Outdoor Adventure Travel Company: RAD-Venture

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Outdoor Adventure Travel Company

BUSINESS PLAN

RAD-VENTURE


P.O. Box 58005
Reno, NV 89523

November 20, 1995


RAD-Venture presents a plan for a very unique business. RAD-Venture provides outdoor adventures to their many, adventure seeking clients. Whether clients are looking for an "extreme" adventure or a somewhat milder time outdoors, RAD-Venture has just the trip. Specializing in mountain biking tours, hiking and camping, the owners have found that they can run a successful and profitable business by using their expertise and talents, while doing something that they love and enjoy.


  • executive summary
  • history and background
  • concept
  • mission statement
  • objectives
  • marketing
  • market mix and share
  • company parameters
  • management
  • project timing
  • financials

EXECUTIVE SUMMARY

The company name is RAD-Venture. It operates daily rentals and tours in Nevada, and multiday mountain bike tours throughout the national park regions of the Southwest. It is an adventure travel company (currently specializing in mountain bike touring) with plans to include additional recreational opportunities via an RAD-Venture Center in Cedar City, Utah.

RAD-Venture promotes human power and natural environment. The target market has been defined as special interest "adventure sports and travel." This market is young and growing rapidly.

The primary owners are Grant and Heidi Osborn. Together they have ten years of college education and experience in management and communications. The Osborn's focused their college education toward researching and designing RAD-Venture. They bring to the company both educational insight and "real life" experience.

RAD-Venture has many strengths. Led with innovative enthusiasm, it possesses exciting potential as one of the early companies in a young, growing industry. The intended Southern Utah location has an economic, demographic, and political base strongly conducive to the success of an outdoor adventure center. RAD-Venture has a history of highly satisfied customers and a quality brochure vital in an industry that is based on perception rather than reality. The purpose of this business plan is to solicit funds for a new outdoor RAD-Venture Center, featuring an indoor rock climbing gym, mountain bike touring headquarters, and outdoor adventure sports sales and services, RAD-Venture invites investors to participate in this new and prospering business. Take the time to learn about the company through this business plan. If you do wish to become a part of our growth, we look forward to meeting you again.

HISTORY AND BACKGROUND

During the 1992 Spring semester, UNLV student Grant Osborn undertook a marketing class project to hypothetically create an original, unique service for Las Vegas. He developed an operations and marketing strategy for a business which would theoretically deliver bicycles to Las Vegas hotel guests and take bike tours to nearby Red Rock Canyon.

Grant's wife, Heidi, knew this was an idea with great potential. She recognized an unanswered market and acted quickly. With student ambition, ideas, and determination, by April 10, 1992, a new bicycle rental and tour company, "RAD-Venture" was born. Grant and Heidi's remaining college years were suddenly directed toward researching and developing this new business venture.

From the Osborns' first two personal bikes used for rentals and a computer in the bedroom, the business grew, entirely self-supported, into a nationally-advertised operation complete with an office, a warehouse, high quality mountain bikes, tour equipment, and support vehiclesjust in the first three years!

The focus of RAD-Venture has evolved with its growth. The once local Las Vegas rental and tour company has developed into a full support mountain bike tour operator with plans to outfit a variety of additional active sports as well. A new Outdoor RAD-Venture Center in Cedar City, Utah, will serve to facilitate these plans.

CONCEPT

The concept of an Outdoor RAD-Venture Center in Cedar City, Utah stems from two perceived needs of RAD-Venture. First, the need for a more stable (non-weather-dependent) indoor activity and retail base from which to balance the seasonal nature of adventure tourism, and secondly, the need for a base environment more central to popular outdoor adventure destinations.

The Outdoor RAD-Venture Center is designed to supply clothing, equipment, maps, rentals, shuttles, and tours for outdoor sports such as mountain biking, rock climbing, rafting, camping, skiing, hiking, and horseback riding. Two unique attractants are a world-class indoor rock climbing gym and the adjacent location to the Navajo path, a paved trail system popular for jogging and biking. Great mountain biking and rafting opportunities lie within ten miles of the RAD-venture Center's intended location. The center will also house the headquarters for RAD-Venture mountain bike tours in Utah, Arizona, Colorado, and New Mexico.

Cedar City, Utah is one of the gateway cities to the Grand Circle, known as "America's greatest concentration of scenic wonders." The proposed location in Cedar City has excellent freeway access and exposure. Sunny Southern Utah's abundant natural "adventure" resources, strong growing economy, and year round temperate climate provide the ideal environment for a new Outdoor RAD-Venture Center.

