BUSINESS PLAN SUMMARY. Jordan Givens Owner

Transcription

1 BUSINESS PLAN SUMMARY Jordan Givens Owner 508 W. Sixth Street Altheimer, Arkansas (870) Prepared by: November 2017

2 1 Client name: Jordan T. Givens Address: Hwy. 88 S. Reydell, Arkansas Mailing Address: P.O. Box 37 Reydell, Arkansas Address: Phone Number: DOB: SSN: Business Name: Address: Address: Website: Bayou Meto Land & Leasing Co. 508 W. Sixth Street Altheimer, Arkansas Phone Number: TIN: NAICS:

3 2 MISSION STATEMENT To provide premium hunting leases and lodging to individuals that have the same passion and enjoyment for the sport as we do.

4 3 SUMMARY Jordan Givens, sole owner of Bayou Meto Land & Leasing Co. (BMLLC), seeks to obtain funding for construction of a new lodge with a restaurant, and for upgrades on the four existing lodges. BMLLC is located in Reydell, Arkansas with the home office located at 508 W. Sixth Street in Altheimer, Arkansas. BMLLC is registered and operates as an S-Corp. BMLLC was founded in 2010 and currently offers full furnished lodging, guided and non-guided seasonal hunts, and private hunting leases in or near wildlife management areas. The properties are listed on Airbnb during the off season. A more detailed list of services and prices are located under the Services section in this document. Mr. Givens has a diverse set of qualifications, as listed on his résumé, in addition to a business degree that show his exceptional management skills. The education and experience will allow BMLLC to remain successful and sustain growth in the coming years. Mr. Givens oversees the day to day operations of BMLLC, with the assistance of his mother that does not receive wages, and will continue to farm land that has been in his family for three generations. He has an alternative source of income in that he retains his position of Towboat Captain for Blessey Barge Line at an annual wage of $140,000. Mrs. Givens, an Arkansas County Deputy Assessor, is responsible for the office operations and administrative duties connected with BMLLC. Mr. Givens will retain the services of Linda Ramsay, CPA, located in Dallas, Texas to oversee payroll and all other accounting duties. The newly constructed 4,300 square foot lodge, located at 53 Canvasback in Altheimer, Arkansas will have 20 rooms that can accommodate 4 people per room. The café is 2,000 square feet, seats twenty-eight patrons and offers sandwiches, plate lunches and pub service. The new lodge and cafe will be a staple in the Swan Lake, Reydell, and Bayou Meto communities where hunters and non-hunters will come for the laid back atmosphere, good food, and to enjoy the clean and comfortable amenities. Mr. Givens seeks financing in the amount of $575,500 for remodels costs, construction of a new lodge and café, FFE, Inventory, working capital and debt financing. Mr. Givens is offering a lien on the four lodges with an appraisal value of $403,468 and will offer the bank, should his death occur during this time, to be listed as the beneficiary of the $757,000 life insurance policy up to the remaining loan balance at that time. Mr. Givens asks the loan amount will be paid on annual payments for twenty years at 5.25% Use of Proceeds: Existing Lodge Remodels $ 26,900 New Lodge / Café 335,328 FFE 29,295 Inventory 30,000 Personal Debt 133,977 Working Capital 20,000 Total Loan Requirement $575,500

