A well-written business plan can be invaluable to any business. It plays a key role in qualifying for start-up capital and ongoing financing for the venture. This assignment will be the completion of your business plan. First, you will complete the final three sections and the appendices of your plan. Then, you will combine them with the previously completed sections to produce a finished business plan. Finally, you will submit the plan to your instructor.

Use the following information to ensure successful completion of the assignment:

This assignment uses a grading rubric. Instructors will be using the rubric to grade the assignment; therefore, students should review the rubric prior to beginning the assignment to become familiar with the assignment criteria and expectations for successful completion of the assignment.
Prepare this assignment according to the APA guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.
You are required to submit this assignment to Turnitin. Refer to the directions in the Student Success Center. Only Word documents can be submitted to Turnitin.

Perform the following tasks to complete the assignment:

Read Lecture 7 for a discussion of the "Location and Layout" (Section VIII) and "Description of Management Team" (Section X) sections of a business plan. Write these sections of your business plan based on what you have read.
Read Lecture 8 for a discussion of "Plan of Operation" (Section XI) and the "Appendices" of a business plan. Write these sections of your business plan based on what you have read.
Make any desired revisions to the other sections (Executive Summary, I-VII, IX, XII, and XIII) of your business plan.
Insert the new sections (VIII, X, XI, and appendices) into the appropriate locations within your business plan.
Submit the completed business plan to your instructor as directed.







		RMR Business Plan
Andrew Oglesby
Lesley Sinwald
ENT-445
Friday, October 31, 2014








Executive summary 
Rocky Mountain Rodents will be a business in the pet supply industry.  The primary function of this business will be the supply of natural whole food that is meant for exotic animals.   The business will deal with the sale of natural whole food that consist of both frozen and live whole insects and animals like crickets, quails and mice. The competition is quite minimal since there are only few similar businesses. This specific industry is considered a niche market and is only comprised of a few companies who vary in size. The largest companies, such as Rodent Pro and Mice Direct, have large inventories of products that are offered nationally. This business aims at the breeding of high-quality rodents and some feeder animals mainly aimed for pet stores, exotic animal owners, and zoos.  The feeder animal will be feed with high protein food and have access to veterinary care and enough water. The company will aim to provide and supply the best “feeder” animals to the customers through a countrywide approach.   The businesses main target will be the live market, where the business will be using the specially designed packaging. The packaging will guarantee the delivery of live food to the “picky eaters”.

The company
Rocky Mountain Rodents business will be owned and managed by Andrew Oglesby who is the founder and the company’s CEO.
Mr. Oglesby has extensive experience in production management, marketing, and sales and has shown his experience through many roles and situations in the past. Mr. Oglesby will bring lot of knowledge within the area of administration and running demanding and customer oriented services, not to mention Mr. Oglesby has years of experience with falconry, reptiles, and raising feeder animals.   The business will hire more staff that will help Mr. Oglesby in the management, and the daily operation.  Some workers will be hired in full-time basis while others will be employed in part-time basis, this will be determined on the production demands of the business. The daily customers request and demand will be expected to be handled fully by the management and the employee.

Product and services
Apart from offering the main products to the customers through sales, the company will also offer additional services to the customers. The additional services will include delivery and education.  Free delivery will be offered to wholesale clients, while smaller clients or clients with locations quite far from the business may have delivery charges.

Customers
The expected customers will mainly be pet stores, collectors, hobbyists, zoos, and breeders. Broader ranges of clients will continually be searched for as the business progresses and expand to different territories.

Business and industry profile
Mission statement
RMR’s mission is to ensure an effective and trustworthy supply of the best “feeder” animals to zoos, pet stores, reptile hobbyist, and falconers.  Owners with exotic animals will also be a prime target, since the business will also supply frozen and live “feeder” animals.  


Vision statement
The business strategy is to be both the Falconers’ Choice and the Reptiles’ choice to all customers and the industry. The business is committed to the employees and all the customers. 

Legal structure
The company will be registered and identified as an s-corporation.  This legal structure will provide the new business with corporation features and some tax efficiencies and shelters. This legal structure will protect the business for any possible lawsuits so that the management and ownership is not held solely responsible.  


Business Strategy:
	Rocky Mountain Rodents Inc.’s business strategy is simply to be the best supplier of live exotic and whole animal foods to its clients.  Focusing on our system of delivery to our clients and guaranteeing live delivery is important to RMR’s business and RMR’s continued future.  RMR will be the only supplier of live foods; while its major competition is with frozen pre-killed suppliers RMR will have a niche in the supply chain.  A strong sales force with industry knowledge will be essential to business along with continued aggressive industry specific marketing.  The founder has specially designed packaging to guarantee live or frozen food delivery and will hire a sales manager to gain new accounts.  