MISSION STATEMENT

RAD-Venture is designed to promote and operate outdoor adventure sports and travel. By offering nothing motorized, we celebrate human power and natural environment. We will be leaders in our industry through innovation and preservation. We will sustain a reputation of quality through excellent service, customer care, and a friendly, professional staff. Our guests are the focus of our company. We will generate a profit in an ethical manner while meeting and exceeding our guests' expectations.

OBJECTIVES

Short Term Objectives: One Year

Marketing

  1. Distribute RAD-Venture tour/rental fliers to Cedar City hotels, recreation information centers, Chambers of Commerce, and local colleges by February 15, 1995.
  2. Develop a new, more inclusive registration form to send out with our mountain bike tour brochure which includes information and photos of our two new tours and information on our new Outdoor RAD-Venture Center by December 15, 1995.
  3. Place ads in biking, sports, and mountain climbing sections of Cedar City yellow pages by November 15, 1995.
  4. Develop and distribute a brochure and brochure stand to 100 bike, ski, and climbing shops in northern Utah by February 25, 1995.
  5. Sponsor a grand opening party with food, discounts, and radio coverage.

Financial

  1. Update balance sheet by January 1, 1996.
  2. Secure financing by December 1, 1995.
  3. Gross $400,000 in 1996.
  4. Net five percent of gross in 1996.
  5. Have 1996 budget prepared by December 31, 1995.

Management Information Systems

  1. Complete computer training courses learning to use effectively applicable software programs by May 1, 1996.
  2. Incorporate an accounting program, by January 1, 1996 that will take care of monthly accounting and taxes.
  3. Purchase a new computer and monitor for use at the climbing gym desk with mountain climbing program by February 15, 1996.
  4. Transfer our HAISAR 486 to the new main office in Cedar City and add a modem line by February 15, 1996.
  5. Advertise on the Internet by December 31, 1995.

Human Resources

  1. Hire a full-time manager for rentals and tours and one part-time (on call) helper by Center opening date.
  2. Develop a pay structure and contract for manager incorporating commission by January 15, 1996.
  3. Hire two full-time employees, and apart-time (on call) hike tour guide, bike tour guide and rock climbing guide/instructor by opening date.
  4. Restructure the employee handbook by December 31, 1995.
  5. Make available a tax and insurance program for full-time employees by January 1, 1996.

Administrative Operations

  1. Register RAD-Venture as a trademark by July 1, 1996.
  2. Acquire necessary permits, for Taos, New Mexico, and Lake Tahoe, and Nevada tours by May 1, 1996.
  3. Lease a space in the Center to a dependable rafting tour and supply company by May 1, 1996.
  4. Create and offer three new tours for the 1997 tour schedule; (one with a warm winter location), and one new kind of tour (other than mountain biking) by September 15, 1996.
  5. Create, publish, and distribute a new color brochure or catalogue by September 15, 1996.

Mid-Term Objectives: Two to Four Years

Marketing

  1. Attend the INTERBIKE trade show once each year, in 1997, 1998 and 1999 and distribute brochures.
  2. Use the existing customer database to establish an advertising campaign in each major region with the most interest by December 1997, 1998 and 1999.
  3. Advertise mountain biking, rock climbing, and rafting trips in the classified sections often major magazines by December 31, 1998.
  4. Attend the Outdoor Activity Show once each year, in 1997, 1998, and 1999.
  5. Hold an indoor climbing competition and mountain bike festival in Spring 1997 and 1998.

Financial

  1. Gross $500,000 by 1997, and $700,000 by 1998.
  2. Net fifteen percent of gross in 1997 and 1998.
  3. Hire an accountant by January 1, 1997.
  4. Finance a new tour van by February 28, 1998.
  5. Sell used rental equipment the same year purchased.

Management Information Systems

  1. Purchase a new color scanner by January 1, 1997.
  2. Acquire training and equipment necessary to produce in-house color brochures and catalogues by January 31, 1997 (everything except final print).
  3. Purchase a copy machine for office by January 1, 1997.
  4. Train full-time employees on additional computer software.
  5. Equip each guide, office, and shuttle driver, with a two-way radio, and each tour with a cellular phone by January 1, 1997.

Human Resources

  1. Certify each new tour leader and re-certify continuing leaders by December 31, 1997, 1998, and 1999.
  2. Make and fill a full-time advertising and marketing position by January 1, 1999.
  3. Hire a bike tour guide who knows auto mechanics by January 1, 1999.
  4. Have a three-year average employee retention rate by December 31, 1998.
  5. Construct a student internship program with local colleges by November 30, 1997.

