Fishing Shop Business Plan

Located off Highway 126, near Oakridge Plaza, McKenzie Tackle and Bait Shop will provide a one-stop resource for fishing products to travelers heading into the McKenzie National Parks System. Highway 126 is the gateway to over 130 public fishing locations and Oakridge Plaza is the last commercial shopping and dining area before entering the McKenzie National Parks System. McKenzie Tackle and Bait Shop will capitalize on its location to attract customers by offering a wide selection of fishing products and information on fishing conditions.

Brad West, owner of McKenzie Tackle and Bait Shop, has been an avid fisherman in the area for the past 25 years. He knows all the area’s best fishing locations and has managed two fishing tackle and bait shops in the past seven years.

Fishing Shop Business Plan Example

1.1 Objectives

– Become a familiar and essential shopping destination for travelers going fishing.

– Build a growing customer base each year.

– Provide exceptional service and products for both experienced and novice fishing enthusiasts.

1.2 Keys to Success

The keys to success for McKenzie Tackle and Bait Shop include:

– Location: Located off Highway 126, next to the new Oakridge Plaza, which serves as the last commercial shopping and dining location before entering the McKenzie National Park System. Highway 126 is the gateway to over 130 public fishing locations in the park system, making it a convenient stop for many travelers.

1.3 Mission

The mission of McKenzie Tackle and Bait Shop is to be the best, most visible fishing product and information resource in the McKenzie National Parks area. The goal is for travelers to consider stopping at our store an important step in their fishing day.

Company Summary

McKenzie Tackle and Bait Shop will be a one-stop resource for all fishing products for travelers heading into the McKenzie National Parks System. The shop will be open from April to November.

2.1 Company Ownership

McKenzie Tackle and Bait Shop is solely owned by Brad West.

2.2 Start-up Summary

Estimated start-up costs and expenses will be financed by Brad West’s personal investment.

Fishing Shop Business Plan Example

Start-up Funding:

Start-up Expenses to Fund: $12,300

Start-up Assets to Fund: $12,700

Total Funding Required: $25,000

Assets:

Non-cash Assets from Start-up: $0

Cash Requirements from Start-up: $12,700

Additional Cash Raised: $0

Cash Balance on Starting Date: $12,700

Total Assets: $12,700

Liabilities and Capital:

Liabilities:

Current Borrowing: $0

Long-term Liabilities: $0

Accounts Payable (Outstanding Bills): $0

Other Current Liabilities (interest-free): $0

Total Liabilities: $0

Capital:

Planned Investment:

Brad West: $25,000

Other: $0

Additional Investment Requirement: $0

Total Planned Investment: $25,000

Loss at Start-up (Start-up Expenses): ($12,300)

Total Capital: $12,700

Total Capital and Liabilities: $12,700

Total Funding: $25,000

Start-up Requirements:

Start-up Expenses:

Legal: $500

Insurance: $0

Rent: $800

Inventory: $7,000

Display Equipment: $2,000

Store Sign: $2,000

Other: $0

Total Start-up Expenses: $12,300

Start-up Assets:

Cash Required: $12,700

Start-up Inventory: $0

Other Current Assets: $0

Long-term Assets: $0

Total Assets: $12,700

Total Requirements: $25,000

Products:

Store products include:

– Fly rods and reels.

– Lines-leaders-tippets.

– Fishing gadgets-net/retractors.

– Fishing footgear.

– Raingear.

– Maps.

– Flies and fly tying materials.

– Gear bags.

– Tubes.

– Misc: drinks, snacks, souvenirs, etc.

Market Analysis Summary:

The McKenzie National Park System is dotted with small fishing tackle and bait shops on small roads around the park system. Most of them only serve a few fishing areas and have irregular operating hours. Highway 126 is the only main traffic artery into the park system and yet there are currently no other tackle and bait shops located on Highway 126. The closest commercial center to the park system, Oakridge Plaza, is eight miles from the park’s entrance. Over 90% of the park visitors use Highway 126 to access the park system. Last year, the park system welcomed 100,000 fishing enthusiasts.