Product:
Rocky Mountain Rodents will sell live and frozen exotic food bred from the highest quality breeders and strains available. The feeders are hand bred and chosen for optimum sizes and health. Our line will include the following products; however we will start with basic mice and rats to begin with.

• Pinkie Mice
 
• Fuzzy Mice
• Hopper Mice
• Juvenile Mice
• Adult Mice
 
• Ex Breeder Mice
• Pinkie Rat
• Fuzzy Rat
• Hopper Rat
• Juvenile Rat
• Adult Rat
• Ex Breeder Rat
• Day old chick
• Week old chick
• Chicken eggs
• 1 week quail
• 2 week quail
• 3 week quail
• 4 week quail
• 5 week quail
• 6 week quail
• Ex breeder quail
• Madagascar hissing roaches
 
• Pin head crickets
• Small crickets
• Med crickets
• Large crickets
* The rodents can come in various color combos as requested, and live or frozen.

Marketing strategy:


Target Market:

	RMR’s primary target market consists of pet stores, zoos, and breeders of exotic animals.   These are primarily clients RMR will sell at wholesale prices in large quantities.  Smaller clients may include private owners of exotic animals.  Our typical clients will own or be involved with the falconry trade or reptile trade.  

Motivation to buy: 

	RMR’s customers must have food to feed these animals, however there are many animals out there that are considered problem feeders and they will not eat frozen or thawed prey.  RMR will supply the much needed live prey and guarantee live shipment of any prey item. It’s a simple niche to fill, but no one currently supplies to this niche.     
Market Size and Trends:
	Rocky Mountain Rodents will be a part of the pet industry; its primary function will be to supply natural whole foods to exotic animals. Currently, live and frozen whole food is considered a niche market, comprised of a few companies who vary in size. The largest companies, such as Rodent Pro and Mice Direct, have large inventories of products that are offered nationally. The smallest companies sell locally to shops and hobbyists.  This industry is not currently suffering from the same economic recession as many other industries; however consumers are spending less on non-essentials. While in this particular industry customers must purchase the food or their beloved pets will not survive for long.  According to US ARK's report presented to the house, "in 2009 4.7 million U.S. Households owned 13.6 million pet reptiles".  Over the last decade there has been a large increase in pet ownership, according to US ARK, that has been a shift of 35%, while in the same time period Reptile ownership has nearly doubled.  Each one of these exotic animals needs sustenance and approximately 85% will not eat anything less than some small whole animal, this can be anything from a cricket to a chicken. The greater majority will eat small rodents or birds.

Advertising and promotion:

To grow the company in the modern retail and wholesale environment, Rocky Mountain Rodents Inc. will advertise in many publications and online.  Facebook will be a prime way that RMR can and will advertise to existing clients.  RMR will plan on doing some guerilla marketing via Facebook and offer promotions and various other benefits to returning clients.  RMR may even consider membership rewards.  RMR and its employees will strive to attain and hold strong business relationships with people in the industry by attending pet shows and gaining various contacts through the pet industry.  As a company RMR will start an intense advertising campaign on “Reptiles Magazine” and through a few various falconer ads and magazines.  RMR does not plan on doing much if any general advertising, mainly because this is such a specific market.  Rocky Mountain Rodents Inc. will do a large amount of education on reptiles and birds of prey and will attempt to sponsor not for profit rehab programs for these animals.  RMR’s frequency of usage will depend largely on available startup funds; however RMR would like to continually sponsor animal rehab facilities around the year, and put ads quarterly or more through the various publications.  The founder of RMR has a few contacts in the industry at a couple of zoos, and a few breeders of reptiles to generate publicity and good word of mouth.  
Pricing:
Rocky Mountain Rodents Inc.’s pricing structure will largely be variable due to the constant changing prices of food and water for the feeder animals.  Ideally the company will gain contracts with some food suppliers to keep pricing relatively stable.  

Desired image in market:
	RMR will strive to hold the image of quality, and not base its image off of having the cheapest prices.  The quality of the food you feed your animals directly represents the health of your animals!

Comparison against competitors’ prices
	Rocky Mountain Rodents Inc., will have a close pricing structure to other competitors in the industry for frozen mice, but will have increased prices for the extremely hard to find live food supplies.  
Distribution strategy

Channels of distribution used
	Typically RMR’s distribution channels will be straight to the customer, but when dealing to the pet shops it will be RMR to the dealer to the customer in a wholesale fashion.  

Sales techniques and incentives
	Incentives will primarily be for customers to purchase larger quantities at 1 time much like wholesale pricing.  There will be membership rewards for those returning clients.  RMR will need to give out samples to larger breeders and zoos. 

