Final project

Wildwood Adventures Business Plan McAuley Catholic High School FBLA

2012

Mary Street, Abby Pekarek, Megan Price

2/10/2012

Wildwood Adventures BUSINESS PLAN

1 Wildwood Adventures

Table of Contents

Executive Summary……………………………………... Company Description…………………………………...Page 4 Industry Analysis………………………………………….Page 7 Target Market……………………………………………….Page 8 Competition………………………………………………….Page 9 Marketing Plan and Sales Strategy………………..Page 11 Operations……………………………………………………Page 12 Financials……………………………………………………..Page 14 Appendix………………………………………………………Page 17



Executive Summary Introduction

Wildwood Adventures is a privately owned camp and park, located on 200 of the most

beautiful acres Wildwood Ranch has available. Offering a unique opportunity to enjoy

the outdoors, Wildwood Adventures has a variety of activities that are not currently

available in Joplin and the surrounding areas. These activities include horseback riding,

kayaking, complete campsites, rock climbing, fishing, and trails for walking and biking.

For activities requiring equipment, that equipment will be available for rental at a low

rate. Wildwood Adventures also presents the availability of campsites for an extended

stay. Individuals or organizations also have the opportunity to rent sections of land and

equipment for birthday parties or school field trips. The mission of Wildwood

Adventures is to provide the most memorable experiences for the family through the

quality of our activities and hard work from our team. The enjoyment people will have

after spending an afternoon, day, or night at our lively and safe campsite will ensure the

success of our business.

Current Situation

Our team is in the process of establishing a sustaining concept and plan for our business

in order to pursue our dream of creating Wildwood Adventures. The unique opportunity

our team has to turn the atmosphere of the Ozarks into a memorable and enjoyable

experience for everyone is our teams aspiration. The weather provides us with a perfect

ability to make the outdoors the best it can be, no matter the season. We will create

season oriented activities to ensure the return of our customers. These factors are what

precedes our success, and that is why we are asking for the help of investors. Our

investors would not be disappointed, but delighted with the potential amount of

satisfaction from investing in our company.

Management Qualifications

The members of our team each have different characteristics which make our company

successful in all aspects. Megan Price is extremely organized and computer oriented

which helps the Wildwood Adventures team work in a way that makes us professionals

at our jobs and have what we need to get work done on time. Price also shares her

characteristic of being a good decision maker evident to the company. Abby Pekarek’s

ability to work adequately with people and interact with them is shared with Mary

Street. The two can handle difficult situations with ease and turn good situations into

even better ones. Mary Street is also unique in her ability to figure mathematical



equations precisely and efficiently. Each one of our member's talents has been taken in

consideration by the team to give them a job in the company which specializes in their

ability.

Seeking Investors

Each investor is coming up with an initial investment of $200,000 from their individual

personal accounts. The total investment between each owner will be $1,000,000. After

this initial investment, we will still need $XXXX to raise the remaining capital needed for

start-up cost, maintenance cost, and future endeavors.

Closing Statement

Full disclosure will be provided to each of our investors on what our vision of the

company is. Our company plans on raising profit margins each year we operate. We

firmly believe outside investors can expect a 3% return on investment by the 5th year of

operating. Outside investors can exit at any time; however, they will not receive any of

their investment back.



Company Description Legal Form of Business

Wildwood Adventures will be organized as a partnership between three individuals: Abby Pekarek, Mary Street, and Megan Price. The company feels that the advantages of organizing as a partnership outweigh the disadvantages. Starting a partnership in Missouri is a quick and easy process that can be done through the Secretary of States office. Another significant reason Wildwood Adventures has selected to organize as a partnership is the variety of skills that each partner brings to the company. The variety of skills will serve as a huge asset in developing and maintaining a successful business. The main drawback for Wildwood Adventures organizing as a partnership is the potential for disagreements between partners. With three different partners there are bound to be disagreements. Wildwood Adventures has elected to combat this potential hazard by electing one of the partners, Megan Price, as Chief Executive Officer. The company feels it is important to have one individual in charge to make final decisions. Effective Date of Business

Wildwood Adventures will begin operation in March of 2013. The springtime is a perfect opportunity for an outdoor recreational to premier. The business will also begin its fiscal year in March of 2013. Below is a schedule of critical business events.