These enthusiasts were typically male between the ages of 20-45 years old. A fishing party of three to five is the norm for the area. Approximately 70% of these fishing enthusiasts visit the park system several times a year and develop strong customer relationships with the area’s businesses.

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The McKenzie Tackle and Bait Shop will create a base of loyal customers with quality service and fishing information that customers will come to depend on.

Strategy and Implementation Summary:

Highway 126 is a four-lane highway running north to the park system and south to the town of Mapleton. The McKenzie Tackle and Bait Shop is located just off the northbound lanes and is next to the Oakridge Plaza. The shop will erect a large sign to grab customer attention to its location.

Once in the store, Brad West will provide exceptional service that will build a loyal customer base.

Competitive Edge:

McKenzie Tackle and Bait Shop’s competitive edge is two-fold:

– Location: McKenzie Tackle and Bait Shop is located off Highway 126, next to the new Oakridge Plaza. Highway 126 is the gateway to over 130 public fishing locations in the McKenzie National Park System. Many travelers routinely stop in the plaza at the beginning and the end of their day in the park system.

Sales Strategy:

The key to customer satisfaction is a customer-friendly store that is easy to navigate and has knowledgeable people to help customers find what they want quickly.

Sales Forecast:

The following is the sales forecast for three years. The monthly estimates for the first year are included in the appendices.

Fishing Shop Business Plan Example

Fishing Shop Business Plan Example

Sales Forecast:

Sales Forecast
Year 1 Year 2 Year 3
Sales
Fishing Products $48,400 $60,000 $70,000
Misc $7,600 $8,000 $9,000
Total Sales $56,000 $68,000 $79,000
Direct Cost of Sales Year 1 Year 2 Year 3
Fishing Products $7,000 $9,000 $10,000
Misc $1,500 $1,750 $2,000
Subtotal Direct Cost of Sales $8,500 $10,750 $12,000

Personnel Plan:

Brad West will operate the shop without any additional staff.

Personnel Plan
Year 1 Year 2 Year 3
Brad West $24,000 $28,000 $35,000
Other $0 $0 $0
Total People 1 1 1
Total Payroll $24,000 $28,000 $35,000

Financial Plan:

The following sections will outline the important financial assumptions, break-even analysis, profit and loss, cash flow, and the balance sheet.

Break-even Analysis:

The break-even analysis indicates the required monthly revenue to break even.

Fishing Shop Business Plan Example

Break-even Analysis:

Monthly Revenue Break-even: $4,595

Assumptions:

– Average Percent Variable Cost: 15%

– Estimated Monthly Fixed Cost: $3,898

7.2 Projected Profit and Loss:

The table and charts below demonstrate projected profit and loss. The appendices contain first-year monthly P & L estimates.

Fishing Shop Business Plan Example

Fishing Shop Business Plan Example

Fishing Shop Business Plan Example

Fishing Shop Business Plan Example

Pro Forma Profit and Loss

Year 1 Year 2 Year 3

Sales: $56,000 $68,000 $79,000

Direct Cost of Sales: $8,500 $10,750 $12,000

Other Production Expenses: $0 $0 $0

Total Cost of Sales: $8,500 $10,750 $12,000

Gross Margin: $47,500 $57,250 $67,000

Gross Margin %: 84.82% 84.19% 84.81%

Expenses:

Payroll: $24,000 $28,000 $35,000

Sales and Marketing and Other Expenses: $8,000 $10,000 $11,000

Depreciation: $0 $0 $0

Leased Equipment: $0 $0 $0

Utilities: $1,470 $1,800 $1,800

Insurance: $0 $0 $0

Rent: $9,700 $9,700 $9,700

Payroll Taxes: $3,600 $4,200 $5,250

Other: $0 $0 $0

Total Operating Expenses: $46,770 $53,700 $62,750

Profit Before Interest and Taxes (EBITDA): $730 $3,550 $4,250

Interest Expense: $0 $0 $0

Taxes Incurred: $219 $1,065 $1,275

Net Profit: $511 $2,485 $2,975

Net Profit/Sales: 0.91% 3.65% 3.77%

7.3 Projected Cash Flow

The following is the projected cash flow for three years. First year monthlies are in the appendix.

