Each year 18M people fly fish - only 5M swing a fly rod at least a second time -
these "echoes" are considered an enthusiast. In the enthusiast group, 75% are men, 53% of group are over age 35, and 52% are unmarried.
Annual retail sales for fly fishing products, from the cheapest fly tying materials to the most expensive 6 piece pack rod, approach $2.48B - an average of $500 per
enthusiast. Additionally, $1.1B is spent on vacation packages, associated
lodging, and clothing.
It is believed the first use of artificial fishing flies was in the second century by a Roman, Claudious Aelianus.
The winner of the national fly tying contest in Bozeman, Montana, took home
$25,000. The Madison Tie One On derby, where fly fishermen can use only one
fly per day, has a $125,000 first place purse.
5,000+ fly shops, and a shrinking number of big box stores, provide goods and
services to 5M fly fishing enthusiasts.
Vegetable Wrap
Jon Hersey (being careful to word the Biz Planner report so his boss, Paul Tyler,
will not discover his clandestine involvement with Injector One) is completing his
final report on the Grindell Injectors purchase of Injector One:
- management has been blended together
- the remodel of Grindell's former facility is in progress
- contracts with Injector One and Grindell customers are finalized
- Ian Breck decided to retire to farm property he purchased near Marlow
from four sisters scattered throughout the west
- only employee lost was Charles Johnson, a childhood friend who quit
out of loyalty to Ian
- Grindell is on track to begin payments to Biz Planners in three months.
It's been three weeks since Ian "decided" to sell Injector One to Grindell. It has been three weeks of intense, time-consuming concentration closing the Grindell
deal. Luckily there were no concurrent Zeta assignments. It's Tuesday, and no
jobs or assignments on the schedule for at least six days.
Jon is three steps down the hallway going for coffee, when the beep from the
Scrambler goes off on the computer. [Jon wishes he had put a bar sink in his
home office. Alissa would not have objected to an office coffee maker. Then,
cleaning the carafe and dumping the grounds would not require hauling them
through the house to the kitchen. Oh well, coffee will have to wait].
One login code, one password, and one "Spot" entry to the childhood pet's name inquiry followed by a ten second delay. The next Zeta disruption assignment
"details" are displayed on his laptop.
Zeta Consulting Group
Target Company:
Alston Medical Supplies
1285 Oak Tree Road
Lebanon, Ohio 42690
Owner:
Mark Dayton (suspect)
Office location - downtown Cincinnati at 3427 Bengal Way
Suite 525 and 527
Instructions / Details:
- arrange soonest possible meeting with Daryl for details.
Jon (to himself), [The previous three Zeta assignments came with full details. ...
"meet with Daryl for details" ... unusual departure from the Zeta model ... why?!!]
Jon's next disruption assignment for Zeta Consulting Group is in Cincinnati.
Concurrently, the next Biz Planner job will likely be in Park City, Utah, if he read
Paul's hints correctly. The travel distance for this combination of private
assignment and public job locations is the farthest so far. The first combination
was Miami Flower Imports for Biz Planners and for ZCG was Publishers Printer
making counterfeit $20 bills in Atlanta. The second concurrent combination was
Charlotte for Biz Planners long time client Great Foods Prepared Meals (the
Vegetable Wrap guys) and for ZCG it was the American Tire Company, in
Scranton, selling tires to Columbian and Venezuelan drug cartels. The third
combination was luckily in the same city of Tulsa.
Jon calls Daryl. The call goes direct to voice mail ... Very unusual! ... after the
beep, Jon leaves his message, "calling to set meeting to discuss new
assignment. I am at home for next ten minutes then will be "in a tunnel" for about two hours" - (Jon's banter to Daryl that he would be running without his cell)."
Dressed for the cool mountain air, Jon starts his run. His mind begins thinking
about the two unsettling events of the past 20 minutes; - incomplete assignment
file from Zeta, - and Daryl not answering the "bat phone". After three minutes of getting nowhere with so little data, one of "Alissa's axioms" enters his mind ...
things are not always as they appear to be. His thoughts shift: - how can I get
some fly fishing lessons?, - should receive Biz Planners' job in next few days, -
hope Daryl can meet without airfare being required, - next BP job will be different,
- a start-up, not an established organization, - could be fun, - travel between
Cincinnati and Park City could be problematic, ...
