COOL SPRING RANCH

Robin AilsbyGrant ImmelRyan KlassenAnne Pinckney

COOL SPRING RANCH

INTRODUCTION

Located in the scenic Lac Pelletier Valley Cool Spring Ranch currently offers many

activities operating a training ground for both horse and rider in the summer months.

Goal: Provide a relaxing setting for recreation and accommodation.

COOL SPRING RANCH

New facility offering; -riding camps for children. -corporate retreat for meetings and

group training. New buildings required:

– Indoor riding arena,– Cabins, – Eventually corporate headquarters.

OPERATIONS

COOL SPRING RANCH

Studer Road

EntranceN

Barn

SE 7 - 11 - 14 W of 3

HouseHouse

CABINS

Large Cabins

New Indoor Arena

Outdoor Arena

COOL SPRING RANCH

Indoor Arena

•Goodon Industries

•’70X’200

•Steel Poll frame

COOL SPRING RANCH

2 dorm style:– 6 bunk beds each

2 Cabins: – Double bed, 2 hide-a-beds– Kitchenette and bathroom

Cabins

COOL SPRING RANCH

Work Plan and Flow of Work

Activities– Training– Special Events

Horse Sales Auctions Riding camps/Riding clinics/Competitions

– Cabin Rental Families Hunters

Human Resources

COOL SPRING RANCH

STAFF

Owners/ Operators (David &Cecilia Fiddler):

-overall control of the everyday operations

-primary duty is working with both the head trainer and camps coordinator

-oversee the hiring of employees and the purchase of all materials for the ranch

COOL SPRING RANCH

STAFF

Camps Coordinator (Marcia Fiddler): -scheduling, activity planning, teaching-supervisor for both the cook and maintenance staff

Head Trainer (Kristin Fiddler): -planning and scheduling of riding clinics and competitions -working with individual clients and their horses -supervisor of the Assistant Trainer

COOL SPRING RANCH

STAFF

Assistant TrainerAssistant Trainer: :

-working with individual clients and their horses -working with individual clients and their horses

-position will be filled during the summer months by a -position will be filled during the summer months by a student from Olds College participating in their student from Olds College participating in their summer internship programsummer internship program

Maintenance StaffMaintenance Staff

ChefChef

MARKETING

COOL SPRING RANCH

Services

Week long overnight riding camps for beginners during the summer months.

Day and weekend camps throughout the year (holidays).

Year round horse training for both horse and rider.

Rental of facilities for horse shows, clinics, sales, etc.

Rental of accommodations for tourists and sportsmen.

Week long corporate retreats (to be phased in year 5).

COOL SPRING RANCH

Marketing Strategy

Pricing Policy– Dictated by the market– Competitive pricing

Selling and Advertising– Getting the name out– Personal promotion

COOL SPRING RANCH

Advertising

Selling an experience Advertising should utilize the following media:

-Leisure guides

-Local schools

-Mail flyers

-Internet

-Horse magazines

-Booths at horse shows / sales / clinics

COOL SPRING RANCH

Marketing Strategy

Sales and Profit Objectives– Aim to be profitable– Continue expansion

Channels of Distribution– Broad advertising– Bring customers to Cool Spring Ranch

COOL SPRING RANCH

Geographical Market

Geographical market will include:SaskatoonReginaMoose JawSwift CurrentMedicine HatSurrounding rural centers

Geographical market will expand to:WinnipegCalgaryEdmonton

COOL SPRING RANCH

Market Segmentation

Prospective customers have been segmented into the following groups:

– Parents of students (both elementary and high school)

– Members of 4-H and other student equestrian clubs

– Other members of the horse community

– Corporate customers

– Sportsmen / outdoor enthusiasts / tourists

Financial Plan

COOL SPRING RANCH

Revenues

2005 2009

Horse Training $63,000 $75,987

Lessons $1,575 $2,289

Camps $39,938 $46,120

Corporate Retreat 0 $18,900

Rental of Facilities $2,053 $5,069

Total $106,566 $148,364

COOL SPRING RANCH

Expenses

2005 2009

Equipment Rental

$14,972 $16,206

Expenses $67,426 $95,011

Wages $92,578 $100,209

Total $174,976 $211,426

COOL SPRING RANCH

Net Income

Income Statement 2005 2009

Total Revenues $106,566 $148,364

Total Expenses $174,976 $211,426

Total Net Income ($68,410) ($63,062)

COOL SPRING RANCH

Break Even Analysis

*Based on quantity of sales as compared to capacity.

Current Required

Horse Training 70% 160%

Camps 85% 290%

Corporate Retreat 30% 260%

COOL SPRING RANCH

CONCLUSION

Not financially feasible Though the services offered by Cool Spring Ranch are of a

high standard, the cost of acquiring the capital assets required as well as the related operating costs do not exceed the potential revenues.

Possible alternatives to make this venture profitable may include one or a combination of the following:

– Decreasing the number of cabins built from four to two.– Eliminating the building of cabins completely.– Phasing in the corporate retreat immediately.– Eliminating the building of the corporate retreat.– Only building the indoor arena.

QUESTIONS?