Southern Utah Livestock Washout A Business Proposal William D. Petty Senior Capstone Thesis Interdisciplinary Studies Dixie State University, 2015 Abstract This compilation of information illustrates the prerequisite knowledge and essential requirements to build and fund an animal livestock washout. The information presented has been categorized into two main areas of focus: the literary review and the business proposal. The literary review includes building a company through the disciplines of both business and communication. This report compiles both primary and secondary resources, providing beneficial knowledge on starting a business, maintaining a washout, and writing a business proposal. Furthermore, it takes an in depth look at project methods and assesses many obstacles that might arise. The second main area of focus is the business proposal. Using mainly primary resources, this section utilizes the information from the literary review and applies it to building a proposal that is acceptable for submission to financial institutions and stockholders. Southern Utah Livestock Washout 3 Table of contents ABSTRACT ................................................................................................................................................................ 2 INTRODUCTION ...................................................................................................................................................... 4 PERSONAL NARRATIVE ............................................................................................................................................................... 5 THESIS OUTLINE ........................................................................................................................................................................... 5 LITERARY REVIEW ................................................................................................................................................ 6 INTRODUCTION ........................................................................................................................................................... 6 WASHOUT INFORMATION .......................................................................................................................................... 6 LIVESTOCK TRANSPORTATION .................................................................................................................................. 7 COMMUNICATION WITHIN A BUSINESS ..................................................................................................................... 8 BUSINESS PLAN MATERIAL ..................................................................................................................................... 10 CONCLUSION ............................................................................................................................................................. 11 PROJECT METHODS.................................................................................................................................................. 11 RESEARCH CONDUCTED ............................................................................................................................................................ 11 SUMMARY .................................................................................................................................................................................... 12 BUSINESS PROPOSAL......................................................................................................................................... 13 EXECUTIVE SUMMARY ............................................................................................................................................. 13 COMPANY DESCRIPTION .......................................................................................................................................... 14 PRODUCTS AND SERVICES ....................................................................................................................................... 16 MARKET ANALYSIS .................................................................................................................................................. 23 STRATEGY AND IMPLEMENTATION ......................................................................................................................... 26 SERVICES ...................................................................................................................................................................................... 26 OPERATIONS’ CYCLE .................................................................................................................................................................. 27 PRICING AND PROMOTIONS ...................................................................................................................................................... 29 ORGANIZATION AND MANAGEMENT TEAM ............................................................................................................ 30 FINANCIAL PLAN AND PROJECTIONS ...................................................................................................................... 32 CONCLUSION ......................................................................................................................................................... 35 REFERENCES ......................................................................................................................................................... 36 Southern Utah Livestock Washout 4 Introduction Much of the colonization of the West and the Midwest began with farming and livestock breeding. In the beginning of this new settling, the conditions and quality of life were meager. As farmers began to breed cattle and other domesticated animals, one of the primary struggles they encountered when attempting to present these animals for sale and distribution was the ability to herd them from one place to another. While cattle drives were the optimal solution in the beginning, they required men on horseback to herd these animals in harsh conditions for many days. Because of the poor environments the likelihood of the animals surviving was much less than it is today. As modern technologies increased, such as the railroad, the ability to transport livestock long distances became considerably easier for ranchers. However, even with the ability to transport by railroad, the conditions for animals were poor, and their likelihood of survival was small. As modern roads were created and automobiles became available to American citizens, it revolutionized animal transportation, making it possible to move livestock in optimal conditions. This enabled a much higher survival rate. As the cattle industry has grown extensively over the years, more attention has been drawn to the sanitation and safety of these animals. One of the harshest situations livestock endure is transportation. While modern technology has greatly impacted animal transportation, the implementation of cleaning facilities and rest areas have continued to perfect this. While there are many washout stations in the Midwest and on the West coast, areas between those locations with animal cleaning stations are few and far between. One region of the United States that could utilize more facilities is Utah. With the amount of agriculture that is transported along Interstate 15, the number of facilities that meet the basic requirements needed for animal safety are scarce. Southern Utah Livestock Washout 5 Personal Narrative Because my family has been in the agriculture business for many years, one reoccurring problem we have noticed is the lack of cleaning facilities and resting stations for animals when transporting to the Midwest. Many times the situations have required us to put unnecessary stress on the animals because of the challenge of finding these facilities. The questions: “Why are there so few stations between these two regions?” and “Why