Business Plan

4415 Granite Drive

Suite 200

Rocklin, CA  95677
 

Myk Powell,  Owner - (805) 610-8153​

myk@mysafehorse.net

 

Statement of Purpose

 

Mysafehorse.net will be providing a totally portable horse monitoring system that uses artificial intelligence to continuously keep track of your horse looking for stressed or dangerous behaviors.

Any funding raised will be used to create the inventory that we need to go to market, we are past the prototype phase and I have spent over $70,000 to prove every aspect of our build. Therefore any money invested will be used to get us into the marketplace ASAP.

My wife and I have spent the past 30 years building, maintaining and improving boarding facilities for our horses and dozens of other horse owners in California. Our development team spreads across the globe and includes an internationally recognized expert in artificial intelligence and intuitive user interfaces, young technology engineers from our start-up makerspace, Hacker Lab, and a Certified Ethical Hacker that has assisted us in building, “the most secure camera available in the marketplace today”. Our CFO earned his BS in Math and Physics at Jacksonville State College and then retired from the ARMY as a Lt. Colonel after 20 years and then became a Certified Financial Planner. Now he spends his time working with us and spending time with the Grandkids.

The Complete Package: Portable camera with Artificial Intelligence and “Power Over Ethernet” That is low voltage for the protection of your horse.

Request for Funding

 

We are seeking $500,000.

mysafehorse.net needs this money to take us out of the prototype and proving stage into the production and revenue stage.

 

Over the past year we have invested $71,000 of our own money to verify the marketplace, the needs of our customers and design the best device to ease the marketplace’s concerns. We have surpassed even our own expectations and are now ready to take mysafehorse.net to the next stage.

 

mysafehorse.net is a family business. The Powell Family comprises our Upper Management Team and collectively we stand behind our product and all commitments made.

Your Horse Safety Is As Close As Your Phone

The Company

 

mysafehorse.net is a startup company 30 years in the making. We are bringing the latest generation of intelligent video analytics to horse owners to monitor their horses’ well-being no matter where their horses are, or where the owner may be. Our mission statement is, “We want to be your intelligent and vigilant partner providing monitoring services and peace of mind to horse owners everywhere”.

 

Currently we have an uncontested path to the marketplace.  With this infusion of capital we will travel to mom and pop tack and feed stores and put trifolds on the counter next to the check out register. The brochure will send their customers to our web page. When they decide to buy they simply enter the store ID number on the back of the tri-fold and the tack and feed store will get their commission.  

 

mysafehorse.net will also become a recognizable participant in horse shows across the country. Our first one is, “The Western Horse Expo” at The Sacramento Exposition Center on June 8,9 & 10.

 

Our management team, Myk Powell CFO, Roberta Powell CMO, and Bill Powell CFO have their offices in the Hacker Lab at 4415 Granite Dr. Rocklin, CA. 95677.

 

We are an S Corporations with 94% of the company owned by The Powell Family, 1% owned by Haney Biz and 5% owned by Philip Mally our CTO.

The Industry

 

The current estimate according to a recent study commissioned by the American Horse Council Foundation and conducted by the Barents Group is 9.2 million horses in The United States, this includes both recreational and commercial horses. Out of the grand total 3.91M are used for recreational purposes, 2.72M for showing, 1.75M for other activities including farm work, rodeo, polo, police work etc. and 840K are used for racing.

 According to the U.S. Department of Agriculture the horse industry impacts the American economy in greater measure than motion picture services, railroad transportation, furniture and fixture manufacturing and cigarettes. The industry employs more than 700 thousand people directly. 450 thousand of these positions are full-time equivalent jobs, the rest are part-time and seasonal.

The industry pays a total of $1.9 billion in taxes to federal, state and local governments

  • Federal - $588

  • State - $1,017

  • Local - $275

The cost of keeping a horse varies widely depending on where you live and the level of service your stable provides. Simple pasture boarding can cost as little as $100 a month. However, stable boarding can cost $500 or more.

