Lift Bed Manufacturer Business Plan Leave a comment

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 innovative pneumatic device is practically maintenance-free and invisible when not in operation. It weighs 120 pounds, is lightweight, and can be hidden from view when not in use. 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 wants to secure $4,000,000 in staged capital over a 18-month period. This will allow them to run an aggressive public relation and advertising campaign that educates the truck-owning and purchasing public about the Load Hog Program’s capabilities, costs, and availability. These funds will go towards the initialization and implementation of the public relations and advertising plan. The first phase will require $40,000 The balance of the funding will be used for staff additions (Sales Manager), new inventory, manufacturing equipment, continuing operations, and other expenses.

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 realized using both equity and debt. These funds will support the company’s marketing and sales push, help to build sales personnel, continue operations expansion, purchase new capital equipment, expand manufacturing operations and provide working cash to meet rapidly increasing demand. As reflected in the attached**, Ford’s recent commitment to include Load Hog as part of the Super Duty Dealer Ordering Guide 2002 will help boost our revenues.

The purpose for the phased approach in funding is to allow an organization to integrate new business and grow at a structured and controlled pace. Each phase of the growth strategy is designed to be followed in a sequential order. If a single investor is interested, each element can be pursued individually or grouped together as a longer-term deal. The president and staff can respond to investors by bringing in a sales manager. This will give them time to improve assembly and procurement operations, enhance engineering upgrades and develop new products.

**Appendix was not available in this sample plan.

1.1 Keys To Success

The success of the company will depend on these factors:

• Securing financing for product development and marketing.

• Name recognition is important.

• Building the distribution network and strengthening relationships with original equipment manufacturers (OEM).

• To ensure continuous component sourcing, supply chain management is essential.

1.2 Mission

Load Hog is a company whose mission it is to inform truck owners about the benefits of 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 our growth by our advertising, public relations and field force. We will also maintain our presence at national, regional and local trade shows.

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 current plant is adequate. However, as we ramp up, there will be ample office space and manufacturing spaces within walking distance.