are they so difficult to find?” often arose. Because of the amount of stress on the animals, especially during the summer, it was necessary to find an alternative to ensure the safety of the animals during transportation. To accomplish this undertaking, I conducted background research through other individuals within this field in addition to the study of scholarly articles on the Internet. In the course of my research, I discovered that Southern Utah has potential to be an ideal place for a washout facility and corral. This will enable commercial drivers specializing in animal transportation to clean their trailers, rest the animals, perform basic maintenance, and have access to essential hygiene facilities. Thesis Outline Because there are no washout facilities for commercial livestock drivers in the Southern Utah region, and the collected data demonstrates a high flow of animal transportation through this location, a washout business would thrive in this area. The following information demonstrates the requirements for writing a business plan and ultimately receiving the funding to start a washout business in Southern Utah. Using the disciplines of business and communication, the research compartmentalizes into four basic groups: washout information, livestock transportation, business communication, and business plan material. After thoroughly identifying these four basic groups, the next section will offer a written business proposal acceptable for submission to financial institutions and stockholders. Southern Utah Livestock Washout 6 Literary Review Introduction The following sections incorporate details on washout information, livestock transportation, communication within a business, and business plan material. These sections all work together to build foundational information for the agricultural industry, specifically dealing with building and maintaining a washout station. Washout Information This category specifies the manner in which a washout can provide an environmentally friendly business by utilizing all the waste that is generated by the cleaning process. Businesses that maximize their potential to generate income from all aspects of their organization have a higher probability of success. The following articles provide useful information pertaining to alternate sources of income created by using the excess waste that a washout would generate. The article, “Livestock Waste-to-Bioenergy Generation Opportunities” simplifies the process of recycling livestock waste to bioenergy. Furthermore, it suggests that by using thermochemical conversion (TCC) technologies, less carbon dioxide is released into the air. In addition, this procedure offers an alternative to using fossil fuels by converting animal waste into gasses, liquids, or solid fuels (Cantrell, Ducey, Ro, & Hunt, 2008). Furthermore, the nutrient base that comes from cattle manure converts easily into a high nitrogen-based fertilizer that is more easily absorbed over a large area of soil. This information is very useful because this is a byproduct that cattle washouts generate. In fact, the average cattle washout can provide cleaning and sanitation services for up to 60 trailers a day. This process creates a large amount of cattle Southern Utah Livestock Washout 7 slurry (waste water), which can be reused by converting it to methane gas or fertilizer. (Luste & Luostarinen, 2011). In addition to utilizing all resources within a washout, it is important to be environmentally safe and conscious of the community surrounding your business. With the massive amount of manure, there is a need for proper disposal of contaminated water. The Bio2 Solution website charted one company in Colorado and the amount of waste that it generates on a daily basis. This company worked with the state in order to comply with maintenance and safety standards by implementing treatment plans. While cattle washing facilities can be hazardous and unpleasant, there are steps to convert it to a contaminant-free zone and a business that is virtually unnoticeable to the community (“Truck Washout Facility,” 2014). The washout station in the surrounding St. George community will implement the Bio2Solution refining process in order to keep the public satisfied. Livestock Transportation Areas of concern while transporting animals include dehydration, stress levels, and disease. While many companies prefer their animals to reach the destination as soon as possible, pushing the limits of transporting can dramatically impact the health of the animals. Thus, having a facility to clean and properly pen the animals offers transportation companies the ability to ensure that hydration is maintained, stress is reduced, and disease is minimized. While there have been many studies dealing with the affects of transportation on animals, Cooke and his associates conducted a study that proved that animal weight shrinkage is much more extensive in cattle transported with no stops than in cattle that were transported with 2 rest stops. Also, the increase of cortisol, a steroid hormone that is released when cattle are stressed, was higher in the cattle that were given no breaks than in the cattle that had breaks. This proves Southern Utah Livestock Washout 8 that periodic stops and corralling of cattle increases the weight stability and causes less stress and injury (Cooke, Guarnieri, Cappellozza, & Bohnert, 2013). With regard to rest stops, it is important to have planned resting areas with facilities to accommodate animal safety. In his article, “Transportation of Cattle by Road,” Tarrant explains the four most important procedures in maintaining animal safety. One of those procedures is the benefit of rest and space for animals when traveling long distances. With the cattle washing stations, it is crucial to have a large number of corrals where travel weary cattle can rest (1990). There are many regulations, with regard to sanitation and transportation and the USDA provides a manual, which specifies requirements concerning sanitation for trailers. This manual offers instructions on how to avoid spreading disease and outlines requirements for trailer and vehicle safety. Proper cleaning with high-pressure water that reaches a temperature of 180 degrees Fahrenheit and proper disinfectants are some of the requirements that help prevent the transfer of disease when transporting cattle (U.S. Government, 2006). Communication Within a Business In business, it is imperative to maintain communication to optimize employee and customer satisfaction. The use of technology facilitates communication with customers and employees. Educating employees and informing customers about newly implemented technologies has the advantage of creating a more friendly and structured business. The article “Effects of IT Knowledge and Media Selection on Operational Performance of Small Firms” stresses the importance of having IT knowledge in companies, both large and small. It suggests that keeping up with technologies and becoming an early adopter offers a company the advantage of staying ahead of those who use older procedures. The advantage of being a smaller company is that implementation of modern technologies is simpler than it is for Southern Utah Livestock Washout 9 larger companies adopting the same technologies (Lee, Kim, Choi, & Lee, 2009). Similarly, the article, “Measuring Website Quality: Asymmetric Effect of User Satisfaction,” lists the key ingredients that a company needs in order to have a successful website. It stresses the importance of both context and presentation and explains that these are the two most crucial parts of a quality website (Kincl & Strach, 2012). Many parts of the agricultural industry still use archaic marketing strategies and struggle with modern technology. Information from this article will be useful to incorporate modern business practices into an older business model. One specific website that relates to animal transportation is the Livestock Network. While most companies look for business through the Internet, this website provides an up-to-date network of livestock