Administrative Operations

  1. Offer three additional adventure touring locations in the United States by July 31, 1997, 1998, 1999.
  2. Take complete inventory every six months in 1997, 1998, 1999.
  3. Review objectives and create new short-, mid-, and long-term objectives by December 31, 1997.
  4. Organize a community natural resource conservation event by July 1, 1997, 1998, 1999.
  5. Offer four hiking tours, rafting, and mountain climbing tours in the 1997 fall catalogue.

MARKETING

Industry History

The adventure sports and travel industry is considerably young. Not more than twenty years ago, the industry was almost unheard of. Statistics show a steady rise in adventure sport sales and tours. In 1970, the industry grossed about five million dollars. In 1983, it grossed more than five hundred million dollars. More people are becoming health conscious and looking for ways to incorporate fitness into their vacation. The maturity stage for this industry is not for another 20 years. With the right marketing decisions and proper timing, RAD-Venture will gain a comfortable portion of the market share as the adventure sports and travel segment grows into one of the larger vacation industries.

Target Market

RAD-Venture's target market is characteristically made up of recreational travelers with active lifestyles. This eliminates the greater portion of the travel industry, allowing RAD-Venture to focus more closely on its market demographics.

  • Slightly more men than women participate in active travel/recreation.
  • Most participants are professionals (one in three).
  • Most participants are under the age of 50 (usually between 23-50), and there is an increasing number of children becoming involved-especially in mountain biking and indoor climbing.
  • Half of tour participants are married and the other half are single traveling alone.
  • Most mountain tour participants travel to place they have never been and are from lower elevation states and/or different geographic regions ie. Chicago, New York and Canada.
  • Most participants have an "above average" income level.
  • Most active travel participants read special interest publications such as: Outdoors, Mountain Climbing, and Terrain. Roughly half of participants are repeat customers and the other half are newcomers who rely primarily on word of mouth and magazine advertisements.

External Forces

Societal and Demographic Forces

Cedar City is one of the fastest growing areas in Utah due to its mild climate, quality of life, low crime, low cost of living, competitive construction rates, and recreation amenities. Cedar City has no current growth limits and the water tables are capable of supporting up to 200,000 residents.

The population is more representative of outdoor activity than the Las Vegas population. The World Junior Games and the famous Cedar City Marathon are two of the larger annual events supported locally. Cedar City also has several organized private outdoor oriented clubs such as the "Backcountry Club." The population breakdown (excluding the 65+ group) is complementary to RAD-Venture's market demographics.

Population by age
0-1736.2%
18-2410%
25-4422.5%
45-6415%
65+16.2%
Population
Source: Utah Office of Planning and Budgets Population Highlights
199048,560
199359,080
199463,400
199565,000
200081,840 (est.)
Male49.1%
Female50.9%
Source: Utah Department of Employment Security
Median age33
Birth rate (Utah)
ranked second highest in U.S.
21.1 per 1000
Death rate (Utah)
ranked second lowest in U.S.
5.6 per 1000
Household Size3.1/household

Economic Forces

Travel and tourism, the industry RAD-Venture is based on, is Utah's third largest industry behind real estate and construction (number one), and retail (number two). The Utah Travel Council encourages business and private input on the development of tourism through public meetings statewide. Collin Wells, Director of the Utah Travel Bureau said, "For the $3.27 billion industry to succeed, we must have the recommendations and support of the private and public sectors to do the best job we can to not only attract visitors, but further utilize the tourism industry as an economic development resource." It is in RAD-Venture's best interest as well, to actively participate in community and government affairs.

Cedar City currently attracts more than two million international visitors annually. Cedar City is so confident in its economic strength and potential, it is building a large-scale convention center, park, and sizable hotel in 1996. This will attract more of the "professional" status people that figure so prominently in RAD-Venture's market profile.

Utah, especially Southern Utah's, economic strength is stable and growing. During the past decade, Utah's economy ranked among the highest in the nation with a 5.3 percent increase in new jobs while maintaining one of the lowest unemployment rates.

Increase of New Jobs
(1988-1992)
Source: Utah Department of Employment Security
Cedar County161%
Utah37%
Unemployment Rate August 1995
Source: Utah Department of Employment Security
Cedar County3.2%
Utah3.4%
USA6.8%

Legal and Political Forces

Cedar City is receptive to tourism/recreation industries. A division of the city, Recreational Services, is responsible for providing information and organized leisure activities through local recreation businesses and nonprofit organizations. They currently distribute flyers about hikes, camps, youth activities, fun runs, and marathons. The City Parks Division is planning to expand the river biking/jogging path northeast, southwest along the river, and more extensively through the city to connect a network of city parks.

Other relevant government publics are the federal land managers; Bureaus of Land Management, U.S. Forest Service agencies, National Park Systems, and state lands. RAD-Venture has existing positive working relationships with these agencies through its mountain bike tour history.

