Plan Outline
Fishing Supplies and Fly Shop Business Plan
Kingfishers
Executive Summary
Kingfishers is a retail Fly Shop offering supplies, guided tours, and fishing/hunting cabins to Anglers and Hunters that come to our state from all over the world. We are centrally located in the middle of this famous area, on Highway frontage on one of the busiest highways. We are in a prime location to succeed, as we make an excellent base camp and meeting place.
As new owners, Ausable Wulff and Brassie Nymph are purchasing a mildly successful fly shop, remodeling it, re-packaging it, and turning it into a successful destination location for fly fishers across the south.
Our competitive edge is tremendous. Our location, our advertising techniques, and unique customer "interest points" give us a superb edge in advertising. Our expertise in fly fishing these particular rivers lets us stock the most relevant supplies and provide our customers with expert advice so they can truly enjoy their fishing vacations. Our welcoming and supportive attitude towards even novice fisherman will turn first-time visitors into repeat customers. In addition, we offer not just lodging, but some of the nicest and most unique lodging in the area, at very competitive rates. We are on the the travel route between 4 major blue ribbon rivers, and the single most famous Trout River in the world. The keys to our success lie in our great location, the ambiance of our store, and most importantly, our attitude.
This plan will show what the business needs to start its successful venture, and how we plan on doing it. It shows that even using conservative projections, the company will have positive cash flows, tremendous gross margins of over 50%, and steady/solid growth. We will show a modest profit in the first year, and our profits increase steadily. Our projections are based on the past performance of the business under its previous owner, who willingly admits that he has not maximized the profit potential of the business. Based on these conservative projections, we will be ahead of the industry standard in almost every aspect.
In order to fund the purchase, renovation, and restocking of the business, the owners are contributing £64,000. We are also seeking a 10-year loan of £513,000, secured with the owners' collateral (3 houses), at an 8% interest rate.
1.1 Objectives
We have several key objectives to complete to bring the business back to the level of success experienced in the past, and then maximize the revenue and profitability for today. To accomplish this, our objectives are:
- To double the number of customers that walk through the door the first year through use of advertising and Web presence, and increase customer traffic by 20% each year for five years.
- To increase floor sales by 30% by remodeling the retail space and re merchandising the products conducive to flow patterns, making it more customer and "sales" friendly.
- To take full advantage of all revenue sources in the geographic area by offering Hunting products to the substantiated large number of hunters in the area during the fall and winter months, increasing revenue by at least 25% the first year, 33% the second year, and 40% the third year.
- To reinstate the guide service for anglers, booking a minimum of 125 trips the first year using independently contracted guides and 1 employed guide, 250 the second year by using independently contracted guides and 1-2 employed guides, and 300+ the third year by using independently contracted and 1-2 employed guides under the Kingfishers Outfitters' License. We will also increase revenue and gain market share by renting 2-3 drift boats to anglers that prefer to forego professional guide services.
- To gain market share and increase current revenues 50-60% by offering quality lodging at competitive rates in the most advantageous location possible for hunters and anglers. We would accomplish this by building 5 custom log cabins the first year, and adding one cabin per year for three years starting in Year 3. By doing this we will increase revenues of both guide trips/product sales and lodging, as each aspect will complement the other.
1.2 Mission
To provide an Angler's and Outdoorsman's shop where the customer is the priority and arrogance is left at the door… where patience is a practice and everyone we meet is a friend… where questions are answered without demeaning glances, and cold stares are unheard of… where you are asked to stay for a cup of coffee rather than just asked for your money and shown the door. Kingfishers is dedicated to providing Anglers and Hunters alike with the equipment that they want, the knowledge that they need, and experiences that make them want to come back.
1.3 Keys to Success
In the retail Fly Shop and Hunting Store business there are 4 main keys to success:
- Location: We are centrally located and within minutes of 5 major Trout Rivers and 4,000 square miles of public land. We are on a main highway that links Yellowstone National Park and Glacier National Park, and the highway that leads to one of our states biggest tourist attractions.
- Quality/Variety of products and services: We offer both top-quality and budget-priced products to both anglers and hunters; as well as guide services, boat rentals, and lodging. We also offer products and services unique to this shop.
- Atmosphere: Our store is built in a restored rustic log building, which symbolizes our state and what our state stands for. It has a spacious, warm ambiance, and offers a comforting atmosphere conducive to stress-free sales.
- Visibility/Marketing: Kingfishers is located on one of the busiest highways in the southwest portion of our state. 3000-4000 vehicles pass by the store each day during the spring, summer and fall months. We will use both passive (billboards etc) and active (direct mail, commercials etc) advertising to draw customers into the store from both in-state, and out of state.