washouts throughout the United States. It further lists all washout stations within each state along with contact information for each station. Under the contact information on this website, companies can add a hyperlink to their website. This is useful with modern technologies such as cellular devices, tablets, and laptops and will be beneficial to the company and its customers by allowing them to schedule appointments (“Livestock Washouts,” 2014). The increase in modern technology has created opportunities for new technological advances to reach all aspects of business organization. In their article, Smidts, Pruyn, and Van Riel explain that helping employees feel like they are an important part of the business can make them feel needed and useful. In a washout business, it would be very wise to take employee suggestions into consideration when making decisions. This simple act can make employees feel like they are essential to the organization. This can be accomplished by maintaining a one-onone relationship with each employee and offering feedback about their suggestions to improve the company and their jobs (Smidts, Pruyn, & van Riel, 2001). Southern Utah Livestock Washout 10 While it is important to keep the people within your organization satisfied and informed, it is also crucial to keep your surrounding community informed as well. In his article, Loza explains the importance of making business decisions that are transparent to the community it serves. Being open with your community and informing them of company changes, brings a sense of unity and trust. Understanding the importance of community backing will not only begin to build a good reputation for a washout company, but it will also help the business to make conscious decisions involving the community (Loza, 2004). Business Plan Material With the final objective of my senior capstone being to create a business plan that is presentable to investors and financial institutions, this material provides information pertaining to a successful business model. These sources explain the characteristics that investors are looking for in startup businesses. The article, “Burn Your Business Plan: What Investors Really Want From Entrepreneurs,” explains in great detail what investors are seeking from new business owners. Using plain terms, Gumpert shows the reality of what it takes to grab future investors’ attention. Furthermore, he explains that constant updates to your business plan are essential because it shows extensive thought and reassures investors that you are current and your business is well qualified (Gumpert, 2004). In addition to Gumpert’s article, MacMillan and Narashimha provide their extensive research of the structure, organization, and financial projections of business plans. These authors conclude that straying too far from the norm decreases an entrepreneur’s chances of being funded. Using this information, the business plan will present a realistic yet unique structure without straying too far from standards (MacMillan & Narashimha, 1987). Another article that correlates with this topic is Matherne’s article, “If You Fail to Plan, Do You Plan to Southern Utah Livestock Washout 11 Fail?” In this article, Matherne presents the paradoxical belief that planning wastes the time that individuals could use setting up the foundation of their companies. However, not putting enough thought and time into planning has the potential of causing your company to fail before it has begun. This article explains that you need to be well rounded in creating and planning for your business (Matherne, 2004). Conclusion Using facts from this research on washout information, livestock transportation, business communication, and business plan material demonstrates the potential that a livestock washout has for the animal transportation industry that runs along Interstate 15. All of these categories specify useful information pertaining to the livestock industry, proving the potential a washout could have in the Southern Utah area. Without any competitors and a definite need for a rest stop for animals and a cleaning facility for trailers, a livestock washout is completely plausible and potentially very profitable. Project Methods The information below provides a detailed outline of research that I have conducted and synthesized to complete a structured foundation for building a livestock cleaning facility. Research Conducted Secondary source research: After having the idea of building a washout, the first procedure was to use the available published resources, which experts in the field have provided. Databases, such as EBSCO and JSTOR provided many academic articles for secondary research. These references offered knowledge and background for building a livestock sanitation center. In addition to the article databases, looking on government websites for regulations on animal Southern Utah Livestock Washout 12 transportation and care helped locate geographic sites for agriculture. Furthermore, these websites provided knowledge dealing with washout facilities for animals. In all of these searches, the following terms were beneficial: Animal transportation, agriculture, animal safety and transportation, and regulations in animal transport. This research used both the business and communication disciplines. Primary source research: After developing a strong understanding of the transportation of animals and safety, along with rules and regulations, I conducted semi-structured interviews. Meeting with the head director of the Department of Transportation Port of Entry and a business attorney, helped the idea of building a washout in the Southern Utah area develop and become practical. Both interviews offered useful information on building a washout. By recording both interviews and replaying them repeatedly, I was able to analyze the key points of the information they gave. Because I conducted both of these interviews on a personal basis, it employed the communication discipline. Blueprints: After conducting primary and secondary research, a blueprint of the projected area, as well as a list of the equipment and products needed to start the business, determined the amount of land and the resources required to build a washout. All of this information relied on the discipline of business. Summary With previous experience and utilizing the two emphasis disciplines of business and communication, it is clear that there is much more to a business than understanding one specific discipline—both communication and business are needed in order to have a successful company. While gathering information, budgeting, and marketing are needed in building a company, these aspect are nothing without the understanding of the importance of communication and building relationships to create trusted bonds with clients, communities, employees, and other businesses. Southern Utah Livestock Washout 13 By understanding this concept, it sets interdisciplinary entrepreneurs apart from other new business owners. Business Proposal Executive Summary In 2005, William Petty, Sr. (Bill) bought into a failing company known as Dark Horse Express. Although the company had over $500,000 in debt and only three trucks, with his knowledge in agriculture and his degree in Business Accounting from Chico State College, Bill was able to recognize the changes needed in order for the company to succeed. As of 2015 Dark Horse Express has over 65 trucks and has assets and revenues of over 6 million dollars. William Petty, Jr. (Will) has shadowed his father for several years at Dark Horse Express, learning the concepts of business from both hands-on and educational perspectives. After receiving a degree from Dixie State University that focuses on both business and communication, Will has outlined his future in accordance with agricultural business. With their combined efforts, both Bill and Will are planning on expanding agricultural services from California to Southern Utah by building a washout station which they will call the Southern Utah Livestock Washout. A basic market analysis proves that