RAD-Venture is government approved for tours in, around, or through:

  • Sun National Park NPS
  • Water Ridge Canyon National Park NPS
  • Dying Tree National Park NPS
  • Cactus Land National Park NPS
  • Red Stone Recreational Area NPS
  • Ledge National Park NPS
  • Jones Canyon National Recreation Area BLM
  • Sierra Canyon National Conservation Area BLM
  • Almond National Forest USFS
  • Fossil National Forest USFS

Competitive Forces

The Outdoor RAD-Venture Center as a whole will have no direct competitors, in that its combination of adventure services and sales is unique to the area. There will, however, be direct competition with certain departments within the center.

The rock climbing gym will have no direct local competitors, because the closest rock climbing gyms are more than 120 and 240 miles away, respectively.

The adventure equipment rentals and tours will have some competition (only in the sports of mountain biking or rock climbing) with a few local stores: Bailey's Cycles, Mountain Biking, Inc. and the Cycling Cove. We feel that a recreational adventure center will provide the necessary edge on equipment rental and tour competition.

The following stores constitute local competition with biking, climbing, hiking, and/or camping sales within the adventure center: Bailey's Cycles, Mountain Biking, Inc., Cycling Cove, Mountain Outfitters, and Trails End. RAD-Venture has secured the accounts of two lines of bicycles which are flashy, high quality, and relatively low priced. To further distinguish our store from competitors, bicycles and other equipment will be on display with "testers" for rent with a philosophy of "Try it on for size, Rent before you buy."

The following companies, none of which are local, are in direct competition with RAD-Venture's multi-day mountain bike tours: Southwest Tours, Trail Dust, Living Bike Tours, and Natures Best. Since most western bicycle tour companies offer tours in the same areas, competition is strong. For example, the off-road Western Tour of Nevada, which in the last two years was created and toured almost exclusively by RAD-Venture will next season be offered by four additional national tour companies. Most tour companies rely on a combination of brochure mailers and travel listings in national special interest publications to promote their tours. RAD-Venture is listed in eight national magazines and has produced a highly competitive color brochure for distribution. RAD-Venture has also composed a promotional tour video to show at the Outdoor RAD-Venture Center, at conventions, and to distribute to interested parties.

The two largest concerns with competitive forces are sales (especially of bicycles) and multi-day tours. The local market is already saturated with bike stores and camp/hike/climb stores. The market is wide open, however for rentals, tours and indoor climbing. The Center is designed to benefit from, but not depend on, retail sales. A potential multi-day tour guest has many outfitters to choose from when planning a mountain bike vacation. An adventure center from which multi-day tours may begin or end, will provide a more established company image for vacationers to consider when choosing. By offering a center with multiple, complementary adventures, RAD-Venture intends to attract people inside, and once inside, present a fun, inviting "hangout" atmosphere to create loyalty, increased interest, and repeat business.

MARKETING MIX AND SHARE

Product

RAD-Venture, through its new Center, will offer many products and services for the outdoor enthusiast.

RAD-Venture will sell and rent biking, hiking, camping, and climbing essentials and gear. National brand products will be used for their quality and name recognition. RAD-Venture will also sell its own line of products; humorous, creative activewear designed exclusively by RAD-Venture staff.

Pricing Strategy

The adventure sports industry has extreme pricing methods. Tour companies tend to offer either very expensive or very inexpensive tours. Middle range prices are rare. Many inexpensive tours follow the same routes as the expensive tours, but without the support or amenities. RAD-Venture tours currently fall into the expensive category, with full support and many amenities. With the addition of an outdoor adventure center offering shuttles, maps, sales, and rental equipment separately, our market share will broaden to include participants of less expensive, self-supported adventures as well.

As business increases, RAD-Venture can offer new products and services with new prices. A variety of high, medium and low priced, self to full-supported adventures will allow changing prices without changing guest perception. To start:

  • The climbing gym will be medium-low priced to encourage frequent attendance.
  • The rentals and local tours will be average priced for Cedar City, but lower than Las Vegas rentals and tours, due to the nature of tourist/local demographics.
  • The bicycles and other adventure equipment will be high quality, medium to high priced, with low priced sales available on used equipment.

Promotion

Besides the necessary high cost special interest publication travel listing, RAD-Venture will institute several low cost ideas for the promotion of the Outdoor RAD-Venture Center:

  • Offer referral commission to the two service stations in Cedar City who advertise that they are the "recreation information" headquarters for the area.
  • Offer rock climbing clinics for school children, and help start climbing clubs in the local school system.
  • Offer free lifetime memberships to college students in return for helping build the climbing walls, with the double intention they'll talk about it on campus and return with paying friends.
  • Distribute fliers to local hotel front desks (with commission notes), recreation centers, Chambers of Commerce, and local colleges.
  • Add an insert to the mountain bike tour brochure highlighting the new services, products, and adventure center.
  • Set up an lemonade stand next to local jogging and bike trails on weekends.
  • Plans also include concentrated advertising in Northern Utah during the winter months as an escape from the snow and cold.

