The McKenzie Tackle and Bait Shop is located off Highway 126 near the new Oakridge Plaza. It will be a convenient one-stop shop for all your fishing needs. Highway 126 leads to more than 130 fishing locations. Oakridge Plaza, which is the last shopping and dining area before entering McKenzie National Parks System, is located at the Oakridge Plaza. McKenzie Tackle and Bait Shop will capitalize on its location to pull in customers. It will provide information and fishing tips as well as a wide range of fishing products.
Brad West, who owns McKenzie Tackle and Bait Shop in McKenzie Tackle, has been an avid angler for over 25 year. He knows all of the area’s top fishing spots and has managed two bait shops and fishing tackle stores over the past seven year.
1.1 Objectives
To become a favorite and essential shopping destination for those who travel to the area for fishing.
Develop a customer base which will grow each year.
Provide exceptional service and products for both novice and experienced fishermen.
Success Keys 1.2
The following keys are key to McKenzie Tackle and Bait Shop’s success:
Location The McKenzie Tackle and Bait Shop can be found off Highway 126 near the Oakridge Plaza. Highway 126 connects you to over 130 public fishing opportunities in McKenzie National Park System. Oakridge Plaza is the last place to shop and eat before you enter the McKenzie National Park System. The plaza is frequented by many tourists who stop by it at the beginning or end of their day in the parks.
SERVICE: Brad West from McKenzie Tackle and Bait Shop realizes that customers aren’t there to just browse. They need the right product, or the best information on how to fish. McKenzie Tackle and Bait Shop provide outstanding service and help customers get on their way to fishing.
1.3 Mission
McKenzie Tackle and Bait Shop’s mission is to provide the best fishing products and information in the McKenzie National Parks region. Our store is an important step in any trip to fishing.
Seacliff Products (Seacliff), has developed a patent-pending fishing rod. Seacliff developed an easy-to-use kit to sell until they found a business partner to license the product. Seacliff forecasts strong sales in year one, and a steady increase in year two.
Seacliff created the Supreme hook, a new, innovative live bait holder. According to tests, there is a noticeable increase in fish catch up. The user will have greater enjoyment fishing if there are more fish hookups.
The Business Model
Seacliff will employ a laser-focused model of business that allows them focus on core competencies and outsource activities that add little value. Seacliff is an industrial design company. They will be focusing on the creation of useful products. They will partner with a strategic company that can take over manufacturing, marketing, as well as distribution. Seacliff will realize significant profits through the outsourcing of non-essential operations. This will free them from the marketing, manufacturing, distribution and other liabilities. Licensing allows a company the right to produce the Supreme hook while Seacliff will realize a steady stream of revenue without the capital costs normally associated with selling a product. Seacliff earns good profits. It has a professional marketing staff and a established distribution and manufacturing system. Seacliff is currently looking for a strategic partner and expects to enter into negotiations in the near future.
The Market
The market for the Supreme Hook is huge. The total market is worth $300 million. Over 39.1 Million anglers are in the U.S.A., who have fished more than 618,000,000 days and made 807 million trips. Even more impressive is the rapid growth of this industry. Between 1955-1996 the number of anglers has increased at over twice the rate of the U.S. population.
Management
The whole foundation of the business model is to concentrate at what you are good at. Seacliff takes this principle to heart, focusing on design. Willamette University JD/MBA is the owner’s education. This dual degree allowed him to gain valuable insights in business development, as well as the useful legal tool of patents and licenses. Following graduate school, he was unsure of what direction his career should take him so headed off to Oregon to be a fly fishing guide. He became passionate about fishing over the course of his 2 year stay. He decided to return to school for a Masters’ in Engineering, so that he could focus on the design and engineering aspects of fishing-related products. It was near the end of his last graduate degree that he developed the Supreme hook. His previous degrees (JD/MBA), made it easy for him to start his own company and locate a manufacturer to license the product.
Seacliff is an exciting company that shuns the typical need for extensive start-up capital for production by licensing a patented product. By licensing the product it frees up Seacliff’s time to concentrate on value added activities such as future designs. Within a month, profitability will be attained.
1.1 Mission
Seacliff has two goals: to maximize the potential profit of the Supreme, its newly patented fishhook invention, via licensing or other means; and to continue developing innovative fishing gear products.
Success Keys 1.2
The following are key factors to maximize profits when licensing a patent:
To separate the manufacturing and marketing for the Supreme.