a livestock washout and corral facility would be in high demand on the outskirts of St. George, Utah, and in line with Interstate 15. Because of the need for a washout and corralling facility in this region, this business would create a solid foundation in a growing industry. With much livestock being transported down this interstate and no similar facility within a 150-mile radius, this area is in desperate need of a washout service. Furthermore, the Department of Transportation is pushing for this type of company to be established within the surrounding Utah area in order to support the federal laws and regulations pertaining to animal transportation. By contacting other large companies within the surrounding Southern Utah Livestock Washout 14 area that could benefit from a washout and corralling service, along with the DOT, a livestock washout in Southern Utah could be easily established and very successful. Company Description Southern Utah Livestock Washout will provide a place for commercial drivers, specializing in animal transportation, to have their trailers cleaned and sanitized while the animals in route can rest. There are no similar livestock facilities anywhere, from Northern Utah to Las Vegas, Nevada. Furthermore, Interstate 15, a main route throughout many western states, passes through Southern Utah. These factors make Southern Utah a prime location for opening an agricultural cleaning facility. Southern Utah Livestock Washout will be licensed through the state of Utah under an LLP consisting of two partners. Under Utah State law this allows both partners in the company to be unaccountable for one another. While both partners will contribute to the efforts of the company, they will each participate in specific aspects of the company. Will, the first partner, will be the on-site manager and will direct daily operations. With his educational background and work experience, Will understands the key aspects involved in running a washout facility. Bill, the second partner, will file under Utah state law as a silent partner and will primarily look over quarterly financial and legal reports. As previously stated, Bill graduated with a Bachelor’s degree in accounting and a minor in Business administration. Furthermore, Bill is the owner of two other growing agricultural companies: Dark Horse Express, which provides transportation for agricultural commodities and milk, and Petty Livestock, which deals with the transportation of cattle. Due to his background, Bill is qualified to help with these financial decisions. Southern Utah Livestock Washout The cattle 15 80,000 transportation industry is a 70,000 necessity for agricultural 60,000 purposes and for meat- Conservative 50,000 Aggressive 40,000 packaging companies. While it has its peak seasons, it provides 30,000 2016 2017 2018 a constant income throughout the year. With that, the required 2019 Figure 1 services for maintaining the health and safety of the animals are dependent on cleaning facility locations, which are often few and far between. Because of this, the sanitation of trailers is a relatively high expense for people in the cattle transportation industry. Many companies, such as Dark Horse Express, accumulate monthly washing fees over $5,000. This does not include animal storage or basic maintenance. Furthermore, the unique aspect of animal livestock washouts is that the expenses are consistently low. This is because the variable expenses, such as utilities, are generally low and do not fluctuate dramatically. Furthermore, fixed expenses that are attached to the business, such as property, plant, and equipment (PPL) are relatively low. Figure 1 shows the projections of the coming five years in estimated growth with both an aggressive Figure 2 Southern Utah Livestock Washout 16 outlook (high sales expectations) and a conservative outlook (minimum expectations). These projections are based on the estimated budget provided in Figure 2. As Southern Utah Livestock Washout continues to grow, the goals and expectations will continue to grow as well. Building a client list in the beginning will be crucial in order to build a stable net income. This client list will include other companies in the agricultural industry, especially in the state of Utah, along with the Utah Port of Entry, slaughterhouses, and cattle auctions. Building this network within the Utah region will allow Southern Utah Livestock Washout to expand its resources and meet the increasing demands of the livestock business. These demands include offering basic maintenance for trailers, hygiene facilities for commercial drivers, and a driver’s common area for relaxation. Once these goals have been established and income is steady, Southern Utah Livestock Washout will invest in its own livestock transportation trailers. Products and Services The prime objective of the Southern Utah Livestock Washout is to provide quality service to animal transportation companies and their employees. In the animal transportation business a large challenge is the removal of the livestock waste that accumulates in trailers. The average driver is required to wash his or her trailer after every one to two loads, depending upon the amount of manure that has collected. Livestock washouts provide high-pressure hoses and in some cases high-temperature, sanitizing water to clean the large amounts of manure and other contaminants out of the trailer. Washouts also often provide services like break rooms, showers, laundromats, and restrooms in order to help meet the commercial driver’s needs. A unique aspect of Southern Utah Livestock Washout is the ability to offer full-service wash out amenities, whereas many washouts provide only self-service facilities. This means that Southern Utah Livestock Washout 17 on-site employees will wash out the trailers for the drivers. This will naturally require the price of our services to be higher. However, from the perspective of most drivers, the service is wellworth paying an additional fee. Furthermore, hauling livestock is often a time-sensitive venture, and the drivers will generally appreciate the on-site service, which enables them to save time by showering or doing laundry while an on-site employee cleans their trailer. In summary, while Southern Utah Livestock Washout would charge $65 for this service as opposed to the average self-serving washout that charges around $45, the convenience it offers will make paying an addition $20 quite attractive to most drivers. While cleaning the trailer generally catches most of the heavy debris, there is often still excess residue of manure. This excess residue has the potential of spreading diseases that come from sick livestock. For this reason, Southern Utah Livestock Washout will provide 180 degree Fahrenheit, high-pressured water for trailer sterilization. The purpose of this sterilization option is to allow drivers who are carrying sick animals to sanitize their trailers and eliminate the effect of cross-contaminating future loads. Although this service is not typically offered at washouts, it helps livestock moving companies meet the USDA code of animal transportation. Because this service is quite time-consuming and expensive, the price for this sterilization process would be $100, in addition to the original cost for a trailer washout. The company will use the revenue from the high-pressure wash service to convert the excess manure into an eco-friendly, organic fertilizer. They will then sell this organic nitrogenbased fertilizer in 36-pound bag quantities to farmers and landscaping businesses in the Southern Utah area for $5. This will benefit Southern Utah by putting money back into the community, saving customers shipping costs, and providing a completely organic product. Southern Utah Livestock Washout 18 While the Southern Utah Livestock Washout will be similar to many other washouts, it will have specific aspects that will provide unique advantages to ensure its success. The first advantage is that there are no other washouts in the Southern Utah area. This eliminates one of the primary struggles