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Outdoor Adventure Travel Company Business Plan


RAD-VENTURE

P.O. Box 58005Reno, 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 vehicles—just 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
0-17 36.2%
18-24 10%
25-44 22.5%
45-64 15%
65+ 16.2%
Population
Source: Utah Office of Planning and Budgets Population Highlights
1990 48,560
1993 59,080
1994 63,400
1995 65,000
2000 81,840 (est.)
Male 49.1%
Female 50.9%
Source: Utah Department of Employment Security
Median age 33
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 Size 3.1/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 County 161%
Utah 37%
Unemployment Rate August 1995
Source: Utah Department of Employment Security
Cedar County 3.2%
Utah 3.4%
USA 6.8%

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 OsbornRental/Tour Manager (Winter) - Jackson EdwardsMulti-day Tour Guide (Summer) - Jackson EdwardsRock Gym Manager/Climbing Trainer & Guide - Brent SalomeAdventure Equipment Sales/Rental Tours - TBAPart-Time Tour Guide - John RaymondPart-Time Help for Tours - JonesySummer Tour Guide - TBAPart-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 CarterHenderson, Nevada

Accountant: Johnston AccountsLas 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 together—especially 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
Description Price
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

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

Balance Sheet Breakdown

Inventories:
T-Shirts 240
Bike Parts 85
Prepaid Insurance:
4×4 van 1250
4×4 truck 300
Lexmark van 120
Janes van 150
Theft/Fire 572
Liability 295
Prepaid Advertising:
Outside 1140
MBA 50
MB 85
MJ 175
Bicycling 202
Bike 88
NV. Mag. 225
Brochures 2000
Bicycle Tour Equipment:
Cam Corder 600
Camera (still) 1375
Leader Paks 400
Other 100
Pots/Pans 400
Cookers 130
Crates 240
Sleep Bags 100
Pillows 75
Pads 75
Tents 400
Dutch Ovens 240
Utensils 100
Pumps 120
Seat Kits 140
Hip Packs 300
Gloves 200
Helmets 460
Trainers 160
Gear Bags 85
Bottles 50
Locks 215
Gel Seats 75
Radios 2000
Cell Phones 400
Water Coolers 180
Blue Jugs 90
Car Racks 100
Stands 42
Tools 200
1st Aid 200
Dinner Wear 150
Camping Cookers 75
Simmons 4×4 Van 29065
Crest 4×4 Truck 12035
Janes Van 5300
Lexmark Van 3000
Trailer 3600
30 Bikes 17650
Computers 2000
Printer 1000
Fax 250
Software 1000
Welder 275
Compressor 250
Power Tools 250
Bike Hangers 200
Bike Rack 150
Tables 100
Cabinets 50
Work Benc 75
Vaccum 25
Misc. 150
1996 Cash Flow Forecast and Breakeven Point
Jan Feb Mar Apr May Jun Jul Aug
Cash
Cash in Bank 486000 109549 103549 30000 29648 35441 56464 69742
Cash in Investments 0 0 0 0 0
Total Cash 486000 109549 103549 30000 29648 35441 56464 69742
Income
Cash Sales:
Local Rentals & Tours 1200 1100 700 300 500
Multiday Tours 4000 9000 30000 24000 37000
Adventure Shop Sales 10000 12100 10900 9800 8700
Climb Gym Dues/Rentals 8400 9200 10200 10200 11200
Investment lncome
Loans
Rentals/Tour Net Income 3000 2500 1500 800 200
Ski Shuttles Net Income 0 0 0 0 0
Total Income 0 0 0 26600 33900 53300 45100 57600
Total Cash Income 486000 109549 103549 56600 63548 88741 101564 127342
Expenses
