Harrison Idaho Water Adventures is the one stop shopping experience for boat rentals and water sports on Lake Coeur d Alene.
The owners Russell and Teri Riberich moved to the area in 2003 and are both teachers in local school districts.
After several years in business Harrison Idaho Water Adventures realized the most commonly asked questions regarded a need for a map, locations, attractions on the lake as well as things to do after their boat rental. Pacific Fish Boat Rentals is located at the head of the Tahsis Inlet on the north west coast of Vancouver Island.
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On May 1, 1989, Bruce MacLean, owner of Cape Breton Boat Rentals was preparing a weekly cash budget to determine his operating line of credit requirements for the upcoming summer rental season. Cape Breton Boat Rentals, established in June, 1988 at Munro Park, North Sydney, Nova Scotia, was set up to rent canoes, kayaks, sailboards, sailboats, paddleboats, and motorboats to tourists and local residents.
In 1988, Cape Breton Boat Rentals operated seven days a week from June 17th to September 5th; MacLean's younger brother, Malcolm, ran the shop.


Despite this favourable reception, the company's first year of operations was disappointing. He also felt that insufficient advertising during the company's first season had hurt sales. To further boost revenues, MacLean planned a 25% across-the-board increase in rental fees for 1989. Finally, MacLean felt that revenues in 1988 were unnecessarily restricted by too short an operating season (82 days). The $2,000 expected automobile expense was based on the costs incurred in using MacLean's own automobile and is comprised of car operating costs of $1,000 (spread evenly over the season) and a $1,000 fee for use of the automobile (MacLean would draw this out at the end of the season). Interest and bank charges of $75 were paid on the last week of every month to the Royal Bank of Canada (RBC) which handled the company's operating accounts and held a demand note for $4,000 from the company which was to be repaid at the end of the 1989 season. Land rent was payable as follows: $100 on June 30th, $200 on July 31st, and $200 on August 31st. To prepare the shop for opening, Malcolm would commence work on Sunday, May 14th (beginning of Week 1) and would work until Saturday, September 9th (end of Week 17) when the shop would be closed for the winter. To increase rental revenues by an additional $1,500, MacLean had arranged to purchase a used 35 hp motorboat for $2,500 cash on May 15th. Prepare a weekly cash budget for Cape Breton Boat Rentals for the 1989 season and advise MacLean of his operating line of credit requirements.
MacLean planned to include all preseason payments in the first week and all cash receipts and payments after the end of the season in the last week. When preparing the cash receipts from sales figures, MacLean calculated the low season cash receipts on the basis of being open for only four days a week and the peak season receipts at twice the low season daily sales rate.
Need a place to stay while on your fishing holiday; there are multiple accommodations to choose from.
Petersburg and Tarpon Springs in Florida – Camp on one of our prisitne barrier islands. MacLean thought Munro Park was an ideal site as it provided a good traffic location on Seaview Drive (for customers wishing to take the water craft away) and a good beach location (for those customers seeking to rent on-site). Reproduction of this case is allowed without permission for educational purposes, but all such reproductions must acknowledge the copyright. He was relying on: 1) better weather for rentals, 2) customer acceptance of a substantial increase in prices, 3) increased market development as a result of a tripled advertising budget, and 4) increased revenues from an extended operating season.
In fact, on only one sunny weekend in August had almost all of the company's equipment been used; on average only about 10% of the company's equipment was out on rental.


Although the increase was steep, the new fees would still be below prices MacLean had observed in the Halifax-Dartmouth area and in similar operations in Prince Edward Island. To secure a longer operating season (91 days) and capture the spring fishing boat market, he decided to open on May 19th, the start of the Victoria Day weekend, and to stay open Friday through Monday until Canada Day (weeks 1 through 7).
Maintenance costs were expected to total $1,500 - $500 to cover a major engine overhaul payable in the first week of June and $1,000 incurred equally over the season.
MacLean required a minimum cash balance of $1,000 at the end of each week to cover any contingencies. Sales tax of 10% would be collected and remitted monthly to the Province of Nova Scotia in the third week of the month following collection.
The poor sales performance combined with expenses of $22,024 produced a first year loss of $7,325 (Exhibit 1) and a tight liquidity position (Exhibit 2). Francis Xavier University for the Atlantic Entrepreneurial Institute as a basis for classroom discussion and is not meant to illustrate either effective or ineffective management.
MacLean felt instead that 1988's low sales were mostly due to the poor July weather - he believed this factor alone had reduced the season's sales by 25%. This would enable him to: 1) distribute brochures to the major tourist bureaus, campgrounds, motels, and restaurants at the start of the season as he had done in 1988, 2) double, from May to August, his first season's advertising in the local daily newspaper, the Cape Breton Post, and 3) introduce radio spots on CJCB to increase demand during the six week peak period from July 2nd to August 12th (weeks 8 through 13). Consequently, he didn't feel that the company would lose any sales because of the price increase. Thereafter, the company would operate seven days a week until it closed on Labour Day (week 17).
Motorboat gas and supplies expense was projected to drop to $100 over the season because this cost was going to be passed along to the customer in 1989. To finance the purchase MacLean planned to sell some surplus canoes and small outboard motors over the season. MacLean also felt that each additional business day would not only generate increased sales, but would lessen the impact of bad weather on total 1989 revenues. Telephone and utility charges were expected to be incurred equally over the season and would be paid the last week of each month, starting in June.



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