If you plan to keep your horse on your own land, you’ll also need to consider whether the property is adequately equipped. First, you'll need about two acres of good pasture per horse for grazing. You'll also need well-maintained barn space, particularly if you live in a cold climate.

THE COST OF OWNING A HORSE: FEED, MAINTENANCE AND HEALTHCARE NEEDS

 

Most horse owners spend about $60 to $100 per month on hay, salt and supplements – and some spend much more, particularly if they feed grain.

Maintaining your horse's hooves adds even more to the cost of a horse. Whether or not you plan to shoe your horse, you'll need to have a farrier check and trim his hooves every two months or so. This usually costs around $25 or $30. Add in shoeing, and you could pay $80 to $100 every two months.

Routine medical care is an additional cost of owning a horse and includes vaccinations, de-worming and annual teeth cleaning. For a healthy horse, this can cost as little as $300 a year. However, if your horse gets injured or ill, you could pay hundreds or even thousands for a one-time treatment. Although you can't predict such expenses, prepare yourself for the possibility before you buy a horse.

THE COST OF A HORSE IS WORTH EVERY CENT

If all these costs – as well as optional expenses, such as tack, riding lessons and show entry fees – leave you feeling daunted about buying your first horse, remember that there's no substitute for an equine companion. Although the cost of a horse isn't small, the rewards are large. As long as you've planned ahead and can afford your horse, you won't regret it.

Products/Services

 

Every horse owner, veterinarian, farrier, trainer in the country  has wanted to put their eyes on their horse, patient, or project when they are away from the barn. Mysafehorse.net makes that possible. Make no mistake, this is not a nanny cam. Nanny cams are great if you board your nanny in a barn. At mysafehorse.net we are horse people building products for horse people knowing our products will need to survive in a hostile barn environment.

We have taken the monitoring system to a whole new level. In the past if you were not actively looking at your mobile device and monitoring their activity you were left wondering and your horse was left vulnerable. As our Artificial Intelligence becomes more and more refined it will keep a vigilant and intelligent eye on your horses and alert you when any of the designated triggers are activated.

Mysafehorse.net uses a custom made Printed Circuit Board and the latest generation compute module to run the cameras and proprietary AI program that sets our devices apart from anything in the industry and anything that may come into the industry for the next several years.

Our niche market is people that board their horses outside the primary residence. John Volk, senior consultant with Brakke Consulting in Chicago, said his company's marketing survey gave his clients in the animal health and nutrition industry more information than they'd ever had before. The majority own multiple horses. Fourteen percent own one, twelve percent own 10 or more and the other 74 percent lie in between. Two thirds keep their horses on their own property. "They own property because they own horses," Volk said. Twenty percent board their horses elsewhere.

The features and benefits that we offer are the complete portability of our monitoring systems. We can follow and monitor your horse from the boarding facility to the trailer to the events center. Not only will our cameras allow you to monitor your horse our proprietary Artificial Intelligence programs will look for designated behaviors when you can not.

Our guarantees and warranties protect our customers from the day they open their device. We stand by our products and our customers with the ability to push updates and enhanced AI capabilities to our cameras in the field without going offline or loss of monitoring capabilities. Because we have access to our cameras while deployed in the field we can determine if any problems are software or hardware related. If it is a software problem we can update and fix most issues without taking the cameras down or unnecessary input from the owners. If it is a hardware problem then we will ship the end user a replacement device at no charge.

The unique technologies we have incorporated into our cameras include proprietary and patented hardware and a neural network data analytical system designed to learn about your horse and send you updates that allow you to determine the best course of action.

Our initial rollout will consist of supplying tri-fold brochures to local tack and feed stores. The printed material will drive their customers to our website, Our website will have live demos that the customer can view and when they decide to buy they key in the store ID Number on the back of the brochure and   a commission is developed for the local store, no inventory, no shoplifting, no problem.

In the future we will have the capability to provide boarding facility owners and trainers with business to business services called “The Whole Ranch System” That will use regular IP cameras with the video stream going  through our data analytics, that will lower the price of individual cameras and still add value to the facility owners bottom line.

mysafehorse.net bringing leading edge technology to “The Sport Of Kings”.