5 4 COMPANY SUMMARY Bayou Meto Land and Leasing Co. prides itself in good ole southern hospitality, duck hunting, deer hunting, lodging and the leasing and crop development of Arkansas' Grand Prairie. Mr. Givens is part of a third generation farming family that is committed to the preservation of Arkansas' wetlands and conservation of any wildlife that calls Arkansas home. Bayou Meto is the oldest and most well-known Wildlife Management Area in Arkansas. It spreads across 34,000 acres near the mallard paradise town of Stuttgart. Every fall, the Arkansas Game and Fish Commission floods 12,000 acres of woods causing the flat bottomland timber to become an endless maze of water, oaks and buckbrush. Bayou Meto Land and leasing Co. is nestled in the middle of this historic area with crop land, sloughs and cypress brakes as far as the eyes can wander. Our land and timber leases border this majestic land, offering a more private and personal experience than hunting the public areas. SERVICES BMLLC offers professional guided hunts as well as self-guided. Leasing is available in both field and timber settings. BMLLC maintains four comfortable and accommodating lodges in Arkansas, with a proposed new lodge, which may be rented any time of year on a per night basis. The duck leases are unique and are always equipped with a nice and comfortable blind. BMLLC provides other hunts while in season such as frog, coon, squirrel, deer and fishing. Reservations can be made by phone or on the website. BMLLC currently operates four fully furnished lodges in Arkansas, and has a partnership in the South Dakota Lodge, with perfect proximity to prime hunting locations. The accommodations feel like home and provide comfortable sleeping quarters, full kitchens and ample living space. If a client comes with their family, a few hunting buddies or even a business outing, our hunting lodges are ideal for short term, or even seasonal stays. The fees include all furnishings and utilities. Lease on each of the three Arkansas hunting lodges are $400 per night with no minimum number of occupants, or $15,000 for the entire season, giving the client a secure place to launch hunts all season long. Please see the following for details on each lodge: The Pintail Lodge The property is located near Altheimer, Arkansas, and is ideal for that restful get-away. This peaceful country home has everything to put you at ease. Cruise down BMLLC s private reservoir for some prime fishing. From November to January, during duck season, take advantage of our guided duck hunts. Other hunting is available from this location, both guided and self-guided. The lodge is five minutes from the Longbell and Longpond accesses into Bayou Meto Wildlife Management Area. This extremely comfortable lodge sleeps 12 and has a full kitchen and living area. Bayou Meto Lodge Bayou Meto Lodge is right in the middle of the duck hunting capital of the world. This secluded cabin comfortably sleeps six, and is approximately 500 feet from Longpond Boat Launch into 30,000 acres of Bayou Meto flooded hardwood timber during the season from November through January. During the

6 5 offseason, the client can take advantage of the seclusion of this lodge to relax in a peaceful environment. The fishing is amazing on the private reservoir which is near Stuttgart, the duck capital of the world. River s Edge Lodge Located on the banks of the Arkansas River, this secluded cabin is the perfect destination for the outdoor enthusiast. The River s Edge Lodge is only five minutes away from two main entrances into Bayou Meto Wildlife Management Area, Longpond Access and Buckingham Flats. The client will be enchanted by the river house feel of this cozy lodge, with the tranquil sound of the flowing river at the doorstep. The proximity to Bayou Meto WMA and other prime lakes, rivers and grounds makes this an ideal base in a hunter s paradise. Farmhouse Lodge The completely remodeled Farmhouse Lodge is a prime accommodation with three bedrooms and two bathrooms, and a commercial grade kitchen. It is comfortable with rustic decor and a large screened porch for those restful evenings after a successful hunt. The Farmhouse Lodge, located in Reydell, Arkansas, is four minutes from Buckingham Flats Bayou Meto access or Longpond access and is only two minutes from a launch into the Arkansas River. South Dakota Lodge Mr. Givens has a partnership with the owner of the South Dakota Lodge where they refer hunts to one another. The South Dakota Lodge is located in the James River Valley, near Redfield, South Dakota. The first successful introduction of Chinese Ringneck Pheasants into the wild took place in 1908 about two miles from this location and remains the pheasant hunting capital of the world. The guesthouse has six bedrooms which can be configured as singles or doubles. The lodge also features two private and four shared bathrooms. Country style, home cooked dinners will be served each evening, followed by relaxing by the fireplace, big screen TV or in the recreation room. Enjoy the hot tub before retiring to your room. Both wireless and cable internet access is provided throughout the lodge. Proposed New Lodge The newly constructed lodge, located on the already purchased one and a half acres in Altheimer, Arkansas, will be 4,300 sq. ft., with twenty rooms that will accommodate four customers per room at a rate of $265 per night. The estimated revenue on a 60 day duck season and a 20 day deer season is $424,000 a season. Mr. Givens plans to hire a caretaker in the near future with a salary of $600 per month. There will be a 2,000 sq. ft. café near the lodge with projected startup monthly income of $10,750 and increased sales after the first year. Mr. Givens projects the lodge/cafe value to double within five years due to the location. Proposed New Café The 2,000 sq. ft. café, located by the new lodge at 53 Canvasback in Altheimer, Arkansas, is open Monday thru Friday from 8:00 a.m. 3:00 p.m., serves breakfast and lunch, and seats twenty-eight patrons. The café is managed and worked by Mr. Givens mother with no salary and with one additional employee at a pay rate of $8.50 per hour on a twenty-five hour week. The average cost of goods is projected for a minimum of 500 plates per month at a cost of $5.50 per plate with a sell price of $21.50 per plate. The projected revenue is approximately $8,000 per month.

