Bighorn River American Bighorn River American Indian CampgroundsIndian Campgrounds

Ada IronAda IronKim IronKim Iron

Amy BensonAmy BensonVanessa KukesVanessa KukesCasey SteffansCasey Steffans

Mary Alice WalkerMary Alice Walker

Vision StatementVision Statement

The Bighorn River American Indian Campgrounds vision is to ensure an authentic Apsaalooke experience in a heartwarming customer oriented environment. We will increase the diversity among Americans by sharing our culture and our knowledge of Crow Country. We will share our history through guided tours in our back country during our guest’s activities.

Mission StatementMission Statement

The Bighorn River American Indian Campgrounds will offer our guests of all ages the opportunity to expose themselves to an authentic Native American experience. We promote family-friendly, safe camping environment where guests can enjoy outdoor recreation on the land of our ancestors. The purpose of our resort is to please and respect our customers while enjoying the pleasure of sharing our culture. We value our guests, as they will come to value us as Native Americans.

Big Horn River American Indian Big Horn River American Indian CampgroundCampground

• Indian owned business on the Crow Reservation

• RV owners and camping enthusiasts fast growing market especially in Montana

• Located on Bighorn River – 1 of the best fishing destinations in the United States

LocationLocation

• Fort Smith, Montana

• Pre-owned 40 acres of land

Physical FacilitiesPhysical Facilities

Tribal and Local BenefitsTribal and Local Benefits

• Employment Opportunities• Internship Opportunities• Increase Diversity• Benefit Local Ranchers• Promote other Native American

Businesses• Create Foundation

Development StrategyDevelopment Strategy

Summer’07DesignBuilding

Nov ’07Media

Secured

Jan ’08Construction

completeHire Staff

Mar ’08Grand

Opening

Oct’07Ground

Breaking & Create Ads

Dec ’07Mass

advertising begins

Feb ’08 Train Staff

Marketing Plan

Competitive StrengthsCompetitive Strengths

Location

• Fort Smith

• Located on the Crow Reservation (Teepee Capital of the World)

Market StrengthsMarket Strengths

• Fishing: most popular physical activity• 79% of campers consider themselves

family oriented• 47% of campers preferred an activity

oriented camp ground• Growth in weekend travelers

Product StrengthsProduct Strengths

• A RV capacity of 40• A Teepee capacity of 10• A lodge• A section for cultural activities and events• Room to expand • Land off 40 acres

WeaknessesWeaknesses

• New Business

• Unbranded Name

• Distance off of I-90

OpportunitiesOpportunities

On the way….

• 63% utilize on the way

• 17% are used for the destination

ThreatsThreats

Competitive AnalysisCompetitive AnalysisCompetitor Product Price Promotion Place7th Ranch Some

AuthenticHorses

CampingLowHorses High

Rack CardsBillboardsWebsite

Telephone Reservations

BighornMountain

Camping Low Rack CardsBillboardsWebsite

Telephone Reservations

Hardin Camping Low Rack CardsBillboardsWebsite

Telephone Reservations

Grandview Camping Low Rack CardsBillboardsWebsite

Telephone Reservations

Opportunities/Threats = ObjectivesOpportunities/Threats = Objectives

100 Million Nights spent in private campgrounds10 (10% of Nights spent in Montana) = 10 Million Nights spent in Montana10 Million Nights spent in Montana4 Equal parts of the State = 2.5 Million Nights2.5 Million Nights50 Campgrounds in Southeastern Montana = 50 Thousand Nights/year50 Thousand Nights/Year213 Nights per summer season = 234 Nights spent at Bighorn River area234 Nights spent along the Bighorn River 4 Campgrounds in the Bighorn River area = 58 RV Customers per Night

Target AudienceTarget Audience

• Authentic American Indian culture

• Baby Boomers

• Families with children

Target AudienceTarget AudienceDemographics:• Families with average age of 37

– children under 18 – income > than $50,000 /year

Activities:• People who enjoy backcountry fishing, camping, guided

fishing trips, hunting, and the general outdoors ,cultural events

Geographic:• Billings and surrounding area• Tourists traveling in and around southern MT and

Northern WY from all over the world

Marketing MixMarketing Mix

Attributes PhysicalConsequences

PsychologicalConsequences

Values

Teepees, riveraccess, activities,Bighorn Riverbeing nationallyrecognized as oneof the premieretrout streams inthe United Statesfor anglers

Authenticity,tours semi-convenience,backcountry, andhealth.

