I have been working on the business plan, and all that goes with it. I checked out the Redwater sand dunes, they are awesome. I am very disappointed that I haven't found any maps of the ATV park. My insurance company outright refused to give me insurance for "such a risky business", but I am sure someone will want to take my money to insure me.
Here is what I have so far for my business plan.:
Executive Summary
There is a possibility for an exciting and profitable new business Alberta. M&M Outdoor Adventures will provide guided dune buggy tours, through the 5000 acre ATV park of Red Water
For slightly more than $200 customers (custies for short) can come for a 2-3 hour guided tour of the ATV park. The advantages for them would include, not getting lost in the 5000 acres alone. Not worrying about breakdowns. Not needing an ATV nor a truck to haul it with, we don’t care if custies show up on bicycles.
The target market for this business would be the approximately 780,000 Edmonton residents and beyond. Locals to Red Water most likely own ATVs and are familiar with the park. We are targeting city folk, and foreigners that don’t have, or didn’t bring their ATVs out to Alberta.
Even fewer people have driven dune buggy “side by side” style ATVs. We make it possible to truly experience them in a serious off road, but safe environment. We would start off buying used buggies, for approximately $3500. The average buggy would be paid for in its first summer of tours..
In year one, M&M Outdoor Adventures would attempt to do 50 tours with 4 buggies plus guide, a tour, grossing $50,000. Year two we would build another truck and trailer, with another 5 ATVs, possibly quads, for another tour group.
Assuming an average purchase price of $3500, a 50 tour season, $300 for the tour guide (me J), a 6-7 month riding season would gross $50,000. Driver/tour guid costs $15000. Dune buggy cost $17500. Labor and repairs are volunteer work (by me J), and the company makes $17500, less maintanence parts, gas, insurance, helmets, water bottles, truck and trailer.
1.1 Objectives
1. Do 50, 4 buggy tours in year one, possibly build a 4 buggy trailer, and expand that.
2. M&M Outdoor adventures will be fully self sufficient and profitable by year 2.
3. Possibly expand to 8 buggies, two of which are driven by tour guides, by year two. From there add another truck and trailer, or a three ton car hauler style.
1.2 Mission
M&M Outdoor Adventures will provide exciting dune buggy tours at a very competitive price. M&M Outdoor Adventures will service its customers first. M&M Outdoor Adventures will be a profitable business which will treat its employees fairly, and provide financially for its owners.
1.3 Keys to Success
1. Good customer service and value.
2. Affordable tour prices.
3. Reaching the target market.
4. Integrity in serving our customers; resulting in repeat business.
Company Summary
M&M Outdoor Adventures will provide guided buggy tours to locals and tourists alike. Allowing an affordable alternative to buying an expensive high maintenance dune bugy . M&M Outdoor Adventures will provide the tours for little more than the monthly payment of the expensive ATVs. There is no current business like this I know of in ‘alberta. The target market would be the approximately 780,000 residents of Edmonton to start with.
There are thousands of workers that come to Edmonton for a week off, looking for adventure, from Fort McMurray. This would be just one of the other possibly thousands of potential target markets.
Keeping to used Hammerheads, or new Geovanni buggies, M&M Outdoor Adventures would be profitable in its first year, even if we decided to hire tour guide drivers.
2.1 Start-up Summary
M&M Outdoor Adventures will be funded by a small loan to Michelle, Malcolm Smith, and volunteer labor by Malcolm Smith. The majority of the funding will come from past buggy and truck purchases, plus possibly loans backed by starting assets, and or the Andrew shop/house. The cost of the start-up, including inventory, legal expenses, and advertising, will total $10,000ish. We anticipate that this company will start generating immediate cash flow.
| Requirements | |
| Start-up Expenses | |
| Legal | $500 |
| Stationery etc. | $150 |
| Brochures | $? |
| Consultants | $? |
| Insurance | $500 |
| Rent | $0 |
| Registration | $550 |
| Expensed equipment | ? |
| Truck | $1500 |
| Total Start-up Expenses | ? |
| Start-up Assets | |
| Cash Required | $10,000 |
| Start-up Inventory | $10,000 |
| Other Current Assets | $60,000 |
| Long-term Assets | ? |
| Total Assets | ? |
| Total Requirements | ? |
| Start-up Funding | |
| Start-up Expenses to Fund | ? |
| Start-up Assets to Fund | ? |
| Total Funding Required | ? |
2.2 Company Ownership
The official name of this company will be M&M Outdoor Adventures incorporated. It will be a corporation. The reason that the company will incorporate will be for tax advantages and to decrease liability.
2.3 Company Locations and Facilities
The company will be located in Andrew, AB. This location is ideal because of the need for inexpensive shop space, and storage. When M&M Outdoor Adventures is successful, which we believe that it will be, more buggies can be added to the tour, and possibly old buggies could be rented out.
Services
The main service that this company will provide will be weekend dune buggy tours. In addition to this, the company's secondary services will include such things as ATV safety classes and accessories.
3.1 Competitive Comparison
There are currently no other competitors in this market. The only competition that M&M Outdoor Adventures expects will be from high overhead ATV stores, and awkward, uncomfortable quads. It would be very difficult for anyone to offer such exciting tours at a price competitive to ours, with the large easy to handle hammerhead buggies we have. If we find there is a weekday market we will start offering tours every sunny day.
3.2 Sales Literature
The only sales literature that M&M Outdoor Adventures will distribute will be via newspaper publications. We have no plans for a direct mailing plan, although one is possible in the future. Also a website targeted to Edmonton, and some well searched atv key words. Expect the website to be finished, with action pictures, by June 2011.