We plan to sell a high definition, waterproof, dustproof, shockproof, image stabilizing, almost horse-proof camera to capture all of your horse movements in minute detail. In the barn you plug it in, if you want to trailer your horse or video an event you can unplug it and the battery will keep it running for 10 to 12 hours. We are using a proprietary artificial intelligence program that analyzes every frame. That means it can learn about your horse. Recognize your horse from any angle and monitor your horse’s movements looking for stressed or dangerous behavior. It can learn who is supposed to be in the barn and who is not. If an event makes it past two separate analyzing programs you will get a text and video of the cause of the event. Our PVR (Portable Video recorder) is not streaming constantly to the internet. Of course, you can monitor your horse anytime you want in real time and all the video is being archived in high definition on the device but because we are only streaming when an event occurs we can reduce the bandwidth needed by over 90% making cellular monitoring a viable option.  We will also offer a monthly plan to cover our software and video storage and a cellular plan if needed.

We will sell our products at tack and feed stores using the printed materials, online using the website and going to one of 6,393 horse shows and competitions held in The United States every year.

Our camera will retail for $899. It costs me about $220 to get our product to the end user and we expect that price to go down when we can scale our orders to qualify for larger discounts. Each customer will also need to buy a monthly subscription to our web storage and access to our AI programs. We will pay $5 to $6 a month for storage and the software and will charge our customers $45 for the basic package. If our customer wants access to cellular data we have plans starting at $40 and going up to $110 a month depending on the amount of data used, these plans will cost us from $20 to $80.

Our distribution system will consist of direct mailing if the unit is bought online or through a tack store and handing over the camera if they purchase at one of the horse shows. We will also incorporate Amazon and ebay into our distribution system.

  • 5 States

  • 55 Tack Stores

  • 28 Boarding Facilities

  • 35 Farriers

  • 7 Vets

When Can I Buy It?

Market Analysis

 

We have studied and interviewed our potential market. Over the past 18 months I have talked to horse owners in 8 states, I talked with tack and feed store owners, boarding facilities, farriers, veterinarians, none of them have ever seen a system like ours and the universal response is, “When can I buy it?”. The American Association of Equine Practitioners had an interesting quote that headlined their 2017 economic impact study, it read, “The Public’s concern for horse welfare is at an all time high, while the Public’s knowledge of what constitutes good horse welfare is at an all time low”. That quote illustrates the fact that while the number of horses in The United States has been on the decline the expenditures in the equine industries has been on the increase as horse owners want to keep and maintain their horses in top physical condition. More and more often horse owners are turning to technological advances to maintain their animal’s welfare. We will be on the cutting edge of this evolution.

Our customers are widespread:

 

Number Of Horses By State

  • Texas: 1,000,000

  • California: 700,000

  • Florida: 500,000

  • Oklahoma: 326,000

  • Kentucky: 320,000

  • Ohio: 307,000

  • Missouri: 281,000

  • North Carolina: 256,000

  • Colorado: 256,000

  • Pennsylvania: 256,000

but there are some consistencies that remain constant. There are an estimated 2 million horse owners in the United States and a total of 7.1 million Americans are involved in the industry as owners, service providers, employees and volunteers.

Demographics:

  • Gender: mostly females

  • Age Range: 38 – 45

  • Employment Status: employed

  • Marital Status: Married

  • Urban or Rural: Rural

Percentage of Owners by Household Income:

  • *Median income: $60,000

  • <$25,000:14%

  • <$50,000: 38%

  • <$75,000: 64%

  • >$75,000: 36%

Owner Activities:

  • Recreational Rider: 85%

  • Competitive Rider: 30%

  • Horse Breeding: 11%

  • Horse Facility Manager: 10%

  • Grooming and Exercising: 9%

  • Professional Trainers: 7%

  • Racehorse Owner: 2%

Everyone in the equine industry wants to keep track of their horses, everyone who owns or manages a horse needs to be kept aware of what their horses are doing.