7 6 The communities of Swan Lake, Reydell, and Bayou Meto rely primarily on farming and hunting for income. The residents, workers and hunters that are in this area currently do not have a place to dine within a thirty mile area. There are approximately seven hundred people in the communities and over four thousand hunters during the seasons. Bayou Meto Land and Leasing Co. has several properties available to lease on a yearly basis, as shown below: Field Leases Available: 80 acre bean field with guaranteed water that includes one skid blind. The property is located one mile from Longbell Wildlife Management Area. $8,500 / year 40 acre bean field with guaranteed water that includes one skid blind. The property is located in Reydell, Arkansas. $4,500 / year Timber Hunting Leases Available 60 acre cypress brake consists of mature timber and brush throughout the property, and includes one skid blind. The property has two water holes with guaranteed water with an opportunity to hunt deer, turkey, squirrel, and wild hogs. The property is located in the Altheimer area with a lease of $7,000 / year. 40 Acre cypress brake offers one water hole with guaranteed water and a custom blind. The cypress timber is a duck resting area, but it is also great for deer and other legal game. The property is located near Altheimer, Arkansas with a lease of $4,500 / year. Duck Hunting Self-guided tour / $350 per day Guided tour / Morning- $185 per gun Afternoon- $125 per gun Goose Hunting Self-guided / Morning only - $150 With lodging - $350 per person Coon Hunting BMLLC provides guided hunts, dogs included, with skinning and packaging included. $300 per hunt Bullfrog Hunting Guided hunt / $150 per person per night Deer Hunting Self-guided and guided with optimal package 3 day guided hunt / $950 per person

8 7 MARKET The U.S. recreational and vacation camps industry includes about 3,000 establishments with a combined annual revenue of about $2.7 billion. Camps frequently advertise services and amenities online through their own websites and via camp directory sites. Depending on the focus of the camp, amenities may include access to computer and video equipment. Wilderness, adventure, and excursion camps, which typically encourage patrons to leave digital devices at home, provide limited technology resources. The major types of marketing include the company website, aggregate industry sites, direct mail, and newspaper and magazine advertisements. (Mergent First Research) The projected advertisement cost is approximately $3,100 per year. BMLLC will market its services through the following methods: Website-BMLLC has a revamped website that shows wildlife, clients, lodges, specials and sponsorships. The website address will be included on all promotional materials, and the cost to maintain the site is estimated at $1,000 per year. Facebook-BMLLC has a Facebook page with regular posts every week. Mr. Givens will utilize the page to show contact information, wildlife, available services, clients, specials and sponsorships. The Facebook site will be included on all business cards, forms and stationery. The cost of Facebook advertisement is free. The occasional boosted posts are budgeted at $100 per year. Promotional Materials-BMLLC will utilize business cards and occasional direct mail to highlight specials and promotions to those individuals not on social media sites. Promotional materials are budgeted at $1,000 per year. Sponsorships-PLP will sponsor local area sporting events throughout southeast Arkansas to show support for our clients. Sponsorship is budgeted at $1,000 per year.

9 8 INDUSTRY U.S. tourism spending on recreation and entertainment, an indicator of recreational camp revenue, increased 5.5% in the second quarter of 2017 compared to the same period in The U.S. consumption expenditures at recreational and vacation camps are forecast to grow at an annual compounded rate of 4% between 2017 and (Mergent First Research) Demand is driven by personal income and leisure travel. The profitability of individual companies depends on enrollment rates, efficient operations, and effective marketing. Large recreational camps have advantages in diverse amenities and brand recognition. Small camps compete by offering personalized experience or by operating in prime location. The U.S. recreational and vacation camps industry includes about 3,000 establishments with a combined annual revenue of about $2.7 billion. The following chart shows the competitors within a 50 mile radius of BMLLC: (Mergent First Research) As shown in the following graph, the industry has a high growth rating: (Mergent First Research)

