GO HOMESTEAD!

A Business ProposalEmily-Anne Davis, Devin Cole

TABLE OF CONTENTSEXECUTIVE SUMMARYSITUATION ANALYSISSWOT ANALYSISBUSINESS RESOURCES

• FINANCIAL RECOURCES• HUMAN RESOURCES• EXPERIENCE AND EXPERTISE

BUSINESS STRATEGY• OBJECTIVES• STRATEGY FOR USING CAPABLE RESOURCES

FINANCIAL PROJECTIONS AND BUDGETS• TRIAL INCOME STATEMENT• TRIAL BALANCE SHEET

CONTROLS AND EVALUATION

EXECUTIVE SUMMARY GoHomestead is a propositional business plan with a five-year initiation projection. The business plan involves significant initial investments including purchase of property, as well as natural, financial, and human resources. Despite these large initial overhead figures, GoHomestead is expected to evolve into a self-sufficient, holistic business venture. Through the utilization of adequate business planning, financial assistance and networking, GoHomestead will become a sustainable outlet for outdoor adventure, lodging, dining, and spiritual retreat.

SITUATION ANALYSIS 1. COMPANY NAME Go Homestead

2. PROSPECTIVE LOCATION Kamloops, British Columbia

3. ESTABLISHMENT TIMELINE New business; to initiate within the next five years.

4. NICHE/SPECIALTY/SUCCESS FACTOR To offer a wide spectrum of attractions that appeal to all five senses, while providing an educational, enjoyable experience for

clients of all walks of life. Business points will range from outdoor adventure activities (rock wall, canopy boardwalk, etc.) to culinary (organic fine dining, communal gatherings etc.) to cultural (music festivals, showcases etc.) to educational (interpretive walks, workshops).

5. WHO WILL HELP?The nature of this business plan is to be very inviting and welcoming of any friends and/or family who are interested in

participating/contributing. As the plan is quite complex it will require a considerably large work force, as well access to a wide range of skill sets. This equates to a definite need for trust and accountability. Support and assistance from local networks and communities will be paramount.

6. COMPETITORSOther local farms and outdoor adventure businesses would pose a potential advantage to GoHomestead, on the grounds that their

scope of business is narrower, and more focused. GoHomestead will be multi-faceted and diversely layered, which will present a challenge to business management. Taking careful steps in matters of organization, legality and basic business progression, the ‘Farm Dream’ will overcome obstacles, and attract like-minded business partners.

SITUATION ANALYSIS CONTINUED…7. % MARKET SHARE

Initially, this is difficult to gauge. Considering prospective locations, the farming/outdoor adventure community is likely to be extensive. This could be just as much a benefit as it could be a hurdle as more competition ultimately means a larger market!

8. NEW TECHNOLOGY?We are fairly well versed with technologies pertaining to the outdoor adventure industry, such as GPS, computer media programs, and

satellite radios. In contrast, we will require proper training with technology related to farming. Substantial research in fields like equipment, machinery and data gathering will be essential.

9. MARKET CHANGE IN THE NEXT FIVE YEARS?We are hoping for and predicting a drop in real-estate prices in the next five to ten years due to the Baby Boomer retirement shift. This is

wishful thinking and a bit off point; but the hope is that this shift ignites an increase in outdoor adventure accommodations and land availability whilst living within the Echo generation.

10. PLAN FOR GROWTHSlow and steady wins the race! Our vision involves starting from point ‘A’ and steadily progressing from there. Initial steps will include

saving money and buying a piece of land. Once an opportune piece of property has been acquired we can move forward with our next steps of owning a farm; land management, cultivation, building etc. Investments will need to be made regarding essential commodities; farming equipment, tools, machinery, horses, livestock etc. Then, the fun stuff; lodging, catering, adventure tourism, etc.

11. MONEY AND FINANCESWe are going to need a great sum of money. To get the ball rolling with the absolute minimum resources required (approximately 250

acres, equipment, livestock, man-power) we are looking to accrue a million dollars. However, we are requesting an initial bank loan of $250 000. The following is a list of opportunities to raise adequate funding:• Preliminary heavy-labour (Oil rigs, mining, etc.)• Government grants/incentives• Bank loans• Third party investor

SWOT ANALYSISStrengths (+)

Everyone is welcome: business appeals to a broad market

Multi-faceted

Natural/health oriented

Low overhead (once initial systems are implemented)

Use of local materials/products/goods/services only

Weaknesses (-)

Balancing too many business ventures simultaneouslySolution: Change focus by concentrating on fewer ventures ie) Yoga and Meditation

Use of local products onlySolution: Become more flexible with non-local trading/purchasing

Start-up costs/financesSolution: Government grants, reduce size of business; loans from friends, family, & bank; fundraising

Opportunities (+)

Potential for growth

Greater quality of life

Networking with various industries, businesses and markets

Threats (-) Neighbouring competition

Solution: Heavy marketing, networking, promotion. Provide complementary visits/incentives

Environmental compromiseSolution: Implement emergency infrastructure, alternate plans, & resources ie) greenhouses, root cellars, etc.

