1. Creating your business plan for influence and decision making objectives 2016 MRPA/CRPA Leadership Seminar Chris Nunes, CPRE Director of Parks and Recreation The Woodlands Township The Woodlands, Texas

2. Before we start……… What do you think business planning means?

3. Session Objectives Identify the benefits of using a business plan Identify the functions and role of a business plan Outline the basic elements of an business plan

4. Then

6. Now

8. Now……………………. If it looks like a business, and acts like a business why are we not running it like a business………..with a plan

9. Background Information Who is facing these issues?? Reduced funding/tax fatigue Substantial Cuts Growing demand Sustainability of demand Lack of understanding of the marketplace Lack of understanding of consumers needs Are we relevant to the market?

10. Background Information Business Planning- The process of creating a picture of what a program, facility, service unit will be. The plan describes the Who, What, When, Where, Why, How and How Much that make the “concept” improve or come alive.

11. Background Information Why the need for Business Plans? Planning hierarchy Transparency on assigned people and resources Continuous Improvement Process Increase customer/ employee satisfaction Source for decisions “Burden of proof” for Councils

12. Background Information Vision, Mission, Values Strategic Plan Business Plan

13. Background Information Plan may also address how to: Produce/create value- added products Specialize of a service or services Diversify offerings Transition to a new or niche services

14. Background Information Approach will depend on service producing Program/Service (individual focus) Race/Special Event (community/economic focus) Niche product or facility (market demand focus)

15. Background Information Do you know how to do one??

16. Business Plan Elements Planning Implementation Feedback "Key" Performance Measures study Continuous Improvement Cycle = Culture

17. Goals…………….. What do you hope to accomplish? What questions do you wish to answer? Why are you doing this? Are these linked to your Master and Strategic Plans? What should be the driving force behind the goals?

18. Goals Boat House Recreation Division

19. Goals Rowing Facility What are the common themes?

20. Study……. What should we study? Agency Competition Market Marketplace Environmental and social factors Other????

21. Study…….Internal Analysis Where you have been? Where are you? Whom do you serve? What are you serving? What are the major issues you are facing?

22. More study……….Internal Analysis SWOT Analysis Management Team Facility Identification Maintenance Levels Programs Fees and Charges Utilities Repair and Maintenance Staffing Levels Service Levels Technology What business are we in?

23. More study………SWOT

24. More study………Facility Audit

28. What does this facility data tell us?

29. More study…Facility/Program Use What does this program data tell us? How does this relate to my costs?

30. More study…Staff Time and Cost

33. More study…Operational Cost

34. More study…..Market Analysis Demographics Psychographics Who is our target market? How large is the market? What are the trends in the market? How do you see the market evolving?

35. More study……Demographics

37. More study……….Competition Any there any competing entities? What are their service levels? What are their niche markets? What are comparable fees and charges? Are their customers satisfied? Can you be your own competition? Differentiation= Quality, Expertise, Speed/Level of Service

38. More study……….Competition

41. Study..Competition Differentiation= Quality, Expertise, Speed/Level of Service

42. Planning…………Market Analysis Rowing Facility

43. Planning……….Market Analysis Boat House

44. More study….where do I get this info Chamber of Commerce Council of Governments Community Development NRPA/Athletic Business Sporting Goods Manufacturers Association Parks and Rec Business, Aquatics International

45. More study……Information Gathering Focus Group- Boat House SWOT Analysis of Facility Developed Themes Prioritized the Issues Provided first hand information versus second hand information Key Point- Invited representatives from Hospitality, Paddlesports, Retail, CVB, the Developer, etc.

46. What did you find our from all of this studying??

47. Planning Goals Long term, mid term, short term Programming vs. business Capital and Maintenance Marketing Financial Forecasting Key Strategies Impact to existing services NO WAG’s

48. Planning…..Key Strategies

50. Planning…..Options A, B, C, D…..

52. Planning…..Staffing Analysis

53. Marketing Market Niche Identification Promotional Strategies Marketing Tactics Technological – Website Design & Content Costs

54. Marketing

56. Financial Analysis Realistic projections Exercise prudence Expenses Profit & Loss Projections Cash Flow Projections Return on Investments

57. Financial Analysis- Impacts Community’s Growth Contraction CPI Economic Climate Willingness to pay Elasticity of Service Past/industry average Market Position Other????

58. Financial Analysis

59. In-Line Hockey Rink Plan

60. Financial Analysis- Rink Programs

61. Financial Analysis

62. Financial Analysis-All Weather Turf

63. Financial Analysis – All Weather Turf

64. Implementation Key Staff Credentials Board/Council/Admin Ownership of Plan “Leadership of Plan” Decision Making Transparency of Plan/Actions

65. Feedback Staff Residents Customers Board Users How is this information used and processed How is the information used in the Cycle If you can’t measure it, you can’t manage it.”- Peter Drucker

66. Feedback

67. Key Performance Measures 11am- 1pm% of Daily 1pm- 3pm% of Daily 3pm- 5pm % of Daily 5pm- 7pm % of Dailytotal 6/1/2012Monday350.00%3 00.00%0 6 6/2/2012Tuesday1178.57%321.43%00.00%0 14 6/3/2012Wednesday222.22%111.11%00.00%666.67%9 6/4/2012Thursday425.00%531.25%5 212.50%16 6/5/2012Friday736.84%1263.16%00.00%0 19 6/6/2012Saturday3037.50%1923.75%1113.75%2025.00%80 6/7/2012Sunday3256.14%1424.56%1119.30%00.00%57 6/8/2012Monday1142.31%13.85%519.23%934.62%26 6/9/2012Tuesday320.00%426.67%4 4 15 6/10/2012Wednesday436.36%654.55%19.09%00.00%11 6/11/2012Thursday735.00%15.00%1155.00%15.00%20 6/12/2012Friday746.67%00.00%426.67%4 15 6/13/2012Saturday1530.61%1020.41%1020.41%1428.57%49

68. Key Performance Measures Sun %of DayMonTuesWedThuFriSat 11 to 110847%2945%3450%1235%1932%2441%8644% 1 to 35825%1015%1725%1235%712%2136%4222% 3 to 54821%1117%913%39%2339%610%3015% 5 to 7167%1523%812%721%1017%712%3719% Total2306568345958195709 % by Day 32.44 %9.17%9.59% 4.80 %8.32% 8.18 % 27.50 % 11 to 1 % of Time1 to 33 to 55 to 7Total Weekends19401000780530425 Weekdays1180670520470284 709 What can we do about Wednesdays?

69. Key Performance Measures

70. Rental BreakdownZip Code Analysis ** One Hour52876%Woodlands Residents654 Two Hours12818%Houston Area residents121 Three Hours345%Other Texas Cities54 All Day61%Out-of-State112 Single Kayak Rental24435%Out-of-Country*203 Tandem Kayak Rental45265% Total July 2012:696Weather Impacted Days6 Year to date:2,339P/L for Month$8,678 *Out of country includes Mexico, England, South Africa, The Netherlands and India ** There can be more than one person per boat.

71. Key Performance Measures

72. Summary

74. 2 nd Phase- Production Extension

76. Business Plan Tips Be credible and informative Do your homework; Know your market and competitors Highlight risks and steps to overcome the risks Clear and Concise Easy to View/Layout Provide all facts even negative Conclusions-Statements must be supported by facts

77. What does this look like in action?

78. Thank you!!!!! If you have more questions or comments, contact me at: Chris Nunes, Ph.D., CPRE Director of Parks and Recreation The Woodlands Township 281-210-3906 cnunes@thewoodlandstownship-tx.gov