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?