Operating Expenses 3000 3000 3000 15457 14757 14957 15457 14957
Cost of Goods Sold 8495 10350 14320 13365 16845
Repayment of Debt 3000 3000 3000 3000 3000 3000 3000 3000
Capital Investment/Building 300000 0 0
Construction/Climbing Walls 66451 0 0
Inventory Purchases & Investment 0 0 59549
Grand Opening 4000 0 8000
Total Expenses 376451 6000 73549 26952 28107 32277 31822 34802
Cash Flow (Month) −376451 −6000 −73549 −352 5793 21023 13278 22798
Cash Position 109549 103549 30000 29648 35441 56464 69742 92540
Sept Oct Nov Dec Jan Feb Mar Totals
92540 101308 108066 110879 108537 99745 91293
0 0 0 0 0 0 0
92540 101308 108066 110879 108537 99745 91293
1600 2400 1700 300 480 500 1800 12580
15000 10500 1500 400 0 800 6500 138700
12900 13800 13800 17500 7500 9250 12100 138350
8060 7560 11200 7260 2830 6260 8200 100570
1200 2200 1200 0 0 1100 3200 16900
0 0 0 350 2000 1100 400 3850
38760 36460 29400 25810 12810 19010 32200 410950
131300 137768 137466 136689 121347 118755 123493
14757 14557 14457 13957 14157 18457 13957 188884
12235 12145 9130 11195 4445 6005 12345 130875
3000 3000 3000 3000 3000 3000 3000 45000
300000
66451
59549
12000
29992 29702 26587 28152 21602 27462 29302
8768 6758 2813 −2342 −8792 −8452 2898 64191
101308 108066 110879 108537 99745 91293 94191
Outdoor Adventures - Cedar City - 1996 Projected Sales Forecast
April May June July Aug. Sept.
Local Rentals/Tours
Tours 600 800 500 200 400 1000
Rentals 600 300 200 100 100 600
Total Local Rentals/Tours 1200 1100 700 300 500 1600
Multiday Tours
Sun
Water Ridge 4000 5000 13000 8000
Dying Tree 2000
Cactus Land 3000
Jones to Ledge 7000 6000 6000 7000
Jones to Sierra 4000 6000
Sierra
Red Stone 3000
Beginner Almond 3000
Fossil Finder 4000 6000 4000
Sun, Fossil and Ledge
Sierra Rad 6000
Waterways 6000
Dying Tree & Cactus
Custom Tours 6000 5000 5000
Other
Total Multi-Day Tours 4000 9000 30000 24000 37000 15000
Adventure Shop Sales
RAD-Venture Clothing 1000 1000 1000 1000 900 1000
Other Clothing 1000 1100 900 800 800 900
Equip, and Components 5000 5000 4000 3000 3000 5000
Bike Sales 3000 5000 5000 5000 4000 6000
Total Shop Sales 10000 12100 10900 9800 8700 12900
Climb Gym Dues/Rentals
Day Pass 3200 3500 3500 3500 3500 2520
Memberships 700 700 700 700 700 540
Membership Initiations 300 400 300 230 230 200
Specials 700 600 1700 1770 2770 1800
Equipment 3500 4000 4000 4000 4000 3000
Total Gym Dues/Rentals 8400 9200 10200 10200 11200 8060
1996 Projected Sales Recap
Local Rentals/Tours 1200 1100 700 300 500 1600
Multiday Tours 4000 9000 30000 24000 37000 15000
Adventure Shop 10000 12100 10900 9800 8700 12900
Climb Gym Dues/Rentals 8400 9200 10200 10200 11200 8060
Total 1996 Projected Sale 23600 31400 51800 44300 57400 37560
1996 Projected Expenses
Advertising 2000 2000 2000 2000 2000 2000
Vehicle Repair/Maintenance 800 800 800 800 800 800
Vehicle Loan Payments 350 350 350 350 350 350
Vehicle Insurance 350 350 350 350 350 350
Liability Insurance Bike 50 50 50 50 50 50
Liability Insurance Gym 100 100 100 100 100 100
Theft Insurance 125 125 125 125 125 125
Interest-Long Term 0 0 0 0 0 0
Oct. Nov. Dec. Jan. Feb. Mar. Totals
1400 1100 200 180 200 1000 7580
1000 600 100 300 300 800 5000
2400 1700 300 480 500 1800 12580
1000 1500 400 800 2000 5700
