Evaluate Rusty Steuben’s overall strategy(ies) and the mountain bike proposal. What should he do now?

Rusty Steuben, owner of Lake Russell Marine & Camp, is worried about his business’ future. He has tried various strategies for two years, and he’s barely breaking even.

Two years ago, Rusty bought the inventory, supplies, equipment, and business of Lake Russell Marine & Camp, located on the edge of Minneapolis, Minnesota. The business is in an older building along a major highway leading out of town, several miles from any body of water. The previous owner had sales of about $500,000 a year but was just breaking even. For this reason—

plus the desire to retire to Arizona—the owner sold to Rusty for roughly the value of the inventory.