COMPANY PARAMETERS

Name

RAD-Venture (DBA)

Location

Mailing: Post Office Box 58005, Reno, Nevada

Outdoor Adventure Center: Location pending Cedar City, Utah

Personnel

Owners - Grant and Heidi Osborn
Rental/Tour Manager (Winter) - Jackson Edwards
Multi-day Tour Guide (Summer) - Jackson Edwards
Rock Gym Manager/Climbing Trainer & Guide - Brent Salome
Adventure Equipment Sales/Rental Tours - TBA
Part-Time Tour Guide - John Raymond
Part-Time Help for Tours - Jonesy
Summer Tour Guide - TBA
Part-Time Help for Center - TBA

Legal Structure

RAD-Venture is a sole proprietorship in Grant Osborn's name. It is licensed for business throughout the city of Reno, Nevada.

Pending Cases

  • RAD-Venture does not have any cases pending against it.

Insurance

  • RAD-Venture assets are insured by Coleman Insurance Co.
  • RAD-Venture vehicles are insured by Living Well Insurance Co.
  • RAD-Venture liability is insured by Coastal Community.

Publications

RAD-Venture has been featured in the following national publications: Wardzen World News, Nouveau Fashion, and Cycle Today. The following publications list RAD-Venture on a monthly basis in their travel directories; Terrain, Cycle Tours, Guide, Western Trails, Airborne, Utah Magazine, Outdoors, Sports Journey, and Area Events and Attractions. RAD-Venture is listed bi-annually in the Official Las Vegas Guidebook.

Professional Representatives, Agents, and Suppliers

Attorney: Alex Carter
Henderson, Nevada

Accountant: Johnston Accounts
Las Vegas, Nevada

Key Accounts:Jacobs
Desert Lands
American Dreams
Paradise Resorts, Inc.

Bike Equipment/Supplies:

Western
(bike parts and equipment)

Hold On
(bike holders for vehicles)

Mountain Treads (East)
(mountain bike sales and rentals)

Mountain Treads (West)
Supplier of mountain and cross bikes and parts)
Jameson Inc.
(bike parts and equipment)

Speed Cycles
(mountain bike sales and rentals)

Shock Supply
(shocks for bikes)

Rock Climbing Equipment:

Mount Climb
(supplier of complete climbing equipment)

Rock Pit

Horizon
(supplier of complete climbing equipment)

Xay's Climbing Supply
(supplier of complete climbing equipment)

Outdoor Equipment/Supplies/Clothing:

Backcountry Gear
(bike gear and related products)

Mountain Stream
(camping chairs)

Johnson Printing
(RAD-Venture shirts and hats)

Comfies
(Clothing, hats, accessories)

Energy Food
(energy food)

Camping To Go
(bike packs and day packs)

Hannah's
(sleeping bags)

Biker Duds
(biker clothing)

Green's Packs
(mountaineering and bike packs)

Aqua Pro
(filtered water bottles)

MANAGEMENT

Team Synergy

Team synergy is probably the most important aspect of holding any company togetherespecially ours. If each employee was asked to explain his or her behavior and role in the company, we would still not understand RAD-Venture as a whole. The relationships between our team members bear a "bonding" strength, that transpires as a result of pride in a small growing company, responsibility for guests' safety and satisfaction, the encouragement of new ideas, and the love of the work. Customers can sense and find security in this cohesion.

Crisis Management Plan

In the event of absence of one or both of the owners, a full-time employee (back-up manager) will be previously trained to run all aspects of the business. Ownership will be willed to a third party in the immediate family. General Managership will be willed to the back-up manager. To secure the business against natural disaster, fire, or other unforeseen destruction of property, RAD-Venture will be fully insured for reimbursement of value and continuation of business. All essential documents and computer programs and records (downloaded monthly) will be stored in a fire-proof safe.

PROJECT TIMING

RAD-Venture is beginning its fourth year of operation in Nevada, and its third year of backcountry tours in Southern Utah. The timing of the Outdoor RAD-Venture Center is significant both internally and externally to the company's progression.

