ReSink Business Plan

Executive Summary
ReSink began on the rocky shores of the Snake River in North Idaho, when founder Garrett Hall
ran out of lead sinkers. As an emergency solution, he attempted to tie on a rock to continue
fishing for sturgeon. The rock immediately fell off, but this failure resulted in the genesis of an
idea that has evolved into ReSink.
A startup business team at the University of Idaho formed to help Garrett turn his frustration into
a marketable product and company. ReSink is currently in its fourth prototype of product
development. ReSink has been proven to be durable, reliable, and easy to use for multiple
anglers. Fishing guides and charters are interested in ReSink, and are about to receive the
product for testing. Distribution logistics are currently being developed to enable market growth
and better understand our cost accounting. Our current strategy is to utilize the remainder of the
spring school semester to refine the business model, develop a solid business plan, use
competitions for startup capital, and establish customer relationships in anticipation of initial
product release mid-summer 2015.
We have assembled a diversely knowledgeable group who believes in the product and wants to
bring it to market. ReSink is led by an engineer with many years of fishing experience alongside
four team members that complement his technical expertise with solid business experience and
education.

The Problem
One of the most frustrating occurrences while fishing is snagging your sinker on the riverbed.
Not only are you out the cost of the equipment you lost, but you also have to take the time to tie
on a new sinker. The longer your lure is out of the water, the fewer fish you can catch! If this
happens once during a day of fishing, its not too costly. But for many of us, it seems we get
hung up and lose a sinker on every cast. A season of snags adds up to immense frustration, a
significant number of sinkers lost, and more money wasted than you want to admit. Extrapolate
this to all the anglers casting into the Clearwater River, the Snake, the Salmon, the Pacific
Ocean and you begin to see the full extent of this $195 million per year problem.
But the problems caused by lead sinkers dont just stop at the local fishing hole, they extend
home. Every year hundreds of children in the U.S. are diagnosed with lead poisoning. Children
are three times more sensitive to lead, so even a small amount, say from playing with a sinker
from their parents tackle box, can result in lower IQ, decreased learning abilities, hearing
deficiencies and a whole slew of other problems. The health effects associated with lead are not
limited to humans either. Every year U.S. anglers lose three million pounds of lead into our
lakes, rivers and oceans. Lead fishing sinkers have been proven fatal to many aquatic birds and
new research is coming to light that shows health affects to the very fish, anglers are trying to
catch. But there is an answer to all of these problems, and to some problems we didnt even
know we had; ReSink.

Product Description

ReSink is a wire harness that enables anglers to use rocks as fishing sinkers. ReSink wraps
around a rock, and hooks into place by means of two small, rubber-coated loops thus securing
the rock to the device and the line. ReSink is a product that holds heavier sinkers, specifically
rocks that weigh four ounces or more. Its easy to find rocks that meet this weight requirement
near piers and riverbanks. When retrieving ReSink after casting, the rock gets lodged between
rocks under water, just like a traditional sinker. However, the design enables the rock to be
released from the device, allowing ReSink to be recovered without losing anything valuable. A
new rock can then be secured and casted meaning ReSink can be used again and again. Because
of its reusability ReSink even opens the door for a new style of fishing, which has been
personally proven to be more effective than any other current methods. In the past slowly pulling
your sinker back along the bottom was not feasible because of the great number of sinkers lost.
ReSink makes this slow retrieve possible, opening up a very effective way of fishing.
The ability to retrieve equipment after being stuck under water greatly contrasts current lead
sinkers. When a lead sinker is pulled along the bottom of a rocky area, the likelihood of
becoming stuck deep underwater, breaking the line, and losing equipment is nearly guaranteed.
This means the only value of a lead sinker is simply the ability to reach the riverbed just once.
This lack of value makes the $3.00 per sinker price seem unacceptably high when compared to
ReSink.
ReSink enhances the fishing experience via its ability to be reused, less frustration caused for the
angler, decreased environmental impact and even more successful fishing trips. Because of the
incredible value added by ReSink, we will be able to make a profitable and successful
environment for our business, employees and partners to flourish.
Current state of product
After several iterations of product design and testing, ReSink is near the end of the prototyping
stage. A fourth prototype was just created in which rubber was added to the wire loops to make
attaching and release of the rock more consistent. ReSink is now entering the market testing
stage. We are sending out packaged ReSinks to interested potential customers and fishing guides.
In addition to the packaged ReSink products, we are sending surveys with user
experience/satisfaction questions, in order to gather quantitative and qualitative customer data.
Once we receive feedback and made any necessary modifications, we will approach these initial
testers about endorsing the product. ReSink will be packaged with instructions printed on the
label of the packaging of how to operate the wire harness. The packaging also will advertise
contact information and how to find ReSink on social media. Images of rough prototype
packaging are shown below:

Market Description
Description of Market
According to government census on fishing, there are 46 million anglers in the U.S.. But
we obviously cant claim all 46 million will buy our product. Since ReSink only works for sizes
of 4 oz. and up, most lake anglers will not use our product.
46 million 17.9 million lake anglers = 28.1 million

Since ReSink requires a supply of rocks near by we are anticipating no anglers that fish from
boats to use our product (at least at the beginning).
28.1 million 18.5 million boat anglers = 9.6 million
Fly fishermen have no need for a sinker, so we can not claim any of this market.
9.6 million 600 thousand river fly fishermen = 9 million
This leaves us with 9 million target anglers nationwide. However as we initially start sales we
will be limiting ourselves to the Northwest and California to make pivoting to customer needs
easier, as we test and verify our marketing and product assumptions, leaving us with 1.2 million
target anglers.
However we believe these numbers will greatly increase in coming years. Many states are
working towards banning lead fishing sinkers, and in many cases already have for some smaller
sizes. When states like California and New York completely ban lead fishing sinkers, ReSink will
positioned as one of, if not the only alternative for higher weights (a six ounce tungsten sinker
could cost up to 38 dollars). Even without imminent lead bans, we believe the fishing culture is
changing to be more eco friendly; in 2011 anglers donated $400 million dollars to conservation
organizations, suggesting anglers do care about protecting their waterways. With the values of
Americans fast evolving to become more environmentally conscious, we believe that ReSink is a
fishing product for the future.
Though our product is directed toward anglers, our primary customers are small stores, fishing
guides, and outfitters that sell fishing gear. Though a significant portion of larger fishing
equipment is purchased online, the lower cost of ReSink will limit the number of online sales.
Since online sales will be limited and therefore our direct sales, our only way to reach customers
is through retailers. In the first year we anticipate reaching 10 to 15 retailers in our target market.
An analysis of market size and saturation per store can be done, and then multiplied by number
of retailers to get us an estimated market share for the first year. Our conservative estimates
suggest that we can capture .4% (4,800 anglers) of our Northwest target market. If this small
group of anglers purchases approximately 10 units per year (based on census average number of
fishing trips), first year sales of ReSink will total $100,000.

Customer Relationships
In the first year, both end user and retailer relationships will be handled in house. We are
anticipating the demands to be low enough that we can handle them through effective online
presence and email while limiting costly in person and phone support. After the first year
customer support will be handled by a distributor (discussed in the distribution section), so our
customer relationships will be almost entirely through social media and the ReSink website.

Competitive Analysis
Multiple factors give ReSink a competitive edge in the marketplace.
- Cost savings associated with reusability.
- Drastic cost savings over other non-lead alternatives, once legislation bans the use of lead
sinkers.
- Improved fishing experience
o More time spent fishing, associated with decreased preparation time.
o More consistent and easier to deal with snags.

o Ability to use new, effective fishing techniques.

o Less weight to pack around, as sinker is acquired at the fishing location.
- Lower environmental impact than lead sinkers and even other non-lead alternatives.
- Eliminates risk of lead poisoning.
Before releasing ReSink to the public, a utility patent is required to protect the idea from
competitors. Our intellectual property is completed currently being processed, with patent
pending status soon to be obtained. With the patent completed, we can begin preliminary
marketing activities to bring our cost effective, temper-saving, environmentally-sound sinker to
the fishing community.
Alongside the patent, initial market testing is necessary for us to measure how satisfied our
customers are with ReSink. After examining market data in cities across the Northwest with
sizable fishing communities, we believe that Westport Washington and Moscow Idaho are ideal
locations to test or assumptions and establish which values customers care most about. Testing in
these two cities will be sufficient for us to gain enough customer feedback to make
improvements in our product design and packaging before we make ReSink available on a larger
scale through distribution channels.
Part of the reason we believe ReSink is appropriate to test in Moscow and Westport is because
citizens in both of these areas value the protection and maintenance of natural resources and
enjoy spending time outdoors. These values are consistent with our companys, and we think that
improving the fishing experience while saving the environment will help anglers in these areas
feel more at home. Experienced and inexperienced fishermen alike will feel more comfortable
out on the water as a result of using an environmentally clean, easy-to-reuse, no-fuss sinker.
There are some risks associated with the angler market. Due to the aforementioned legal changes
regarding the use of lead sinkers, patent infringement is a potential threat. However, being
among the first to the market, we have the ability to make ReSink and lead-free sinkers
synonymous, similar to how Kleenex established their brand among other tissue competitors.
Another risk is that the fishing industry is very slow to change, however with the feedback we
have received so far and impending legislation change, we feel our product gives enough value
to create accelerated growth.

