Stateline Marine - Payette
Art and Georgia Hanigan purchased Stateline Marine in 1998. Today the company, located in rural Payette, is the exclusive dealer for three lines of popular recreational boats and the primary boat dealer in the local market.
The company also sells used boats on consignment for clients, and buys and trades used inventory. It offers a full line of accessories and engines and has a capable service department to support the sales effort.
The company approached the Boise office of the Idaho Small Business Development Center in February 2004 on a referral from the Idaho Department of Commerce's local economic development specialist. An Idaho SBDC consultant determined that restructuring the company’s boat inventory flooring bank loans, as well as the loans securing buildings and property, would be a great benefit to Stateline Marine. The typical cost to floor inventory weighed heavily on profits on new boats, causing the company to limit the number of new boats offered.
Through cooperation of the Idaho SBDC and the Boise State University College of Business and the company, student teams presented many alternative sales and marketing plans, a solid study of the boat industry, the local area competition and offered suggestions for the company to promote their lines. The analysis also confirmed that restructuring the loans would improve the company’s cash flow.
The Idaho SBDC consultant helped the company develop a loan request proposal and introduced the owners to several local banks. In May 2005, the financial restructuring was completed and an immediate improvement in profitability and cash flow was realized. The sales effort had shown continued improvement over the year, and the new financing package allowed the company to again market the exclusive new boat lines.
By trimming excess inventory and marketing its exceptional parts and service department locally (as suggested by the student teams), Stateline Marine came through the slower winter months with financial results well above all prior years.
Stateline Marine’s success can be attributed to the Hanigans’ efforts to improve the sales and operation performance of the company and increase its visibility within the Treasure Valley, as well as the combined efforts of the Small Business Administration, the Idaho Department of Commerce, local banks, Idaho SBDC consultants and Boise State University business students.