Schedule of Critical Business Events

Mission

Wildwood Adventures goal is to give the most enjoyable experiences of the Midwest to

people of all ages through the quality of our outdoor activities, the teamwork of our

staff, and the integrity which is present in our business.

August 2012-Ground Breaking

January 2013-

Complete Construction, Staff/Train Future Employees, Start

Advertising

March 2013-

Open to public



Vision

Wildwood Adventures vision is to grow in both activities and customers. This could be

accomplished by expanding the land and activities we offer. Eventually we hope to have

more winter activities so that wildwood will be enjoyable all year around.

Company Governance

As stated earlier, the company feels it is necessary to have one final decision maker.

While there may be more than one view point and opinion from different partners and

employees, Wildwood Adventures feels it is important to have the Chief Executive

Officer, Megan Price, make final decisions in the case of disagreements. The company

intends on having a relatively flat organization. Wildwood Adventures feels a flat

organization is vital to communication between employees and customers. Better

communication will ultimately lead to a more successful business. An organizational

chart is provided below.

Megan Price-

Manager

Mary Street- Finance/Human

Resource

General Employee

General Employee

Abby Pekarek-Public

Relations/Sales

General Employee



Company Location

Nestled in America’s Heartland is one of the most unique multi-use real estate opportunities in North America. Located near the geographic center of the United States, there is a 2,064-acre tract of land poised for development. Wildwood Adventures will use 165 acres of this tract. It is located on the west side of the city of Joplin in southwest Missouri. Many travelers come through the region each day crossing the country on Interstate 44 and US Highway 71. The 165 acres that Wildwood Adventures is purchasing will have primary access to shoal creek, which it will use for a multitude of adventure activities. Immediate Development Goals

After the initial purchase of 165 acres Wildwood Adventures plans on beginning construction on two nature trails, a community building, barn and stable for the horses, a warehouse for storage, a storm shelter equipped with restrooms, and a bait, tackle and equipment rental shop. Wildwood Adventures feels that this is financially feasible with their partners contributing. Expansion plan beyond this will be discussed in the intermediate and long term goals sections. Overview of Companies Financial Status

Currently, Wildwood Adventures has secured donations in the total of $50,000. Wildwood Adventures has also secured loans from private individuals in the amount of $425,000 at a rate of 6.2%. This amount will cover the cost of the land and most development. $50,000 of this money will be kept in an initial operating budget. The initial operating budget will fund the companies operating needs for the first four months of operation. Each partner plans on investing an additional $26,000, for a total of $78,000. Wildwood is procuring the land for a cost of $1,000 an acre for a total investment of $165,000 on the land. Wildwood has estimated that the cost for 15 horses will be $65,000 total. The estimated immediate equipment needed will cost $49,000, and the estimated initial building expenses are $197,000. This brings the total initial investment to $475,000.

Donations 64%

Private Investme

nts 25%

Private Loans 11%

Financial Status



Industry Analysis

Description of Industry

Wildwood Adventures is in an industry known as the Outdoor Recreation Industry. According to the American Recreation Coalition, outdoor recreation is a viable activity in the conscience of many Americans. Generating more than $400 billion in annual spending the industry is dominated by small local parks such as Wildwood Adventures. Despite the recent economic downturn, outdoor recreation has maintained a steady incline in business. From 2007 to 2011 there was a 15.3 % gain in seasonal activities and a 2.1% gain in annual customers. Nature of Competition

Direct competitors will be discussed in the competition section; however, Wildwood Adventures has identified a national competitor, Kampgrounds of America Inc (KOA). While KOA doesn’t offer the same activities that Wildwood Adventures offers, the basic nature of the business is the same. Outdoor enthusiast that enjoys KOA, will also enjoy Wildwood Adventures. As the Outdoor Recreation Industry rose, so did the customers of KOA. We expect the same trends with Wildwood Adventures. Trends and Strategic Opportunities Within Industry

As stated above, the trends of the Outdoor Recreation Industry estimates growth, as it has grown during the economic downturn. Wildwood Adventures believes that it offers unique opportunities such as rock climbing and horseback riding for campers to enjoy that are beyond the spectrum of anyone else in the industry.



