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Presentation presented to LCRA's Economic Development Forum on Festival Profitability.
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BUSINESS PLANS
LCRA EconomicDevelopment Forum
Presented by:
Penny C. Reeh, CFEE
President & CEO
Fredericksburg Chamber of Commerce
Learning Objectives
Define the purpose and value of a business plan
List and explain the major sections typically included in a business plan
Outline strategies and provide templates for getting started
Have you heard this before?
It doesn’t really matter if the event makes money as long as it is good for the community.
We are a non-profit organization, we are not supposed to make money.
Our goal is to put money into the community and not into our pockets.
Breaking the non-profit mentality…
Not-for-profit is a tax status and not a business plan.
What drives profitability and success?
Doing a better job of planning what we can control.
Planning for what we cannot control, as best we can.
Why are we in the event business?
Clearly define your purpose or need● Raise funds● Promote the value of
agriculture(governmental mandate)
● Generate community awareness
● Preserve a tradition, culture or heritage
Why are we in the event business?
Define the benefits of your event● Increased revenues● Community pride● Media attention● Sustained local values● Communication of mission
Why do a business plan?
To define and direct any needed change To guide growth To manage priorities To assess staffing/volunteer needs To assign responsibilities To track progress To clarify allocation of resources
Drucker Self-Assessment
What is our mission?
Why you do what you do; the organization’s reason for being, its purpose. Says what, in the end, you want the event to be remembered for.
Drucker Self-Assessment
Who is our customer?
Those who must be satisfied in order for the event to achieve results. The primary customer is the person whose life is changed through your work. Supporting customers are attendees, volunteers, sponsors, exhibitors, employees, and others who must be satisfied.
Drucker Self-Assessment
What does the customer value?
That which satisfies customers’ needs (physical and psychological well-being), wants (where, when, and how service is provided), and aspirations (desired long-term results).
Drucker Self-Assessment
What are our results?
The organization’s bottom line. Defined in changed lives – people’s behavior, awareness, hopes, competence, or capacity. How did we make a difference? Results are always outside the organization.
Drucker Self-Assessment
What is our plan?
Defines the particular place you want to be and how you intend to get there. Encompasses mission, vision, goals, objectives, action steps, a budget, and appraisal.
How do business plans and strategic plans differ?
Business plans are a management/operational tool
Strategic plans are a leadership tool
Establishing a Business Plan
Overall tips for creating the plan● Don’t get caught up in
formatting issues● Set a timeline for completion● Cast a wide net of involvement● Share the plan at every level● Incorporate performance benchmarks
Establishing a Business Plan
Goals, Objectives and Action Steps● Goals – Broad, encompassing
● Objectives – Define strategies to accomplish the goal, specific and measurable levels of achievement
● Action Steps – Detailed plans and activities directed toward meeting an organization’s objectives. Define the who, how and when of the objectives
Elements of a Business Plan
Cover Page● Event Name● Sponsoring Organization● Contact Information● Logo and slogan
Elements of a Business Plan
Executive Summary● A summary of the plan● Typically written last● Prepares the reader for upcoming content
Elements of a Business Plan
Table of Contents● Listing of information
presented● Referenced by page number● Created at the end
Elements of a Business Plan
SWOT Analysis● Strengths● Weaknesses● Opportunities● Threats
Elements of a Business Plan
Event Profile● History of the event● Outline of its sponsoring
organization● Purpose and theme● Definition of target
audience(s)● Description of the event
Elements of a Business Plan
Market Analysis● Saturation level of events● Competition sources● Population composition● Communication channels● Geographic variables● Relevant local trends/issues
Elements of a Business Plan
Program Plan● Definition of activity by
audience● Schedule of entertainment● Strategies for implementing new
programs● Description of committees and their interaction with one
another
Elements of a Business Plan
Staff Management Plan● Organizational chart● Staff job descriptions● Division of duties between
staff and volunteers
Elements of a Business Plan
Volunteer Leadership Management Plan ● Board member selection criteria
and procedures
● Board member conduct guidelines/
code of ethics● Board member conflict of interest
statement
Elements of a Business Plan
General Volunteer Management Plan ● Inventory of duties for which volunteers are needed and the
required skill sets of each● Volunteer job descriptions● Volunteer policy manual● Committee list and organizational chart● Committee checklists and
timelines
Elements of a Business Plan
Logistical Plan● Grounds use layout● Infrastructure/support needs● Waste management arrangements● Contact list of all providers● Transportation needs
● Set-up/tear down detail
Elements of a Business Plan
Promotional Plan● Definition of target audiences● Advertising buy schedule● Publicity schedule● Media spokesperson duties and
scripts● Timeline for production of all
printed materials
Elements of a Business Plan
Community Relations Plan● Strategies to enhance community
involvement
● Mitigation of undesirable effects on the community (noise, traffic, restriction of local trade, feelings of resident displacement)
● Year-round local communication strategy
Elements of a Business Plan
Safety/Security Plan● Security procedures (i.e. policing of
gates, lost child drill, crisis procedures, identification of minors, interaction with attendees)
● Outline of interaction with local health and security agencies (EMS, Fire, Police, Private Security)● Health/safety needs (i.e. hand washing
stations, gray water disposal, trip/fall hazards, electrical lines)
Elements of a Business Plan
Sponsorship Plan● Sponsorable asset inventory● Evaluation of assets – sponsor
packages● Outline of sponsor activation needs● Description of sponsor hospitality
requirements ● Outline of promised sponsor tie-ins
Elements of a Business Plan
Financial Plan● Budget● Projection of short and long term capital needs● Outline of fundraising activities (i.e. sponsorship, pre-sale of
souvenirs, donations)● Identification of how proceeds will be distributed
Elements of a Business Plan
Evaluation Plan (On-Site)● Entrance or exit surveys● Follow-up surveys (phone, online or
mail)● Secondary information
Elements of a Business Plan
Evaluation Plan (Post-Event)● Compare outcomes to pre-determined
expectations● Seek counsel from your team members at
every level ● Apply what you have learned
Using the Business Plan
Promote the plan internally and externally
Remember, you can’t manage what you don’t measure
This is not a one-time exercise…refine, revisit and rewrite
Parting thought…
If you don’t have a clear destination,any road will take you there.
Call me if I can help!
Penny C. Reeh, CFEEPresident/CEOFredericksburg Chamber of [email protected]