Fishing Supplies and Fly Shop Business Plan

Kingfishers is a retail Fly Shop offering supplies, guided tours, and fishing/hunting cabins to Anglers and Hunters from around the world. We are centrally located in this famous area, on Highway frontage on one of the busiest highways. We are in a prime location to succeed, as we make an excellent base camp and meeting place.

As new owners, Ausable Wulff and Brassie Nymph are purchasing a mildly successful fly shop, remodeling it, re-packaging it, and turning it into a successful destination for fly fishers across the south.

Our competitive edge is tremendous. Our location, advertising techniques, and unique customer "interest points" give us a superb edge in advertising. Our expertise in fly fishing these rivers lets us stock relevant supplies and provide expert advice so customers can truly enjoy their fishing vacations. Our welcoming and supportive attitude towards even novice fishermen will turn first-time visitors into repeat customers. In addition, we offer not just lodging, but some of the nicest and most unique lodging in the area, at competitive rates. We are on the travel route between 4 major blue ribbon rivers and the most famous Trout River in the world. The keys to our success lie in our location, the ambiance of our store, and our attitude.

This plan will show the business’s needs to start its successful venture, and how we plan on doing it. It shows that even using conservative projections, the company will have positive cash flows, gross margins of over 50%, and steady growth. We will show a modest profit in the first year, and our profits increase steadily. Our projections are based on the past performance of the business under its previous owner, who admits that he has not maximized the profit potential of the business. Based on these conservative projections, we will be ahead of the industry standard in almost every aspect.

To fund the purchase, renovation, and restocking of the business, the owners are contributing $64,000. We are also seeking a 10-year loan of $513,000, secured with the owners’ collateral (3 houses), at an 8% interest rate.

Fishing Supplies and Fly Shop Business Plan Example

1.1 Objectives

Our objectives:

  • Double the number of customers in the first year through advertising and Web presence, and increase customer traffic by 20% each year for five years.
  • Increase floor sales by 30% by remodeling the retail space and remerchandising products conducive to flow patterns, making it more customer-friendly.
  • Take full advantage of revenue sources in the geographic area by offering Hunting products to hunters in the area during fall and winter, increasing revenue by at least 25% the first year, 33% the second year, and 40% the third year.
  • Reinstate the guide service for anglers, booking a minimum of 125 trips the first year using contracted guides and 1 employed guide, 250 the second year by using contracted guides and 1-2 employed guides, and 300+ the third year by using contracted and 1-2 employed guides under the Kingfishers Outfitters’ License. Also, increase revenue and gain market share by renting 2-3 drift boats to anglers.
  • Gain market share and increase current revenues 50-60% by offering quality lodging at competitive rates in the most advantageous location possible for hunters and anglers. Build 5 custom log cabins the first year, and add one cabin per year for three years starting in Year 3.

1.2 Mission

To provide an Angler’s and Outdoorsman’s shop where the customer is the priority and arrogance is left at the door… where patience is a practice and everyone we meet is a friend… where questions are answered without demeaning glances, and cold stares are unheard of… where you are asked to stay for a cup of coffee rather than just asked for your money and shown the door. Kingfishers is dedicated to providing Anglers and Hunters with the equipment that they want, the knowledge that they need, and experiences that make them want to come back.

1.3 Keys to Success

In the retail Fly Shop and Hunting Store business, there are 4 main keys to success:

  • Location: Centrally located near 5 major Trout Rivers and 4,000 square miles of public land, and on a main highway linking Yellowstone National Park and Glacier National Park.
  • Quality/Variety of products and services: Offering top-quality and budget-priced products to anglers and hunters, as well as guide services, boat rentals, and lodging. Also offering unique products and services.
  • Atmosphere: Store is built in a restored rustic log building, symbolizing the state and its values. Offers a spacious, warm ambiance conducive to stress-free sales.
  • Visibility/Marketing: Located on a busy highway. Will use both passive (billboards, etc.) and active (direct mail, commercials, etc.) advertising to draw customers into the store.
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Company Summary

Kingfishers is a retail store and lodging place in a great location that provides industry-specific products to Anglers and Hunters who travel to our state from all over the world for Fly Fishing and Big Game Hunting. The store flourished under its former owner using just one half of the available retail space, and offering no other services. The business has been in operation for nearly 20 years and enjoys a solid and positive reputation. The business has serviced clientele from all over the U.S. and has a large repeat customer base from both local and out-of-state anglers. Under its former owner, the business offered Fly Fishing Guide Services and had a respectable client base, which could be easily regained to maximize and increase revenues.