Target Market Target Market Defined

The target market for Wildwood Adventures is active individuals between the ages of 25 and 45. These individuals frequently have children and are looking for ways to engage their children in outdoor activities. According to the Outdoor Recreation Industry household incomes of these individuals are between $60,000 and $120,000. Wildwood Adventures feels that there will be lower incomes in the Joplin area; however, the park’s prices reflect the lower income. Size

According to the US census delivered in 2009 there are 1,554,391 people between the ages of 25 and 45, which is Wildwood Adventures target market. Data was unavailable on what percentage of those individuals actually has children or are avid active outdoorsman.

Growth Potential

While the target market is

active people between the ages

of 25 and 45 we fully expect to

have people of all ages

attending the park. We feel like

we can encourage many people

outside our target market to “Go

Play Outside and Have Fun at

Wildwood”



Competition

Key Competitors

Our competitors don’t have our exact services, but have a similar target market. A local park, Wildcat Glades, consist of similar opportunities to enjoy the outdoors through nature trails, fishing, and swimming. The other competition that exists within a 100 mile radius of Wildwood is Roaring River State Park. Roaring River State Park’s primary focus is the fishing opportunities. Although the camp is also equipped with a campground, and nature trails are also available. Dogwood Canyons offers a free walking trail, and other seasonal activities for a fee. Competitors Strengths and Weaknesses

Wildwood recognizes the strengths of its competitors. The company hopes to take these strengths and view them as potential assets to Wildwood. Wildwood does not intend to reinvent the wheel on activities that others do well, just to add another entity that offers many of the same services, and offer them with superior customer service.

Wildwood also wants to pinpoint the weaknesses of other adventure parks and capitalize on their shortcomings. With first hand knowledge on various activities such as horseback riding, fishing, and kayaking Wildwood hopes to give customers an unlimited amount of activities in a limited market.

Potential Future Competitors

While there is land available for potential future competitors Wildwood does not recognize future competitors as a huge threat. Once developed, Wildwood feels as if potential future competitors will not come to the area because

the demand will be filled with Wildwood. However, if competitors do enter the market,

Strengths

Business Developed

Goodwill Toward

Business

License and Other

Regulation Developed

First Hand Knowledge

Only Park Near Location

Government Grants

Weaknesses

No New Developmental

Ideas

Limited First Hand

Knowledge

Focus Mainly on Seasonal

Activities

Variety of Excursions



Wildwood doesn’t see this as a threat. Wildwood feels that this is an opportunity for consumers to verify the exceptional service provided by Wildwood.

Barriers to Entry for New Competitors

As stated above Wildwood does not expect new competitors to enter the market. Other than the demand being met by Wildwood there are other barriers to entry for competitors. They include but are not limited to financial resources, firsthand knowledge, and operating capital.



Marketing Plan and Sales Strategy

Key Message

The key message for Wildwood is to “Go Play Outside and Have Fun at Wildwood.” Wildwood believes this message is so valuable to the attitude of the consumer and employees, the company has chosen this message as its trademark. The world that consumers operate in is electronically driven. Wildwood believes they offer an escape into a world that is electronically connected. The company would like for consumers to “disconnect” and enjoy the outdoors.

Message Delivery

The irony of Wildwood’s goal to get people disconnected from technology is that it will have to reach a majority of people through technology. Wildwood doesn’t view technology as a bad thing; they would just like it to be limited. Wildwood plans on having a website that will be include all pertinent information to the various activities. They will also have a Facebook page that will provide a link to the website. If anyone likes the page, they will receive a 5% discount on their total bill each time they attend Wildwood. During the first year of the business Wildwood expects to advertise more than they project to after the first year. The company feels it is necessary to get the word out to attract new business to the industry.

Sales Procedures and Methods

Wildwood will have an attendant in the main building at all times. There will be a rate sheet (See appendix D) for consumers to view when they enter. This will explain the different prices and activities that Wildwood offers. Sales attendants will not push activities on consumers, but rather act as an informative guide. All transactions will be point of sale and Wildwood will accept all major credit cards, checks, and cash.