Paraphernalia such as bumper stickers, fridge magnets, and Tee shirts will be printed, with a custom logo, website address and 1800 phone number, tied to Malcolm’s phone, but could easily be changed to tie to any ones phone.
3.3 Future Services
It is possible for M&M Outdoor Adventures to expand into the electric vehicle market in the future if some clapped out buggies are suited to conversion. We believe that this will be positive for us because we already will have an established customer base who is interested in low cost or environment friendly ATV adventures. Also the shop has plans to be self sufficient and off the grid with its own solar and wind power, the summer of 2011.
Market Analysis Summary
We see this market as mainly made up of city folk looking for adventure. Since the majority live 70km from the 5000 acre ATV park, its not too far to drive out for an unbeatable adventure. We also anticipate getting a small amount of customers that are tourists to Edmonton, and outlying areas.
4.2 Market Growth
We anticipate that this market will grow in two ways. First, it will grow as more people hear about us, and spread the word about what an exciting time they had at such a reasonable price. Second, it will grow with the SEO (search engine optimization) of our website. The longer the site is up, and linked to, the more interested people find it, without even looking for it.
Strategy and Implementation Summary
The following sections will outline the Strategy and Implementation plan for M&M Out Door Adventures.
5.1 Marketing Strategy
The main marketing strategy that we will pursue will be to make potential customers aware of us via internet. We will advertise in papers as the budget allows, and advertise online with the website, Teeshirts, fridge magnets and stickers. All customers will get an M&M Outdoor Adventures bumper sticker, with the website address and 1800 #.
5.1.1 Distribution Strategy
The method of distribution for this business would be to transport the buggies every nice weekend to the ATV park, via 1 ton pickup and trailer. 5 buggies, 4 on the truck, one on the trailer, until we get a bigger trailer.
5.1.2 Marketing Programs
In order for M&M Outdoor Adventures to reach its first year goals, it needs to show people how much fun the dune buggies are. We will do this through youtube videos, also branded to our site. People must see others on our dune buggies having a great time.
5.1.3 Pricing Strategy
We will price our products at a level that is affordable for the working class and that provides financial substinence for the company and its owners. The tours will be priced at $214, or $292 with a passenger over the age of 16, consider that an average price of $250. We would offer some group rates when we get more buggies, at $1000 for a tour with all the buggies loaded. Accessories would be offered above cost, but at a reasonable level, including tee shirts, hats, stickers and fridge magnets .
5.1.4 Promotion Strategy
This business will be successful only if the target market knows about M&M Outdoor Adventures how affordable Buggy tours can be. M&M Outdoor Adventures will advertise online, at ATV stores, West Edmonton Mall, on local bill boards and papers. We will try some promotions such as free buggy tour contests and free safety courses.
5.2 Sales Strategy
Since the main part of the business will come from customers ready to ride, there will not have to be much direct selling. We will use knowledgeable sales people to assist any customers who have doubts regarding driving dune buggies in dirt and sand. The sales staff will know the benefits of the dune buggies and explain this to the potential customer. Some customers will worry about the safety and whether or not they can drive buggies with no experience. We will service this customer with safety and instructional classes before each tour.
5.2.1 Sales Forecast
| We predict that there will be variation in monthly sales forecasts, but we expect to do 50 tours our first year of operation. | |||
5.3 Milestones
In order for M&M Outdoor Adventures to be successful, we must have attainable goals for the business. When looking to the future and growing the business, we can look at these goals and milestones as an indicator of where the company has been, is going, and the path that it is taking. They can guide the future of the business. These are detailed in the Milestones section.
| Milestones | |||||
| Milestone | Start Date | ||||
| Open Shop For Business | 3/1/2011 | ||||
| First Tour | 3/1/2011 | ||||
| Average month | $8333 | ||||
| Be debt free | 9/1/2011 | ||||
| Totals | |||||
Management Summary
As this is a small business, there will be no real management structure except for the owners. They will run the business on a weekend basis and oversee all facets of the operation. Assisting Them could be various employees who will work the shop, and do tours on a part time basis.
6.1 Personnel Plan
There is really no plans to hire until the demand for our tours exceed our willingness to go ATVing. When that is the case we would probably get another set of buggies, truck and trailer, maybe even shop space in Redwater. At that point, and even to start, I think the company putting on tours can easily pay wages close to minimum wage, with some sort of profit sharing.
Drivers duty includes driving truck n trailer to redwater atv park. Unloading ATVs, greeting customers, and taking payment. Sorting out helmets. Giving a brief safety instruction before the tour. Guiding the tour, stopping frequently to let people catch up. If any buggies fail, lock them up, give up the guides buggy n continue guiding on the pit bike off the back of the guide buggy.. Then at the end, inform custies if there is an opening next tour, they can go again for half price. If someone had a breakdown give them, or possibly everyone a free tee shirt, maybe a tour voucher, depending on how badly the tour was interupted. Then with 1 hour to the next tour, retrieve any broken buggy,clean any muddy seats, and prep for the next group. We could do up to 4 tours a day. 9am, noon, 3pm, and 6pm. In between tours, and in empty slots, buggies get fueled up, fluid checks, and washed. At the end of the day, the buggies are hauled back to Andrew, where they are washed, the seats at least, on Saturday nights. They get a good going over on Monday.
After we get more than 4 buggies in the tour, we will have another person bring up the rear. The rear guy (caboose) would carry the pit bike and have mechanical knowledge of the buggies. The caboose would give up their buggy to anyone broke down, then attempt to repair their breakdown. Or take the pit bike back to the truck, where he takes any available buggy out to tow the break down back to the truck.
Financial Plan
| All of the monies necessary for the start-up of this business will come from the owners, and possibly a small loan. | |||
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