Load Hog Inc. (Load Hog), was founded by John and Carol Kowalski in December 1997. The company manufactures an innovative patented device that converts pickup trucks to 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. Load Hog was able to overcome the obvious dangers of the original concept by adding an on-board air compressor.
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 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 completed using debt capital, and has been committed.
Phase II: $200,000 This stage is expected to be completed using additional debt and has been committed.
Phase III & IV: $1 million/$17 million. These phases will be realized using both equity and debt. 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. 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 current staff and the president will have time to respond to potential investors. A sales manager will also help with assembly and procurement, new product development, and engineering upgrades.
**appendix was not available to this sample plan.
1. Keys to Success
The company’s further success will depend on the following factors:
- Securing the necessary financing to support marketing and product design efforts
- Name recognition.
- Stabilizing OEM relationships and building the distribution system.
- Management of the supply chain to ensure consistent component sourcing
1.2 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. We have been able to position ourselves as a leader in the quality pyramid by offering exceptional technology, outstanding customer service and a relentless focus on quality control. Our strategy is built on continuous research and development regarding our existing product. In addition, we will be expanding our offering according to customer demand. 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.
1.3 Objectives
Load Hog is housed in one facility in Aliquippa PA. It has approximately 1,200 square foot of office space and 8.600 square feet 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.
