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Kaelan White
040-764-713
Opportunity Plan Overview
The Business of Outdoor Adventure

Table of Contents

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Content
Title page
Logo
Table of contents
Executive summary
Business overview and objectives
Industry background
Market approach
Financial
Legal
Sources

Executive Summary
Opportunity:
I believe there to be a great opportunity for the multi-day moto trips in western Quebec
due to the simple fact that from my research there is not anyone else doing it in the area. In 2005
there was an estimate that 600,000 used OFV (off road vehicles) in Ontario alone and thats only
for one year. As well the Canadian Off-Highway Vehicle Distributors Council indicated that
Canadians spent 3.3 Billion in 2005 on activities involving ATVs. I believe if I could tap into
that 3.3 billion that this business would be quite successful.
Target Market:
The company will be targeting middle aged blue collared males with $65,000 + yearly
income from western Quebec and east Ontario with previous riding knowledge and ability.
Product:
The company will be offering a 2 day 1 night moto trip as well as a 4 day 3 night trip.
These trips take clients through terrain that varies in difficulty and style. The trip has cabin
accommodations with fresh cooked breakfast, lunch and dinner. The mountain range we are
operating in is as much breath taking in its scenery and challenging in its terrain I feel as though
this combination will be unique and bring repeat customers coming back for years.
Financial:
With a total start-up cost of $337,944 this company will be starting with the essential
pieces of gear it needs to operate. Our break-even point of $61,511.11 it can easily be surpassed
to make a profit. We are expecting a 25 % increase in sales from 2017 to 2018 with a large
portion of the profits coming out of our 4 day trips. Our 4 day trips increase by 46.15% from
2017 to 2018 bring in a revenue of $95,000 from the 4 day trips alone in 2018.

Business Overview and Objectives

Mission Statement:
Deep rut expeditions are a small company running out of the Laurentian Mountains in
western Quebec. We are dedicated to the regions beauty and quality of riding it offers our
customers. With vast rolling hills and countless lakes we wish only to showcase the beauty of
this land while having the trill of a life time on these unique trails and riding that this area has
given us to use. With the utmost respect to the land and wildlife that resides in it we will keep
this land as wild and free as possible to not taint the natural beauty that lies within it so that
future generations can also play and explore these mountains with the thrill and curiosity that we
do.

Objectives:
The objective of this company like any other is to make a consistent profit on its sales.
We wish to gradually grow our company yearly and bring in new customers into the evolving
industry. We also wish to expand our variety of trips and push to new more exotic locations down
the road when we have established a consistent customer base to work off of. For the short term
we want to establish our name in the area through different forms of marketing to bring in our
initial customers.

History:
As a kid I always enjoyed throwing my leg over a dirt bike and exploring the trails but
with only so much day light and fuel I could never explore it all. This got me thinking about
multi-day moto trips where I could continue exploring the next day and so on. My idea would be
too have cabin to cabin multi-day moto trips with good food and accommodations in Western
Quebec. Why western Quebec? Simply because out of everywhere Ive been riding the beauty
and difficulty of terrain has never been beat or matched.

Industry background

This sector that in operating in is great in the sense that there is virtually no competition
against my company. The only other operator that is doing multi-day trips for dirt bikes in North
America that my research turned up is a company in Utah called Utah outventures. Even then
this company does not just do multi-day dirt bike trips they also offer Hot air ballooning,
Rafting, ATV tours, Fly fishing, Mountain biking, and even snowmobile tours all out of the same
company. For this reason I believe my company has the upper hand on them because our sole
focus is on these multi-day dirt bike trips. So there is some question as why isnt anyone doing
it? And from participation rates in the sports it really does not make sense that no one else has
tapped this side of the industry. In 2005 there was an estimate that 600,000 used ATVs in
Ontario alone and thats only for one year I estimate that number to be greater in Quebec As well
the Canadian Off-Highway Vehicle Distributors Council indicated that Canadians spent 3.3
Billion in 2005 on activities involving ATVs. So it obvious theres a market for it in the area im
basing the company out of so its all about the marketing and promotion to get my companies
name on the map and get people excited and talking about it.

Accommodations:

Deep rut offers cabin to cabin with quality food.

Utah is tent based but they do still offer food.

Rentals:

Utah offers bike rental while deep rut does not.

Quality of terrain

The terrain in Utah is great but it doesnt offer very much variation.
In the mountains where deep rut is based the terrain varies from calm trails to
steep sand pit and everything in between.

Price

It came as a surprise to me to see that my competitions prices were actually higher

than mine.

The company will be targeting middle aged males with $65,000 + yearly income from
western Quebec and east Ontario with previous riding knowledge and ability. A survey taken in
2005 in Montral shows that 60% of ATV users are male between the ages of 18 and 44 and are
employed in blue collar jobs. The survey also states that 25 % of ATVers in Quebec are from the
urban Montreal area. This means that these people are already driving out of town to go ride and
deep rut expeditions is only a short distance from that Montreal area this is a market we intend to
tap into. Market Approach
Target market
The company will be targeting middle aged males with $65,000 + yearly income from
western Quebec and east Ontario with previous riding knowledge and ability. A survey taken in
2005 in Montral shows that 60% of ATV users are male between the ages of 18 and 44 and are
employed in blue collar jobs. The survey also states that 25 % of ATVers in Quebec are from the
urban Montreal area. This means that these people are already driving out of town to go ride and
deep rut expeditions is only a short distance from that Montreal area this is a market we intend to
tap into.

Product offering
Deep rut expeditions will be running a cabin to cabin multiday moto trip in the
Laurentian Mountains in western Quebec between Montreal and Ottawa. The accommodations
will be nice cabins deep in the mountains that offer gourmet food as well as beer and wine for the
nights off. There will be variable terrain for all levels of riding.