for a startup business: finding your niche among competition. Another advantage that the Southern Utah Livestock Washout has is the ability to rest animals from long journeys. With the company lot being around 5 to 7 acres, it will be able to host many corrals with both water and feed for animals. Most washouts do not have this option, and require a livestock market to rest animals. However, moving cattle to these locations is generally very inconvenient and expensive for the drivers and the companies that they work for. Because of the convenience of offering this option at Southern Utah Livestock Washout, the price of corralling animals will be $150 per day. Another great aspect of this ability to corral animals is that the Department of Transportation currently has little ability to enforce the weight regulations in Southern Utah. This is mainly because there are no stations that able to hold the animals. Thus, working with the Department of Transportation, Southern Utah Livestock Washout will be able to ensure safer roads, as well as increase the company’s revenue. In most markets, a key component is providing quality products and customer satisfaction. Because a washout is a relatively economically elastic business, Southern Utah Livestock Washout needs to ensure quality service and products to its customers. Most commercial livestock haulers own their own vehicle and work for a larger company that owns the trailer and dispatches the loads. This means that for every load the company needs to satisfy two customers. The trailer owners generally want the best cleaning facilities possible, while the drivers generally want the most convenient washout facility. In order to satisfy both of these customers, Southern Utah Livestock Washout must satisfy both of these needs within the Southern Utah Livestock Washout 19 business: high-cleaning facilities for the trailer companies and convenience and leisure for the drivers. By continually satisfying these two clients and being located relatively close to I-15, the washout will be able to create and maintain a large customer base. In order for Southern Utah Livestock washout to satisfy its customers and function correctly, it will need to incorporate specific operations and equipment. While washing trailers sounds relatively easy, there is much more to the process than one might imagine. The following is a list of resources that a washout business requires for basic, day-to-day procedures: Water Collection: In a livestock washout, the most used expense is water. While many states have regulations on water usage, there are two ways to obtain this water. The most efficient way is by taping into a main water supply. The city can provide this either from its main system or irrigation. The second way is by tapping into an underwater reservoir. This requires a well that can produce large amounts of water. With these two methods of accessing water, location will generally determine which route a person should take to access it. Water Tank: The amount of cleaning and sanitizing a washout performs on a daily basis will determine how much water is needed to be stored. The average trailer needing around 2,000 to 3,000 gallons of water to properly clean it. Consequently, the company estimates that it will need to store around 20,000 gallons of water. While there are many types of water storage tanks, the most effective for a cattle washout is a vertical tank. As the tank continually replenishes, gravity helps a vertical tank create pressure. Water Pump: There are many type of pumps used to collect water. A livestock washout will use four different types. Southern Utah Livestock Washout 20 o Well Pump: While this pump can create a large amount of water, it is not designed to create pressure. A well pump is primarily used in a livestock washout to help store water. o Jet Pump: While this type of pump uses less water than a well pump, it has theablility to pressurize. A jet pump’s main purpose in a livestock washout is to clean the foremost manure within the trailers. While it will not necessarily sanitize the trailer, it helps remove the majority of the feces. o Hot Water Pump: The most commonly used pump for sanitizing a trailer is a hot water pump. This type of pump uses very little water compared to the well pump and jet pump. By producing eight gallons of extremely hot and high-pressured water, it can completely sanitize the trailer from bacteria and other diseases. o Waste Management Pump: As all the water the washout uses is contaminated, being able to separate the water from the fecal matter will make it possible to reuse the manure for fertilizer. The waste pump is specifically designed to accept large particles of waste without damaging the pump. This makes separating contamination from the water plausible. All of these pumps are crucial to maximize profits within a washout. Trailer Washout: By creating a specific location for washing to take place, the facility remains clean. In order to achieve this, washing stations need specific components. Firstly, the wash station needs one-foot deep concrete along with a 5% grade running to the drainage pipe. Furthermore, by creating berms on both sides of the concrete it captures more water and waste are captured for recycling. Southern Utah Livestock Washout 21 Contaminated Water Storage: There are many different ways in which livestock washouts hold their contaminated water. Depending on the resources that are available and the safety regulations that the state requires, the types of contaminated water storage available will vary. Most washouts dig a large area out to help with evaporation and the return of water into the ground. Furthermore, to ensure that the water that is returning to the ground is not high in nitrogen, washouts use slop screen separators to remove much of the manure contamination in the water storage. To prevent extreme odors, most washout stations cover the contaminated water. However, keeping manure-based water contained can be flammable and potently explosive. Because of this potential for hazard, Southern Utah Livestock Washout will ventilate the contaminated water with airdeodorizing products. Slop Screen & Manure Packaging: Manure is a great reusable resource that is freely acquired when washing out trailers. While there are many different ways of removing the waste from the water, the most economical for a livestock washout is a slop screen separator. A waste management pump sends contaminated water over a long stainless steal plate, and the water slides down this plate, which has a scraper inside of it. By sifting off the top of the water, it separates the water from the manure. After the manure has dried, it becomes a natural fertilizer that is high in nitrogen. Waste management treatment: Using bio-friendly chemicals not only helps with odors, but also helps with the separation processes of fecal matter and water. The most effective place to use these bio-friendly chemicals is in the entrance of the contaminated water storage. By adding the chemicals at this point, it ensures that only the necessary amount of chemicals is entering the contaminated water. Southern Utah Livestock Washout 22 Livestock Corral: Many livestock washouts do not have corrals for long hauling livestock. However, this is crucial for the health of transported animals. Cattle are often in trailers for 12 or more hours, which can be harmful to the animal. Therefore, the ability to let the livestock off the trailers to eat and rest in a non-contaminated area ensures quality in livestock health. While Southern Utah Livestock Washout will begin with a high-cleaning facility, aimed at securing a steady customer base, improvements of the facilities are both expected and necessary over time. For this reason, after the owners add a corralling structure, they will add an assortment of driver-oriented facilities, including a drivers’ lounge and common area with air conditioning and free soft drinks and washing facilities for hygiene needs, such as a laundromat and shower facilities. These amenities are crucial for the safety