Seven Year Gold(Don Stanton & Tanglewood Gardens)

High Quality Fertilizer from Horse Manure

Lisa Nesbitt

Libere Ndacayisaba

Ryan Ullrich

Current Situation:Business Plan: Quick and free access to

horse manure (over 8,000 pounds

per day) to turn into a high quality fertilizer

“Tiffany’s of fertilizer”-high quality product sold in a

low volume

“ I was able to start sales immediately

because I had already stockpiled 8 huge compost piles”

-Don Stanton

Market: individuals/companies who take

gardening seriously

Current Ways of Dealing with Manure: 1.) Stockpile to use later

2.) Spread daily on crops

How it Works:

SWOT Analysis:

Strengths:1. Free raw material: Family horse farm,

8,000lbs/day of manure

2. Machinery/Equipment available at Tanglewood

3. Doesn’t need high tech-can do most of it himself

1, 2, and 3 increase his profit margins

4. Capitalizes on current trend of going organic

Could register to be an organic product in the

marketplace

5. Belief in perfection = highest quality product

6. Satisfied customer base

SWOT Analysis

Weaknesses:

● Production capacity: limited facility

● Time: 7-8 years for manure to mature

● Only employee: more manpower could

increase production

● Bootstrapping philosophy: doesn’t want

to relinquish control to anyone else

● No traditional advertising, which could

increase customer base

SWOT Analysis

Opportunities:

● Take advantage of manure donated by

neighbors (offer customer loyalty program,

discount for donating manure)

● Has opportunity to expand with 700 acres

● Considered opening new facility near where

Kentucky Derby is held

○ Allows him access to vast amount of

raw material

SWOT Analysis

Threats:

● Fertilizer companies who advertise more

frequently

● Large home/outdoor improvement

companies like Home Depot

● People could potentially use their own

horse manure

Central Issue:

“I love making people happy.

And this stuff does it”-Don Stanton

● Don is looking to expand his business’ capacity while still

maintaining the extremely high level of quality perfection that

he looks for in his product

Strategic Alternatives ● New markets:

○ Sell fertilizer to landscaping companies and organic farmers

○ Sell fresh manure to fertilizer companies

● Franchising:

○ to local owners of horse riding centers

○ Kentucky Derby

○ Saratoga Springs-closer by so less of a cost to move his

business while still having access to the highest quality

manure from best horse breeds

● Expand production capacity

○ More horses to occupy the 700 acres and produce more manure

○ Hire labor power and buy more equipment

Strategic Alternatives Cont.

● Advertising his product

○ Could potentially partner with charity groups/work to advertise for free

○ They use his product, he get some sort of publicity through the work and

a potential tax write off.

“Yes I still do everything myself. Every year

the business grows bigger and bigger.

-Don Stanton

Pros of Strategic Alternatives ● Markets

○ Niche market: landscaping companies and

organic farmers are more “Green”,

■ organic-minded

○ savings on transportation cost: fertilizer

companies would pick up manure from his

facility

● Franchise

○ more profits and advertisements

● Expansion:

○ more production = more sales and profit

margin

● Advertising

○ brand image for Seven Year Gold

○ potential tax write off if pairing with

charity

Cons of Strategic Alternatives

● Markets:

○ Selling fresh manure = loss of business

● Franchising

○ lose full control of his product

○ Kentucky Derby at Churchill Downs

■ 1/year: 76 races, only 42

thousands lbs of manure/year.

● Advertising:

○ Great business currently, no need to

spend money for advert.

Recommended Strategy

❖Expand production

capacity

○ Add a new conveyor belt and forklift

○ Hire 2 employees

○ Increase storage facility

(warehouse)

Time Table and Profitability

Tracking and Control

- Hire a bookkeeper.

- Monitor the revenues for the next 2 years to see if he has the $159,000 for the new

equipment

- Monthly evaluations of his two new employees to ensure that they are performing to his

standards

-Track the volumes produced of his fertilizer so that he can tell if the new machinery is in

fact increasing his production

Conclusion

● He increases the production efficiency and capacity

● At the same time, maintains control over his company and product

● He will be a millionaire by 2020

● His product will be as good as the day he started

Questions?