Seacliff Products (Seacliff) is an innovative company that has developed a patented fishing hook. Seacliff created an initial do-it yourself kit for sale, while they look for a partner who can license the product. Seacliff expects substantial sales in the first year and a significant increase in the second year.

Seacliff has created the Supreme Hook, an innovative, live-bait holder. Tests show that the Supreme hook has a significant increase in fish-hook up. Having increased fish hookups allows the user to have greater enjoyment while fishing.

The Business Model

Seacliff will adopt a laser-focused, laser-focused business approach that allows them and their core competencies to focus while outsourcing the non-essential activities. Seacliff is a design company, therefore they will concentrate on the design of useful products. They will seek a strategic partner to take over marketing, production, and distribution. Seacliff can make substantial profits from outsourcing non-essential activities without taking on the risks associated with marketing, manufacturing, or distribution. Seacliff will benefit from steady revenue streams without having to pay the capital costs of selling a product. Seacliff earns good profits. It has a professional marketing staff and a established distribution and manufacturing system. Seacliff is in the process of looking for a strategic partnership and anticipates entering into negotiations within the next few months.

The Market

The Supreme hook has a large market. The entire market is worth $300 millions. Over 39.1 Million anglers are in the U.S.A., who have fished more than 618,000,000 days and made 807 million trips. Even more impressive is the rapid growth of this industry. The number of anglers has increased by more than twice as fast as the U.S. population between 1955 and 1996.

Management

It is important to focus on what you are best at. This is the foundation of the business model. Seacliff takes this principle to heart, focusing on design. Willamette University JD/MBA is the owner’s education. This dual degree allowed him to gain valuable insights in business development, as well as the useful legal tool of patents and licenses. After graduating from graduate school, he wasn’t sure where his career would take him. He decided to go to Oregon to become an expert fly fisherman. During this 2 year stint, he became enthralled with fishing and thought that he wanted to remain in the industry. He went back to school and got a Masters in Engineering on the premise that he could pursue the design and development aspect of fishing related products. He developed the Supreme Hook right at the end of his final graduate degree. On the basis of his JD/MBA degree, he was confident to start his own business and find a licensee for his soon-to-be patented product.

Seacliff is a new company that licenses its patented products to cut out the typical start-up capital requirements. Seacliff’s time can be used to focus on future designs and other value-added activities by licensing the product. By the first month, profitability will be realized.

1.1 Mission

Seacliff’s mission is to maximize the profits from its Supreme patent-pending fish hook invention and to develop new products that are suitable for the fishing gear market.

Success Keys 1.2

The keys to success in maximizing profits in licensing this patent are:

1. To separate the manufacturing and marketing for the Supreme.
2. Look for a manufacturer who can make the hook. Give them exclusivity.
3. Find a marketing agency with extensive fishing gear experience who is willing to invest the marketing budget.
4. Seacliff will benefit from a partnership agreement between the marketer and Seacliff that is reasonable and well-thought.

Here are the keys to profiting from the patent form make-it-yourself kits:

1. Recognize there is a wider market for the product.
2. The time-tested price structure formula provides attractive margins for all members of the distribution chain (manufacturer’s representative wholesaler retailer).

1.3 Objectives

The principal objectives of the project are:

1. Find a manufacturer who will produce the Supreme hook on a limited basis. At the retail level, this would mean that the Supreme would be less expensive than a normal size hook.
2. Locate a medium-sized fishing gear marketing company who recognizes the potential of the patent and is willing to commit the resources to successfully mass-merchandise the Supreme, both domestically and overseas. A three percent royalty will be paid on all purchases made by the exclusive manufacturer under an exclusive license arrangement.
3. The product is successfully brought to market in kit form. In the first three month, you will reach breakeven (370 kits). Sell 8,333 kits in the first year.
4. Finish the website design.
5. Join the American Sportfishing Association (ASA) and secure a booth at the ASA trade fair in Los Vegas this July.