Operations

Business facilities

Wildwood Adventures plans on constructing four buildings on the property. Those

buildings include an office, a barn, a warehouse and a bathroom that also serves as a

tornado shelter. The office will be where the CEO will work and the first facility that the

customers will encounter upon entering Wildwood. The barn is where all the camp

animals, such as the horses are going to be kept and cared for. All the horses feed and

tools for caring for them will also be kept in the barn. Wildwood will be building a

warehouse to store all the equipment, supplies, and miscellaneous objects necessary to

run our business. The last building will serve doubly as a bathroom and tornado shelter.

It is important that all facilities be maintained and updated regularly.

Production plan

Day Visitors

Upon arriving at Wildwood Adventures guests will take a path from the parking lot to our

main office. Once guests have reached the office, they will find a large board on the

outside wall displaying a menu of the variety of activities as well as rates. A rate sheet

offering the same information will also be available in the form of a brochure. Guests

will then decide what activities they would like to engage in for the day and make their

way inside the office to pay. The office manager will take the money and give guests a

liability waiver (see Appendix) to sign. Guests will not be allowed to participate in the

activities they have chosen unless this waiver is signed. Persons under the age of

eighteen must have this liability waiver signed by a guardian or parent. Waivers can be

printed off online and signed at an earlier date prior to activities for children under the

age of eighteen. If rental equipment is needed, guests will be given the proper equipment

at this time and then they are free to enjoy their day’s adventures. If lessons are

requested, then guests will sign up for a specifically timed lesson and will then be given

equipment for this first lesson. Guests are then free to enjoy their chosen activity. At the

end of the day guests will return all rented equipment.

Overnight Visitors

A guided path will escort guests from the parking lot to the office where menu of

activities and rates will be displayed on the wall of the office. This menu will also help

guests decide which of the two campsites, an water and electric campsite or a basic

campsite, they would like to purchase for their nightly stay. Brochures will also be

available with additional information for personal use. Guests can then pay the office

manager and in exchange will be given a liability waiver to sign (see Appendix). Guests

will be given any needed equipment and are then free to set up a campsite on their

designated lot and engage in their chosen activities for an enjoyable day and evening in

the outdoors. Guests will return their equipment at the end of their stay, whenever that

might be.



Impact of Technology

Although Wildwood wants to focus on "unplugging" and escaping to the outdoors, there

will still be needs for technology. Technology with Wildwood will focus on getting

people to the park. As stated before there will be a website, twitter, and Facebook page

available for guest to visit and gather information about their upcoming visit. Online

liability waivers can be found on the web-site and printed for a quicker check-in process.

Feedback is important to Wildwood. Wildwood wants to encourage people to provide

feedback, positive or negative, in the feedback section of the website. This can be

accomplished through methods of surveys or written advice on how to improve guests

experience at Wildwood Adventures. Technology will allow Wildwood to receive

feedback faster and allow the company to enact changes quickly and efficiently.



Financials

Accounting System

Wildwood Ranch will use QuickBooks Pro 2011. This version of QuickBooks will allow

Wildwood to use their preference of double entry accounting. This will perform task

such as payroll management, billing, and accounting reports. It also has the function of

performing either LIFO or FIFO on Wildwoods inventory.