Our base customer is easy to reach because the tack and feed stores in rural areas are like the barbershops in urban areas. Every morning about 8:30, after the morning feed and welfare check most horse owners head to the tack and feed store to have a cup of coffee and get caught up on the days events. We will have our printed materials and motivated store employees to spread the word about our products. The horse shows and competitions are where we will be able to contact the horse owners that trailer their horses. We also have a robust social media campaign that will assist us in reaching out to our potential marketplace.

Our camera will retail for $899. It costs me about $220 to get our product to the end user and we expect that price to go down when we can scale our orders to qualify for larger discounts. Each customer will also need to buy a monthly subscription to our web storage and access to our AI programs. We will pay $5 to $6 a month for storage and the software and will charge our customers $45 for the basic package. If our customer wants access to cellular data we have plans starting at $40 and going up to $110 depending on the amount of data used, those plans will cost us from $20 to $80.

Our competition is marketed towards a different marketplace than we are. They only provide services to facility owners. Their products are ridiculously expensive and bolted to a wall.  We cater to the horse owner and provide them with the portability and ease of use that they desire. Our competitors require a professional installer and their smallest system is two cameras and is priced at over $3,300 with a monthly service charge of $60 per camera. Our competitors cameras are connected by ethernet cables to a Network Video Recorder that needs to be placed in the barn with no hardening that will allow the sensitive electronics to survive in the barn.

Our total marketplace is the 9,200,000 horses in the united states. We can realistically get %25 of horses boarded at facilities that would make 420,000 units sold. 32% of the horses in the United States are equine athletes that are trailered to events. If we capture just 5% of this market that would be another 14,720 units sold. That is 434,720 units in total. In the future we will be catering to facility owners and equestrian centers that will increase our potential profitability.

Market Strategy

 

Our Competitive edge is the fact that we have researched the marketplace and developed a system that satisfies our customers wants and we have incorporated enough technology to keep us ahead of any newcomers to the marketplace for the foreseeable future.

Our customer service begins with a software program that checks the status of all of our cameras nightly and texts us with any warning signs that it may detect. We can then go into the camera from our office and determine if it is a software problem that we can address remotely or a hardware problem that we can replace.

Our company is uniquely positioned in the marketplace as the only company that will provide a horse owner with a one stop solution to their desire to monitor their horse, anywhere, anytime from anyplace.

The pricing strategy that we have implemented will keep the end user price at a level well below anyone else in the marketplace while maintaining enough of a profit margin to facilitate our upcoming research and development. We will not be providing credit terms. Our discounts for initial rollout is $100 off of our $899 selling price.

We forecast to be selling 5 units a month from the 3 tack and feed stores that we are currently working with in July (15 units).  We will incorporate one store a week starting in June and that will increase sales (35 units). We will be going to SouthPoint Equestrian Center in Las Vegas at the end of July and expect to sell 15 units in two days (70 units). We want to sell 55 units a month not including horse show sales through the end of the year to keep us on target. These numbers are realistic and doable.

Our recurring revenue stream is based on the basic $45 a month subscription fee. We make $40 a month on each subscription, ($600 in May, $2000 in June, $4,200 in July, and an additional $2,200 a month through the end of the year).

Our Marketing Budget will include horse show entry fees ($450 in July) and the $800 a month we are investing in our electronic media infrastructure and content. Our print media and promotional materials will cost us another $500 a month.

Special targets and niche marketing will include in store marketing, and getting trainers and farriers to recommend our products to their customers.

Management

 

mysafehorse.net’s Corporate Structure is, we have a CEO in charge of running the corporation, A CFO in charge of handling the money coming in and going out. A CMO in charge of all marketing. CCO in charge of customer care and retention. A CTO in charge of research and development and the implementation of the latest technologies available.

Our CEO is Myk Powell, his training includes 30 years of hands on construction, maintenance and improving horse boarding facilities. He has taken novice horse owners and guided them through the process of becoming experienced equine advocates.

