Bighorn River American Indian Campgrounds

Ada Iron Kim Iron Amy Benson Vanessa Kukes Casey Steffans Mary Alice Walker

Vision Statement

The Bighorn River American Indian Campgrounds vision is to ensure an authentic Apsaalooke experience in a heartwarming customer oriented environment. We will increase the diversity among Americans by sharing our culture and our knowledge of Crow Country. We will share our history through guided tours in our back country during our guest’s activities.

Mission Statement

The Bighorn River American Indian Campgrounds will offer our guests of all ages the opportunity to expose themselves to an authentic Native American experience. We promote family-friendly, safe camping environment where guests can enjoy outdoor recreation on the land of our ancestors. The purpose of our resort is to please and respect our customers while enjoying the pleasure of sharing our culture. We value our guests, as they will come to value us as Native Americans.

Big Horn River American Indian Campground • Indian owned business on the Crow Reservation • RV owners and camping enthusiasts fast growing market especially in Montana • Located on Bighorn River – 1 of the best fishing destinations in the United States

• Fort Smith, Montana • Pre-owned 40 acres of land

Location

Physical Facilities

Tribal and Local Benefits

• • • • • Employment Opportunities Internship Opportunities Increase Diversity Benefit Local Ranchers Promote other Native American Businesses • Create Foundation

Development Strategy

Oct’07 Ground Breaking & Create Ads Summer’07 Design Building Nov ’07 Media Secured Dec ’07 Mass advertising begins Jan ’08 complete Hire Staff Feb ’08 Train Staff Construction Mar ’08 Grand Opening

Marketing Plan

Competitive Strengths

Location • Fort Smith • Located on the Crow Reservation (Teepee Capital of the World)

Market Strengths

• • Fishing: most popular physical activity 79% of campers consider themselves family oriented • 47% of campers preferred an activity oriented camp ground • Growth in weekend travelers

Product Strengths

• • • • • • A RV capacity of 40 A Teepee capacity of 10 A lodge A section for cultural activities and events Room to expand Land off 40 acres

Weaknesses

• New Business • Unbranded Name • Distance off of I-90

Opportunities

On the way….

• 63% utilize on the way • 17% are used for the destination

Threats

Competitive Analysis

Competitor 7th Ranch Product Some Authentic Horses Camping Bighorn Mountain Hardin Camping Grandview Camping Price Camping Low Horses High Low Low Low Promotion Rack Cards Billboards Website Rack Cards Billboards Website Rack Cards Billboards Website Rack Cards Billboards Website Place Telephone Reservations Telephone Reservations Telephone Reservations Telephone Reservations

Opportunities/Threats = Objectives 100 Million Nights spent in private campgrounds 10 (10% of Nights spent in Montana) = 10 Million Nights spent in Montana 10 Million Nights spent in Montana 4 Equal parts of the State = 2.5 Million Nights 2.5 Million Nights 50 Campgrounds in Southeastern Montana = 50 Thousand Nights/year 50 Thousand Nights/Year 213 Nights per summer season = 234 Nights spent at Bighorn River area 234 Nights spent along the Bighorn River 4 Campgrounds in the Bighorn River area

= 58 RV Customers per Night

Target Audience

• Authentic American Indian culture • Baby Boomers • Families with children

Target Audience

• Demographics: Families with average age of 37 – children under 18 – income > than $50,000 /year • Activities: People who enjoy backcountry fishing, camping, guided fishing trips, hunting, and the general outdoors ,cultural events • • Geographic: Billings and surrounding area Tourists traveling in and around southern MT and Northern WY from all over the world

Marketing Mix

Product: Means End Chain

Attributes

Teepees, river access, activities, Bighorn River being nationally recognized as one of the premiere trout streams in the United States for anglers

Physical Consequences

Authenticity, tours semi convenience, backcountry, and health.

Psychological Consequences

Cultured, Experience unmatched by Other campgrounds, and a relaxing atmosphere

Values

A once in a Lifetime experience and self- satisfaction of experiencing the real thing.

Product: Perceptional Map

High Cost Black Hills Campground 7 th Ranch RV Camp Bighorn River American Indian Campground Typical Campground Sheridan KOA Hardin KOA Bighorn Mountain Campground Grand View Campground Low Cost Authentic American Indian Experience

Marketing Mix

Price

• One-price Policy • Discount pricing • Coupon distribution

Marketing Mix

Place

Strategy: Direct Distribution Channel Sales: Telephone, internet, and walk-in traffic

Marketing Mix

Promotion

• Inform audience • Persuading our target audience • Remind the customers • Publicity

Organization & Management

Ada Iron General Manager Kim Iron Assistant Manager Full – Time Employee (6)Employees Full – Time Employee (6)Employees

Financial Plan

FINANCIAL PLAN

• Base Case & Alternative Case • • • Construction of Lodge Installation of RV Hookups Set up of Teepees

FINANCIAL ASSUMPTIONS • • Sales estimates were derived from AIBL team – – Sales Assumptions Capacity for 10 Teepees, 40 RV spaces • • • Total Capacity Includes 2 people per Teepee = 20 People 2 people per RV = 80 People = 100 People per night – • • Base Case 60% of Capacity in yr 1, increase of 5% thereafter Higher average – Sale price for packages – – Teepee Rental Initial Costs

Financial Assumptions

– Alternative Case • 60% of Capacity in yr 1, increase of 10% thereafter • Lower average – Sale price for packages – Teepee Rental – Initial Costs – Base case & Alternative Case • All other estimates remain equal • • Fiscal year Oct 1 to Sept 30 Start operation March 1 and run through Sept 30

Pro Forma Statements • Owner’s Draw • • LLC, choose to be taxed as Sole Proprietor To pay taxes and for living expenses for Owners – Base Case • • $350,000 yr 1 12% increase yr 2, 10% thereafter

Pro Forma Statements

– Alternative Case • • $150,000 yr 1 50% increase yr 2, 14% thereafter

PRO FORMA STATEMENTS • Base Case • Initial Costs total $1,430,095 • Alternative Case • Initial Costs total $1,427,260

PRO FORMA STATEMENTS • Mixture of debt and equity • • • SBA Loan – 60% • • Interest rate @ 10.75% Amortized over 25 year period AIBL Members – 13% Investors – 27%

Scenario

Undiscounted Payback Discounted Payback NPV (WACC) NPV (RRR) IRR MIRR

Financial Analysis

Base Case

2yrs, 9.80 months

Alternative Case

5yrs, 6.09mths

4yrs, 2.85 months $1,924,654 $785,242 40% 20% > 10 years $108,376 ($459,807) 16% 11%

Pro Forma Statements

Base Case Profit Margin

45% 40% 35% 30% 25% 1 2 3 4 5 S1

Pro Forma Statements

Base Case Increase(Decrease) Cash Flow

$800,000 $600,000

Dollar Amount

$400,000 $200,000 $ 1 2 3

Year

4 5

Breakeven Analysis - Base Case Sales TVC Needed to Breakeven/ Day Year 1 $6,009 Year 2 $5,948 Year 3 $6,315 Year 4 Year 5 $2,131,065 $2,308,654 $2,486,243 $2,663,831 $2,841,420 $1,063,210 $1,075,316 $1,108,779 $1,143,137 $1,178,423 $6,632 $6,908 Our Sales/ Day $10,005 $10,839 $11,673 $12,506 $13,340

Difference $3,996 $4,891 $5,358 $5,874 $6,432

Exit Strategy

• Exit Strategy – Sell to existing competitor – Sell to local Farmer – Turn into Farmland for our Ranch

Questions?