Too many flies ... So little time
Paul Tyler is a workaholic Monday 8:00 AM through Friday 5:00 PM; and, the
world's greatest dad on weekends. The modern day saying - work hard, play
hard - fits Paul perfectly. Between work and family activities Paul can be found
tying flies, planning a fly fishing excursion, or maintaining his fishing equipment.
His favorite saying is "the correct fly attracts the right kind of fish" and he uses it as the answer to nearly all difficult business problems. (Jon thought of an old TV
series every time he heard this. If Paul was a toga clad, blind, Chinese Kung Fu
master who started every sentence with "Grasshopper" - the image would be
complete.)
Paul's office has been redecorated by Susan "Suzie" Anne Carpenter - Tyler.
(Suzie was related to the 70's singing duo, The Carpenters, and wanted
everyone to know ... [when you are young] ...). For a "company man", Paul has a lot of non-work decor: - two sets of crossed fly rods, - three basket creels (one
used as a candy dish), - two mounted fish (taxidermy done by a young master
craftsmen in Billings, Montana), - four artisan framed fish prints purchased
through an exclusive mail-order company, - and two fly fishing magazine
subscriptions for employees to peruse while waiting for Paul to get off the phone.
Calling Paul a fly fishing enthusiast was like calling Louis & Clark a couple
kayakers.
Jon was surprised by the hints that he would be the project manager on the
upcoming Utah fishing company job.
Returning from his run "in the tunnel", Jon found another surprise on his cell phone. The message expected from Daryl was missing. Instead, a message from
Paul to call about the fishing job. It was early enough with the time difference to
have an hour discussion with Paul. Paul answered on the first ring: - "hello Jon.
Thanks for getting back to me."
- "what is up on the fishing job?"
- "we have so much work that, as much as I would like to, I can not work the Fly Fishing Wholesale Group job. They have plans to meet in Park City starting on
Monday morning. It's a start-up, not an established business. It's an old concept
applied to a different industry. Basically, they want to sign up local fly shops to
become members of a buying group. Members then get fly fishing items at
wholesale. More members means more buying power means better pricing to
group members."
- "how do the big box stores effect this?"
- "their claim, which appears to be sound, is the "destination" shops still have healthy sales; and, the big box stores are shrinking the floor space committed to
fly fishing. Additionally, the big box stores are carrying only the high movers."
- "did you have a modified "presentation" model you we're going to use?"
- "I will send you their business plan. I had planned to validate their assumptions, do some potential member surveys, and investigate product offerings. Some
vendors will sell to brick and mortar stores only. This type of restriction may
impact their plan."
- "I will need to do some cramming. The local fly shop has been around for at
least 10 years. They have fly fishing lessons, tying materials, and accessories ...
Tell me about the partners?"
- "five businessmen that own other small businesses. They have varied
backgrounds: - marketing, sales, operations, accounting / finance, warehousing.
Some of the other companies they own sell medical supplies, elementary school
books, imported housewares, thermal clothing, imported rugs, and construction
rentals. They are all avid fly fishermen ... Their biz plan is in route. You should
receive the email in the next few minutes ... Call if you have any questions? We
don't have the usual three week prep time."
The phone call ends with the usual pressing of the "end" key just as the
computer beep acknowledges the receipt of the Biz Planner 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.
Jon picked up the phone, looked at the caller ID, and chuckled when he read
"Bat Phone" ... [if Daryl only knew] ....
- "Daryl, where are you traveling to this week?"
- "I am going on a little vacation to do some fly fishing in Jackson Hole ... Right after I get you the Cincinnati file."
- "Fly fishing!?!"
- "meeting a couple old friends for our annual big fish contest."
- "this is a little awkward, but my "real" job is a group of small biz owners investigating the start-up of a new fly fishing distribution company. When they
ask, I would like to say I've been fly fishing."
- "You would fit in with my old friends and add a little spark to the conversations; but, there can be no Zeta discussions once we land in Jackson Hole. We can
review the Zeta file in an Air Travelers Lounge rental conference room at the
Denver Airport; And, I will book your ticket on the Rocky Mountain Airways 3:25
flight to Jackson. See you at 10:00 tomorrow morning."