EconomySolution: Readjust prices for broader ranges of income ie) basic-upscale packages including activities, accommodations

FINANCIAL RESOURCESOur financial resources available for accomplishing our company goals includes both personal and corporate money available.Start-up costs:Personal funds: $15,000Corporate money: $485,000

HUMAN RESOURCES

The personnel and skills required to implement our goals.

Goals of the farm will be mainly hands-on. There will be personnel and skills readily available/present during initiative start-up which will require expansion with our personnel as well as skills.

Hard skills: Mechanical, technical, therapeutic, kinetic, cooking

Soft skills: Problem solving, management, communication

BUSINESS RESOURCES: EXPERIENCE AND EXPERTISE

Additional training will be essential in order to successfully achieve our company goals. However, pioneer employees will be generously endowed with skills and will claim responsibility of teaching new employees new skills. Workshops and training seminars will be hosted on site in order properly and safely train new additions to our workforce family.

BUSINESS STRATEGY OBJECTIVES

Our business objective is to obtain the building blocks required to create our business. These building blocks will consist of employees, funding for equipment, labour, utilities and supplies.

In order to achieve our objectives we need to accumulate proper funding, acquire a prime farming location, and begin the development of our property and buildings.

Our time frame is as follows: acquire money within one year; begin development two to three years once funding is accumulated.

Our business venture allows us the opportunity to build a dream, thus making it a reality. Through seeking potential shareholders we will also be making business partners and taking advantage of fruitful real estate opportunities.

STRATEGIES FOR USING CAPABLE RESOURCES

 

Our strength is appealing to a broad target market matched with an opportunity for growth, which will help us achieve our business objectives.

When encountering a weakness our objective is to discover and define it. By being fully aware of our strengths, knowing how and why they work is an advantage that cannot be taken for granted. Once the weakness is targeted an analysis must be conducted. Our focus will incorporate consulting with third parties, making the flaw a priority by breaking it down. Once we are able to locate the reasoning for the fault we are then able to rebuild, improve and eradicate the issue.

In order for Go HOMEstead to convert its threats into opportunities we need to discover the threat and isolate it. Once the threat has been identified we must discover why it is a threat to the business. We can then mitigate and analyze the risk in order to utilize the threat to our advantage.

STRATEGIES FOR MARKETING AND PROMOTION

Primary Customers:• Families• Naturalists and survivalists• $25,000 min annual income• (Foreign) Tourists, travellers• Seniors

Prospective outlets for advertising and promoting services and products: World Wide Web Radio broadcasts Trade shows Conferences Local newspapers News columns Local billboards Email Flyers Signage

Our promotional annual budget is estimated to be $10,000.00.

 

TRIAL INCOME STATEMENTTRIAL INCOME STATEMENT

For the period of January 1, 2013 to December 31, 2013

      Gross Revenue (Sales) $150,000.00   Cost of Sales:    Opening Inventory +    Purchases + $12,500.00  Closing Inventory - $2,000.00Total Cost of Sales: $10,500.00   NET REVENUE $139,500.00      Expenses:    Utilities $2,400.00  Rent/Mortgage payments $12,500.00  Depreciation $0.00  Labour $60,000.00  Advertising $10,000.00  Professional Fees $2,000.00  Bank charges $1,200.00  Other  Total Expenses $88,100.00   NET EARNINGS $51,400.00   Taxes Payable (27%) $13,878.00   Retained Earnings     $37,522.00

TRIAL BALANCE SHEET TRIAL BALANCE SHEET As at December 31, 2014      ASSETS:  Current Assets    Cash on hand $200.00   Bank Balance $4,000.00   Accounts Receivable $3,000.00   Inventory $2,000.00   Other $100.00   Retained Earnings $37,522.00    Long Term Assets    Property $250,000.00   Equipment $-   Other     TOTAL ASSETS $296,822.00       LIABILITIES:  Current Liabilities    Accounts payable $1,000.00

  Mortgage/Interest payments due $1,250.00   Income taxes payable $13,878.00   Other $2,500.00    Long Term Liabilities:  

  Long Term Debt (mortgage/loans) $200,000.00   Equipment lease $1,000.00   Other $2,000.00    TOTAL LIABILITIES $221,628.00       Shareholders Equity   $75,194.00

CONTROLS AND EVALUATIONSGoals/Objectives Budget Action to be

takenWho is to do it

When

Find suitable property

$500,000.00

Research real-estate market, compare different countys, regions

Emily-Anne Immediately

Rent equipment $10,000.00 Research rental equipment companies

Devin Immediately

Search for workforce $30,000.00 Advertise business online and through employment agencies; implement volunteer program

Emily-Anne and Devin

Immediately