2.1 Company Ownership

Kingfishers will be a Limited Liability Company owned and operated by Ausable Wulff and Brassie Nymph, located in the southwest corner of the state on US Hwy XX. Ausable owns another company in the Hunting and Fishing Industry that he started two years ago, which manufactures innovative hunting and fishing accessories. Brassie has 15 years of experience in managing tourist lodging and has financial management skills.

2.2 Start-up Summary

The start-up table below summarizes what we feel is needed to start this business on the right track and to set it up for success. We have been careful to plan for what was really needed and not extravagant or needless items. The following is a list of assets needed for the business to start.

  • The lot, improvements, and buildings known as XXX.
  • Outfitters License
  • All current inventory of XXX (wholesale value of $68,000)
  • All current fixtures and signage of XXX
  • New logo and signage for business
  • The bare lot located adjacent to the above-mentioned lot and buildings
  • 5 Custom Pre-Built log cabin structures to be placed on the bare lot as said above
  • Fixtures and furnishing/linen for 5 cabins
  • 3 Drift Boats
  • 1 portable espresso/coffee maker

The table below shows the breakdown of the assets as they are needed, including $15,000 starting cash and $30,000 dollars for additional inventory to stock the store to make it sales ready. It also includes a figure for current assets needed such as additional fixtures, and a computer system designed for retail sales, as well as showing the full value of the long-term assets that will be part of the business.

Fishing Supplies and Fly Shop Business Plan Example

Start-up Requirements: Start-up Expenses, Remodeling expenses $4,000, Stationery etc. $400, Other $800, Total Start-up Expenses $5,200.

Start-up Assets: Cash Required $15,000, Start-up Inventory $98,000, Other Current Assets $6,400, Long-term Assets $452,400, Total Assets $571,800.

Total Requirements $577,000.

Products and Services:

Kingfishers will offer a variety of products and services for outdoors fly fishing and hunting activities, including:

– Fly Fishing Equipment, Clothing, and Accessories: We will provide top-quality and economical products through our retail shop and website. Examples of our product brand names include R.L. Winston, Orvis, Umpqua, Filson, Columbia, Dr. Slick, Scientific Anglers, and more. We will also carry the largest selection of fishing Flies in the state, a key point in our advertising campaign.

Market Analysis Summary:

Studies by the U.S. Fish and Wildlife Service show positive market trends in the nation and our area. Fishing industry expenditures increased nationally from $53 billion in 1991 to $70 billion in 2001. In our state, there was a 6% increase in the number of Anglers, a 55% increase in the number of days fished by each Angler, and an incredible 118% increase in total dollars spent by Anglers from 1991-2001, the second-largest increase in the nation. This means more Anglers are fishing here, staying longer, and spending more money.

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The same report shows similar trends for hunting in the state. 229,000 hunters hunted in this state for a total of 2.4 million days. This includes 59,000 non-resident hunters who hunted for 390,000 days, an average of 6.6 days each. There was a 46% increase in the number of hunting days in the state and a 46% increase in total dollars spent ($206 Million on expenses and equipment) from 1991-2001.

Demographics:

Our target customers consist of 6 target groups. Anglers are an average age of 42, 70% are married, and 33% have college degrees. In our state, 28% of all Anglers are female, and 97.5% of them are white. Based on these numbers, our best target audience will be out-of-state white males between 35 and 70. We also have smaller target market segments in out-of-state white females between 30-50, in-state single white males between 18 and 25, in-state married white males between 25 and 60, and in-state white females between 25 and 55, as well as large companies with large employee bases.

Market Segmentation:

Our market segmentation defines the target customer segments most likely to visit the area we service. This way we can tailor our advertising specifically to those target segments, minimizing advertising expenses and maximizing the effect of investment dollars.

Primary and secondary segments deal with non-resident Anglers and Hunters, one female group and one male group. These segments consist of married men and women between the ages of 35 and 70, who are most likely to afford the cost of traveling to a different state for fishing or hunting excursions. They travel specifically for hunting or fishing or enjoy travel as the satisfaction goal and include hunting or fishing as enhancement activities. This group accounts for 33-40% of all fishing/hunting expenditures, spending approximately $116,800,000 in our state in 2001.

Our third target segment is resident males between 18 and 25, representing future anglers and hunters. By enticing them to this area and enriching their experience, we will turn them into repeat customers and introduce their children to the business cycle. This group spent approximately $73,777,200 in our state during 2001.

The fourth segment consists of single females 25 to 35 years old. Females account for 30% of anglers in our state and are likely to endure through life changes of marriage, family, and personal maturity. This group makes up about 9% of the Anglers in our state and is responsible for approximately $16,254,000 spent here in 2001.

The fifth and sixth market segments consist of married residents, both male and female, between 25 and 60 years old. This group makes up 70% of hunters and anglers in our state and spent $223,224,000 on Fishing and Hunting in 2001.

