Steckler Mowing

and Conditioning
Est. 2011
Owned By: Aaron Steckler
Business Plan Outline
 Table of Contents
Executive Summary……………………………………………………………….iii

Part 1

Company Description………………………………………………………..1

Industry Analysis…………………………………………………………….1

Market Analysis……………………………………………………………..2

Part 2

Marketing Plan………………………………………………………………4

Management Team and Company Structure………………………………...4

Operations Plan…………………………………………………………...…4

Part 3

Product Design and Development Plan……………………………………..6

Financial Projections………………………………..…………………….…6

Appendix…………………………………………………………………………...7

Table 1 – Startup Costs……………………………………………………...7

Table 2 – Income Statement..........…………………………………………..7

Table 3 – Balance Sheet……………………………………………………..8

Table 4 – Projected Cash Flows……………………………………………..8

Works Cited...............................................................................................................9
 Executive Summary
This business plan contains the necessary information for the start-up of Steckler Mowing and
Conditioning LLC. Divided into three parts; the report focuses a description of the company and
industry, plans for operating the business, and projected financial statements for the first four
years of the business’s existence.

Business Overview

 Steckler Mowing and Conditioning LLC provide clients with the custom option when it
comes to harvesting forages used as feed stuffs for livestock.
 This business will employ only one person, which is the owner and operator.
 Demand for this service will be driven by the abundance of beef and dairy cattle that are
raised within the target area.
 The success of the business directly relates to weather patterns, as well as changes in the
livestock market that will cause fluctuation in the amount of feed stuffs produced.

Marketing and Structure

 Advertisement will be performed through local agriculture publications.

 A competitive price of $10 per acre will be charged to clients.
 Customers will be required to fill out a contract with the business which will not only
sure up acres, but will also help determine the order in which the work is done.
 The business will based out of Bismarck, ND, and will focus on an area within a 100 mile
radius.

Product Development and Financial Projections

 The largest obstacle this business will face and be required to overcome is the race
against time. The window for harvesting quality forages is small and therefore the
operator must hold and open and flexible schedule during season.
 It will cost approximately $70,000 to start this business that will bring in a net income of
approximately $34,000 to $40,000 in the first four years of business.

Based on the research and data, this business can remain profitable into the future if current
market conditions and weather patterns stay consistent.