Internally, RAD-Venture has established the general market peak of bicycle tours and rentals in its base city. The Nevada market contains a promising steady future, but a substantial increase in business is not likely. Entering its fourth year of exclusive service to Nevada, RAD-Venture has nursed the bicycle rental/tour product through inception, growth, and as it begins to level out, the early stages of maturity. To ultimately ensure growth with the industry, and avoid dependency on the product, an adventure tour business must always be open to new products and destinations.

Externally, immediate action on an Outdoor RAD-Venture Center is important because the window of opportunity is open for a short time only. The demand (for a rock climbing gym and/or adventure tour service) has been established in many communities, and the supply has not yet arrived in Southern Utah. If RAD-Venture does not act soon, it is likely someone else will.

RAD-Ventures' mission is to be a leader in the adventure sports and travel industry, not a follower. The following is a chronological list of achievements needed for the Outdoor RAD-Venture Center to open in the next few months.

  1. Secure a small business loan for the Center.
  2. Build a six thousand sq. ft. building (at least half of it 30 feet tall).
  3. Design interior of building to code and build to facilitate: l) a rock climbing gym, 2) a store for outdoor recreation rentals, tours, and sales, and 3) tour headquarters.
  4. Stock inventory.
  5. Relocate main offices from Reno, Nevada to Cedar City, Utah.
  6. Hire full-time Tour Manager, and part-time tour guide.
  7. Hire a full-time rock climbing gym manager, and two part-time employees/guides.
  8. Institute a grand opening celebration.

FINANCIALS

Working Capital
DescriptionPrice
Training$1,000
Prepaid Mortgage & Repayment of Debt$18,000
Adm. Costs$2,000
Grand Opening$5,000
Advertising/Other$4,000
Working Capital Opening Day$30,000
Total$60,000

Balance Sheet November 20, 1995

AssetsLiabilities and Owners Equity
Cash$6,426
Temporary Cash Investments$0Liabilities:
Marketable Securities$0Notes Payable$8,600
Accounts Receivable$1,116Accounts Payable$0
Less: Doubtful Accounts$0Federal Tax$1,025
Inventories$425Deffered Income Tax$2,325
Prepaid Insurance$2,687Advanced Deposits$0
Prepaid Advertising$3,965Long Term Libilities$13,179
Bicycle Tour Equipment$9,927
Trucks/Vans/Trailer$53,000Total Liabilities:$25,129
Mountain Bikes$17,650Less: Depreciation$1,800
Furnishings/Office Equip.$5,775Owners Equity:
Osborn, Grant & Heidi$81,317
Intangible Assets:
Trademarks$75
Permits/Licenses$7,200
Goodwill$0
Other Assets$0
Total Assets:$106,446Total Liabilities & Owners$106,446