Fishing Shop Business Plan Example

Pro Forma Cash Flow

Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $56,000 $68,000 $79,000
Subtotal Cash from Operations $56,000 $68,000 $79,000
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $56,000 $68,000 $79,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $24,000 $28,000 $35,000
Bill Payments $32,132 $35,243 $40,920
Subtotal Spent on Operations $56,132 $63,243 $75,920
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $56,132 $63,243 $75,920
Net Cash Flow ($132) $4,757 $3,080
Cash Balance $12,568 $17,325 $20,405
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7.4 Projected Balance Sheet

The projected balance sheet for three years is as follows. The first-year monthly projections can be seen in the appendix.

Year 1 Year 2 Year 3
Assets
Current Assets
Cash $12,568 $17,325 $20,405
Inventory $1,170 $1,480 $1,652
Other Current Assets $0 $0 $0
Total Current Assets $13,738 $18,805 $22,057
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $13,738 $18,805 $22,057
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $527 $3,109 $3,386
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $527 $3,109 $3,386
Long-term Liabilities $0 $0 $0
Total Liabilities $527 $3,109 $3,386
Paid-in Capital $25,000 $25,000 $25,000
Retained Earnings ($12,300) ($11,789) ($9,304)
Earnings $511 $2,485 $2,975
Total Capital $13,211 $15,696 $18,671
Total Liabilities and Capital $13,738 $18,805 $22,057
Net Worth $13,211 $15,696 $18,671

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5091, Sporting & Recreational Goods, are shown for comparison.

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General Assumptions:

Plan Month 1 2 3 4 5 6 7 8 9 10 11 12

Current Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Long-term Interest Rate 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

Other 0 0 0 0 0 0 0 0 0 0 0 0 0

Pro Forma Profit and Loss:

Sales Month 1 2 3 4 5 6 7 8 9 10 11 12

$0 $0 $0 $4,800 $6,400 $7,000 $7,000 $8,000 $9,000 $8,000 $5,800 $0

Direct Cost of Sales Month 1 2 3 4 5 6 7 8 9 10 11 12

$0 $0 $0 $850 $1,000 $1,000 $1,100 $1,200 $1,000 $1,200 $750 $400

Other Production Expenses Month 1 2 3 4 5 6 7 8 9 10 11 12

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of Sales Month 1 2 3 4 5 6 7 8 9 10 11 12

$0 $0 $0 $850 $1,000 $1,000 $1,100 $1,200 $1,000 $1,200 $750 $400

Gross Margin Month 1 2 3 4 5 6 7 8 9 10 11 12

$0 $0 $0 $3,950 $5,400 $6,000 $5,900 $6,800 $8,000 $6,800 $5,050 ($400)

Gross Margin % Month 1 2 3 4 5 6 7 8 9 10 11 12

0.00% 0.00% 0.00% 82.29% 84.38% 85.71% 84.29% 85.00% 88.89% 85.00% 87.07% 0.00%

Expenses

Payroll Month 1 2 3 4 5 6 7 8 9 10 11 12

$0 $0 $0 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000

Sales and Marketing and Other Expenses Month 1 2 3 4 5 6 7 8 9 10 11 12

$0 $0 $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Depreciation Month 1 2 3 4 5 6 7 8 9 10 11 12

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Leased Equipment Month 1 2 3 4 5 6 7 8 9 10 11 12

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Utilities Month 1 2 3 4 5 6 7 8 9 10 11 12

$40 $40 $40 $150 $150 $150 $150 $150 $150 $150 $150 $150

Insurance Month 1 2 3 4 5 6 7 8 9 10 11 12

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Rent Month 1 2 3 4 5 6 7 8 9 10 11 12

$900 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800

Payroll Taxes 15% Month 1 2 3 4 5 6 7 8 9 10 11 12

$0 $0 $0 $450 $450 $450 $450 $450 $450 $450 $450 $0

Other Month 1 2 3 4 5 6 7 8 9 10 11 12

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses Month 1 2 3 4 5 6 7 8 9 10 11 12