- "why was the Zeta file missing the details?"
- "It's Peter's request, I'll explain at 10 tomorrow ... By-the-way, do you have fishing gear?"
- "no, what do I need?"
- "I have an extra rod and reel. We can get you some flies, waders, and stuff
when we arrive in Jackson Hole."
Next morning ... Jon, excited about: - learning to fly fish, - a different type of Biz Planner's presentation, - the mystery of the Zeta assignment, - and his first visit
to Jackson Hole, nearly misses the entrance to Rocky Mountain Rental Car. He
backs his Jeep Grand Cherokee into his reserved spot, removes his bags, and
puts his keys in the computer bag. After two minutes, Terri stops the courtesy
van in front of the Jeep ....
- "missed you on Monday. Thought you were sick."
- "no. Worked a couple days at home so I could go fishing the rest of this week ...
I might have to go right to work from my vacation. Any problem if the Jeep is here
for 10 to 12 days?"
- "no problem. Which airline?"
- "Rocky Mountain"
- "leaving early - must be going to Sun Valley, Idaho."
- [can't tell her about my four hour session with Daryl before going to Jackson
Hole.] (to Terri) "four days in Sun Valley - maybe I can get a tan there."
Jon finds the members-only Air Travelers Lounge and wonders if they will let him
in.
- "Mr. Hersey, you're expected in conference room three."
- "how did you know who I am?"
- "Mr. Alexander said you would be carrying a Biz Planners computer bag with an
Angel pin. There is coffee, tea, and water in the conference room. Anything else
we will be happy to get for you from the bar."
- "thank you. Tea is all I need."
Daryl has the logo'd Zeta Consulting Group folder setting on the table when Jon
enters the room. Jon sets down his carry-on then reaches for the folder.
- "before we start, Peter wanted me to tell you the Tulsa assignment was well
done - clever solution, quick completion, no jobs lost, HumVee's are back on
schedule - Peter says, thank you! He sent your $20,000 bonus to the cancer
treatment center in Tulsa."
- "tell Peter thanks. I appreciate the donation and the compliments."
- "let me tell you what Peter's worried about. Peter's friend, Carl Walden, is very concerned about Mark Dayton - the target of this disruption assignment. Carl
asked if Peter still had contacts who might be able to help Mark. Carl says Mark
is the kind of guy who puts his family first, is an active PTA member, on the
board of the Cincinnati zoo, sponsors local little league teams, and helps clean
his church. Lately, he has been keeping to himself and avoiding anything public.
Peter wants you to handle this like any other disruption, but keep in mind there
might be something more. Carl does not know about Zeta and thinks Peter is
checking with some old buddies. Which means you may have to report directly to
Peter on occasion."
- "I have a bit of an issue with this assignment. Mark Dayton is one of the five owners involved in my next Biz Planners project. If I run into Mark while in
Cincinnati, the assignment is blown. I have no reason to be in Cincinnati for Biz
Planners. This could get me fired from Biz Planners; and, mess-up the disruption.
My value to Zeta could be gone. Additionally, the spread between these two
locations may take me longer to conclude this assignment. Increasing the chance
of running into Mark. And, Paul's plans to partner with Fly Fishing Wholesale
Group would be in jeopardy."
- "let me think on that while you read the file."
Jon opens the folder to find the usual single sheet of paper summarizing the
disruption.
Zeta Consulting Group
Target Company:
Alston Medical Supplies
1285 Oak Tree Road
Lebanon, Ohio 42690
Owner:
Mark Dayton (suspect)
Office location - downtown Cincinnati at 3427 Bengal Way
Suite 525 and 527
File number: 21-7404MD JH. Access code: Sbx286!Lw
Instructions / Details:
1. Investigate Alston Medical Supplies and Mark Dayton for illegal sales of
medical supplies to terrorist organizations. These supplies are being sold to
Pakistan company suspected of being a terrorist front.
