BORDERLINE RANCH - University of Saskatchewan
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Transcript BORDERLINE RANCH - University of Saskatchewan
HUNTING RANCH
Members:
Shawn Hyshka
Scott Redekopp
Trevor Simpson
Tyler Wilkinson
Introduction
Borderline Ranch is an Elk and Deer
hunt farm
Located near Lloydminster
Provide a safe, fun hunting
experience, while promoting nature,
adventure and a active lifestyle.
Operations and Human
Resource Plan
Organization Structure
4 Board of Directors,
2 internal, 2 external
President
Supervisor of hunting
operations
Guides
Accountant
Area Plan
2 Sections
1 mile x 2 miles
Edge of property on
river or lake
Springs abundant in
area
400 acres fenced off
for deer hunting and
880 acres for elk
Building and Floor Plan
Site Plan
-Building 50’ x 50’with three
different rooms
-Storage, lunch, handling
room with cooler
Development Plan
No specific 5 year plan
Assessment done on a yearly basis
Dependant on profitability/customer
base
Future Considerations
- Building a 4 star lodge on site
- Hiring/Firing Staff, cook
- Year round lodging options
Work Plan- What Happens in a Day
Guides
–
–
–
–
–
–
Up early to pick up hunters
Drive to the hunt farm
Guide hunters until lunch
Help prepare lunch
Guide until dark
Assist in other
maintenance, skinning etc.
– Return hunters to hotel
President
– Organizing clients
– Ordering animals
– Hiring employees
– Marketing
Capital Budget
Land Cost
$240,000
Building Cost:
Structure
$67,000
Electrical/Plumbing
$11,500
Fencing
Gravel on site
Total Building/ Land Costs
$240,180
$4,440
$559,720
Equipment Cost
Truck
$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 Summary
Land
$ 240,000
Building
$ 322,640
Equipment
$ 103,520
TOTAL CAPITAL
REQUIRED:
$
664,120
Cost of Goods Manufactured
Direct Materials
Animals
Direct Labor
Overhead
$361,250
$89,154
$40,223
$490,627
Cost of Goods Sold
Beg. Inventory =
+ C of GM
=
$0
$490,627
Cost of goods available for sale$490,627
- Ending Finished Goods Inventory- $55,000
C of GS is
$435,627
Human Resource Plan
Staff
– Board of Directors
Includes President, Accountant and 2 others
Salary- President $45,000
– Accountant $10,000
Job description- Assist in important management decisions
and provide capital to the farm.
Human Resource Plan
Staff
– Guides
– Salary- $500/group (3
days)
Trained in CPR, First
Aid, Firearm safety
Must have valid driver’s
license
Knowledge of hunting,
skinning
Friendly attitude
Job description- Assist
hunters in all aspects of
the hunt from start to
finish.
Staff
– Supervisor
Salary - $600/group (3
days)
Trained in CPR, First
Aid, Firearm safety
Thorough knowledge of
hunting, skinning,
outdoors
Job description- Organize
and monitor guides and
hunters to prevent
accidents and be aware of
where everyone is at all
times.
Human Resource Plan
Accountant
Salary- 10,000
Trained in accounting,
management
Thorough knowledge
of business
Job descriptionmaintain and control
money in a way that
makes the farm
profitable.
President
Salary- 45,000
Job description- Front
man of company who
has signing power and
makes important
decisions regarding the
management of
company.
The Marketing Mix
Products/ Services
Pricing
Promotion
Place
Segmentation
Targeting
Positioning
Marketing
S.W.O.T. Analysis
Strengths/Weaknesses
Human Resources
Physical Resources
Financial Resources
Opportunities
Threats
Borderline Ranch Competitors
Dunham’s high caliber
ranch
Lloydminister,
Saskatchewan
-5
star lodging
-home cooked meals
-20 yrs of experience and
clients
Whitetail
Elk
$5,500
$4,950
Aspen Ridge Deer Ranch
Bruno, Saskatchewan
-on site 3700sq. Ft. lodge
-world class walleye
fishing
-hiking and canoeing in
river available if you
Whitetail
Elk
$5,500
$4,500
McKen Hunting
Yorkton, Saskatchewan
-2 hunting areas
-on site lodging
-ducks/geese hunting
-trout pond for fishing
Full service starts at
$1,000 and then extra
charge for whatever you
shoot up to $25,000
Average price range
Whitetail
$5,000
Elk
$4,000
Above prices U.S
Borderline Ranch
New hunt area
Whitetail
Cdn
Elk
Cdn
$4,500
$5,500
Marketing Strategy
Sales and Profit Objectives
Pricing Policy
Selective Markets
Selling and Advertising
Financial Plan
ASSUMPTIONS
- 29 groups, 20% revenue increase
after year 5 and 70% elk hunting
● FINANCING
Long Term Debt Input
339,397
Owner's Equity Input
372,397
Total
$711,795
Dividend Policy
Reinvestment Policy if gross profit is
less than 10x Working Capital
Returns seen in 6th year
● IRR= 17.0%
● ERR= 13.2%
Group Breakdown
Unit Cost per Group
2006
2007
2008
$8000
$8160
$8320
$172
$176
$179
$10
$10
$11
Total Unit Cost of Direct Materials
$8,182
$8,346
$8,510
Direct Labour
$2600
$2600
$2600
$86
$800
$89
$816
$90
$832
$3486
$3505
$3522
$11,668
$11,851
$12,032
4 deer
Groceries
Bullets
Overhead
Hotel
Total Unit Cost of Labour and Overhead
Total Cost per Group
Expected Average Selling Price
$22,000 $22,440 $22,889
Risk Analysis
Net
Cash flow
Income BreakBreakEven
Even
Economic
BreakEven
88
135
80
Nickels and dimes
Marketing key
Social trends
Based solely on
groups
Canadian dollar
strength
Conclusion
With proper marketing and business
planning Borderline can be a success.
Long term investment
Unique and exciting venture for
owners and customers
THANK YOU
QUESTIONS?