$940 $840 $840

Pro Forma Balance Sheet

Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 21.43% 16.18% 11.50%
Percent of Total Assets
Inventory 8.52% 7.87% 7.49% 28.00%
Other Current Assets 0.00% 0.00% 0.00% 29.00%
Total Current Assets 100.00% 100.00% 100.00% 88.70%
Long-term Assets 0.00% 0.00% 0.00% 11.30%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities
Accounts Payable 3.83% 16.53% 15.35% 38.00%
Long-term Liabilities 0.00% 0.00% 0.00% 9.00%
Total Liabilities 3.83% 16.53% 15.35% 47.00%
Net Worth 96.17% 83.47% 84.65% 53.00%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 84.82% 84.19% 84.81% 23.00%
Selling, General & Administrative Expenses 83.91% 80.54% 81.04% 14.80%
Advertising Expenses 14.29% 14.71% 13.92% 0.70%
Profit Before Interest and Taxes 1.30% 5.22% 5.38% 2.00%
Main Ratios
Current 26.08 6.05 6.51 2.19
Quick 23.86 5.57 6.03 1.22
Total Debt to Total Assets 3.83% 16.53% 15.35% 47.00%
Pre-tax Return on Net Worth 5.53% 22.62% 22.76% 5.30%
Pre-tax Return on Assets 5.31% 18.88% 19.27% 10.10%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 0.91% 3.65% 3.77% n.a
Return on Equity 3.87% 15.83% 15.93% n.a
Activity Ratios
Inventory Turnover 9.23 8.11 7.66 n.a
Accounts Payable Turnover 61.99 12.17 12.17 n.a
Payment Days 27 18 29 n.a
Total Asset Turnover 4.08 3.62 3.58 n.a
Debt Ratios
Debt to Net Worth 0.04 0.20 0.18 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $13,211 $15,696 $18,671 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 0.25 0.28
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Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Cash $12,700 $12,678 $12,022 $11,434 $12,541 $12,197 $12,632 $13,046 $14,273 $16,142 $16,967 $15,771 $12,568
Inventory $0 $0 $0 $0 $935 $1,100 $1,100 $1,210 $1,320 $1,320 $1,320 $1,570 $1,170
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $12,700 $12,678 $12,022 $11,434 $13,476 $13,297 $13,732 $14,256 $15,593 $17,462 $18,287 $17,341 $13,738
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $12,700 $12,678 $12,022 $11,434 $13,476 $13,297 $13,732 $14,256 $15,593 $17,462 $18,287 $17,341 $13,738
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $636 $568 $568 $3,625 $3,446 $3,461 $3,635 $3,992 $4,041 $3,886 $3,185 $527
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $636 $568 $568 $3,625 $3,446 $3,461 $3,635 $3,992 $4,041 $3,886 $3,185 $527
Long-term Liabilities
Total Liabilities $0 $636 $568 $568 $3,625 $3,446 $3,461 $3,635 $3,992 $4,041 $3,886 $3,185 $527
Paid-in Capital $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Retained Earnings ($12,300) ($12,300) ($12,300) ($12,300) ($12,300) ($12,300) ($12,300) ($12,300) ($12,300) ($12,300) ($12,300) ($12,300) ($12,300)
Earnings $0 ($658) ($1,246) ($1,834) ($2,849) ($2,849) ($2,429) ($2,079) ($1,099) $721 $1,701 $1,456 $511
Total Capital $12,700 $12,042 $11,454 $10,866 $9,851 $9,851 $10,271 $10,621 $11,601 $13,421 $14,401 $14,156 $13,211
Total Liabilities and Capital $12,700 $12,678 $12,022 $11,434 $13,476 $13,297 $13,732 $14,256 $15,593 $17,462 $18,287 $17,341 $13,738
Net Worth $12,700 $12,042 $11,454 $10,866 $9,851 $9,851 $10,271 $10,621 $11,601 $13,421 $14,401 $14,156 $13,211

Fishing Shop Business Plan Example

Business Plan Outline

  • Executive Summary
  • Company Summary
  • Products
  • Market Analysis Summary
  • Strategy and Implementation Summary
  • Personnel Plan
  • Financial Plan
  • Appendix

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