Financial Assumptions

1. Three business owners each contributing capital of $26,000

2. Projections of variable expenses follow a 2% per year inflation rate

3. Fiscal year will be March 1 – April 30

4. Wildwood has secured loans of $425,000 from private investors at a rate of 6.2%

5. Wildwood has secured $50,000 of donations for the project

6. Land purchase totals 165,000

7. First year expenses on “Activities” and “Land Upkeep” are higher because of

initial expenses

8. Revenue from all activities will increase by 7.8% each year

9. The sales tax rate for Jasper County is 5.2%

10. The three owners will receive 13% of Net Profit as salary for their services

11. Money after owner receive salary will go back into business for emergency fund



Financial Projections

Wildwood Adventures

Income Statement

2013

2014

2015

Revenue Biking

$ 20,000.00

$ 21,565.00

$ 23,252.46

Fishing

$ 150,000.00

$ 161,737.50

$ 174,393.46

Rock Climbing

$ 135,000.00

$ 145,563.75

$ 156,954.11

Horseback Riding

$ 180,000.00

$ 194,085.00

$ 209,272.15

Horseback lessons

$ 12,000.00

$ 12,939.00

$ 13,951.48

Kayaking/Canoe

$ 30,000.00

$ 32,347.50

$ 34,878.69

Camping

$ 37,000.00

$ 39,895.25

$ 43,017.05

Sales Tax

$ 44,133.00

$ 47,586.41

$ 51,310.04

Amphitheater

$ 20,000.00

$ 21,565.00

$ 23,252.46

Total Sales $ 608,133.00 $ 655,719.41 $ 707,029.45

Expenses Advertising

$ 10,320.00

$ 5,873.00

$ 5,160.00

Private Loan Payment

$ 31,235.88

$ 31,235.88

$ 31,235.88

Activities

$ 256,895.00

$ 55,984.00

$ 55,984.00

Wages

$ 100,000.00

$ 102,000.00

$ 100,420.00

Land Upkeep

$ 63,000.00

$ 55,000.00

$ 55,000.00

Animal Care

$ 54,000.00

$ 55,080.00

$ 56,181.60

Supplies

$ 3,000.00

$ 3,060.00

$ 3,120.60

Utilities

$ 10,500.00

$ 10,710.00

$ 10,500.00

Insurance

$ 3,120.00

$ 3,180.40

$ 3,183.40

Veterinary Services

$ 4,000.00

$ 4,080.00

$ 4,161.60

Maintenance

$ 2,000.00

$ 2,040.00

$ 2,081.20

Total Expenses $ 538,070.88 $ 328,243.28 $ 327,028.28

Income Before Taxes

$ 70,062.12

$ 327,476.13

$ 380,001.17

Income Tax

$ 3,643.23

$ 17,028.76

$ 19,760.06

Net Profit $ 66,418.89 $ 310,447.37 $ 360,241.11



Sales vs. Expenses Chart

The above chart projects how Wildwood’s expected sales will fare against our expected expenses. 2013, Wildwood’s first year of operation is projected to be the companies slowest year because of initial startup cost.

0

100000

200000

300000

400000

500000

600000

700000

800000

2013 2014 2015

Sales

Expenses



Appendix Section

Appendix A-Insurance Policy Appendix B-Liability Waiver Form Appendix C-Partnership Agreement Appendix D-Rate Sheet



Appendix A

Insurance Policy ASSIGNMENT OF INSURANCE POLICY BE IT KNOWN, for value received, the undersigned Wildwood Adventures of Joplin Missouri hereby irrevocably transfers and assigns to Abby Pekarek, Mary Street, and Megan Price all legal and beneficial right, title and interest in and to the within policy of insurance standing in my name and known as Policy No. 830292367 issued by the State Farm Insurance Company. I also assign all cash values, proceeds and benefits thereto arising, subject to the conditions of said policy and the requirement of the issuing underwriter: The undersigned warrants that it has full authority to transfer said policy, and shall execute all further documents as may be required, by the underwriter. This assignment shall be binding upon and inure to the benefit of the parties, their successors, assigns and personal representatives. Signed this 1st day of January 2012 In the presence of: Witness: _________________________ Assignor's Signature:________________________________



Appendix B

Liability Waiver Form To the best of my knowledge, I am in good physical condition and fully able to participate in this course. I am fully aware of the risks and hazards connected with the participation in this event, including physical injury or even death, and herby elect to voluntarily participate in said event, knowing that the associated physical activity may be hazardous to me and my property. I VOLUNTARILY ASSUME FULL RESPONSIBILITY FOR ANY RISKS OR LOSS, PROPERTY DAMAGE, OR PERSONAL INJURY, INCLUDING DEATH, that may be sustained by me, or loss or damage to property owned by me, as a result of participation in this course. I hereby RELEASE, WAIVE, DISCHARGE, AND COVENANT NOT TO SUE, Wildwood Adventures, their partners, servants, agents, and employees (hereinafter referred to as RELEASEES) from any and all liability, claims, demands, actions and causes of action whatsoever arising out of or related to any loss, damage, or injury, including death, that may be sustained by me, or to any property belonging to me, while participating in physical activity, or while on or upon the premises where the event is being conducted. It is my expressed intent that this release and hold harmless agreement shall bind the members of my family and spouse, if I am alive, and my heirs, assigns and personal representative, if I am deceased, and shall be deemed as a RELEASE, WAIVE, DISCHARGE, and CONVENTION TO SUE the above named RELEASEES. I hereby further agree that this Waiver of Liability and Hold Harmless Agreement shall be constructed in accordance with the laws of the State of Mississippi. In signing this release, I acknowledge and represent that I HAVE READ THE FORGOING Waiver of Liability and Hold Harmless Agreement, UNDERSTAND IT AND SIGN IT VOLUNTARILY as my own free act and deed; no oral representations, statements or inducements, apart from the foregoing written agreements have been made; and I EXECUTE THIS RELEASE FOR FULL, ADEQUATE AND COMPLETE CONSIDERATION FULLY INTENDING TO BE BOUND BY SAME. ________________________________ ________________________ Signature Print Name ___________________ ________________________ Date Event _________________________________ ________________________ Parent’s Signature Parent’s Print Name (If under 18)



