Business Plan Format

REC 4330

*The plan should be in an OUTLINE format addressing every item listed

in the guidelines.
Due December 7

1. Business Strategy(15 points)

a. Identify what business you are in (see page 17 in the textbook).
i. 11I think that my business falls into the Entertainment &
recreation industry of business. I think my business fits this
category because it involves recreational activates outside and
one with nature.
b. What type of business are you starting? Provide a brief
description.
i. I am starting an adaptive mudding company in the
mountains of Colorado that will be able to use for anybody
who has a disability and their friends and family. We will
have over 10 miles of trails that they can go on to get
muddy. We will also be providing campsites for both tents
and RVs; on site we will have working plumbing for both
toilets and showers.
c. Write a mission statement for your business (usually 2-3
sentences).
i. Giving the opportunity to anybody and everybody to come
out and get muddy. We strive to fit every disability body
with any adaptation needed.
d. List & briefly describe what services you will and will not offer.
i. We will be offering guided trail rides, the different trucks
and 4X4 vehicles that will have the different adaptation
that the person will need. We will be providing tractors that
will be able to pull out and vehicles that may get stuck on
the trails. We will offer 3 separate trails from the vehicles
for dirt bikes and quads so that they will be able to have
their own section without having to worry about the bigger
vehicles. For an extra cost they may bring their own
vehicles but they have to sign a liability form before they
are allowed to go on the trails. The site will have showers,
indoor plumbing and campsites so people can stay over
night and enjoy the fun the next day. We will have a gift
 shop that will allow us to sell some of our merchandise, like
T-shirts, stickers, and hats.
ii. We will not be offering any horse, or mountain biking trails.
e. List and briefly describe what differentiates your business.
What are you trying to do better or differently?
i. Having our own vehicles for people to take out is one of our
biggest things that make us stand out from other
companies. Also all of the adaptive equipment that we will
have on site to make sure anybody and everybody can
drive out in the mud. We are trying to have anybody who
wants to drive a car, when they normally cant on the road
because of their disability, to be able to have that chance.
We are going to be different than any other company out
there because we will tend to whatever disability is out
there and not turn anybody down. We will be able to find a
way to have that person drive a 4X4 vehicle.
f. Identify the most appropriate legal form (type) for your business
organization and describe why you chose it. See textbook pages
97-99.
i. 10My business is a sole proprietorship because I am the
only owner and I do not have any stocks available.

2. Marketing (25 points)

a. List and briefly describe your businesss competitive advantages
i. Adaptive equipment, we will have equipment to help out
our customers so they can drive. From hand pedals to
mouth steering wheels.
ii. Our own vehicles, we will have a range of different vehicles
including, jeeps, trucks, and snowmobiles for the winter
months.
iii. Our own land and not just trails for people to find and get
lost on. Mapped out trails and every vehicle will have a
walkie-talkies in it so they can contact us if they get
lost/stuck.
b. Identify the market area (city, etc.) and population and growth of
your market area (socio-economic and demographic factors)
(total population, income, educational levels, gender, ethnic
groups, and possibly age groups, etc.) Can utilize U.S. Census
info
i. Steamboat Springs Colorado is where Im going to be
placing my business. I chose Steamboat because
 according to the census 1out of the 12,435 people that live
there, 472 of them have a disability. They also have STARS,
which is the adaptive sport program in Steamboat. Which
means people from all over will be coming into Steamboat
to use STARS and I will be close by if they want to go on
another adventure. The total population is 12,435 people,
5,695 of those are female and 6,740 are male. The average
income is $54,218 a year. Only 53.4% have a bachelors or
higher. Population by race: White- 11,688, Black- 746,
American Indian- 497, Asian- 994, Hispanic- 1,056. 7.2% of
the people living in Steamboat are over 65 years old, &
18.5% of people in Steamboat are under the age of 18.
c. Identify and list other competitive services in your market area
(how many, what is their pricing structure, what are their
advantages over your business?).
i. There are over 50 different companies that take people out
on tours and has their own vehicles. They are pricing from
$60-180 a tour per person. They have a set route to go on
their tours, the people dont get to experience everything
that they would with us.
d. Identify your specific customer market profile. Get an industry
profile if possible or construct your own.
i. Families & people with disabilities who enjoy the outdoors
ii. 45% of participants were between the ages of 35-60, 45%
of them were 18-34 and 10% of them were over the age of
60. There were a lot more men then women, 70% more to
be exact. 75% of the participants have a disability, 15%
were friends and family who had no disability, the
remaining 10% did not have a disability and did not come
with anybody who had one. The average amount spent on
a day trip was $85 per person.
e. Project the demand for your product or service. See textbook
pages 108-110. Divide the demand figure by the number of
competitors +1 (Zero Sum Theory) to get a more accurate
demand.
i. 8The projected demand for off-roading in Colorado is 3530
people per year per business.
f. Identify your pricing strategy (ies), and why you are using them.
See textbook pages 170-172.
i. 9I used the Price Skimming strategy because I am one of
very few that offers adaptive equipment in the area. Once
 there are more companies that do that I can put my price
down if I am losing business.
g. Describe where in the Product Life Cycle your products or
services are.
i. It is in the early stages of the product life cycle because it
is the first of its kind. There havent been any other
companies that have set up for the disability community.
h. Describe your customer service policies (services offered and
their estimated cost).
i. Entrance w/o car: $40
ii. Entrance w/ car: $20
iii. Campsites: $20/night
iv. Yearly Memberships: $600
v. Tours: $10/person/tour
i. Identify the form(s) of advertising (size of audience, frequency of
use and cost).
i. Flyers, hand them out at STARS events, over 200 people
every month, $100
ii. Word of mouth, referral program

