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The winners of the 2006 Alaska Business Plan competition are looking to change that — but they won't be using a boat.
Chuck Manley detailed his company's plans Dec. 7 for a hovercraft manufacturing and charter operation at the competition jointly hosted by Alaska Pacific University and the University of Alaska Anchorage's College of Business and Public Policy.
“It's the first year we've been able to hold the competition simultaneously in cooperation with APU,” said Thomas Case, dean of the UAA business school.
With the mantra, “Making Alaska more accessible from Anchorage,” US Hovercraft plans to launch chartered trips this spring out of Ship Creek, using hovercrafts it manufactures in Anchorage. The company also plans sell the craft, which can travel on ice, mud and in water, both in Alaska and Outside.
Manley, who has been working with hovercrafts for more than 10 years, said in an interview that the machines make sense for the area's terrain.
“It just seemed to be a vehicle that matches a lot of the character and territory of Alaska,” Manley said of his decision to turn his passion for hovercrafts into a full-fledged business. “I just thought it would be the ultimate in Alaska vehicles.”
US Hovercraft beat out six other proposals in taking top honors at the annual competition hosted at the UAA/APU Consortium Library. Winning third place was Delifasco, a multi-restaurant delivery service proposed by APU students Shaun Tygart and Eric Anderson. Into the Future, a private language instruction facility proposed by APU students Molly Webb and Jana Fedakova, placed second.
Among the other proposed businesses were a bottled water product, presented by UAA students Michael King and Daniel Bevington; UAA student Tristan Curry's idea to produce and sell power-assisted recumbent bicycles; UAA student Mark Lawes' plan to for a company that would develop and/or improve ideas and products for new or existing businesses; and a statewide courier service proposed by APU students Yelena Schubert and Leatha Merculieff.
Each presenter was given 15 minutes to pitch their plans to a panel of six judges representing the business and financial community. Following the presentations, the judges were given the opportunity to press the teams for more information.
Included in the US Hovercraft team for the competition were UAA student Rachael Gaedeke, and entrepreneurs Dale Cook and Mary Groven. As the winner of the competition, US Hovercraft received $2,000 in prize money.
Once the awards were announced, the judges provided perhaps the most valuable element of the competition — detailed analysis of each of the presenters' plans.
“I am quite pleased with the quality of the judges' comments and critiques. That was a key part of the outcome,” UAA's Case said.
Case said the hands-on experience gained by those competing is invaluable. “We're big believers in learning by doing,” he said. “You can study business plans in the classroom, but you don't get as much as you do by putting it together and experiencing it.”
In that same vein, Case said the competition itself will improve as it becomes more engrained in the entrepreneurial landscape.
“I'm very encouraged that the competition is on a growth path. I wouldn't pretend to say that it's fully matured,” he said. “In the spirit of learn by doing, we're out there doing it; the competitors are putting in a good effort. We're looking to expand it so more people are aware of the competition.”
US Hovercraft's Manley attested to the benefits of competing, noting that he participated for two main reasons.
“First, I really needed to get my business plan done, and this gave me a deadline,” he said. “The second reason was to meet some key people to help me get the business rolling ... I knew there were going to be judges that represent large banks or investment companies, as well as private individuals in the audience that would be interested.”
While most of the plans presented were more or less an academic exercises, US Hovercraft is lined up to move next year, according to Manley.
The company plans to start charter operations out of Ship Creek this spring. The firm plans to offer guided fishing trips in the Susitna River area, as well as drop-off/pick-up service and weekday evening fishing trips for working folk. Manley said fishing charters will initially cost $175, while sight-seeing charters will cost $100.
Manley said he hopes the charter operation will lead to sales of the craft.
“We will focus on the charter operation as the way to advertise the vehicles. With a year of good charter operations, the word of mouth will be out there,” he said.
To get the company started, Manley said he plans to invest $106,500 of his own money and is looking for an investment of $625,000 and a $250,000 revolving line of credit. He projected that US Hovercraft would be profitable by 2010.
In a later interview, Manley said he plans to focus on obtaining financing this winter. He said most of his time recently has been devoted to producing a larger 12x30-foot hovercraft with a door in the bow that allows it to operate as a landing craft. Manley said the machine can carry four snowmachines or four-wheelers and four or five people.
The 8x16-foot hovercraft with which the firm intends to start was tested this year for 150 hours in and around Cook Inlet. After all those hours of use, it required no maintenance, Manley said.
On the sales end, Manley said the smaller craft, which can carry six people, will be valued at $52,000.
“In the world of hovercrafts, this thing is like a Porsche,” he said. “It corners well É and it's really durable.”
Manley said the larger landing-craft style vehicles will be valued at $250,000.
Manley said over the years he has built more than a dozen hovercraft, some for sale and some for research purposes. Currently, he has a facility for manufacturing off Post Road in Anchorage, but hopes to eventually move the operation closer to the Port of Anchorage, where the charter end of the business is situated.
Tyler Rhodes can be reached at tyler.rhodes@alaskajournal.com.
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