Load Hog Inc. was formed by John Kowalski (Load Hog), in December 1997. The company is an automotive aftermarket manufacturer that manufactures a revolutionary patented device which transforms ordinary pickup trucks in to full-on dump truck. The innovative pneumatic device, which is almost maintenance-free, is invisible when it is not in use and weighs in at 120 pounds. In New Zealand, in the late 70’’s and early 1980’’s, the pneumatic hoist was invented. It uses the exhaust gases from the vehicle to lift the bed and fill the lifting envelope. Load Hog’s inclusion of an air compressor on-board has eliminated the obvious hazards of the original plan.
Load Hog wants to secure $4,000,000 in staged capital over a 18-month period. This will allow them to run an aggressive public relation and advertising campaign that educates the truck-owning and purchasing public about the Load Hog Program’s capabilities, costs, and availability. These funds will help to fund the initialization for the advertising and public relation plan. It will cost $40,000 for its first phase. The remaining funding from the first phase will be used to support additional staff members (Sales Manager), inventory and manufacturing equipment, as well as continuing operations.
Phase I: $175,000 This phase has been accomplished with debt capital and has been committed and closed.
Phase II: $200,000 The second phase will be completed with additional debt and is already committed.
Phase III & IV: $1 million/$17 million. These phases can be done with both debt and equity. These funds will be used to continue marketing and sales efforts, increase sales staff, continue operations expansion through the purchase of capital equipment, expand manufacturing operations and provide working capital to meet the increasing demand. As reflected in the attached**, Ford’s recent commitment to include Load Hog as part of the Super Duty Dealer Ordering Guide 2002 will help boost our revenues.
The purpose for the phased approach in funding is to allow an organization to integrate new business and grow at a structured and controlled pace. Each phase of the growth strategy is designed to be followed in a sequential order. If a single investor is interested, each element can be pursued individually or grouped together as a longer-term deal. The addition of a sales manager allows the president and current staff to quickly respond to potential investors. It also helps to improve assembly, procurement operations, engineering upgrades, product development, and other aspects.
**Appendix are not available for the sample plan.
1.1 Keys to Success
The company’s further success will depend on the following factors:
- Securing financing for product development and marketing.
- Name recognition.
- Stabilizing OEM relationships and building the distribution system.
- Management of the supply chain to ensure consistent component sourcing
1.2 Mission
Load Hog’s mission is to teach truck owners how to make the most of their vehicle. Strategically, we have positioned ourselves at the top of the quality pyramid featuring a combination of superb technology, extraordinary customer service, and an almost fanatic attention to quality assurance. Our strategy is based on continued research and development of our existing product, as well expanding our offering to satisfy customer demand and expand our market. We will be supported in this growth by our field force, advertising, public relations, and our growing e-commerce effort. We will keep our presence at all levels of trade shows, including regional, national and local.
1.3 Objectives
Load Hog has a single facility in Aliquippa that includes 1,200 square feet office space and 8,600 feet of manufacturing/ assembly space. The current plant is adequate. However, as we ramp up, there will be ample office space and manufacturing spaces within walking distance.
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