Our CFO is Bill Powell, Bill earned his BS degree in math and physics at Jacksonville State College before accepting his Distinguished Military Graduate commission in the US Army. A career of service and hard work seemed to be a natural fit for Bill as he studied and received his MBA in Operations Research at Tulane University, New Orleans LA.  With twenty years of active service including two tours in Vietnam Nam Bill retired as a Lieutenant Colonel.  Passionate about his desire to serve, Bill completed the course of study for his Certified Financial Planner CFP designation and broker series 7 license in Honolulu HI where he aided many families in their visions of their future.  To stay in close proximity of his family, Bill and his wife moved to Northern California where Bill continued his financial consultation to patrons at American Savings and Loan and then Bank of America.  In completion of a long career of service, Bill is providing his active hands-on support to his family in this mysafehorse.net venture.

Our CMO and CCO is Roberta Powell, has loved and raised Arabian and Thoroughbred horses for over three decades.  Arabian mare LWA Khlassy Lady (Khemosabi x Fad Farrah) was named National Champion Mare of Brazil, as well as Top Ten California Race Mare and Region 2 Reserve Champion Halter Mare.  Thoroughbreds Boyo and Gliding Lark were Race winners in California, Gulf Stream Park, Saratoga and Churchill Downs.  Beloved mares Spirit and Affairr were bred and raised and spent all 30 years of their lives together.

Roberta served on the Leadership and Training Team of Client Services at XOJET - the third largest private jet charter company in the U.S.  Roberta was in FAA Part 91 and Part 135 on-demand private jet charter for over 15 years.  She managed Client Services teams and the travel plans for families and top executives in business, entertainment, technology and sports.  Roberta felt privileged to serve Clients during some of the most important personal and professional moments of their lives.

Roberta has also held Marketing and Public Relations management positions in the Publishing and Entertainment industries overseas in Guam and the Northern Marianas.  Even 7,000 miles from home, horses were part of daily living...Roberta and Myk leased a beautiful dressage mare named Chance!

Roberta earned her BA degree from California State University, Long Beach and holds numerous certificates in the Aviation field. As CMO and CCO she manages the daily interactions with Clients and creates Marketing opportunities at industry events.  She is excited to be part of the mysafehorse.net Team and help horse owners everywhere.

Our team also includes, Cedric Verstraeten, based in Ghent - Belgium, he focuses on development, operations, and consulting. He is an expert in total delivery and take great pride in building long-term relationships with his clients.

Marsha Rogers, after spending over 15 years in the technology industry and 3 years in the US Army, she began her teaching career at the local community colleges and private schools in Sacramento.  Her specialty for the last 10 years has been with online marketing and search engine optimization for small businesses. 

All of our team are currently independent contractors while we demonstrate the viability of our concept. I plan on bringing them on as paid employees as soon as the revenue stream begins.

The primary Management Gap that our company has is me. I am currently The CEO because I am the one with a complete understanding of what horse owners want and has the time to commit to the long process of starting a business. My wife Roberta is more qualified to deal with employees and running the day to day operations of the company. We both look forward to the day when she can leave her current employer and dedicate herself full time to working with us. That will give me time to go to the horse shows and spread the word about our fantastic new piece of equine equipment.

The Management Gaps that we have experienced so far have been better described as Technology Gaps. That is one of the reasons we decided to set up shop in Hacker Lab, when a challenge arises we have a very deep well of knowledge to draw from. So far we have not come to a gap that our resources could not span.

We have outsourced all of our payroll, bookkeeping and taxes to HaneyBiz, a Venture Capital company that understands the entrepreneurial journey and has the resources to assist them on their way to market.

From the very beginning The mysafehorse.net team has sought the advice of people that had gone through this process before. Myk Powell has attended all of the self help seminars offered by The SBA. These courses brought him into The SCORE Program where he has had the guidance of several mentors offering advice in the very early stages where our solid company infrastructure was formed.