Cultured,Experienceunmatched byOthercampgrounds,and a relaxingatmosphere

A once in aLifetimeexperience andself- satisfactionof experiencingthe real thing.

Product: Means End ChainProduct: Means End Chain

High Cost

Low Cost

Authentic American

Indian Experience

Typical Campground

Black Hills Campground

Sheridan KOA

Hardin KOA

Grand View Campground

Bighorn Mountain Campground

7th Ranch RV Camp

Bighorn River American Indian Campground

Product: Perceptional Map

Marketing Mix Marketing Mix

Price

• One-price Policy

• Discount pricing

• Coupon distribution

Marketing MixMarketing Mix

Place

Strategy:Direct Distribution Channel

Sales:Telephone, internet, and walk-in traffic

Marketing MixMarketing Mix

Promotion

• Inform audience

• Persuading our target audience

• Remind the customers

• Publicity

Organization & ManagementOrganization & ManagementAda IronGeneral Manager

Full – TimeEmployee

Kim IronAssistant Manager

Full – Time Employee

(6)Employees (6)Employees

Financial Plan

FINANCIAL PLAN FINANCIAL PLAN

• Base Case & Alternative Case

• Construction of Lodge• Installation of RV Hookups• Set up of Teepees

FINANCIAL ASSUMPTIONS FINANCIAL ASSUMPTIONS

• Sales estimates were derived from AIBL team• Sales Assumptions

– Capacity for 10 Teepees, 40 RV spaces– Total Capacity Includes

• 2 people per Teepee = 20 People• 2 people per RV = 80 People• = 100 People per night

– Base Case • 60% of Capacity in yr 1, increase of 5% thereafter• Higher average

– Sale price for packages– Teepee Rental– Initial Costs

Financial AssumptionsFinancial Assumptions

– Alternative Case• 60% of Capacity in yr 1, increase of 10% thereafter• Lower average

– Sale price for packages– Teepee Rental– Initial Costs

– Base case & Alternative Case • All other estimates remain equal• Fiscal year Oct 1 to Sept 30• Start operation March 1 and run through Sept 30

Pro Forma StatementsPro Forma Statements

• Owner’s Draw• LLC, choose to be taxed as Sole Proprietor• To pay taxes and for living expenses for Owners

– Base Case• $350,000 yr 1 • 12% increase yr 2, 10% thereafter

Pro Forma StatementsPro Forma Statements

– Alternative Case• $150,000 yr 1 • 50% increase yr 2, 14% thereafter

PRO FORMA STATEMENTSPRO FORMA STATEMENTS

• Base Case• Initial Costs total $1,430,095

• Alternative Case• Initial Costs total $1,427,260

PRO FORMA STATEMENTSPRO FORMA STATEMENTS

• Mixture of debt and equity• SBA Loan – 60%

• Interest rate @ 10.75%• Amortized over 25 year period

• AIBL Members – 13% • Investors – 27%

Financial AnalysisFinancial AnalysisScenario Base Case Alternative Case

Undiscounted Payback 2yrs, 9.80 months 5yrs, 6.09mths

Discounted Payback 4yrs, 2.85 months > 10 years

NPV (WACC) $1,924,654 $108,376

NPV (RRR) $785,242 ($459,807)

IRR 40% 16%

MIRR 20% 11%

Pro Forma StatementsPro Forma Statements

25%

30%

35%

40%

45%

1 2 3 4 5

S1

Profit Margin

Base Case

Pro Forma StatementsPro Forma Statements

$-

$200,000

$400,000

$600,000

$800,000

Dollar Amount

1 2 3 4 5

Year

Increase(Decrease) Cash Flow

Base Case

Breakeven Analysis - Base CaseBreakeven Analysis - Base Case

Year 1 Year 2 Year 3 Year 4 Year 5

Sales $2,131,065 $2,308,654 $2,486,243 $2,663,831 $2,841,420

TVC $1,063,210 $1,075,316 $1,108,779 $1,143,137 $1,178,423

Needed to Breakeven/Day

$6,009 $5,948 $6,315 $6,632 $6,908

Our Sales/ Day

$10,005 $10,839 $11,673 $12,506 $13,340

Difference $3,996 $4,891 $5,358 $5,874 $6,432

• Exit Strategy

– Sell to existing competitor– Sell to local Farmer– Turn into Farmland for our Ranch

Exit StrategyExit Strategy

Questions?