Jon Hersey - Fly Fisherman | Page 3

email.

Biz Planners, LLC
6932 Orchard Plaza
Boca Raton, FL 23758


Client: Fly Fishing Wholesale Group
No address - start-up analysis
Principles / Owners:
1. Carl Walden, CW Manufacturer Imports, Oakland CA, imports
housewares
2. Gary Holstein, Great Ed Books, Boise ID, elementary school books
3. Mark Dayton, Alston Medical Supplies + Dayton Thermal Wear +
Persian
Rug Imports, Cincinnati and Lebanon OH, self explanatory
4. Janice Anderson, Home Testing Labs (7 Locations in MT, WY,
WA, CO,
NV, CA, UT), Spokane WA, home testing for mold, radon, drug
manufacturing saturation, etc
5. Howard Jones, Howie Rentals, Corvallis OR, construction
equipment
rentals

Market Analysis:
1. 18M people try fly fishing each year
2. 5M classified as enthusiast (go fly fishing 2+ times per year)
3. Market size is $2.48B annually for fly fishing tackle and gear
4. Additional $1.1B annually for related vacation, lodging, and clothing
5. Average enthusiast spends $750 per year for fly fishing
6. 5,000+ fly shops. 4,200 destination shops (remote locations with little
competition)
7. Shop locations are distributed 55% west of Mississippi River : 45% east

Funding:
1. All partners initial start-up amount is $2.0M per each
2. If additional funding is needed, all partners have opportunity to contribute.
Shares of company's stock are shifted according to each members total
contribution.
3. 1700 fly shops in western states with minimum sales of $470,000 is $800M
annually. Signing 10% of shops is $80M per year.

Operational Plan:
1. Create "family" of fly shops where 51% ownership is held by Fly Fishing
Wholesale Group (FFWG)
2. FFWG provides marketing, inventory management, warehousing, and
distribution
3. Purchase existing shops where possible.

4. Open new shops in prime locations.
5. Membership drive starts in Montana; then adjacent states; and so on
6. Fly shop provides guide service, lessons, lodging, etc through agreements
with local guides and lodges for a fee
7. Shop selection based on: - location too small for big box store, - locations
with "dense" recreational property, - owner / partner has passion for fly
fishing, - at least four years ownership, - growth potential of 10% per year
minimum

Marketing Plan:
1. Branding through fly fishing and tying magazines
2. Flyers / coupons mailed to subscribers of fly fishing magazines
3. Consumer shows. Give away lodging, fly fishing gear, or guided trip
4. Advertising in fishing proclamations
5. Gifts for fishing clubs fund raising efforts
6. 3% of all sales go to fishing habitat rehabilitation. Press releases to national
fishing periodicals

Jon immediately recognized that Mark Dayton was on both the Zeta and Biz
Planner reports. The complications began to form in his mind: - could he keep
the two projects separate?, - could he be congenial to Mark on the job and
disrupt him on assignment?, - WOW, he can not run into Mark in Cincinnati, it
could destroy his Biz Planners "cover" job, potentially alert Mark which would ruin
the planned disruption, and void his value with Zeta.


Double Jeopardy

Daryl's call came while Jon was making his favorite pasta sauce, which had been
passed down to Alissa, through four generations. Alissa had enjoyed teasing Jon
that her family's secret sauce had more people attempting to "steal" the recipe
than there were Italian restaurants ... in Italy. She kept it from Jon until they
learned of her failing chemo treatments. Their one let-your-hair-down food-fight
took place during the cooking demonstration where Alissa revealed her great-
great-grandmother's recipe.