Load Hog Inc. (Load Hog) was organized in December, 1997 by John and Carol Kowalski. The company is an automotive after-market manufacturer of a revolutionary patented device that turns ordinary pickup trucks into full-on dump trucks. This ingenious pneumatic device is invisible when not in use, weighs only 120 pounds when installed, and is virtually maintenance free. The concept of the pneumatic hoist was pioneered in New Zealand in the late 70's and early 80's. This device utilized the exhaust gasses of the applied vehicle to fill the lifting envelope and hoist the bed. The obvious perils of the original concept have been ironed out by Load Hog with the inclusion of an on-board air compressor.
Load Hog is interested in securing $4 million in staged capital over an 18-month period to execute an aggressive public relations and advertising campaign to educate the truck owning and buying public about the capabilities, cost, application, and availability of the Load Hog Program. These funds will be used in the initialization of the advertising and public relations plan which will use $40,000 in its first phase. The balance of the first phase of funding will be to support additions to the management staff (Sales Manager), additional inventory, manufacturing equipment, and continuing operations.
Phase I: $175,000 This phase has been accomplished with debt capital and has been committed and closed.
Phase II: $200,000 This phase is scheduled to be accomplished with additional debt, and is committed.
Phase III & IV: $1 million/$17 million. These phases will be accomplished with a combination of debt and equity. The use of these funds will continue the marketing and sales push, build the number of company sales personnel, continue operations expansion with the purchase of new capital equipment, expand manufacturing operations, and provide working capital to respond to the rapidly increasing demand. Recent commitments by Ford to include Load Hog in the Super Duty Dealer Ordering Guide for Model Year 2002 will bolster our revenues, as reflected in the appendix**.
The purpose of the phased approach to funding is that it allows the organization to assimilate new business and grow at a measured and structured pace. Each sequential phase is built into the growth strategy, and each element can be pursued as an individual transaction, or should a single investor be interested, structure a longer-term transaction. Bringing in a sales manager will allow the current staff and president the time to react to potential investors, as well as honing assembly and procurement operations, engineering upgrades, and new product development.
**appendix were not available for this sample plan.
1.1 Mission
The Load Hog corporate mission is to educate the truck owning public about how to realize the full utility of their vehicle using our product. Strategically, we have positioned ourselves at the top of the quality pyramid featuring a combination of superb technology, extraordinary customer service, and an almost fanatic attention to quality assurance. Underpinning our strategy is continued research and development related to our existing product and extending our offering in response to customer demand and breadth of market. We will be supported in this growth by our field force, advertising, public relations, and our growing e-commerce effort. Additionally, we will continue our trade show presence at local, regional, and national levels.
1.2 Keys to Success
The company's further success will depend on the following factors:
- Securing required financing for the marketing and product development efforts.
- Improving name recognition.
- Strengthening original equipment manufacturer (OEM) relationships and building the distribution network.
- Supply chain management to ensure uninterrupted component sourcing.
1.3 Objectives
Load Hog is located in a single facility in Aliquippa, PA, which includes approximately 1,200 square feet of office space and 8,600 square feet of manufacturing and assembly space. The present plant is adequate, but as we ramp up there is ample office and manufacturing space available within walking distance, and at a comparable price to the current facility.