Appendix C

PARTNERSHIP AGREEMENT FOR WILDWOOD ADVENTURES

This AGREEMENT of PARTNERSHIP is made as of 1-1-12 by and between the undersigned Partners.

I. Financial Contribution of each Partner

The three business partners will each contribute capital investment of $26,000.

II. Division of work between Partners

The three partners have different yet equally important tasks to perform.

Megan Price is the company’s manager. As the manager she oversees progress of the company and finalizes all decisions after consulting co-partners. Price also works as one of the office managers.

Mary Street is the company’s Public Relations Director and Financial Director. As Public Relations Director, Street is the face of the company and will communicate with the media aspect as well as make presentations. As Financial Director, Street will be in charge of all of the company’s finances. She is also a activity supervisor and works especially with the horses.

Abby Pekarek is the Public Relations Director and the Sales Manager. As Public Relations Director, Pekarek is in charge of all employees, their actions and their responsibilities. This includes conducting interviews, hiring new employees, firing old employees, and making sure all employees are performing their jobs correctly. As Sales Manager Pekarek is responsible for advertising and attaining new business.

III. Income within the Partnership

All partners will receive 13%of net profit monthly as salary for their services. In the case of a short in the companies earnings, partner salaries will be adjusted accordingly to benefit he company. The remaining 61% of net profit will be saved and used to make improvements in the business.

IV. Purpose

The purpose of the Partnership shall be to invest the assets of the Partnership in stocks, bonds, and securities for the financial and educational benefit of the Partners, while employing fundamental principles and techniques of sound investment practices.



V. Meetings

Periodic meetings shall be held regularly as determined by the Partnership.

VI. Capital Contributions

The Partners will each make initial investments of $26,000 to start the business. Partners may also make optional additional contributions in any increment. No Partner's capital account shall exceed twenty percent (20%) of the capital accounts of all Partners.

IX. Management

Except as otherwise determined, all decisions shall be made by the Partners whose capital accounts total a majority of the value of the capital accounts of all the Partners.

X. Sharing of Profits and Losses

Net profits and losses of the Partnership shall inure to, and be borne by, the Partners, in proportion to the value of each of their capital accounts.

XII. Annual Accounting and Partnership Audit Committee

Each calendar year, a full and complete account of the condition of the Partnership shall be made to the Partners. The Annual Accounting for the preceding year shall take place at the Annual Meeting.

All financial transactions shall be reviewed semi-annually by a Partnership Audit Committee.

XIII. Bank Account

The Partnership may select a bank for the purpose of opening a bank account. Funds in the bank account shall be withdrawn by checks signed by any Partner designated by the Partnership.

This Agreement of Partnership shall be binding upon the respective heirs, executors, administrators, and personal representatives of the Partners.

The Partners have caused this Agreement of Partnership to be executed on the dates indicated below, effective as of the date indicated above.

Partner (Printed Name) Partner (Signature) Date Signed

Megan Price 1-1-12

Mary Street 1-1-12

Abby Pekarek 1-1-12



Appendix D

Rate Sheet

Activity Price

Rate

Horseback riding lessons $20

1 hour lesson

Horseback riding $20

Per hour

Rock Climbing (equipment included) $25

Day Pass

Kayak/Canoe $20

Per Hour

Fishing $5

Day Pass

Basic Campsite $10

Night Pass

Electric/Water Hookup Campsite $30

Night Pass

Equipment Price

Rate

Kayak $30

Daily Usage

Rod/Reel/Bait $5

Daily Usage

Bike $10 Daily Usage

Final project

Business

Transcript of Final project