Transcript BORDERLINE RANCH - University of Saskatchewan

HUNTING RANCH
Members:
Shawn Hyshka
Scott Redekopp
Trevor Simpson
Tyler Wilkinson
Introduction
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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
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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
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Work Plan- What Happens in a Day
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Guides
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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
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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
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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
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Staff
– Board of Directors
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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
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Staff
– Guides
– Salary- $500/group (3
days)
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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
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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
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Accountant
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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
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Products/ Services
Pricing
Promotion
Place
Segmentation
Targeting
Positioning
Marketing
S.W.O.T. Analysis
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Strengths/Weaknesses
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Human Resources
Physical Resources
Financial Resources
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Opportunities
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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
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Sales and Profit Objectives
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Pricing Policy
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Selective Markets
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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
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Dividend Policy
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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
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Nickels and dimes
Marketing key
Social trends
Based solely on
groups
Canadian dollar
strength
Conclusion
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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?