Needs Identification
ReSink will acquire customers by visiting stores and guides to display our product, particularly
in angler-dense locations across the Pacific Northwest (Idaho, Washington, and Oregon) and
California. We will use data from these first customers to verify our model and establish
connections with a distributor to take our product national.

Market Acceptance
Anglers tend to be product loyal. We are asking them to try something new, which is challenging.
However with the feedback we have received so far and impending legislation change, we feel
our product gives enough added value to create accelerated growth.

Sales and Promotional Strategies

Distribution will come in three stages as ReSink grows, allowing us to quickly pivot to meet
customer needs as we scale up. The first stage will be very small scale. Sales will be will come
from one or two stores with less than 500 units produced. Starting small scale allows us to test
our pricing and marketing theories without making large risks. We will begin by working with a
cardboard company, to design a box that folds out into a display containing 200 units. An
inexpensive LED display playing videos of how to use ReSink will also be part of our in-store
display. The display will also show endorsements by guides as well as clips of ReSink in action.
This box display will then be taken to our first retailers. It is essential that we acquire market
data from these first retailers to test our theories, so we will offer a percentage of sales without
having to purchase any units, to keep the risk on their part low.
The second stage will have the same basic strategy, but expanded. We will use the market
data obtained from our first retailers to improve upon the design and advertising. Then we will
apply the new strategies to 10 more businesses within driving distance. Using the large amounts
of market data we will receive from these retailers, we will make further adjustments. With
affirmation that ReSink is scalable, we will be able to start expanding into the rest of the nation.
Using the relationships we built with our first retailers, and as an extension their
recommendations on potential distributors, we will be able to find a distributor that can help us
expand to the rest of the country. Going through a distributor will cost us 20%-30% of our
profits. However, this will easily be made up by the massive increase in customer connections
and sales. It will also lead to savings in decreased costs for customer service when the
distributor takes care of customer service issues.
While we are ramping up distribution through retailers, we will also be establishing and
promoting our online presence and sales. ReSink allows for a new extremely effective way to
fish for steelhead. This gives us a great opportunity for product placement on youtube videos. We
can start by approaching local fishing guides that post fishing tip videos. We will ask them about
making a video using the new fishing technique and directing viewers to our web store. In return
for including ReSink in their videos, we will offer a percentage of sales that they generate. This
can be scaled up as the strategy is proven, by establishing partnerships with more well known
guides to endorse ReSink.
Once ReSink becomes widely recognized, we can attract even more customers with a social
media campaign revolving around a series of picture competitions. The competitions will require
participants to take the best fishing picture they can, including their ReSink in the picture. The
prize will be sufficiently large so as to encourage people to try ReSink for the first time, just to
enter the competition. After they have tried it once for the competition, customers will be hooked
and add ReSink to their go to fishing equipment.

Price
The company will price the product at $6.00 per unit, which is competitively high relative to lead
sinkers of a similar weight. Lead sinkers are priced anywhere from $2.00 to $3.00 each, but are
not reusable or environmentally friendly, and comparatively difficult to use. ReSink has superior
value to lead and non-lead sinkers available on the market. An improved fishing experience,
coupled with utility of up to 10 uses per unit makes ReSink worth the purchase. By an anglers
third cast, they have already saved money, two minutes of fishing time, and didnt leave any lead
in the water. Given the minimal 15% cost of goods estimate, gross margins are significantly large
even with labor expenses included. We expect to generate positive cash flows during the first

year. Projected net income in year one after taxes will be just over $50,000, which we expect to
grow substantially in the following two years. We want ReSink to grow beyond the Pacific
Northwest and California, and expect our sales data to change as a result of this growth. Even
with a major downturn in the economy or the fishing industry, ReSink will remain profitable.