As the scope of our project has become more defined we have employed the resources of The Small Business Development Center. Their mentors’ advice has proven invaluable in getting our team ready to start selling and stand ready to assist us in scaling when the time comes. No list of consultants would be complete without mentioning The Hacker Lab. from The Start Up Hustle to technological assistance to providing the tools that allowed us to get to this stage of development,  mysafehorse.net literally calls The Hacker Lab home.

By any definition ours is a lean, clean, startup machine.  With only six members of the team everyone wears at least a hat or two. Currently we have one head of each department but we are all available for input and collaboration.

 

 

 

                                           

                                            Myk Powell, CEO… Responsible for keeping the project on target and moving forward.

                                            Roberta Powell, CCO, CMO… Responsible for Client Care and Overall Marketing.

 

                                            Bill Powell, CFO… Responsible for managing financial affairs.

        

                                            Marsha Rogers,  Digital Media Coordinator… Responsible for making sure our electronic media message remains consistent.

Financial Plan Strategy

 
Equipment

Rent

$1,200.00

Officie supplies

$300.00

Insurance

$250.00

Discrentionary

$300.00

Salaries

$2,800.00

Please reload

$4,850.00
Cost Per Unit

Software/Server

$6.00

Assembly

$30.00

LED Button

$2.00

Power Board

$3.00

Cords

$4.00

Camera, lens, visor, IR Board…

$14.00

Antennna

$1.00

Daughter Board

$2.00

Camera

$15.00

POE Injector

$8.00

PCB

$100.00

Mounts

$10.00

Packaging

$3.50

Shipping

$7.00

Batteries

$11.00

Please reload

$216.50
Cost Per Unit

Digital Media

$800.00

Bags, Stickers

$300.00

Show Fees

$600.00

Discrentionary

$200.00

Please reload

$1,900.00

The assumptions that we have made to determine our strategy are:

 

  • 3 new tack stores every month.

  • 5 sales at each store every month.

  • 1 Show every month.

  • 10 sales each show.

  • $500 profit from each sale.

  • $45 Service Fee for every camera.

  • $40 profit on each Service Fee.

Projected Income

 
First Year

This projection is based on us adding three stores per month and each store producing five sales per month and attending one show selling 10 units per month.  Recurring income is initiated with each sale.

Year 2

Year 3

Appendix

 
mysafehorse.net     AN IDEA WHOSE TIME HAS COME     2/6/2018
Executive Summary

mysafehorse.net is a startup company 30 years in the making. We are bringing the latest generation of intelligent video analytics to horse owners to monitor their horses’ well-being no matter where their horses are, or where the owner may be. Our mission statement is, “We want to be your intelligent and vigilant partner providing monitoring services and peace of mind to horse owners everywhere”.

Target Audience

Our target market has been and always will be, people who board their horses away from their primary residence.  However, every time we speak to people in the horse industry we find a new application. Boarding facilities want mysafehorse.net to add value to their property, Farriers want to keep an eye on their clients, Veterinarians want to monitor their patients, Trainers want to show progress on their students, Racetracks want to monitor horses in their stalls for safety…  AND everyone needs to monitor their horses while being trailered.

Competition

There is only one other company using artificial intelligence in the horse monitoring field. They require a 10-stall minimum, professional installation and IT assistance to maintain the system.  Besides being cost-prohibitive and bolted to a wall, these systems do not meet the needs of the average horse owner who wants simple, intuitive, portable and affordable options to watch over their hooved family members. Also, our product is the only monitoring device designed by horse people to survive in the harsh barn environment.

Risk/Opportunity

The primary obstacle we face is developing a device delivering high quality videos and text alerts, while maintaining the ease of operation and complete portability covering any situation which may arise.  Our BETA testers have helped us achieve this goal while assisting in helping our product deliver on promises made. By joining the mysafehorse.net team now, you can take over the reins of the 102 Billion Dollar a year equine industry.

Conclusions

Right now we are a family-run small startup.  By “hitching your wagon” to our team, you can ride with us into financial gain fulfilling the needs of our clients with a waterproof, shock-proof, dustproof and almost horse-proof camera system.

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