Make sure you find a manufacturer that is capable of making the hook.
Choose a marketing company with significant fishing gear knowledge who is willing and able to allocate the necessary marketing budget.
Seacliff and marketer can create a well-thought-out, reasonable licensing agreement to ensure mutually beneficial partnership arrangements.
These are the keys for success when profiting off the patent in make–it-yourself form.
Recognize there is a wider market for the product.
Follow the proven price structure formula that provides attractive margins to all levels of the distribution chain (manufacturer’s representative, wholesaler, retailer).
Reach the narrow market niche through free publicity in fishing magazines and catalogs, website, trade shows, etc.
Keep overhead low and stay alive until word-of-mouth begins to generate clients.
1.3 Objectives
The main objectives are:
Locate a suitable manufacturer who is willing, on an exclusive basis, to produce the patented Supreme hook at a reasonable price. This would, at the retail level, cause the Supreme to sell for under 150% of a normal hook of similar size.
Find a medium-sized marketing company that specializes in fishing gear and who is open to the idea of using the patent to mass-merchandise Supreme products both at home and abroad. A three percent royalty will be paid on all purchases made by the exclusive manufacturer under an exclusive license arrangement.
Successfully introduce the product in kit form. In the first three month, you will reach breakeven (370 kits). The first year saw the sale of 8,333 kits.
Complete the website design.
Join the American Sportfishing Association and reserve a booth at this year’s ASA tradeshow in Los Vegas.
Kingfishers retail Fly Shop offers supplies, guided tours, fishing/hunting logs and other services to Anglers from all over. We are centrally positioned in the middle this popular area, along Highway frontage of one of the busiest Highways. We are an ideal base camp, meeting place and location for success.
Ausable Wilfff and Brassie Nymph are now the new owners.
Our competitive edge is huge. Our unique customer “interest points” and our excellent location give us an advantage in advertising. We are experts in fly fishing these rivers and can stock the best supplies as well as offer expert advice to our customers so that they can really enjoy their fishing vacations. Our welcoming and supportive attitude towards even novice fisherman will turn first-time visitors into repeat customers. We also offer lodging at affordable rates. We are conveniently located between four major blue-ribbon rivers and the famous Trout River. The keys to our success lie in our great location, the ambiance of our store, and most importantly, our attitude.
This plan will outline what the company needs to launch a successful venture and how it plans to do 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. The projections are based primarily on the past performance and profit potential of the business as it was run by its previous owner. These conservative projections show that we will outperform the industry in almost every aspect.
Sixteen thousand dollars has been contributed by the owners to finance the purchase and renovation of the business. 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
To bring the business back on track, we have several key objectives. We must achieve these goals in order to maximize revenue and profitability today. These are our goals to achieve this:
Through advertising and web presence, double the number clients who visit the door in the first year and increase customer traffic each year by 20% for five year.
Remodeling the retail space to increase floor sales by 30% and re-merchandising products in flow patterns will make it more customer- and ‘#8220’-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.
Book minimum 125 trips using independent contracted guides and 1 employed guide the first year, 250 the second and third years using independently contracted guides. 300+ will be booked using independently hired and 1-2 employed Kingfishers Outfitters’ License guides. We can also rent 2-3 drift boats out to anglers who do not want professional guides. This will help us increase revenue and gain market share.
To gain market share and increase revenue by offering quality lodging at affordable rates in the most attractive location 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. This will allow us to increase both lodging and product sales revenues.
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 invited to stop by for a cup and a chat, rather than being asked for money and then escorted out. Kingfishers aims to provide Anglers & Hunters with the right equipment and knowledge and make them return time and again.
1.3 Keys to Success
There are four key keys to success in the retail Fly Shop or Hunting Store business:
Our central location is within minutes of five major Trout Rivers as well as 4,000 acres of public land. We are located along a major highway that links Yellowstone National Park to Glacier National Park. Also, it is the highway that leads directly to one of the state’s top tourist attractions.
Quality/Variety Of Products and Services: Both anglers & hunters can find top-quality, budget-priced goods here. We also offer guide services, boat rental, lodging, and boat rentals. We also offer products and services unique to this shop.
Atmosphere This store is situated in a rustic log building that represents our state. It offers a warm and spacious atmosphere, which is conducive to stress-free selling.
Visibility/Marketing: Kingfishers is located on one of the busiest highways in the southwest portion of our state. The store is visited by 3000-4000 vehicles each day in the spring, summer, 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.
