Load Hog Inc. (Load Hog), was founded by John and Carol Kowalski in December 1997. The company is an automotive manufacturer for after-market. It manufactures a revolutionary, patent-pending device that converts pickup trucks into dump trucks. This clever pneumatic device is virtually maintenance-free, can be invisible when not being used, and only 120 pounds when fully installed. The pneumatic hoist concept was developed in New Zealand in late 70’, early 80’. Load Hog added an onboard air compressor to eliminate the obvious flaws in the original idea.
Load Hog is looking to raise $4 million of staged capital over 18 months to fund an aggressive public relations and advertisement campaign to educate truck owners and buyers about the Load Hog Program’s cost, availability, and capabilities. These funds will be used to initiate the public relations and advertising plan, which will cost $40,000 in the 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
Phase II: $200,000
Phase III & IV: $1 million/$17 million. These phases will be realized using both equity and debt. These funds will be used to continue marketing and sales efforts, increase sales staff, continue operations expansion through the purchase of capital equipment, expand manufacturing operations and provide working capital to meet the increasing demand. Ford recently committed to including Load Hog on the Super Duty Dealer Ordering Guide Model Year 2002. These will boost our revenues as shown in the appendix**.
The phased approach allows for an organization’s ability to acquire new business while also allowing it to grow at a steady 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 new sales manager will allow the president and staff to respond to potential investor requests, improve assembly and procurement operations and engineer upgrades, as well as help develop new products.
**Appendix not available for this sample program.
1. Keys to Success
The success of the company will depend on these factors:
- Securing necessary financing for marketing and product-development efforts
- Name recognition.
- Building the distribution network and strengthening relationships with original equipment manufacturers (OEM).
- Supply chain management to ensure uninterrupted component sourcing.
1.2 Mission
Load Hog’s mission is to teach truck owners how to make the most of their vehicle. 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. Our strategy includes continued research and development on our product as well as expanding our offerings to meet customer demand. We will be supported in this growth by our field force, advertising, public relations, and our growing e-commerce effort. We will also continue to be present at trade shows at the local, regional, as well as national levels.
1.3 Objectives
Load Hog can be found in Aliquippa PA in a single location. This facility has approximately 1,200 sq. ft. of office space as well as 8,600 sq. ft. of manufacturing and assembly area. 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.