Production
The raw materials required to produce ReSink are minimal, inexpensive and easy to acquire. One
unit takes one foot of enameled 24 gauge wire at a cost of 2 cents per foot. The rubber clasps can
be injection molded directly on to the wire and cost 3 cents per side, 6 cents total. However a
mold will have to be created costing around $1000. The mold is accounted for in fixed costs, not
the cost of unit production. The cost of the swivel that the wire is twisted around to form the final
structure will vary with size, but a 1-4 cent cost is typical. This brings the raw material costs of
one unit to a grand total of 13 cents. The relatively low cost compared to the sales price allows
for a high marginal contribution value per unit.
Production will come in two stages to fit our needs as ReSink grows. In the first stage ReSink
will produced in part by an outside company, since the molding of the rubber clasps is beyond
our current production capabilities. It is our hope that the rubber forming company would agree
to finish production by twisting the wire onto the swivel before sending the products to us. If
this can not be arranged final assembly will be done in house and placed into packaging to be
shipped to retailers. Production costs in the first stage have been estimated at between 10 and 20
cents per unit, with a much more accurate estimate and a final producer selection imminent.
We will transition to the second stage of production as sales increase to the point where we can
make our first large purchases. The second stage will be a move to produce ReSink internally.
We will buy and build an entire production line that builds, packages and boxes the units. We
will also acquire facilities to house the production equipment and store our goods before
shipment. This will allow us to maximise efficiency and cut costs associated with outsourcing
work. In addition, these advances will be necessary in order to verify the sources of our raw
materials as well as employee working conditions. It is also important that we be able to market
effectively as made in the USA. Having our own facilities is also important to our goal of
upholding a socially responsible business culture.

Financial Highlights
Because of the very low cost to produce ReSink, combined with high value added that allows us
to sell for $6/unit, we are able to grow very quickly off sales alone. This means after initial
funding, ReSink will require no outside money to expand. We made several assumptions in
building the pro formas:
First sales will begin early summer 2015
Seasonality will impact our sales, with spring and summer being our best sales seasons.
Growth estimates reflect our belief that once we are in the market and have established
our reputation as a credible and cost-effective product, we will be able to secure more
retail outlets to stock our product and acquire more end users who recognize the benefits

of ReSink. We expect to nearly double our sales annually for the first few years, and have
made plans to accommodate that growth level.
In addition to our base sales increase, we believe our sales will increase drastically when
lead sinkers are banned.
In year one ReSink will be produced externally
By year two ReSink will be produced in house. Necessary expansions in machinery and
personnel have been accounted for.
The founder, Garrett Hall, will be working as a full-time engineer, as well as managing
the business. He will not be taking a salary from ReSink at the beginning stages of the
business.
Our raw materials and machine will not be expensive to acquire and build. This allows us
to grow our manufacturing capacity as our business expands at a low cost. Our largest
cost will be in direct labor to operate the equipment.
Small orders are anticipated in the early stage as the market is established, and it is
traditional in the fishing industry to collect sales money in cash. We are willing to do
consignment in the startup phase in order to lower the financial risk associated with
shelving ReSink.
We do not expect to incur any long-term debt. Short-term debt will be acquired on credit
for materials as needed.

Funding
ReSink is seeking minimal external funding to launch this business in the coming year. Our preventure cash needs are limited to a small amount for raw materials inventory, marketing
expenses for brand recognition and acceptance and production setup costs. We have estimated an
initial $5,000 investment can get us through the first six months, by which time we expect to
break even.

Equity Ownership
Garrett Hall is the sole founder of ReSink. He developed and engineered the product, is
responsible for designing and building production equipment, and will be the CEO. Sage
Francetich will stay with the company after he graduates from the University of Idaho this spring
with his B.S. in Marketing with an emphasis in Entrepreneurship. His social media expertise, as
well as his customer service experience will be valuable in promoting ReSink. The other three
members of our startup team, Alyssa Schultz, Jasper Stemple, and Patrick Esteberg, are all
following more traditional career paths upon graduation.

Management Team
The ReSink organizational structure is horizontal in design. All 5 team members have direct
communication with each other. The ReSink team is composed University of Idaho
undergraduate students. Garrett Hall is the Founder and Chief Executive, Sage Francetich is the

Marketing and Pricing Specialist, Alyssa Schultz is the Team Coordinator and Operations
Specialist, Patrick Estberg is the Videographer and Finance specialist, and Jasper Stemple is the
Accounting Specialist. Garrett currently has 100% ownership of the ReSink product idea and
company.
Moving forward with the ReSink business, Garrett Hall has full intentions of continuing to grow
and make ReSink his professional priority. Sage Francetich, the Marketing Specialist, has
expressed interest in moving forward with the ReSink business after the conclusion of his New
Venture Creation Class. This team of two will initially require a certified accountant to come
aboard in order to help the ReSink Company grow, with more management and employee
additions as the company grows.