3. Operations (25 points)

a. Identify your building location and needs (square footage,
parking, public transportation, labor supply (unemployment
rate), fire and police protection).
i. The main office (360 Square feet) will be at the end of the
dirt road leading into the property. The shop (1200 square
feet) will be in the back of the complex. We will have
parking for everybody who isnt going to use his or her own
vehicles. All of our spots will be wide enough to have a
ramp come out of the side of the car for people in
wheelchairs. The fire station is 1.1 miles away. The
unemployment rate in Steamboat is 3.2%.
b. Identify if you will build your own facility or rent and why.
i. I will have my shop brought to me; they will have to build it
on site because of how the land is set up. Id rather own
the building than pay for it every month until I dont need it
anymore.
c. Identify the local permits, ordinances, zoning regulations and
type of trading area affecting your business.
 7
i. I have to get OHV (Off Highway Vehicle) Permits for all of
my vehicles and snowmobile registration and permit.
ii. Building Ordinances
iii. Licenses, permits and miscellaneous business regulations
ordinances
iv. As stated on the Routt County Zoning Regulations Section
4.14 Zoning laws: This zone district is intended to provide
areas for various active and passive outdoor recreational
activities, as well as retail commercial facilities that
support such recreational areas. All development in the OR
Zone requires approval of a PUD plan pursuant to the
provisions of section 7 planned unit development (PUD)

