the software
program used to generate this business plan. As called out in the
Management Gaps section, we are not well versed in its purpose or
implications. We welcome consultation on this subject. As we fill the
management gap in financial analysis, we will monitor and adjust this
information accordingly. The Industry Profile column contains statistics from the Standard Industry Code (SIC) #0752, Animal Specialty Services.
Ratios
Ratio Analysis
FY 2009 FY 2010 FY 2011 Industry Profile
Sales Growth 0.00% 37.41% 24.09% -2.90%
Percent of Total
Assets Inventory 34.41% 44.93% 36.65% 8.20%
Other Current Assets 0.00% 0.00% 0.00% 31.90%
Total Current Assets 100.00% 100.00% 100.00% 55.90%
Long-term Assets 0.00% 0.00% 0.00% 44.10%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current
Liabilities 48.66% 32.38% 25.30% 32.70%
Long-term Liabilities 104.72% 88.13% 51.05% 19.90%
Total Liabilities 153.39% 120.50% 76.34% 52.60%
Net Worth -53.39% -20.50% 23.66% 47.40%
Percent of
Sales Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 32.44% 32.19% 32.65% 42.50%
Selling, General & Administrative
Expenses 32.05% 25.47% 22.20% 26.40%
Advertising Expenses 2.01% 1.46% 1.18% 0.50%
Profit Before Interest and Taxes 4.70% 12.01% 16.38% 2.40%
Main
Ratios Current 2.05 3.09 3.95 2.19
Quick 1.35 1.70 2.50 1.48
Total Debt to Total Assets 153.39% 120.50% 76.34% 52.60%
Pre-tax Return on Net Worth -7.25% -195.34% 211.01% 4.50%
Pre-tax Return on Assets 3.87% 40.05% 49.92% 9.40%
Additional Ratios FY 2009 FY 2010 FY 2011
Net Profit Margin 1.01% 7.30% 11.01% n.a
Return on Equity 0.00% 0.00% 157.38% n.a
Activity
Ratios Inventory
Turnover 10.71 7.20 6.86 n.a
Accounts Payable Turnover 6.83 12.17 12.17 n.a
Payment Days 27 36 28 n.a
Total Asset Turnover 3.16 4.12 3.38 n.a
Debt
Ratios Debt to Net
Worth 0.00 0.00 3.23 n.a
Current Liab. to Liab. 0.32 0.27 0.33 n.a
Liquidity
Ratios Net Working
Capital $48,530 $67,526 $112,683 n.a
Interest Coverage 1.35 5.28 10.13 n.a
Additional
Ratios Assets to
Sales 0.32 0.24 0.30 n.a
Current Debt/Total Assets 49% 32% 25% n.a
Acid Test 1.35 1.70 2.50 n.a
Sales/Net Worth 0.00 0.00 14.29 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Subject: Business Proposal with Links
Objectives: Show Patriotism sponsoring events working with wounded militaryvets. Breed horses, show them, and sell them. Sell tack and accessories. Sellonline products. Pet Sit/House Sit. Provide Security. Trail Rides, Boarding, andB&B guests. Attend shows and other events. Work with the neighboringtowns/community. Put them to work. It's a Win/Win situation.
BLM will supply me with 6mustangs a year to break and train. . Other horses could be picked up throughauctions and sales from other ranches. Cost $50 to $2000 per horse depending onwhere acquired.
CCR Confirmation DUNS 016506989
Congratulations! Your registration in the Central Contractor Registration (CCR) system has been accepted. ORCA certified, FBO registered, CCR registered and Cage number 5M4B7
http://www.linkedin.com/in/christihubbard
http://www.facebook.com/profile.php?id=1231248188&ref=profile Personal
http://www.facebook.com/pages/Lake-Mary-FL/Christis-Pet-Care-Service/202196565173?ref=tsBusiness
http://www.freewebs.com/wildcatsanctuaryranch
http://groups.yahoo.com/group/wildcatsanctuaryranch/
myspace.com/wildcatranch
http://wildcatranch.blogspot.com/ Blog
http://www.fundable.com/groupactions/groupaction.2009-06-09.5981154627Fundraising
matt group http://games.groups.yahoo.com/group/HallowLife/?yguid=336824232
http://thehallowlife.com/
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