Competitor Analysis
Existing Competitors
Rocky Mountain Rodents has few competitors, but strong competition.
• Rodent Pro
• Mice Direct
• The Gourmet Rodent
• Layne Labs
 Rocky Mountain Rodents Inc. is dedicated towards providing clean, well-cared for, and most importantly humanely killed frozen or live exotic pet foods. Rodent Pro is a strong competitor in this industry; however they have a few key weaknesses, upon which RMR will capitalize. Each of the competitors in the preceding list packages their products with simple zip lock or vacuum seal packaging. RMR has developed and tested secure packaging to not only guarantee safe arrival and frozen or live qualities, but to make sure these "feeder animals" are not frozen together or damaged in anyway. Humane treatment will be key, throughout the process, and we will show live web cams 24/7 on our website of treatment of such animals.  There are no known companies that might enter the market at this time.


Key Success Factors	RMR		Rodent Pro 		Mice Direct	
Quality		4 		1		1	
Customer Retention	4		3		3
Location		3		3		3
Perception of value	4		4		4
Cost Control		3		?		?

Financial Forecasts
6.1 Profit & Loss
	Year 1		Year 2		Year 3
Sales	$356,400	$672,000	$1,344,000
Costs/Goods Sold	$90,000	$180,000	$360,000
GROSS PROFIT

OPERATING EXPENSES	$266,400	$492,000	$984,000
Salary (Office & Overhead)	$32,500	$62,500	$62,500
Payroll (taxes, etc.)	$38,400	$76,800	$192,000
Outside Services	$5,000	$8,000	$12,000
Supplies (office & operation)	$2,500	$3,500	$5,500
Repairs & Maintenance	$10,000	$10,000	$10,000
Advertising	$20,000	$35,000	$50,000
Car, delivery & travel	$12,000	$12,000	$12,000
Accounting & legal			
Rent			
Telephone	$3,000	$3,000	$5,000
Utilities			
Insurance	$10,000	$10,000	$10,000
Taxes (real estate, etc.)			
Interest			
Depreciation			
Other expenses			
TOTAL EXPENSES
	$133,400	$220,800	$359,000
NET PROFIT BEFORE TAXES			
Income Taxes			

NET PROFIT AFTER TAX	$133,000	$271,200	$625,000
Owner Draw/Dividends			
ADJUSTED TO RETAINED	$133,000	$271,200	$625,000



6.2 Cash Flow (01/01/2013 to 12/31/2013)

	Pre-Startup
EST	Year 1	Year 2	Year 3	Total Item
EST
Cash on hand		$0	$0	$0	$0
CASH RECEIPTS					
Cash Sales					$0
Collections from CR Accounts					$0
Loan/Cash Injection					$0
TOTAL CASH RECEIPTS	$0	$0	$0	$0	$0
TOTAL CASH AVAILABLE	$0	$0	$0	$0	$0

CASH PAID OUT					
Purchases					$0
Gross Wages					$0
Outside Services					$0
Supplies					$0
Repairs & Maintenance					$0
Advertising					$0
Car, delivery & travel					$0
Accounting & legal					$0
Rent					$0
Telephone					$0
Utilities					$0
Insurance					$0
Taxes (real estate, etc.)					$0
Interest					$0
Other expenses					$0
SUBTOTAL	$0	$0	$0	$0	$0
Loan principal payment					$0
Capital purchase					$0
Other startup costs					$0
Reserve and/or Escrow					$0
Others withdrawal					$0
TOTAL CASH PAID OUT	$0	$0	$0	$0	$0
CASH POSITION	$0	$0	$0	$0	$0
 
6.3 Balance Sheet

Assets	Start Date:	End Date: 

CURRENT ASSETS		
Cash in bank		
Accounts Receivable		
Inventory		
Prepaid Expenses		
Other current Assets		
TOTAL CURRENT ASSETS	$0	$0


FIXED ASSETS		
Machinery & Equipment		
Furniture & Fixtures		
Leaseholder improvements		
Land & Buildings		
Other fixed assets		
TOTAL FIXED ASSETS
(net of depreciation)	$0	$0


OTHER ASSETS		
Intangibles		
Deposits		
Other		
TOTAL OTHER ASSETS	$0	$0
TOTAL ASSETS	$0	$0



Liabilities & Equity		

CURRENT LIABILITIES		
Accounts Payable		
Interest Payable		
Taxes Payable		
Notes, short term (due in 12 months)		
Current part, long-term debt		
TOTAL CURRENT LIABILITIES	$0	$0


LONG TERM DEBT		
Bank loans payable		
Notes payable to stockholders		
LESS: short-term portion		
Other long-term debt		
TOTAL LONG-TERM DEBT	$0	$0
TOTAL LIABILITIES	$0	$0


OWNER'S EQUITY		
Invested Capital		
Retained Earnings		
TOTAL OWNERS EQUITY	$0	$0