2. Uncertain how medical supplies are being transported to Pakistan.
3. Uncertain how supplies are being funded
4. Mark Dayton takes three to four trips annually for his Persian rug business.
5. Mark Dayton owns two other companies. Neither is suspected of illegal
activities. Dayton Thermal Wear located in Cincinnati private labels thermal
clothing for several major brand names. Persian Rug Imports also located in
Cincinnati sells area rug made in Pakistan to the public.
6. All companies are private. Mark Dayton has owned companies for more than
five years. Alston Medical Supplies is the latest acquisition.
7. Military contracts require all post-shelf-life, and packages broken for samples,
to be destroyed.
8. Marine and Army medical corps are experiencing shortages of common battle
field supplies.
9. Army conducting internal investigation - they believe supplies are stolen after
delivery.
10. Scuttlebutt indicates more injured, captured enemy combatants have wounds
covered with packaged bandages - not the tied rag bandages of before.
11. Solders not receiving best battle field medical treatment - enemy receiving
improving care.
Jon closed the folder - laid it on the conference table - looked at Daryl and said
"outside of Mark Dayton begin a part of the job and assignment, this appears to
be straight forward." Daryl said he would see if Peter had some input on the Mark Dayton surprise.
Daryl ordered lunch from the Air Travelers food service ... Fish sandwiches ...
"getting you ready for the rest of this week ... Now about your first fly fishing trip
... "
Can Shopping be Fun?
The plane lands in Jackson Hole - the rented SUV is ready - and on the seven
mile drive between the airport and town they pass by three elk, twelve deer, two
buffalo, one road biker, seven mountain bikers, four hitch-hikers, and ... The
Tetons. Daryl pulls into the town square and parks in the only empty stall, which
is across from the famous Bill Johnston Outdoors Emporium - the destination for
fly fishing stuff (and other outdoor gear) in Wyoming.
"Gearing up" takes two hours and $1127.54. Jon leaves with: -waders, boots, leaders, six dozen assorted flies, hat, fishing shirts, polarized sunglasses, vest,
accessories, ... and a big smile.
Jon also left with valuable knowledge about shop ownership. Daryl arranged for
his friend, Bill Johnston, to help Jon select his fishing equipment and supplies.
Bill talked about the gear Jon bought, - fishing in the area, - the difficulty of
starting a shop, - impact of seasonal sales, - the huge number of vendors for a
small business this size, - inventory control struggles, - problems with unusual
weather, - seasonal labor, - etc.
Two men carrying four ... full ... large ... Bill Johnston Outdoor Emporium logo
bags, walking down the wood sidewalks, attracts attention in Jackson Hole,
Wyoming. After the bags are loaded in the SUV, Daryl drives to the home of
Scott Hunter. A silhouette of a sail boat sits atop the log entry arch to the 300
acre site. Daryl tells the reader's digest version of Scott's custom design-and-
build sailboat factory. His company is the number one custom sailboat builder in
America. It's five minutes down a tree-lined gravel road to the clearing where the
house sits above the Snake River [no!, more like a big cabin, - No!, it's a lodge].
A similar rental is parked on the gravel area across from the "lodge". Daryl pulls up next to the other rental and says "David Sontag is here. David is retired at 42.
He started Junk-It trash hauling service in Minnesota, expanded to ten states,
then sold for twice it's asset value ... somewhere north of 80 million dollars. ....
Don't let their wealth fool you. These guys worked hard for their money, and if
you met them on the street, you would never know they are wealthy."
The mini-vacation is wonderful: - Jon picks-up fly fishing quickly thanks to David's
teaching technique, - Scott spent an hour teaching Jon how to select the right fly
(Paul's favorite saying goes through Jon's mind - the correct fly catches the right
kind of fish), - Daryl spent an hour showing how to use the accessories, - and the
first "fishing hole" produced two five-pound Rainbow Trout and one two-pound Brown Trout ... The fish ... and Jon were hooked.
On Saturday night, Daryl cooks his special Trout-ala-orange-Daryl-sauce. The
food, company, and conversation are great.
Sunday morning everyone packs-up their SUV ... signaling the end of the fishing.
Jon and Daryl are the first to leave - Daryl has an early flight - they pull onto state road #2174 and Daryl says, "Talked with Peter. He has assured me that Mark
Dayton will not be in Cincinnati next weekend