The seventh market segment targets large companies. We aim to tap into billions of dollars spent every year by large companies on advertising, bonus plans, and public relations by offering premium service at premium rates, including guided trips and lodging.

Note: The provided text includes tables and headings which cannot be edited for conciseness.

Fishing Supplies and Fly Shop Business Plan Example

Market Analysis

Potential Customers Year 1 Year 2 Year 3 Year 4 Year 5 CAGR

Non Resident Married Males 5,597,989 10,076,380 18,137,484 32,647,471 58,765,448 80.00%

Non Resident Married Females 1,679,396 2,317,566 3,198,241 4,413,573 6,090,731 38.00%

Resident Married Males 129,400 131,988 134,628 137,321 140,067 2.00%

Resident Married Females 38,160 38,923 39,701 40,495 41,305 2.00%

Resident Single Males 26,000 26,520 27,050 27,591 28,143 2.00%

Resident Single Females 25,000 25,500 26,010 26,530 27,061 2.00%

Large Corporations 2,000 2,200 2,420 2,662 2,928 10.00%

Total 7,497,945 12,619,077 21,565,534 37,295,643 65,095,683 71.65%

4.2 Target Market Segment Strategy

Our target market strategy focuses on groups who resemble the average Hunter and Angler and have the means and desire to fish and hunt. These groups significantly contribute to the state’s revenue and will contribute to our revenue.

Our goal is to use the least amount of money on effective advertising to have a large return on our investment. We will wage an advertising campaign targeting all our segments, using a large percentage of the budget on each market to reach a larger percentage of potential customers. We will also focus on certain segments at specific times of the year.

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4.3 Service Business Analysis

Kingfishers will compete in the Hunting, Fishing, and Lodging industries in our state. We provide services specific to these industries in a specific geographic market area. Direct competitors include five other Fly Shops and up to 10 lodging businesses in the market area. Few businesses offer hunting products in the area we service.

Most competition comes from large department or chain stores located in major cities or “jumping-off points” for Hunters and Anglers. Residents usually purchase equipment from these stores, while non-residents purchase from local shops recommended by guides or previous experience.

4.3.1 Competition and Buying Patterns

Fishing Industry:

Fly Fishing is the most popular fishing sport in our state. Chain and department stores do not carry top-quality brand name equipment and accessories like Fly Shops do. Competing Fly Shops focus on location, ambiance, advertising, name brands, and quality service.

Hunting Industry:

Hunters have many stores to choose from in major cities and towns. Our objective is not to compete directly with these stores but to provide products and services they may forget, lose, or need while on a trip.

Lodging Industry:

Few businesses target the specific niche that we do. Most lodges are luxury accommodations, while hotels in the area lack amenities we offer. Our lodging is convenient, comfortable, and competitively priced.

Strategy and Implementation Summary

Kingfishers aims to capitalize on our state’s natural beauty and revenue brought in by wildlife resources. We promote our location, unique marketing edges, and quality services. By staying ahead of the competition and creating cutting-edge marketing, we draw people to our business and build a solid reputation.

5.1 Competitive Edge

Kingfishers has a competitive edge through its location. We are located on the main highway connecting five trout rivers and two national parks. Our exposure to potential customers is vast. We offer unique advertising opportunities with the largest collection of flies, a historic building, rustic shop ambiance, and quality lodging. Our attitude and commitment to customer service set us apart from our competitors.

3 principle items sold by every business are the product, warranty, and service. We focus on selling relationships, providing exceptional service, industry knowledge, and business commitment.

5.2 Marketing Strategy

Our marketing strategy targets the local and out-of-state markets. Guide trip bookings are important, especially from out-of-state customers who bring in revenue and provide valuable word-of-mouth advertising. We use the power of the internet to reach targeted customers. For the local market, we focus on roadside advertising to attract customers driving to the area.

5.3 Sales Strategy

Our sales strategy aims to sell to every customer who enters the shop and maximize traffic flow. We merchandise products to maximize sales potential, make every customer feel welcome and important, and employ knowledgeable staff. We offer discounts to local guides, integrate hunting products into the store, and focus on providing exceptional customer service and industry knowledge.

5.3.1 Sales Forecast

Our sales forecast is based on conservative estimates. Increasing traffic flow, closing ratios, and average sale amounts could increase overall sales by 35%. Remodeling the store and brightening the interior would further increase sales. We offer guide trips, boat rentals, lodging, hunting equipment, and licenses. These services have potential to attract customers and increase revenue. We believe our online presence will boost funding for advertising and revenue-generating services.

Fishing Supplies and Fly Shop Business Plan Example

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