Business plans (lcra)

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.


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.


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).


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.


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


Executive Summary● A summary of the plan● Typically written last● Prepares the reader for upcoming content


Table of Contents● Listing of information

presented● Referenced by page number● Created at the end


SWOT Analysis● Strengths● Weaknesses● Opportunities● Threats


Event Profile● History of the event● Outline of its sponsoring

organization● Purpose and theme● Definition of target

audience(s)● Description of the event


Market Analysis● Saturation level of events● Competition sources● Population composition● Communication channels● Geographic variables● Relevant local trends/issues


Program Plan● Definition of activity by

audience● Schedule of entertainment● Strategies for implementing new

programs● Description of committees and their interaction with one

another


Staff Management Plan● Organizational chart● Staff job descriptions● Division of duties between

staff and volunteers


Volunteer Leadership Management Plan ● Board member selection criteria

and procedures

● Board member conduct guidelines/

code of ethics● Board member conflict of interest

statement


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


Logistical Plan● Grounds use layout● Infrastructure/support needs● Waste management arrangements● Contact list of all providers● Transportation needs

● Set-up/tear down detail


Promotional Plan● Definition of target audiences● Advertising buy schedule● Publicity schedule● Media spokesperson duties and

scripts● Timeline for production of all

printed materials


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


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)


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


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


Evaluation Plan (On-Site)● Entrance or exit surveys● Follow-up surveys (phone, online or

mail)● Secondary information


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]