Balance Sheet Breakdown

Inventories:
T-Shirts240
Bike Parts85
Prepaid Insurance:
4×4 van1250
4×4 truck300
Lexmark van120
Janes van150
Theft/Fire572
Liability295
Prepaid Advertising:
Outside1140
MBA50
MB85
MJ175
Bicycling202
Bike88
NV. Mag.225
Brochures2000
Bicycle Tour Equipment:
Cam Corder600
Camera (still)1375
Leader Paks400
Other100
Pots/Pans400
Cookers130
Crates240
Sleep Bags100
Pillows75
Pads75
Tents400
Dutch Ovens240
Utensils100
Pumps120
Seat Kits140
Hip Packs300
Gloves200
Helmets460
Trainers160
Gear Bags85
Bottles50
Locks215
Gel Seats75
Radios2000
Cell Phones400
Water Coolers180
Blue Jugs90
Car Racks100
Stands42
Tools200
1st Aid200
Dinner Wear150
Camping Cookers75
Simmons 4×4 Van29065
Crest 4×4 Truck12035
Janes Van5300
Lexmark Van3000
Trailer3600
30 Bikes17650
Computers2000
Printer1000
Fax250
Software1000
Welder275
Compressor250
Power Tools250
Bike Hangers200
Bike Rack150
Tables100
Cabinets50
Work Benc75
Vaccum25
Misc.150
1996 Cash Flow Forecast and Breakeven Point
JanFebMarAprMayJunJulAug
Cash
Cash in Bank4860001095491035493000029648354415646469742
Cash in Investments00000
Total Cash4860001095491035493000029648354415646469742
Income
Cash Sales:
Local Rentals & Tours12001100700300500
Multiday Tours40009000300002400037000
Adventure Shop Sales10000121001090098008700
Climb Gym Dues/Rentals84009200102001020011200
Investment lncome
Loans
Rentals/Tour Net Income300025001500800200
Ski Shuttles Net Income00000
Total Income0002660033900533004510057600
Total Cash Income486000109549103549566006354888741101564127342
Expenses
Operating Expenses3000300030001545714757149571545714957
Cost of Goods Sold849510350143201336516845
Repayment of Debt30003000300030003000300030003000
Capital Investment/Building30000000
Construction/Climbing Walls6645100
Inventory Purchases & Investment0059549
Grand Opening400008000
Total Expenses3764516000735492695228107322773182234802
Cash Flow (Month)3764516000735493525793210231327822798
Cash Position109549103549300002964835441564646974292540
SeptOctNovDecJanFebMarTotals
925401013081080661108791085379974591293
0000000
925401013081080661108791085379974591293
160024001700300480500180012580
1500010500150040008006500138700
129001380013800175007500925012100138350
80607560112007260283062608200100570
120022001200001100320016900
000350200011004003850
38760364602940025810128101901032200410950
131300137768137466136689121347118755123493
14757145571445713957141571845713957188884
12235121459130111954445600512345130875
300030003000300030003000300045000
300000
66451
59549
12000
29992297022658728152216022746229302
876867582813234287928452289864191
101308108066110879108537997459129394191
Outdoor Adventures - Cedar City - 1996 Projected Sales Forecast
AprilMayJuneJulyAug.Sept.
Local Rentals/Tours
Tours6008005002004001000
Rentals600300200100100600
Total Local Rentals/Tours120011007003005001600
Multiday Tours
Sun
Water Ridge40005000130008000
Dying Tree2000
Cactus Land3000
Jones to Ledge7000600060007000
Jones to Sierra40006000
Sierra
Red Stone3000
Beginner Almond3000
Fossil Finder400060004000
Sun, Fossil and Ledge
Sierra Rad6000
Waterways6000
Dying Tree & Cactus
Custom Tours600050005000
Other
Total Multi-Day Tours4000900030000240003700015000
Adventure Shop Sales
RAD-Venture Clothing10001000100010009001000
Other Clothing10001100900800800900
Equip, and Components500050004000300030005000
Bike Sales300050005000500040006000
Total Shop Sales1000012100109009800870012900
Climb Gym Dues/Rentals
Day Pass320035003500350035002520
Memberships700700700700700540
Membership Initiations300400300230230200
Specials7006001700177027701800
Equipment350040004000400040003000
Total Gym Dues/Rentals840092001020010200112008060
1996 Projected Sales Recap
Local Rentals/Tours120011007003005001600
Multiday Tours4000900030000240003700015000
Adventure Shop1000012100109009800870012900
Climb Gym Dues/Rentals840092001020010200112008060
Total 1996 Projected Sale236003140051800443005740037560
1996 Projected Expenses
Advertising200020002000200020002000
Vehicle Repair/Maintenance800800800800800800
Vehicle Loan Payments350350350350350350
Vehicle Insurance350350350350350350
Liability Insurance Bike505050505050
Liability Insurance Gym100100100100100100
Theft Insurance125125125125125125
Interest-Long Term000000
Oct.Nov.Dec.Jan.Feb.Mar.Totals
1400110020018020010007580
10006001003003008005000
24001700300480500180012580
1000150040080020005700
30000
2000
3000
26000
600016000
45004500
35006500
3000
14000
6000
6000
16000
1050015004008006500138700
12001100130070085090011950
110012001200800900120011900
50005000600035004500500054000
65006500900025003000500060500
1380013800175007500925012100138350
25203500252011602520320035240
5407005401205407007280
2003003002004002003260
130027001200010060015240
30004000270013502700350039750
7560112007260283062608200100570
24001700300480500180012580
10500150040008006500138700
1380013800175007500925012100138350
7560112007260283062608200100570
342602820025460108101681028600390200
20002000200020002000200024000
8008008008008008009600
3503503503503503504200
3503503503503503504200
505050505050600
1001001001001001001200
1251251251251251251500
0000000
Outdoor Adventures - Cedar City - 1996 Projected Sales Forecast continued
AprilMayJuneJulyAug.Sept.
Interest-Short Term000000
Office Supplies350350350350350350
Mortgage Payment300030003000300030003000
Payroll-1100010001000100010001000
Payroll-2100010001000100010001000
Payroll-3100010001000100010001000
Payroll-4100010001000100010001000
Payroll-5500500500500500500
1099 Labor1000800100010001000800
Payroll Tax (18%)360360360360360360
Accountant808080808080
State Taxes000000
Licenses And Dues125125125125125125
Bank Charges700700700700700700
Trade Shows000000
Phones (800 #, Cell, Etc.)367367367367367367
Utilities200200200200200200
Research and Tour Development5000050000
Rental Bikes000000
Tour Equipment500500500500500500
Total Expenses154571475714957154571495714757
1996 Cost of Goods Sold
Local Rentals/Tours-COS
Cedar City Tours120100120407060
Cedar City Rentals000000
Total Local Rental/Tours120100120407060
Multiday Tours-COS
Sun
Water Ridge1500180035002000
Dying Tree800
Cactus Land1100
Jones to Ledge2000200020002000
Sierra20002000
Red Stone
Beginner Almond800
Fossil Finder800
Sun, Fossil & Ledge8001200800
Sierra & Sun
Sierra Rad2500
Waterways2200
Dying Trees & Cactus
Custom Tours180015001500
Other2000280094007300111004000
Total Multi-Day Tours-COS2000280094007300111004000
Adventure Shop Sales-COS
Oct.Nov.Dec.Jan.Feb.Mar.Totals
0000000
3503503503503503504200
30003000300030003000300036000
10001000100010001000100012000
10001000100010001000100012000
10001000100010001000100012000
10001000100010001000100012000
5005005005005005006000
600000006200
3603603603603603604320
808080808080960
0000000
1251251251251251251500
7007007007007007008400
0000400004000
3673673673673673674404
2002002002002002002400
0500020050002200
0000000
5005005005005005006000
145571445713957141571845713957179884
120807020801201000
0000000
120807020801201000
25030015002504001350
8800
800
1100
8000
20006000
45004500
12002000
800
2800
2500
2200
4800
34503001500250490045650
34503001500250490045650
Outdoor Adventures - Cedar City - 1996 Projected Sales Forecast continued
AprilMayJuneJulyAug.Sept.
RAD-Venture Clothing600600600600550600
Other Clothing650700550475475500
Equip, and Components30003000500180018003000
Bike Sales200030003000300027004000
Total Shop Sales-COS625073004650587555258100
Climb Gym Dues/Rentals-COS
Day Pass000000
Memberships000000
Specials000000
Equipment Rentals12515015015015075
Total Gym Dues/Rentals-CO12515015015015075
1996 Cost of Goods Sold Recap
Local Rentals/Tours120100120407060
Multiday Tours2000280094007300111004000
Adventure Shop625073004650587555258100
Climb Gym Dues/Rentals12515015015015075
Total 1996 Cost of Goods84951035014320133651684512235
Repayment of Debt (Interest)300030003000300030003000
Capital ExpendituresUsed within repayment of debt during construction
Expense Recap
Total Expenses154571475714957154571495714757
Total Cost of Goods Sold84951035014320133651684512235
Repayment of Debt300030003000300030003000
Total Capital Expenditure269522810732277318223480229992