30000
2000
3000
26000
6000 16000
4500 4500
3500 6500
3000
14000
6000
6000
16000
10500 1500 400 800 6500 138700
1200 1100 1300 700 850 900 11950
1100 1200 1200 800 900 1200 11900
5000 5000 6000 3500 4500 5000 54000
6500 6500 9000 2500 3000 5000 60500
13800 13800 17500 7500 9250 12100 138350
2520 3500 2520 1160 2520 3200 35240
540 700 540 120 540 700 7280
200 300 300 200 400 200 3260
1300 2700 1200 0 100 600 15240
3000 4000 2700 1350 2700 3500 39750
7560 11200 7260 2830 6260 8200 100570
2400 1700 300 480 500 1800 12580
10500 1500 400 0 800 6500 138700
13800 13800 17500 7500 9250 12100 138350
7560 11200 7260 2830 6260 8200 100570
34260 28200 25460 10810 16810 28600 390200
2000 2000 2000 2000 2000 2000 24000
800 800 800 800 800 800 9600
350 350 350 350 350 350 4200
350 350 350 350 350 350 4200
50 50 50 50 50 50 600
100 100 100 100 100 100 1200
125 125 125 125 125 125 1500
0 0 0 0 0 0 0
Outdoor Adventures - Cedar City - 1996 Projected Sales Forecast continued
April May June July Aug. Sept.
Interest-Short Term 0 0 0 0 0 0
Office Supplies 350 350 350 350 350 350
Mortgage Payment 3000 3000 3000 3000 3000 3000
Payroll-1 1000 1000 1000 1000 1000 1000
Payroll-2 1000 1000 1000 1000 1000 1000
Payroll-3 1000 1000 1000 1000 1000 1000
Payroll-4 1000 1000 1000 1000 1000 1000
Payroll-5 500 500 500 500 500 500
1099 Labor 1000 800 1000 1000 1000 800
Payroll Tax (18%) 360 360 360 360 360 360
Accountant 80 80 80 80 80 80
State Taxes 0 0 0 0 0 0
Licenses And Dues 125 125 125 125 125 125
Bank Charges 700 700 700 700 700 700
Trade Shows 0 0 0 0 0 0
Phones (800 #, Cell, Etc.) 367 367 367 367 367 367
Utilities 200 200 200 200 200 200
Research and Tour Development 500 0 0 500 0 0
Rental Bikes 0 0 0 0 0 0
Tour Equipment 500 500 500 500 500 500
Total Expenses 15457 14757 14957 15457 14957 14757
1996 Cost of Goods Sold
Local Rentals/Tours-COS
Cedar City Tours 120 100 120 40 70 60
Cedar City Rentals 0 0 0 0 0 0
Total Local Rental/Tours 120 100 120 40 70 60
Multiday Tours-COS
Sun
Water Ridge 1500 1800 3500 2000
Dying Tree 800
Cactus Land 1100
Jones to Ledge 2000 2000 2000 2000
Sierra 2000 2000
Red Stone
Beginner Almond 800
Fossil Finder 800
Sun, Fossil & Ledge 800 1200 800
Sierra & Sun
Sierra Rad 2500
Waterways 2200
Dying Trees & Cactus
Custom Tours 1800 1500 1500
Other 2000 2800 9400 7300 11100 4000
Total Multi-Day Tours-COS 2000 2800 9400 7300 11100 4000
Adventure Shop Sales-COS

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Oct. Nov. Dec. Jan. Feb. Mar. Totals
0 0 0 0 0 0 0
350 350 350 350 350 350 4200
3000 3000 3000 3000 3000 3000 36000
1000 1000 1000 1000 1000 1000 12000
1000 1000 1000 1000 1000 1000 12000
1000 1000 1000 1000 1000 1000 12000
1000 1000 1000 1000 1000 1000 12000
500 500 500 500 500 500 6000
600 0 0 0 0 0 6200
360 360 360 360 360 360 4320
80 80 80 80 80 80 960
0 0 0 0 0 0 0
125 125 125 125 125 125 1500
700 700 700 700 700 700 8400
0 0 0 0 4000 0 4000
367 367 367 367 367 367 4404
200 200 200 200 200 200 2400
0 500 0 200 500 0 2200
0 0 0 0 0 0 0
500 500 500 500 500 500 6000
14557 14457 13957 14157 18457 13957 179884
120 80 70 20 80 120 1000
0 0 0 0 0 0 0
120 80 70 20 80 120 1000
250 300 150 0 250 400 1350
8800
800
1100
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