4. Financials (25 points)

a. Determine your MONTHLY overhead; rent/mortgage, utilities,
benefits and payroll, payroll wages, etc. for one month (overhead
is the same as your operating expenses for the line item budget
for one month).
i. Rent: $2,165 a month for the land, the office is going to be
$417 a month. Total is $2,582 a month on rent.
ii. Utilities: $300
iii. Insurance: $49,992 a year, $4,166 a month
iv. Payroll: 2 Full time staff at a monthly salary of $3,000. 5
guides with an hourly rate of $8. Tours are 1.5 hours long,
depends on how many people want to go on a tour instead
of going by themselves.
v. 3Cleaning Supplies: $32 for a 5 gal bucket of cleaning
supplies (Every two months), $35 for a brush (6 the first
month, should last all year)
vi. Walkie-talkies: $300 for 20 walkie-talkies that include
chargers, these will go in every vehicle to make sure we
know where they are if they get stuck or lost.
vii. Office supplies: $720, this will cover a printer, paper, ink,
pens, sticky notes, and files.
b. Identify and list your start-up costs (fixtures; equipment;
inventory; office supplies; remodeling; utility deposits; legal fees;
license/permit fees; and operating cash for one year (operating
cash is equal to one years operating expenses)).
i. Business fixtures: $22,077
ii. Equipment/ supplies: $702
iii. Office supplies: $720
 iv. Utility deposits: $200 start up fee, $300 a month
v. Legal fees: $1200
vi. License/permit fees: $3600
vii. Advertising: $1200
viii. Operating cash for one year: $165,582
c. Determine the Per Unit Cost, show calculations Total (year or
season) operating expenses divided by total demand (customers,
trips, etc.).
i. $165,582/ 3,825= $43.29 PUC
d. Describe the funding sources for financing your business. You
may only provide a maximum of 20% of the total required
funding from personal/family/friends/partners. No grants or
donations may be used as a funding source. Be sure to include
the financial institution and terms of your bank loans (number of
years to repay and interest rate, and the maximum percentage
the bank will loan to a business. (Small Business Administration).
i. I will be providing $62,000 myself that I got from saving,
friends, family, and fundraisers.
ii. I will also be taking out a SBA loan for $120,000; this will
be helping with my start up fees. I will be paying back this
loan over the course of 5 years ($24,000 a year/ $2,000 a
month.) The fees will be waved for the first 5 years, if I
have not paid it back by then I will have no more than 6%
interest to pay back the loan.
e. Estimate your businesss first twelve months of income and
expenses. A running line item operating and maintenance
budget format is required.
i. See Figure 4e at bottom.
f. Prepare a separate capital budget (one time purchases of
expensive (over $1,000) and long lasting (3 + years) items i.e.:
computers, vehicles, buildings, etc.) These are start-up items and
do not appear in the operating budget.
i. 5Office building: $5,000,
ii. Vehicles: $25,000. They will range from $2,000- $10,000,
were going to have 10 vehicles to start out with.
iii. 6Gas tank container: $3,428
iv. Computer: $1500
v. 5Garage shop: $13,577
vi. 4Power Washer: $1,300
vii. 2Land: $129,900 for 35 acres of land
viii. Shop Tools: $2,000
5. Summary & References (10 points)
a. Determine the viability of your business based on the data you
have collected and analyzed. Be insightful and support your
conclusions with the data collected.
i. Based on my data, my business will viability its first year of
business. My gross profit for the year is $237,122 my total
operating expenses for the year are $165,582. So I will be
making $71,540 my first year of business, which will be put
toward paying off loans faster. Which means I will be
making more money faster once I pay everything off.
b. Be sure to include all references and citations in APA format.
i. http://www.census.gov/quickfacts/table/AGE135215/
0873825 Persons under 5 Years, Percent, July 1,
2015, (V2015). Steamboat Springs City Colorado
QuickFacts from the US Census Bureau. United
States Census, Apr. 2015. Web. 07 Dec. 2016.
ii. http://www.steamboatsir.com/eng/sales/detail/412-l-
4641- 6g28c8/phenomenal-hunting-south-and-west-
steamboat-springs-co-80487 TBD RCR 56
Steamboat Springs Colorado, 80487 | MLS#
141569 Land for Sale Details. TBD RCR 56
Steamboat Springs Colorado, 80487 | MLS#
141569 Land for Sale Details. N.p., n.d. Web. 07
Dec. 2016.
iii. https://www.google.com/#tbm=shop&q=bulk+Car+s
oap Google. Google. N.p., n.d. Web. 07 Dec.
2016.
iv. https://www.google.com/#tbs=vw:l,mr:1,price:1,ppr_
min:1000,ppr_max:2500&tbm=shop&q=Power+wash
er Google. Google. N.p., n.d. Web. 07 Dec. 2016.
v. https://www.google.com/#q=shop+garage&tbm=sho
p Google. Google. N.p., n.d. Web. 07 Dec. 2016.
vi. https://www.google.com/#q=1%2C000+gal+gas+tan
k+container Google. Google. N.p., n.d. Web. 07
Dec. 2016.
vii. http://www.co.routt.co.us/DocumentCenter/View/145
Commissioners, Board of County. "Zoning
 Regulations." Document Center. Routt Country, 27
Sept. 2011. Web. 6 Dec. 2016.
viii. Crossley, Jamieson. Introduction to Commercial
Recreations and Tourism: An Entrepreneurial
Approach. 6th ed. N.p.: Champaign: Sagamore,
n.d. 108-10. Print.
ix. Crossley, Jamieson. Introduction to Commercial
Recreations and Tourism: An Entrepreneurial
Approach. 6th ed. N.p.: Champaign: Sagamore,
n.d. 170-72. Print.
x. Crossley, Jamieson. Introduction to Commercial
Recreations and Tourism: An Entrepreneurial
Approach. 6th ed. N.p.: Champaign: Sagamore,
n.d. 97-99. Print.
xi. Crossley, Jamieson. Introduction to Commercial
Recreations and Tourism: An Entrepreneurial
Approach. 6th ed. N.p.: Champaign: Sagamore,
n.d. 17. Print.

4e.

Months Incom Expen

: e ($) ses ($)
$17,68 $14,77
January 7 0
Februar $18,27 $13,54
y 5 8
$17,84 $13,76
March 0 0
$15,00 $13,39
April 0 2
$20,28 $14,00
May 0 0
$25,89 $14,00
June 5 8
 $31,86 $14,24
July 0 0
$22,97 $13,48
August 5 8
Septem $18,01 $13,64
ber 0 0
$14,83 $13,36
October 0 8
Novemb $16,68 $13,76
er 0 0
Decemb $17,79 $13,60
er 0 8
$237,1 $165,5
Total: 22 82