Presentation presented to LCRA's Economic Development Forum on Festival Profitability.

1. BUSINESS PLANS
LCRA Economic
Development Forum
Presented by:
Penny C. Reeh, CFEE
President & CEO
Fredericksburg Chamber of Commerce

2. 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

3. 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.

4. Breaking the non-profit mentality…
Not-for-profit is a tax status
and not a business plan.

5. 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.

6. 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

7. 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

8. 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

9. 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.

10. 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.

11. 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).

12. 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.

13. 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.

14. How do business plans and strategic
plans differ?
 Business plans are a management/operational
tool
 Strategic plans are a leadership tool

15. 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

16. 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

17. Elements of a Business Plan
 Cover Page
● Event Name
● Sponsoring Organization
● Contact Information
● Logo and slogan

18. Elements of a Business Plan
 Executive Summary
● A summary of the plan
● Typically written last
● Prepares the reader for
upcoming content

19. Elements of a Business Plan
 Table of Contents
● Listing of information presented
● Referenced by page number
● Created at the end

20. Elements of a Business Plan
 SWOT Analysis
● Strengths
● Weaknesses
● Opportunities
● Threats

21. 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

22. Elements of a Business Plan
 Market Analysis
● Saturation level of events
● Competition sources
● Population composition
● Communication channels
● Geographic variables
● Relevant local trends/issues

23. 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

24. Elements of a Business Plan
 Staff Management Plan
● Organizational chart
● Staff job descriptions
● Division of duties between staff
and volunteers

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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)

31. 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

32. 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

33. Elements of a Business Plan
 Evaluation Plan (On-Site)
● Entrance or exit surveys
● Follow-up surveys (phone, online or
mail)
● Secondary information

34. 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

35. 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

36. Parting thought…
If you don’t have a clear destination,
any road will take you there.

37. Call me if I can help!
Penny C. Reeh, CFEE
President/CEO
Fredericksburg Chamber of Commerce
penny@fbgtxchamber.org
830.997.6523