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University of Arkansas, Fayetteville ScholarWorks@UARK Accounting Undergraduate Honors Theses Accounting 5-2016 4 Wynnes Boating Manufacturing Company: A Market Analysis and Business Plan for Northwest Arkansas Hayden S. Wynne University of Arkansas, Fayetteville Follow this and additional works at: http://scholarworks.uark.edu/acctuht Part of the Accounting Commons, and the Entrepreneurial and Small Business Operations Commons Recommended Citation Wynne, Hayden S., "4 Wynnes Boating Manufacturing Company: A Market Analysis and Business Plan for Northwest Arkansas" (2016). Accounting Undergraduate Honors Theses. 25. http://scholarworks.uark.edu/acctuht/25 This Thesis is brought to you for free and open access by the Accounting at ScholarWorks@UARK. It has been accepted for inclusion in Accounting Undergraduate Honors Theses by an authorized administrator of ScholarWorks@UARK. For more information, please contact scholar@uark.edu, ccmiddle@uark.edu. 4 Wynnes Boating Manufacturing Company: A Market Analysis and Business Plan for Northwest Arkansas By Hayden S. Wynne Advisor: Gary Peters An Honor’s Thesis in partial fulfillment of the requirements for the degree of Bachelor of Science in Business Administration in Accounting Sam M. Walton College of Business University of Arkansas May 13, 2016 1 Table of Contents I. II. Executive Summary Product Services and Design III. Industry Analysis and Competitors IV. Potential Population and Growth of Northwest Arkansas V. Two Methods to Estimate Potential Boat Buyers VI. Capital Requirements VII. Financial Projections VIII. Conclusion 2 I. Executive Summary This thesis focuses on a business plan for the opening and developing of a boat manufacturing company in Northwest Arkansas and, specifically, manufacturing of duck hunting boats. South Arkansas and Eastern Arkansas have boat-manufacturing companies, but none exist in Northwest Arkansas. Having developed an interest in duck hunting over the years, I have discovered a tremendous need to bring the boats to where a large portion of Arkansas population exists. With the potential for much more growth in the populations of Northwest Arkansas corridor from Fort Smith to Bentonville, the time appears ripe for this kind of endeavor. Duck hunting trends indicate an explosion of next generation hunters. While most of the habitats for ducks are in Eastern Arkansas, once a person discovers duck hunting, places to hunt become more apparent in surrounding areas near where that person lives. This thesis supports the concept of manufacturing duck and other recreational boats where people live and will allow for customizing and providing an opportunity for hunters and others seeking recreational boats to experience firsthand how boats are made and the specific interest of the soon-to-be new boat owner. Northwest Arkansas’s growth prospective paints an encouraging picture for new startup business such as this. With Walmart, Tyson Foods and J. B. Hunt leading the way for economic growth in all areas, a boat manufacturing company will benefit from, not only the population growth, but also the economic growth. Owning a duck or other recreational boat, will not only provide additional quality of life opportunities but also can be seen as “keeping up with the Jones”. Duck hunting, like many sports, can be very expensive. But someone who is committed 3 to duck hunting will see owning a customized duck boat from 4 Wynnes as a necessity and also attractive for a successful hunt. Business Plan Objective The objective of this business is to identify the Northwest Arkansas market viability for a customized duck boat manufacturing company. This analysis and evaluation is meant to provide a business prospectus for a successful and long-term company. II. Product Services and Design Introduction Duck hunting, like many hunting activities, is a very specialized sport. To increase the opportunity for a successful hunt, a hunter must have all the best gear, equipment and boat. There appears to be a saturation of everything needed for the hunt except for a customized boat, which is readily available for hunters in Northwest Arkansas. It is important for the hunters to be prepared in all conceivable ways for the hunt since it can be quite time consuming. Therefore, the customized boat gives the hunter a “leg-up” on those who do not have the advantage of getting a manufactured boat to meet that person’s specification. Design The customization of a duck boat includes the interior and exterior of the boat. The interior needs to meet the needs of the hunter for convenience, comfort and reliability. Some of the options for interior customization include front deck options, colors and camouflage, and accessories. The standard features for 4 Wynnes Duck Boat include 8 Degree V-Bow and Hull 4 with Keel Saver, 36” Mid-Deck with storage, T-Lock Gunnel, Navigation Lights, 100 Ga. 5052 Alloy Hull, Diamond Plate Floor, All Aluminum Transom and Cobblestone Base Color. The starting price for our 15ft. model is $3,083. Price adjustments are based on costs of add-ons and accessories. The following price charts display costs to the customer for each specific option and accessories for customizing their duck boat. Deck Options Pricing High Deck $295 Low Deck $225 Mid-Deck $438 Mid/Storage Standard option *Based off Havoc Boats price sheet 5 Colors and Camouflage Pricing $300 Cobblestone $300 Green $312 Digital Tan $312 Digital Green $437 HD Timber Tan $437 NatGear Black *Based off Havoc Boats price sheet 6 Accessories Pricing Light Panel $282 Cup/Shell Holder $66 Gun Box $505 OS Handle $60 Bow Rails $205 Logo Seats $196 Live Well $600 Sound System $250 Light Bar $281 Trolling Motor $167 Bilge Pump $156 *Based off Havoc Boats price sheet Technology/Performance The boat is built for durability and speed. In addition to durability and speed, the boat is more specifically built to maneuver through the thickest of timber and the shallowest of water and to outrun and outperform most other ordinary duck boats. What makes this an exceptional boat is its design. The hull is grooved on each side for stability, speed and cutting through the water. The bottoms of the boats are riveted differently based on specific use and customer’s preference. 7 Different Models There are numerous models for building a duck boat. For convenience of the purchaser we have four specific models available. Each model has individual distinctions, but 4 Wynnes will primarily focus on #1 Duck Boat Model. 1. Duck Boat Model 2. The Phantom 3. DBST Model 4. MST Model In addition to a customized boat, 4 Wynnes will offer four different models for the boat trailers. The following are options and prices for these models. Trailer Options: Basic Steel $1,416 Elite Steel $1,505 Basic Aluminum $1,670 Elite Aluminum $1,818 *Based off Havoc Boats price sheet III. Industry Analysis and Competitors Potential Customers The potential customers fall into three categories: non-hunters/recreational, duck hunters and fishermen. The focus on non-hunters/recreational customers would also allow for 8 customization of boats including design, color and accessories. Requests for recreational uses would be easy to accommodate since the company has the ability and flexibility to create any design for a specific use. The focus on duck hunters would be the specialty of the company. As explained above the company would have extensive options for satisfying the most particular duck hunter. And the third customer would be the fisherman, who likewise could work with our design team in crafting a customized fishing boat. Competitors There are several competing boat manufacturing company who already have presence in Arkansas. These include War Eagle, Weldbilt, and Edge. None of these companies have a manufacturing site in Northwest Arkansas. So the customer NW Arkansas who wants a customized boat must either attempt to do it on-line or travel some distance for custom design. Competitive Advantage for 4 Wynnes 4 Wynnes War Eagle Weldbilt Edge X X X One month turnaround X Life-time warranty X Standard Audio X Cutting-Edge Technology X X Work-it-off Program X 9