of the driver as well as the animals. As DOT regulations require that a commercial driver does not exceed more than 12 hours of driving without a break, by having a place for the driver to rest, they are encouraged to follow these regulations. Once Southern Utah Livestock Washout has established these improvements to the company and if projections stay high, the owners plan to incorporate a basic maintenance station for trailers and possibly a type of shuttling system, which will offer drivers a convenient form of transportation into town that their semi trucks do not provide. Southern Utah Livestock Washout 23 Figure 3 represents a full blueprint of the layout predetermined for Southern Utah Livestock Washout. Figure 3 In summary, the Southern Utah Livestock Washout has many opportunities and advantages. While it will start as a smaller business, it has a high potential of growth in the future. By keeping both drivers and trailer companies satisfied, as well as putting money back into the St. George community, the Southern Utah Livestock Washout has many opportunities to serve the surrounding community. Market Analysis The targeted market consists of companies within Utah and closely surrounding cities such as Grand Junction, Colorado and Las Vegas, Nevada. While Southern Utah Livestock Washout will target primarily larger companies such as auction yards and slaughterhouses, it will also have the ability to provide services to small business owners. Southern Utah Livestock Washout 24 While Utah is an agriculturally dense state, it has many auction yards and slaughterhouses. Although Southern Utah Livestock Washout is set up for large numbers of cattle, it will have the potential to adjust for smaller livestock numbers and for the Utah Department of Transportation. There are four main auction yards that the washout is hoping to provide steady business for: Webb Livestock Company, R Livestock Connection, Smithfield Livestock Auction, and Anderson Livestock Auction. These auction yards are the four largest, on record, in the state of Utah. Figure 4 illustrates the locations of these auctions relative Figure 4 to the St. George area. Because the specific location for the Southern Utah Livestock Washout is unknown, figure 4 does not show a specific washout location. Thus, the circle illustrates the general geographic area of the washout. As shown, these facilities are all located near Interstate 15 and therefore, most transporters hauling for these facilities will use it as their primary route of transport. This means that basing Southern Utah Livestock Washout close to Interstate 15 will improve the likelihood of success. Working with these target customers will benefit Southern Utah Livestock Washout in two ways. Firstly, the washout will offer trucking companies volume related discounts, which will create a financial incentive for them to try the facility. Once they have access to the highest Southern Utah Livestock Washout 25 quality washout in Utah they will become permanent customers. In return for these discounts, Southern Utah Livestock Washout will ask the companies to place advertisements for Southern Utah Livestock Washout within their facilities. A second advantage to working with these large companies, especially at the inception of the washout company, will be its ability to gauge and determine the busy seasons of the year and project future high points. In addition to advertisements placed within these facilities, Southern Utah Livestock Washout will also place advertisements on cattle trucks and other livestock vehicles. While these ads will be an additional expense for the washout, the fee will be well worth the marketing opportunities that the washout will gain because drivers tend to congregate in the same locations and visit with one another while trucks are being loaded and unloaded. The final aspect to take into account is the competition. While there are seven locations for livestock washouts in Utah and other surrounding states, none of them are relatively close to the Southern Utah area. In fact the closest location is Las Vegas, Nevada, which is approximately one and a half to two hours away from the Southern Utah location in a commercial vehicle. In addition, the Las Vegas washout does not possess any of the luxuries that the Southern Utah Figure 5 Livestock Washout will provide. In fact, in the state of Utah there is only one facility that could offer the same quality of experience and that is the Turpin Truck Repair and Wash located in Southern Utah Livestock Washout 26 Springville. This location is over four hours north of Southern Utah, and consequently, it would not affect our clientele because of geographic location. Figure 5 is a representation of all of the livestock washouts that are in line with the main interstates and have the potential of clientele transporting through the Southern Utah region. While all of these washouts can be found online at the Livestock Network website, few washouts have listed information pertaining to their company and facility pricing. For marketing purposes, the Southern Utah Livestock Washout will create a website that will detail services, location, and pricing. In addition, the company will allow for online scheduling to ensure priority washout. This will cut down on customer wait time, and with time being such an essential component in this industry, the washout will gain an advantage over the competition. While many commercial livestock companies use the Livestock Network, by linking the company website to this network, it will ensure quality and efficiency. All of the information gathered demonstrates that Southern Utah Livestock Washout has tremendous potential by working with large companies, in a region with few competitors. Strategy and Implementation As previously stated, Southern Utah Livestock Washout’s targeted market will consist of large companies within the state of Utah and the neighboring states. By reaching out to these companies and offering them discounts for using the washout services, it will ensure success in the market. Services Southern Utah Livestock Washout will be relatively comparable to surrounding washouts and their services. However, this washout will have a larger variety of options. While having the standard services of a livestock washout, and offering web-based technologies, the company can Southern Utah Livestock Washout 27 produce a more efficient and consistent cycle of production. For example, while most, if not all, other washouts have a first-come-first-served mentality, Southern Utah Livestock Washout will be able to offer appointment scheduling to ensure customer satisfaction and assembly-line efficiency. As most drivers will not be accustomed to this new online-scheduling option, we cannot completely stray from the first-come-first-served approach. Therefore, Southern Utah Livestock Washout will have two bays as shown 1 in Figure 6. Bay 1 will be for 2 scheduled appointments, while bay 2 will function on the first-come-firstserved basis. While it is likely the Figure 6 scheduling concept will take time for customers to adjust to, if there are no scheduled appointments both bays will be able to be utilized on a first-come-first-served operation. Operations’ Cycle The two most important cycles within the operation cycle are the entrance driving cycle and the washing cycle. These two operations are crucial in creating efficiency and organization. The first cycle discussed is the entrance and driving cycle. While the facility property is currently unknown, we cannot fully determine the entrance of the facility. However, when driving large transportation vehicles, especially livestock, it is crucial to know the exact route that is acceptable to take. Power lines, trees, dips, etc. need to be taken into consideration with livestock trailers. This is mainly because the trailer itself needs priority attention over many other types of semi-trailers. Because of its low-belly frame and its long drive train, it is crucial for small lots that have trailers coming in and out to map out the acceptable