Part 1
I. Company Description
a. Location - The business headquarters will be stationed near St. Anthony, ND and
serve an area within an approximate 100 mile radius of Bismarck, ND.
b. History - This idea was derived from the importance of timely harvesting of hay
crops to ensure quality feed stuffs.
c. Mission Statement – “To mow and condition forage crops to customers
specifications at a competitive and reasonable rate”
d. Products and Services – Steckler Mowing & Conditioning will provide
customers with mowing and conditioning services. These two processes are
completed by one machine that provides a variety of conditioning and windrow
options to suit the preferences of the producer. The equipment is able to process a
variety of different crops such as native grasses, alfalfa, sorghum, etc…This
business will be a self-proprietorship owned by Aaron Steckler. He will be the
only employee of the business.
II. Industry Analysis
a. Industry Size, Growth Rate, & Sales Projections – In the state of North
Dakota, there were over 10,000 cattle producers in 2007. Approximately half of
these producers produce from 100 to 1,000 head of cattle.[ CITATION USD10 \l
1033 ] This large amount of livestock requires a high need for feed stuffs in order
to sustain production. Cost share programs for ranchers have prompted an
increase in the amount of small feedlots being built. With an increase in feedlots
comes and increase in the amount of cattle produced. In recent news, there has
been interest in building a cattle processing plant in the Bismarck-Mandan, ND
area.[ CITATION Roe10 \l 1033 ] This new development will bring about a greater
demand for fed cattle in the area, therefore, increasing the amount of business
available to this business venture.
b. Industry Structure – In this area, the business structure as quite small. There is
not large amount of competition, and most custom operators are not large scale.
c. Nature of Participants – Those who choose the custom option for their mowing
and conditioning are most likely to be producers with multiple enterprises, or
those producers who have a small amount of acreage and cannot feasibly purchase
their own equipment to put up a hay crop. Other participants will also include
those producers with outdated equipment. In this situation, the custom option is a
positive alternative to constant upkeep of worn out equipment, or the purchase of
expensive new technology.
d. Key Success Factors – The success of this type of business greatly depends on
the type of weather that occurs in the area of business. Growing seasons with
plenty of moisture will provide better growing conditions for forage crops which
 will increase the potential for new customers. Weather patterns such as drought
may force the business to move outside of its regular area in order to find enough
customers to remain profitable. This type of business is very mobile, which makes
finding new areas to do business quite simple.
e. Industry Trends – This type of industry will tend to follow the trend of livestock
production in the area covered by the business. This is highly dependent on the
market price for livestock as well as current weather patterns in the area. At this
point in time, the struggling dairy industry may put a damper on the amount of
forages needed by local producers; however, steady beef prices should be enough
to keep this type of business afloat during these tough economic times.
f. Long-term Prospects – The long-term prospects for this type of business in this
area are quite good. As mentioned earlier in the section 2a. , the possibility of a
cattle processing plant in the area will ideally provide the area with an increased
production of livestock in the area with strengthens the demand for feed. If the
processing plant shall succeed, the long-term prospects shall remain favorable for
a long time to come.
III. Market Analysis
a. Market Segmentation & Target Market Selection – There are many different
segments to this type of market. There are producers who own equipment to do
their own work, those with outdated equipment, older producers, and those
producers with multiple enterprises or jobs off the farm. My business will target
all but those producers who have the equipment and manpower available to them
already. The target market will be within approximately a 100 mile radius of
Bismarck, ND. Further reaches may be necessary depending on how much
business there is in the target area. Outreaching this boundary should not be
difficult considering the mobility of this type of business.
b. Buyer Behavior – The behavior of my potential customers will certainly vary
from year to year as weather and markets change. However, no matter what the
weather or markets do, buyers will want their hay crop cut down at the most
appropriate time. This may be the most challenging part of this business. To meet
demands, I will need to keep an open schedule during this busy time of year, and
cover as many acres as possible in this period.
c. Competitor Analysis – The competition in my target market area is very limited
when it comes to other custom mowing and conditioning businesses. The most
difficult competition for my business to compete with will be the producers
themselves who already have the equipment and manpower necessary to cut down
the hay crop.
d. Estimate of Annual Sales and Market Structure – Annual sales will vary
greatly depending on the weather conditions. Because of the versatility of my
equipment, my business should be able to run from approximately mid-June
through the end of September. A very low estimate of fifteen fourteen-hour days
each month would earn my business a gross amount of $41,600 to $46,800 in one
season.
Part 2
I. Marketing Plan
a. Overall Marketing Strategy – For a marketing strategy, I plan to use widespread
agriculture publication such as the Farm and Ranch Guide, Agweek, and The
Finder to advertise my business. In the Bismarck-Mandan area, I plan to post
flyers inside agricultural businesses. My advertisements will begin in March to
make people aware of my business and possibly sure up some acreage well before
the season starts. Depending on the amount of customers I am able to find, I will
adjust the advertising accordingly.
b. Pricing Strategy – The pricing strategy for this business will be based on
acreage. In North Dakota, the average rate for this type of custom work is $10 per
acre. The financial analysis that I have prepared shows that this price will earn my
business a profit. In my first year in business, this is the rate I will charge for my
services to attract new clients and build relationships. Rates may be increased
after a steady client base has been formed over the first three years of operation.
c. Sales Process – Clients will need to sign a contract which agrees to the terms and
conditions as specified by myself. After clients have made contact with me, a
contract will be sent to them. It is the responsibility of clients to send the
completed contract back to me ASAP to ensure faster service. Business will be
conducted in the order of contracts received unless circumstances provide for a
switch in the order. Ex. Client #2’s hay crop matures before client #1. In this
circumstance, I would go against the schedule in order to be more efficient with
business.
II. Management Team and Company Structure
a. Management Team – Because this type of business is seasonal and relies heavily
on the weather, I should be able to do the accounting, advertising, and
management tasks on my own without having to hire an employee to take care of
the bookwork.
b. Advisors – No projected advisors
c. Other Professionals – A lawyer will be necessary in order to draw up a contract
for myself and customers to follow. Having a legal agreement with my customers
will be a great way to protect my business, as well as the customer, from conflicts
that may arise.
III. Operations Plan
a. Location – The projected location of this business will be within a 100 mile
radius of Bismarck, ND. This anticipated area is subject to change with weather
patterns that may affect the amount of business in the area. Going beyond this
 area will cost more for the business, but should be feasible because of the
mobility of the equipment being used.
b. Facilities and Equipment – See Table 1 in Appendix

