Business Plan for Horse Trekking in Australia - ACU BAFN306 Project

This business plan outlines the launch of 'Spirit of the High Country,' a horse trekking business in the Victorian High Country, Australia, aimed at attracting high-end customers, particularly from American and Asian business sectors. The plan leverages Australia's natural beauty and equestrian tourism, drawing inspiration from 'The Man from Snowy River' to offer team-building experiences. Key elements include market analysis, identifying target markets such as tourists and movie productions, and a focus on profitability through horse trading and teaching. The marketing plan emphasizes publicity and advertising strategies to build brand awareness. Risk assessment addresses potential financial challenges, with mitigation strategies like refinancing loans. The exit strategy for investors is designed to provide adequate returns after a three-year period. Overall, the plan aims for substantial revenue growth over five years, supporting operational activities and expansion plans, with a strong emphasis on penetrating the market and establishing a competitive presence.

Business plan
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Executive Summary
The main goal of the business is to fully
operate in Australia and obtain high end
customers to increase its overall revenue
generation capability. There is relevant need
for the opportunity, as the business is still
flourishing, where the attraction of horse
trekking could boost the hospitality industry in
Australia. The initial penetration in the horse
trekking industry with adequate marketing
strategy and business plan might help in
generating high level of income from the
business.

History and Background of the Business Idea
Tourism in Australia is one of the significant part of the
Australian economy. Sydney, Brisbane, Queensland and
the Great Barrier Reef are some of the popular
destinations for tourists in Australia. The growth of
Australian tourism has increased despite the various
economic challenges. Equestrian tourism has been quite
famous in Australia for the past few decades.

As Australia is famous all over the world for its natural
wonders along with wide open spaces, deserts and
beaches, horse riding business is therefore very
famous in Australia. The horse industry had made a
quite huge progress in the last few years in Australia.
The horse industry is known to contribute over $6.2
billion every year. Horse business, equestrian events,
racing and breed events along with the maintenance
of horses contribute a huge amount to the Australian
economy (Ekegrenet al. 2018).

The business name of the horse renting
company is Spirit of the High Country which will
be set up in Victorian High Country in Australia.
Renting of horse for tourism has huge benefits.
The arrangement consists of a formal
agreement between the owners and the riders.
Horse renting has been a popular business
even in economically challenging times
(Buchmann 2017). Therefore, riding stable
business can be highly profitable when it is
planned and managed properly.

Short term, Medium-term and Long-term goals with
Milestone and Schedule
Revenue goals / customer service goals / community
outreach goals:
The major revenue gaol for the business is to increase over
the period of five years, which would eventually help in
supporting the finance cost and other operational activities.
In addition, the aim is to business is to increase the revenue
to about 15 million until the end of 5th years, which might
help in supporting the expansion plans.

Short term goals:
The short term goal of the business is to penetrate
the market and make a name as the potential competitor.
This would eventually help in boosting the required level
of income for continuing the business and generating
high level of income. The extensive use of marketing
strategies and planning would eventually help the
business to penetrate the market and attract potential
customers into its vicinity.

Market Analysis:
A simple marketing analysis is performed that
assists in the acquaintance with the customers as
well as the competitors. A value proposition is
created, and a production of sturdy and achievable
goals is performed. Thus, a transparent emphasis
of the strategic marketing campaigns is created.

Target Market:
It is very significant to maintain a great status in
the industry. The primary goal is to make sure
about the growth of the level remains stable and to
be the chosen one in the target market. This is
attainable by making sure about structuring a
business that is continued without any
complications. The main targets from whom the
business can earn revenue are the children,
celebrities, young adults, movie productions,
tourists, race courses as well as the circuses.

Market profitability:
The trading of horses and teaching are the aspects that
are to be most profitable in the business of the horses.
For this there is a requirement of expertise. The top
horses as well as the amateur horses are to be imported
from the international market. There should be proper
business plan and the target market is to be assessed to
achieve profit for a business.

Marketing Plan
Publicity and the strategy of Advertising:
For the expansion of the business it is very important to
perform publicity in respect to that company which is
willing to begin a standard as well as a standard
company when there is a competition that arises
because of the competitors. There is performance of
right strategies by the process of strategy that is drafted
which increases the awareness of the customers.

Sales forecast:
For the providence of an accurate report for the
determination of the sales projections, a critical
examination is to be performed in the industry of
the horse riding of the business of horse riding.
Thus, the chances of analysing that derive an
accurate forecast of the sales. The sales projection
that is conducted is grounded on the assumptions.

Pricing strategy:
The services should provide right prices as there are other
competitors who are indulged in the same businesses. Thus,
a whole research is to be performed on the offering that is
offered by the competitors and the prices are made lower
than that of the competitors. To gain new customers
discount should be offered as well as for the loyal customers
there should be rewards which is offered to them.

Risk assessment and mitigation:
Risk assessment is relevantly needed for each
business for surviving the competitive market and
building strategies to obtain sustainable growth. The
35% of the business capital is relevantly gathered from
debt or loan, which is considered to be a highly risky
endeavour for the business. However, the financial
projection has relevantly indicated that the positive
cash flow can adequately support the overall business
performance, while handling the finance cost.

Risk from rising finance cost:
The rising finance cost directly erodes the overall
net profits, which is made by business. Hence, the
declining profits would hurt the business and devour the
initial capital, where the transferring the loan to other
financial organisations with low interest rate can be
conducted for securing the business from being
bankrupt.

Exit Strategy for investors and valuation at exit
The Exit strategy for the investors is relevantly
designed, which can allow them to generate adequate
returns from their investment in the initial business
plan. There are two different types of exit strategy,
which are repurchasing by the promoters and
secondary sale. The initial investors can only exit from
the business after the duration of 3 years, where the
overall cash flow of the investment will relevantly
increase over time.

References and Bibliography
Björlinger, K. and Johansson, S., 2016. Equestrian Tourism in Trinidad: Every horse has
something to teach, every human something to learn.
Buchmann, A., 2017. Insights into domestic horse tourism: The case study of Lake
Macquarie, NSW, Australia. Current Issues in Tourism, 20(3), pp.261-277.
Chambers, I. and Humble, J., 2017. Plan for the planet: a business plan for a sustainable
world.Routledge.
Ekegren, C.L., Beck, B., Simpson, P.M. and Gabbe, B.J., 2018.Ten-year incidence of sport
and recreation injuries resulting in major trauma or death in Victoria, Australia, 2005-
2015.Orthopaedic journal of sports medicine, 6(3), p.2325967118757502.
Genkin.org. 2018. Craig's Hut at Twilight, Alpine National Park, Mansfield, Victoria,
Australia. [online] genkin.org. Available at:
http://www.genkin.org/cgi-bin/photo.pl/landscapes/alpine-mountains/victorian-alps-and-
high-country/au-mansfield-craigs-hut-0004 [Accessed 8 Oct. 2018].
Pölling, B., Prados, M.J., Torquati, B.M., Giacchè, G., Recasens, X., Paffarini, C., Alfranca, O.
and Lorleberg, W., 2017. Business models in urban farming: A comparative analysis of
case studies from Spain, Italy and Germany. Moravian Geographical Reports, 25(3),
pp.166-180.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business
management. Pearson.
Watson, K. and McGowan, P., 2018. Emergent Perspectives toward the Business Plan
among Nascent Entrepreneur Start-Up Competition Participants. Journal of Small
Business and Enterprise Development.