routes. Figure 7 Southern Utah Livestock Washout 28 illustrates how trucks will be move throughout the property. The blue route indicates the standard washout and parking procedure, while the yellow route indicates the course trucks should take if there are animals onboard that need to be corralled before the trailers can be washed. Bay 1 or bay 2 can be utilized for either route but are shown separately in Figure 7 for purposes of simplification. While this route may sound relatively obvious, as previously Figure 7 stated, it is much more complex and important to diagram than it may appear. The second cycle that is crucial for efficiency of cleaning in an assembly-line fashion is the washing cycle. Figure 8 represents the standard cattle trailer design. The way in which it is cleaned is essential for hygiene and speed. When cleaned correctly, a basic wash cycle should take anywhere from 45 minutes to 1 hour. The Figure 8 orange numbers in Figure 8 Southern Utah Livestock Washout 29 indicate the different compartments within the trailer. The dotted lines indicate detachable decks that can be inserted or removed, depending on the type of animals the trailer is carrying. The standard procedure goes from compartment 1 to compartment 4. Compartments 1A and 3C can be discarded if they do not need to be cleaned, or if they are not in the trailer. As the trailer is stationed at a 5% incline on the wash bay, all the manure from compartments 2 and 3 will drain out the back of the trailer. However, compartment 1 will drain into compartment 4. Because it is lower than compartment 3, the only way the contaminated water can be removed is from drain plugs located at the back of compartment 4. The blue arrow in the diagram indicates the location of the drain plugs. In the wash cycle, it is crucial to pull these plugs before washing or it becomes extremely difficult to remove the wastewater. Pricing and Promotions While livestock cleaning facilities vary in price depending on location and services, these prices can range from $45 for a self-wash to $190 for a deep sterilizing, high-temperature washout. Because Southern Utah Livestock Washout will not have any local competition and will be providing a quality level of service, the base price will begin at $75 for a basic on-site service cleaning. With that, there will be an additional fee of $5 for each of the decks the employees clean. Examples of these are shown in figure 8 as 1A and 3C. Furthermore, as the company will have the ability to sterilize trailers, the price of this service will be based on the industry standard of $190. In addition to the washing, corralling animals will be a flat daily rate of a $150 fee per trailer. This fee includes essential products such as hay and water for these animals. In addition to fees for washouts and corralling, Southern Utah Livestock Washout will provide a few convenience-related amenities. While showering and laundry facilities will normally be $3.00 per unit, in order to encourage the new online-scheduling option, the washout Southern Utah Livestock Washout 30 will provide free showers and laundry to any customers who schedule an appointment online. For companies that have accounts, we will also provide a small discount of 5% to ensure customer loyalty. The livestock washout will provide complimentary services such as free fountain drinks, a common area with air conditioning, and free Wi-Fi throughout the facility. Organization and Management Team Southern Utah Livestock Washout will have two owners. Both owners have a background in business along with experience dealing with agriculture and animal transportation. The first partner, Will, will be the on-site manager and will direct daily operations. As a graduate of Dixie State University, with a degree in Integrated Studies: Business Administration and Human Communication, along with an extensive background dealing with agricultural transportation, Will understands the key aspects involved in running a washout facility. He will own 40% of the company. The second partner, Bill, will file under Utah state law as a silent partner and will primarily look over quarterly financial and legal reports. Bill graduated from Chico State University, with a Bachelor’s degree in Accounting and a minor in Business Administration. Furthermore, Bill is the owner of two other growing agricultural companies: Dark Horse Express, which provides transportation for agricultural commodities such as milk and feed, and Petty Livestock, which deals with the transportation of cattle. He has more than 40 years of experience with livestock and over 30 years of experience in the transportation industry. Because of his extensive knowledge and experience in the agriculture business along with his business success, Bill will retain 60% ownership of Southern Utah Livestock Washout. At the startup of the business, the owners will take a fundamental approach with the key goal being to wash out trailers and corral animals. This means that in the beginning, Southern Southern Utah Livestock Washout 31 Utah Livestock Washout will have a total of three employees, two owners, and one suborganization. Figure 9 outlines the beginning organizational structure of the business. Employee #1 Cleaning Crew Owner/Manager Private Owner Will Petty Bill Petty Employee #2 Cleaning Crew Employee #3 Night Worker Financial Advisement Accountants Figure 9 While the cleaning crew’s main purpose will be to clean and sanitize trailers, when business is slow, they will also be required to assist in other jobs such as fertilizer packing, janitorial responsibilities, and animal unloading or reloading from trailers. As previously stated, while the business continues to grow and stabilize, Southern Utah Livestock Washout has plans to advance toward expansion. While it will always retain its washout and holding corrals, it will eventually offer mechanical facilities for basic repairs and day and night managers. These will form a more structured organization. Furthermore, the washout will eventually offer services that companies and drivers will benefit from, such as laundry and showering facilities. Although the night manager will supervise a mechanic and cleaning crew, the mechanic’s primary job will be to help the cleaning crew employee, with the exceptions of minor emergency situations. When the owners decide to add these two management positions, in order to make the company run efficiently, they will provide hands-on Southern Utah Livestock Washout 32 training and daily responsibilities for the managers. Figure 10 maps the advanced company structure. Private Owner Owner/CEO Will Petty Daytime Manager Night Manager Manager #1 Employee #1 Cleaning Crew Employee #2 Cleaning Crew Bill Petty Manager #2 Employee #3 Mechanic Employee #4 Cleaning Crew Financial Advisement Accountant Employee #5 Cleaning /Mechanic Figure 10 While the initial startup of Southern Utah Livestock Washout should be fairly simple, employees will need to be properly trained, understand their job responsibilities, and learn the expectations and goals of the company. By following these startup procedures, adding services and employees to the company should be a fairly simple undertaking. Company development will only proceed when the initial steps are achieved, the company is functioning well, and the developments have become financially feasible. Financial Plan and Projections The following information coincides with the budget which was referred to in the Company Description section by explaining the washout’s financial plan in further detail. The balance sheet (Figure 11) along with the income statement (Figure 12), will explain the monthly estimated expenses and revenues that were briefly mentioned in the budget. Furthermore, Figure Southern Utah Livestock Washout 33 13 represents an amortization loan that gives a detailed outline of the revenue needed in order start the Southern Utah Livestock Washout. While most of these numbers are speculative, the built in formulas in the spreadsheet will make it possible for the owners to easily adjust the chart when