Price:
$500: 2 day 1 night trip that starts at Deep Rut office from where clients are guided to the
cabin after riding. Lunch will then take place at the cabin. After lunch clients will be
taken around the surrounding area riding variable terrain till supper. Feed clients rest of

night is free time. Breakfast at cabin then morning ride in surrounding area. Lunch at
cabin then back to office for rap up.

Trip Expenses
Fuel (Px x 6)
Bike parts
Food (Px x 6)
Employees hours
Wages (11)
Guide pay per trip
Total cost per trip

Cost
$300
$100
$120
32
$352
$400
$1272

$1000: 4 day 3 night loop trip starts at deep rut office morning taken to prepare for trip.
Lunch then ride to 1st cabin for supper night off. Breakfast then depart riding surrounding
area till lunch. After lunch make way to 2nd cabin hitting up variable terrain along the way
till supper night off. Breakfast then morning rides in surrounding area till lunch. After
lunch depart to 3rd cabin hitting variable terrain till supper night off. Breakfasts then
morning ride in surrounding area till lunch. After lunch complete loop back to office.
Variable Trip Expenses
Fuel (Px x 6)
Bike parts
Food (Px x 6)
Employees hours
Wages (11)
Guide pay per trip
Total variable cost per trip

Cost
$600
$200
$360
64
$704
$800
$2,664

Distribution / Purchasing model:

The target market will be purchasing our product one of 3 ways, phoning the office for
bookings, dropping in the office for bookings, or online via our website. Clients will have to
book ahead of time for we must time and coordinate different groups and trips that may be
happening at the same time. All our trips are operated in the greater surrounding area of the
office in the vast trail systems in the mountain area.

Promotional Strategy:
We wish to promote our company with a man get a way type of feeling. A trip where
you and your buddies can toss your leg over a bike and explore new terrain in a beautiful region
of western Quebec all while having gourmet meals prepared for you in beautiful cabin
accommodations. This trip is to be seen as a guys week get away from the normal 9 to 5 grind
that most middle aged men that ride seem to be doing. Through magazine ads in local off-road
magazines for the western Quebec and eastern and southern Ontario we will promote awareness
as well as interest in our companys product. We would also like to have brochures available for
taking in dealerships and stores that specialize in off-road vehicles for their customers to grab
and flip through.

Social /media strategy:

Using facebook we will advertise our presence using promotions that can be shared as
well as a page for people to gather information on our products and what we offer. Also making a
promotional video showcasing our product and the terrain that people will be riding in that will
be shared on facebook. Using Instagram we will follow and gain followers posting pictures and
videos of trips and our staff. Using promotional codes that can only be found on our social media
sites we will offer discounts to clients if the codes are input during a booking online through the
website.

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Brochure

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Comparative advantages / competition:

Through my research there is only one other company that is doing the same thing that I
wish to do and that is Utah Outventures. Heres a comparison of my company and theirs.

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Deep Rut Expeditions

Utah Outventures

Accomadations

Rentals

Quality of terrain

Price

Accommodations:

Deep rut offers cabin to cabin with quality food

Utah is tent based but they do still offer food

Rentals:

Utah offers bike rental while deep rut does not

Quality of terrain

The terrain in Utah is great but it doesnt offer very much variation
In the mountains where deep rut is based the terrain varies from calm trails to steep sand
pit and everything in between

Financials
Start-up costs:

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Assets
Cabins
Motorcycles
Side by Side
Trailer
Truck
Office / Shop
Tools

Amount
3
4
1
1
1
1
N/A

Cost
$10,000 x = $30,000
$8,999 x 4 = $35,996
$11,299
$4,000
$62,649
$200,000
$15,000

Website

N/A

$3,000

Insurance

N/A

$16,000

Marketing

N/A

$10,000

Total

$337,944

These assets are presumed to be the only things that I believe are needed to start up the
company. The cabins are to be able to hold 5 clients plus a guide per night while providing
adequate space for cooking and a lounge area with a deck outside for casual use. The
motorcycles being bought are Honda Crf 250 X bikes and these bikes are for our guides use
only. The side by side is to be used in case of emergency either medical or mechanical. The
office also doubles as a shop for repairs and storage space during the winter. The tools will be for
mechanical repairs to equipment as well as supplies and equipment for up keeping the cabins.

Cash flow analysis:

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This first year would be assuming that the company is at around 35% capacity during its

months of operation
Assuming company is at around 60 % capacity

Income statement:

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Revue of 2017 2018 comparison

One of best things to come out of this analysis is the growth of profit from our 4 day
trips. A 46.15% increase is a good number to pull out of the 2 years meaning that customers are
ready to commit to a longer trip with our company. The overall growth of the revenue from year
one to year two is also great a 25% increase in sales revenue is a good growth rate for this
company. With this giving a sneak peek as to what may come in the next couple years it would
be safe to say that this company may hit maximum capacity soon in the future. This would leave
the question as to whether or not this company should expand or stay the same size and enjoy a
healthy profit from running at capacity.

Break even analysis:

The break-even point in revenue for 2017 is $61,511.11 this means deep rut expeditions must
surpass at least $61,511.11 in revenue in a year to start turning a profit.

Legal

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With any high risk product such as mine cause of the inherited danger of the motorized
vehicle the company must have a bomb proof waiver as well as dedicated guides who will not be
negligent on the job towards the clients. Below would be an example of a waiver that my
company would use to protect itself from being sued.

Sources
(2008).Trails study draft report. [PDF]. http://www.ontariotrails.on.ca/assets/files/pdf/memberarchives/reports/Trails%20Study%20Draft%20Report%20Apr%2016%20_2_.pdf

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(2000) Utah off road tours. [Website] http://www.utahoutventures.com/offroad/motocross.htm