10 9 OPERATIONS AND MANAGEMENT Mr. Givens, a native of Altheimer, is the sole owner of BMLLC and will be responsible for the day to day operations. He will continue to farm his families land in addition to his role as a riverboat captain until the new lodge is monetarily able to be self-sufficient. Mr. Givens was educated at the University of Arkansas where he obtained a Bachelor of Business Administration. Clearly he has management skills and is more than competent to take BMLLC to the next level when the financing proposal is granted. Mrs. Givens, a native of Swifton, Arkansas, will remain in her role as an Arkansas County Deputy Assessor. Mrs. Givens will assume the administrative duties of BMLLC as she has exceptional capabilities in this area. The restaurant will be managed and run by the owners mother and will not take a wage. Mr. Givens plans to hire a caretaker in the near future with an income of approximately $600 per month. Mr. Givens will operate the business as an S-corporation and will be the sole owner of BMLLC. Mr. Givens will ensure the business keeps its competitive advantage by maintaining its exceptional reputation, superior customer service, and affordable pricing. The owner withdrawal is $1,500 per month with wages and owner withdrawal to be adjusted when necessary to ensure the business has continued financial success. APPENDIX BMLL Financial Information Renovation Details Givens Income / Account Information Givens Debt Financing Use of Funds Assumptions Cash Flow Projections Loan Amortization Articles of Incorporation Personal Financial Statement Proof of Life Insurance Lease Agreements Contract Deeds 2015 & 2016 Tax Returns Market Research

11 10 1. Lodge: River s Edge Address: 2198 Jacob Road, Reydell, Arkansas Financed by: N/A Appraisal: $65,000 Balance: PAID OFF BAYOU METO LAND & LEASING LODGE / FINANCIAL INFORMATION 2. Lodge: Pintail Address: 508 W. Sixth Street, Altheimer, Arkansas Financed by: Farmers & Merchants Appraisal: $95,000 Balance: $48, Lodge: Bayou Meto Address: 53 Canvasback Lane, Altheimer, Arkansas Financed by: Stone Bank Appraisal: $105,468 Balance: $ 48, Lodge: Farmhouse Address: Highway 88 South, Reydell, Arkansas Financed by: Stone Bank Appraisal: $138,000 Balance: $ 43,556 Balance Total: $140,356 Appraisal Total: $403,468 ADDITIONAL INFORMATION ON PROPERTIES: Terms: All of the above properties are on a 3 year long term lease agreement at a rate of $15,000 per lodge per season. (Please see attached agreements) -All of the lodges have new appliances and furniture with each lodge improvement costing $45,000 to $60,000 since the purchase in January. -All of the properties are remodeled but there are a few other improvements that need to be completed and some of the loan proceeds will be used for that purpose.

12 11 RENOVATION DETAILS / TOTALS Bayou Meto Lodge Front and back porches $ 6,000 8 loads of gravel 3,900 Cypress underpinning Wood shutters Freestanding garage 1,500 Total 11,400 River s Edge Lodge Gravel $ 1,500 Total $ 1,500 Farmhouse Gravel $ 1,500 Porch 2,500 Central Heat/Air 10,000 Total $ 14,000 Pintail Lodge COMPLETED (Renovation is complete Receipts are available) TOTAL RENOVATION AMOUNT $ 26,900

13 12 GIVENS INCOME /ACCOUNT INFORMATION INCOME =$517,639 Income: Towboat Captain at Blessey Barge Line Yearly Income: $140,000 Income: Lodge / Leases November-January Yearly Income: $60,000 Income: VRBO/Homeaway/ AIRBNB Yearly Income: $159,264 (projected) Income: Duck/Deer/ Guided Hunts Yearly Income: $ 196,000 INVESTMENT/CHECKING ACCOUNTS= $46,140 Institution: Pine Federal Credit Union Balance: $15,192 Institution: Motif Investments Balance: $16,989 Institution: Fidelity Investments Balance: $13,959 INSURANCE= $757,000 Institution: Generation Term Life Insurance Face Value: $757,000

14 Range Rover 8,000 miles Financial Institution: Pine Federal Credit Union Item Worth: $53,279 Balance Owed: $42,000 GIVENS DEBT FINANCING Owed= $133,977 Value= $126, Chevrolet Silverado Z71 LTZ Crew Cab Financial Institution: Fairfield Credit Union Item Worth: $25,261 Balance Owed: $12, Polaris RZR Side by Side Financial Institution: Fairfield Credit Union Item Worth: $21,241 Balance Owed: $15, Kia Optima LX Financial Institution: Arkansas Federal Credit Union Item Worth: $14,000 Balance Owed: $12,150 Bought for his mother and she pays the monthly payment Big Tex Trailer Financial Institution: Kubota Corporation Item Worth: $3,500 Balance Owed: $1, Kubota Zero Turn ZD1511RL-60R Financial Institution: Kubota Corporation Item Worth: $9,400 Balance Owed: $2,150 Credit Card Balances Financial Institution: Various Balance Owed: $31,000 Signature Loans Financial Institution: Various Balance Owed: $18,177

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