the time comes. Southern Utah Livestock Washout Projected Income Statement For month ending December 31, 2016 Southern Utah Livestock Washout Projected Balance Sheet For year ending December 31, 2016 Revenues Washout Service Income Manure Sales Animal Corraling Income Total Revenues Assets Current assets: Cash Accounts Recevable Inventory Total Current Assets Plant & Equipment Land Building & Equitment Accumulated Depreciation Plant and equipment, Net Total Assets 15,183 70,191 $13,200 $19,500 500 9375 $29,375 $98,574 $610,000 $109,000 -$266,000 $453,000 $551,574 Liabilities And Owners Equity Current Liabilities Accounts Payable Owner Equity Retained Earnings Total liabilities & Owners Equity Figure 11 $17,500 $534,074 $551,574 Expenses Depreciation/Loan Amortization Utilities Expense Salaries Expense Advertising Expense Insurance Expense Total Expenses Net Income $6,466 2100 14325 200 200 $23,291 $6,084 Figure 12 Southern Utah Livestock Washout 34 Inputs Cost of Real Estate Down Payment (20%) Loan Amount Mortgage Rate Maturity (in years) First Payment Date Monthly Income Income Toward Mortgage Outputs $728,000.00 $145,600.00 $582,400.00 6.000% 10 1/1/16 $29,375.00 $7,343.75 Monthly Payment Max Montly Payment Total Interest $6,465.83 $10,281.25 $193,500.08 Figure 13 $700,000.00 $600,000.00 0.06 $500,000.00 $400,000.00 Series1 $300,000.00 $200,000.00 $0.00 1 8 15 22 29 36 43 50 57 64 71 78 85 92 99 106 113 120 $100,000.00 Fully Amortized Period 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Beginning Balance 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 $582,400.00 $578,846.17 $575,274.56 $571,685.10 $568,077.69 $564,452.25 $560,808.67 $557,146.88 $553,466.78 $549,768.28 $546,051.29 $542,315.71 $538,561.46 $534,788.43 $530,996.54 $527,185.69 $523,355.78 $519,506.73 $515,638.43 $511,750.79 $507,843.71 $503,917.09 $499,970.84 $496,004.86 $492,019.05 $488,013.31 $483,987.55 $479,941.65 $475,875.52 $471,789.07 $467,682.18 $463,554.76 $459,406.70 $455,237.89 $451,048.25 $446,837.66 $442,606.01 $438,353.21 $434,079.14 $429,783.70 $425,466.79 $421,128.29 $416,768.09 $412,386.10 $407,982.20 $403,556.27 $399,108.22 $394,637.93 $390,145.28 $385,630.18 $381,092.49 $376,532.12 $371,948.95 $367,342.86 $362,713.74 $358,061.47 $353,385.95 $348,687.04 $343,964.64 $339,218.63 $334,448.89 $329,655.30 $324,837.74 $319,996.10 $315,130.25 $310,240.06 $305,325.43 $300,386.22 $295,422.32 $290,433.60 $285,419.93 $280,381.20 $275,317.27 $270,228.02 $265,113.33 $259,973.06 $254,807.09 $249,615.29 $244,397.53 $239,153.69 $233,883.62 $228,587.21 $223,264.31 $217,914.80 $212,538.54 $207,135.39 $201,705.24 $196,247.93 $190,763.33 $185,251.32 $179,711.74 $174,144.46 $168,549.35 $162,926.27 $157,275.06 $151,595.60 $145,887.75 $140,151.35 $134,386.28 $128,592.37 $122,769.50 $116,917.51 $111,036.27 $105,125.62 $99,185.41 $93,215.50 $87,215.75 $81,185.99 $75,126.09 $69,035.88 $62,915.23 $56,763.97 $50,581.96 $44,369.03 $38,125.04 $31,849.83 $25,543.25 $19,205.13 $12,835.32 $6,433.67 Total Payment $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 $6,465.83 Extra Payment Intrest Expense $2,912.00 $2,894.23 $2,876.37 $2,858.43 $2,840.39 $2,822.26 $2,804.04 $2,785.73 $2,767.33 $2,748.84 $2,730.26 $2,711.58 $2,692.81 $2,673.94 $2,654.98 $2,635.93 $2,616.78 $2,597.53 $2,578.19 $2,558.75 $2,539.22 $2,519.59 $2,499.85 $2,480.02 $2,460.10 $2,440.07 $2,419.94 $2,399.71 $2,379.38 $2,358.95 $2,338.41 $2,317.77 $2,297.03 $2,276.19 $2,255.24 $2,234.19 $2,213.03 $2,191.77 $2,170.40 $2,148.92 $2,127.33 $2,105.64 $2,083.84 $2,061.93 $2,039.91 $2,017.78 $1,995.54 $1,973.19 $1,950.73 $1,928.15 $1,905.46 $1,882.66 $1,859.74 $1,836.71 $1,813.57 $1,790.31 $1,766.93 $1,743.44 $1,719.82 $1,696.09 $1,672.24 $1,648.28 $1,624.19 $1,599.98 $1,575.65 $1,551.20 $1,526.63 $1,501.93 $1,477.11 $1,452.17 $1,427.10 $1,401.91 $1,376.59 $1,351.14 $1,325.57 $1,299.87 $1,274.04 $1,248.08 $1,221.99 $1,195.77 $1,169.42 $1,142.94 $1,116.32 $1,089.57 $1,062.69 $1,035.68 $1,008.53 $981.24 $953.82 $926.26 $898.56 $870.72 $842.75 $814.63 $786.38 $757.98 $729.44 $700.76 $671.93 $642.96 $613.85 $584.59 $555.18 $525.63 $495.93 $466.08 $436.08 $405.93 $375.63 $345.18 $314.58 $283.82 $252.91 $221.85 $190.63 $159.25 $127.72 $96.03 $64.18 $32.17 Principal $3,553.83 $3,571.60 $3,589.46 $3,607.41 $3,625.45 $3,643.57 $3,661.79 $3,680.10 $3,698.50 $3,716.99 $3,735.58 $3,754.26 $3,773.03 $3,791.89 $3,810.85 $3,829.91 $3,849.06 $3,868.30 $3,887.64 $3,907.08 $3,926.62 $3,946.25 $3,965.98 $3,985.81 $4,005.74 $4,025.77 $4,045.90 $4,066.13 $4,086.46 $4,106.89 $4,127.42 $4,148.06 $4,168.80 $4,189.64 $4,210.59 $4,231.65 $4,252.80 $4,274.07 $4,295.44 $4,316.92 $4,338.50 $4,360.19 $4,381.99 $4,403.90 $4,425.92 $4,448.05 $4,470.29 $4,492.64 $4,515.11 $4,537.68 $4,560.37 $4,583.17 $4,606.09 $4,629.12 $4,652.27 $4,675.53 $4,698.90 $4,722.40 $4,746.01 $4,769.74 $4,793.59 $4,817.56 $4,841.65 $4,865.85 $4,890.18 $4,914.63 $4,939.21 $4,963.90 $4,988.72 $5,013.67 $5,038.73 $5,063.93 $5,089.25 $5,114.69 $5,140.27 $5,165.97 $5,191.80 $5,217.76 $5,243.85 $5,270.07 $5,296.42 $5,322.90 $5,349.51 $5,376.26 $5,403.14 $5,430.16 $5,457.31 $5,484.59 $5,512.02 $5,539.58 $5,567.28 $5,595.11 $5,623.09 $5,651.20 $5,679.46 $5,707.86 $5,736.40 $5,765.08 $5,793.90 $5,822.87 $5,851.99 $5,881.25 $5,910.65 $5,940.21 $5,969.91 $5,999.76 $6,029.76 $6,059.90 $6,090.20 $6,120.65 $6,151.26 $6,182.01 $6,212.92 $6,243.99 $6,275.21 $6,306.58 $6,338.12 $6,369.81 $6,401.66 $6,433.67 Ending Balance $582,400.00 $578,846.17 $575,274.56 $571,685.10 $568,077.69 $564,452.25 $560,808.67 $557,146.88 $553,466.78 $549,768.28 $546,051.29 $542,315.71 $538,561.46 $534,788.43 $530,996.54 $527,185.69 $523,355.78 $519,506.73 $515,638.43 $511,750.79 $507,843.71 $503,917.09 $499,970.84 $496,004.86 $492,019.05 $488,013.31 $483,987.55 $479,941.65 $475,875.52 $471,789.07 $467,682.18 $463,554.76 $459,406.70 $455,237.89 $451,048.25 $446,837.66 $442,606.01 $438,353.21 $434,079.14 $429,783.70 $425,466.79 $421,128.29 $416,768.09 $412,386.10 $407,982.20 $403,556.27 $399,108.22 $394,637.93 $390,145.28 $385,630.18 $381,092.49 $376,532.12 $371,948.95 $367,342.86 $362,713.74 $358,061.47 $353,385.95 $348,687.04 $343,964.64 $339,218.63 $334,448.89 $329,655.30 $324,837.74 $319,996.10 $315,130.25 $310,240.06 $305,325.43 $300,386.22 $295,422.32 $290,433.60 $285,419.93 $280,381.20 $275,317.27 $270,228.02 $265,113.33 $259,973.06 $254,807.09 $249,615.29 $244,397.53 $239,153.69 $233,883.62 $228,587.21 $223,264.31 $217,914.80 $212,538.54 $207,135.39 $201,705.24 $196,247.93 $190,763.33 $185,251.32 $179,711.74 $174,144.46 $168,549.35 $162,926.27 $157,275.06 $151,595.60 $145,887.75 $140,151.35 $134,386.28 $128,592.37 $122,769.50 $116,917.51 $111,036.27 $105,125.62 $99,185.41 $93,215.50 $87,215.75 $81,185.99 $75,126.09 $69,035.88 $62,915.23 $56,763.97 $50,581.96 $44,369.03 $38,125.04 $31,849.83 $25,543.25 $19,205.13 $12,835.32 $6,433.67 $0.00 Southern Utah Livestock Washout 35 Conclusion As modern technology has extensively increased the quality of life for transported livestock, improvements and developments are still needed. While the Midwest and the West Coast have implemented many cleaning facilities and resting stations for livestock transporters, there is a gap between these two regions. By implementing more washout stations, it will not only help the animals by reducing fatigue and stress, but also ensure safety for exhausted drivers. With the collected data, the Southern Utah area has shown promising success for a livestock resting and washout station. As Interstate 15 has a large amount of animal transportation coming from the Midwest, the resting areas and cleaning facilities along the way are scarce. Because of the lack of washout stations and low competition, Bill and Will Petty plan to implement a cleaning facility for these transportation companies. The research and information detailed in this work provide the necessary requirements that a washout will need in the Southern Utah area along with a developed proposal that is acceptable for submission to financial institutions and stockholders. 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