Assumptions to the Per Forma

In the Projected Sales Forecast, the extreme fluctuations in January and February's net income are a result of less mountain bike activity in cold weather and preparation costs for the upcoming multiday tour season.

In the Cash Flow Forecast and Break-even Point, the negative numbers in the first three months are due to building and start-up costs.

Oct.Nov.Dec.Jan.Feb.Mar.Totals
7006507003754505006925
6007507504755007007125
30003000350020002600300030200
42004200600015002000300038600
850086001095043505550720082850
0000000
0000000
0000000
7515025751251251375
7515025751251251375
120807020801201000
34503001500250490045650
850086001095043505550720082850
7515025751251251375
121459130111954445600512345130875
30003000300030003000300036000
145571445713957141571845713957179884
121459130111954445600512345130875
30003000300030003000300036000
297022658728152216022746229302346759
Income History
Tour and Rental Gross Receipts
1992199319941995
Jan$0.00$1,012.25$3,297.38$1,821.79
Feb$0.00$2,331.78$7,284.61$7,493.36
Mar$0.00$3,890.00$8,193.09$13,540.48
April$1,110.00$2,875.00$9,689.35$1,431.51
May$650.00$4,073.65$9,969.40$13,102.32
June$1,158.82$3,682.00$5,851.65$17,085.79
July$1,256.81$2,666.67$5,655.70$25,125.95
Aug$1,610.05$2,833.02$10,124.60$21,976.92
Sept$2,670.00$5,158.82$12,330.08$12,175.79
Oct$2,385.50$3,506.90$13,679.97$7,871.00
Nov$3,004.80$4,186.15$4,875.28
Dec$1,376.15$2,515.61$1,479.97
Year-End Gross Totals$19,587.13$38,731.85$88,931.06$134,512.91
(Corresponding Net Totals)$(863.27)$(3,403.50)$4,758.55$15,420.69
Use of Funds Summary
Building and Land$300,000
Climb Gym Construction$66,530
Working Capital$60,000
Inventories$69,470
Total needed funds$496,000
Building and Land Construction Cost
Building and Pro Shop Construction$185,000
Land Cost$115,000
Total$300,000