c. Operations Strategy and Plans – As mentioned earlier in the Sales Process

section, the order of business will be determined by the order in which complete
contracts are mailed to me. After the season has started, this schedule will be
followed as closely as possible. However, changes will occur depending on the
weather and the efficiency at which I am able to do my work.
Part 3
I. Product Design and Development Plan
a. Challenges and Risks – The largest challenge my business will face is the ability
to serve the need of timing when it comes to getting hay crops cut at the right
time. Being a one-man-operation will limit my ability to be at more than one job
site at a time. The best way I can overcome this challenge is to keep a flexible
schedule. Some of the risks also include changing markets that could decrease the
demand for feed, which will decrease the demand for my business. Weather
patterns may bring forth problems, but the mobility of my business will make up
for the lack of business in a specific area due to poor weather conditions.
b. Costs of Starting Up – See Table 1 in Appendix
II. Financial Projections
a. Source and Uses of Funds – To start this business, I will be utilizing a Rural
Economic Development Loan given by the USDA. This loan contains no interest
has a ten year repayment period. This loan will go towards the purchase of the
equipment needed to start my business.[ CITATION Uni10 \l 1033 ]
b. Income Statement – See Table 2 in Appendix

c. Balance Sheet – See Table 3 in Appendix

d. Cash Flows – See Table 4 in Appendix
 Appendix
Table 1

Startup Costs
Equipment Price
2004 John Deere 4895 $50,000
Swather Transport $4,000
2001 Dodge Dually Truck $15,000
Tools $700
Spare Parts $300
Total $70,000

Income Statement
2011 2012 2013 2014
Revenue $46,800 $50,000 $52,500 $52,500
Operating Expenses
Fuel $5,265 $7,800 $7,974 $8,153
Maintenance $500 $515 $600 $618
Loan Payment $7,000 $7,000 $7,000
Other $2,000
Total Expense $7,765 $15,315 $15,574 $15,771
Net Income $39,035 $34,665 $36,926 $36,729
Table 2
 Balance Sheet
Year 2011 2012 2013 2014
Current Assets
Cash $20 0 0 0
Accounts Receivable $56,800 $50,000 $52,500 $52,500
Non-Current Assets
Equipment $70,000 $63,000 $56,000 $49,000
Total Assets $79,020 $113,000 $108,500 $101,500
Liabilities
Current Liabilities $14,765 $15,315 $15,574 $15,771
Long-Term Liabilities $63,000 $56,000 $49,000 $42,000
Total Liabilities $77,765 $71,315 $63,574 $57,771
Net Worth $1,255 $41,865 $44,926 $43,729
Table 3

Table 4

Projected Cash Flows 2011

Total Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.
Beginning 10,000 10,00 7,350 7,350 7,30 7,225 7,125 13,230.2 29,644.25 41,904.7 48,060 48,060 48,060
Cash Balance 0 0 5 5
Receipts
Cash Sales 7,020 18,720 14,040 7,020
Loans 70,000 70,00
Received 0
Total Receipts 70,000 70,00 7,020 18,720 14,040 7,020
0
Payments
Fuel 5,265 789.75 2,106 1,579.50 789.75
Insurance 650 650
Advertising 450 50 75 100 75 50 100
Repair & 375 50 150 100 75
Maintenance
Professional 2,000 2,000
Fees
Machinery
70,000 70,00
0
Total 78,740 72,65 50 75 100 914.75 2,306 1,779.50 864.75
Payments 0

Ending 1,260 7,350 7,350 7,300 7,22 7,125 13,230.25 29,644.2 41,904.75 48,060 48,060 48,060 48,060
Balance 5 5
Works Cited
Roesler, Sue. "Korean/ND beef plant to begin meetings with producers soon." Farm and Ranch Guide 25
February 2010.

Shau, Tyler. "Business Plan Format." Agribusiness Management I. September 2009.

Tractor House. John Deere 4865 for Sale. 25 November 2010. 25 November 2010
<http://www.tractorhouse.com>.

U.S. Small Business Associtation. Small Business Planner. n.d. 2010 <www.sba.gov>.

United States Department of Agriculture. USDA Rurual Development . 17 November 2010. 23 November
21010 <http://www.rurdev.usda.gov>.

USDA. National Agriculture Statistics Service. n.d. 2010 <www.nass.usda.gov>.