		
TOTAL LIABILITIES & EQUITY	$0	$0
 
6.4 Break-Even Analysis

VARIABLE COSTS	Fixed Costs ($)	Variable Costs (%)
Cost of Goods Sold		
Inventory		
Raw Materials		
Direct Labor		

FIXED COSTS		
Salaries		
Supplies		
Repairs & Maintenance		
Advertising		
Car, delivery & travel		
Rent		
Telephone		
Utilities		
Insurance		
Taxes		
Interest		
Depreciation		
Other Costs		
Principal portion of debt payment		
Owners draw		
Total Fixed Costs	$0	0%
Total Variable Costs	$0	0%

BREAKEVEN SALES LEVEL:	$0	




6.5 Financial Assumptions

6.5.1 Assumptions for Profit and Loss Projections

Year one goals and predictions:

With the goal of purchasing and or building the appropriate breeding facility, RMR will have approximately 5,000 square feet of breeding area. This will allow for breeding of some 15,000 rats and 50,000 mice per month. The average price per mouse is 0.26 and the average rat is 1.00. Less than ten percent of production will need to be retained future breeders. Each year for the next 3-5 years RMR will double in production.

After RND cost analysis, we see a cost of .06 cents per mouse and a cost of .30 cents per rat.



Finding Your Space
Introduction
This module is about location; not just physical location, but global and social location as well. We will discuss the concept of social entrepreneurship and how that may or may not fit with your business plan. Additionally, we will focus on the advantages and disadvantages of going global and the important decisions that need to be made about where to locate your business in a physical and electronic sense.
Elements of a Business Plan
1.      Section VIII: Location and Layout. The location of a business is an important factor in success. You will need to consider traffic flow and convenience for a physical retail location, as well as the ability of suppliers to reach you. For manufacturing, you need to consider location of suppliers and distribution channels. In both cases, the size of your facilities is important. Do you have room for growth or would you need to move? What are the key factors about location that will impact your business? Are you going to have a Web site and conduct business electronically? Do you have the capabilities? Are you going to be local, regional, national, or global?
2.      Section X: Description of Management Team. If you plan to start off running this business by yourself, you will need to emphasis the skills you have that will enable you to do so. These skills would include a business degree that includes introductory accounting, economics, marketing, management, finance, and productions or operations management in addition to the specific entrepreneurship courses. This section will also include the other key management personnel in your company. Emphasize management's experience in the industry (Scarborough 2011). Your team will need to include people that are qualified to make essential decisions in the business.
Conclusion
You should be close to finalizing your business plan; there are only a few sections remaining. Focus on making sure your business plan flows as a single, cohesive report without contradictions.
References
Abrams, R. (2003). The successful business plan (4th ed.). Palo Alto, CA: The Planning Shop.
Scarborough, N. M. (2011). Essentials of entrepreneurship and small business management (6th ed.). Boston: Prentice Hall.
 
 
The Business Plan

Introduction

Focus now on finalizing your business plan. Review comments from your instructor and those who have read your plan. Make sure you have included all the key elements and that the information is accurate and reasonable. Review the "Hands on . . . How to" section in Chapter 4 of the textbook, using the "Answer Twelve Questions That Your Business Plan Presentation MUST Address if You Are to Get Financing" as a final check (Scarborough, 2011).

Elements of a Business Plan

1.      Section XI: Plan of Operation. This section is about the day-to-day operations of your business. It may seem too detailed for a business plan, but the day-to-day decisions are what often determine your success (Abrams, 2003). You need to make sure you have thought carefully about how you are you going to manage your business. What is the form of ownership you have chosen? Do you have any contracts or leases? You will also want to talk a little about employee policies, training, and hiring practices. What are your plans for distribution and for customer service? If you are in a manufacturing business, what are your plans for production? How will you handle problems such as interruptions in supply or labor issues?

An organization chart is essential to illustrating the structure of your business, the key personnel, and important roles and responsibilities (Scarborough, 2011). What makes you qualified to run this business and what qualifications will your require of your employees?

2.      Section XIV: Appendices. An appendix is optional and should only include details not appropriate in report form, such as detailed financial statements, resumes, key contracts, photos, market research results, and endorsements. These details should be referenced within your plan and the appendix used to reinforce what you have stated. Many readers will focus on the business plan itself and not the appendix (Abrams, 2003). Make sure your business plan says all you want to say.

Conclusion

Before submitting your final business plan, review the format and presentation. This plan represents you and all you want to become. Make sure the readers see a confident and competent professional that demonstrates entrepreneurial spirit, innovation, and the leadership needed for a successful venture.

References

Abrams, R. (2003). The successful business plan (4th ed.). Palo Alto, CA: The Planning Shop.

Scarborough, N. M. (2011). Essentials of entrepreneurship and small business management (6th ed.). Boston: Prentice Hall.