MODULE 8 - nztri.aut.ac.nznztri.aut.ac.nz/ahinl/HeritageGuide/module08.pdf · on his desk and one includes a business plan and the other one doesn’t, who will get the most serious

T h e B u s i n e s s &

MARKETING PLAN

MODULE

8 Photo C

redit: Cape F

reels Heritage Trust

introduction

71

Abusiness plan is a useful tool for a heritage facilitythat is starting up or expanding. It provides a goodsnapshot of how it currently operates and projects

how it will operate in the future. Groups planning heritageprojects may wonder why they should prepare a businessplan as they are likely not planning to operate a for-profitbusiness. The reality is that a not-for-profit heritage projectpretty much operates like a regular business. There aresimilar kinds of operating expenses (utilities, salaries,promotion) and the need to generate income or other sourcesof funding to meet these expenses. Without financialstatements a group cannot know what expenses it will runinto in the course of a year and it is blindly assuming that itwill be able to match income and costs. A good businessplan will result in fewer unwelcome surprises down the road(i.e., expenses are considerably higher than expected orincome is insufficient to cover costs).

A business plan for a heritage project can be beneficial in anumber of ways:

a) It is a requirement if funding or financing is being soughtfrom a bank, government agency, or a foundation. Bankswill want to know that you have the ability to pay backyour loan. Granting agencies will want to know that youroperation is sustainable and will make good use of theirinvestment. They will also want to know what kind of aninvestment you are making in your project.

b) It forces you to consider all of the expenses that you mightincur and to plan how you will generate the necessaryincome to operate successfully. It also helps you to setgoals for what you want to achieve in terms of the numberof visitors and income generated.

c) It makes your group look professional and gives your groupcredibility (especially important if you are looking formoney). Just think, if a project officer has two applicationson his desk and one includes a business plan and the otherone doesn’t, who will get the most serious consideration?

d) It includes a marketing plan which forces you to seriouslyconsider who your visitors will be and how you will reachout to and attract them. It includes strategies for promotingyour facilities and programs.

e) It serves as a feasibility study, helping you to determineif, in fact, your proposed venture can work and cansustain itself over the long term.

T H E B U S I N E S S & M A R K E T I N G P L A N

Photo C

redit: MA

NL

Photo: Museum shops provide one methodof generating revenues for a heritage site.In order to be successful they need to stockhigh quality products and be managed ascarefully as a private business.

MODULE 8 • THE BUSINESS & MARKETING PLAN

plan

72 ASSOCIATION OF HERITAGE INDUSTRIES OF NEWFOUNDLAND & LABRADOR • HERITAGE PLANNING GUIDE

There is no magic to preparing a business plan but it takes afair bit of time and effort. It requires considerable research and planning in order to fill in all of the details. While youmay want to undertake it as a group it is advisable to get theservices of a professional, even if just on an advisory basis.This could take the form of a paid consultant or as an ‘inkind’ contribution from a local business professional oraccountant. When using a professional it is important to havesomeone who is familiar with your sector, particularly when it comes to marketing issues. If you choose to undertake ityourself, seek out the assistance of a businesses developmentofficer at a local Community Development Corporation or an office of the Provincial Department of Industry, Trade and Technology.

It is important to be as honest and realistic as you can bewhen developing a business plan. The temptation will bethere to fudge figures to provide a positive bottom line.Operating deficits, especially during the first year or two ofoperation are to be expected. Inflated income figures orhidden expenses may cause you to lose credibility and willtranslate into operating deficits.

I . C O M P O N E N T S O F A B U S I N E S S P L A N

1) Executive Summary – a one page summary at thebeginning of your business plan that explains your projectat a glance and indicates your financial requirements.The executive summary is important for the busy bankloans officer or project officer of a government agencywho wants to quickly determine if your project is worthyof consideration. The executive summary generally getsprepared when the rest of your business plan is complete.

2) Project Description – a concise description of yourproject including an explanation of why you areundertaking it. What goals do you have for this project (in terms of community benefits)? How does it relate toyour vision/ mission statement? How does it relate toother projects or initiatives that you have undertaken? Is it one part of a larger development initiative? Forexample, a restored building may be part of a plannedheritage district (which will include additional restoredbuildings). A new trail to be developed may be part of a regional trail system of existing and planned trails. A living history program may be part of a larger interpretive strategy.

73MODULE 8 • THE BUSINESS & MARKETING PLAN

3) Proponent Profile - a brief description and history ofyour group which helps to demonstrate your credibilityand ability to successfully undertake the projectproposed. It should include:

• list of projects successfully carried out to date(especially ones similar to proposed project)

• number of members

• list of board/executive members, along with theirprofessions

• form of organization (e.g., incorporated, charity, etc.)

• years in operation

• vision/mission statement

• strategic plan (if you have one)

• list of project partners

4) Products/Services - provide an overview of theproducts (e.g., facilities, experiences) that you will beoffering along with prices/fees. By way of example:

The XYZ Heritage House is a restored 1870 dwelling, withperiod furnishings, that offers visitors an experience of anoutport Newfoundland fishing family during the 1890s.Guides, dressed in period costumes, offer a ‘living history’interpretation that depicts the lifestyle of the XYZ familywith demonstrations of traditional household activitiessuch as the preparation of traditional foods, quilt making,children’s games and past-times, gardening, and livestocktending. Visitors are encouraged to participate and ‘trytheir hand’ at various activities demonstrated. Specialprogramming will include:

• educational programming for school groups

• a series of ‘how to’ workshops on traditional skills

• summer history day camps for children, aged 6 - 12

• seasonal open houses (Thanksgiving, Christmas)

The museum will house a small gift shop to sell itemsproduced on site such as: quilts, woolen goods, andhand-made wooden garden implements.

The museum will operate from May 1 until December 28annually.

5) Pricing - include a list of the prices charged foradmissions and other fees/charges for programming thatyou offer. Pricing your product can be something of achallenge. Many community-based heritage facilities inNewfoundland & Labrador undercharge for what they

Photo C

redit: Winerland H

eritage Developm

ent Corporation

Photo: Prior to establishing its HeritageFarm and ‘Out of the Land’ Living History program, the Winterland HeritageDevelopment Corporation undertook abusiness plan to determine the feasibility of the project and to guide its financialoperation.

offer (some charge nothing) and, as a result, fail togenerate their revenue potential. The reality is thatmost out-of-province visitors expect to pay a reasonabledollar to visit your site. In the U.S. a visit to a majorheritage attraction generally runs $30 (Canadian) ormore per adult. And let’s face it, how can you afford tooffer a product at less than break-even? When establishingan admission fee structure it is important to be competitiveboth in terms of not exceeding what the market is willingto pay and in not undervaluing the product. Researchhas shown that price is often a partial indicator of value.If products or services are under-priced they are perceivedto be of lesser value.

To price your admission fees do a little research. Callaround to other heritage sites in your region of theprovince and see what they charge. Include provincialand national historic sites. Always include a familyrate to make it feasible for families to enter.

Facility Adults Seniors/ Children Family School Student Programs

Colony of Avalon

Fluvarium

Nfld Science Centre

Nfld Insectarium

Provincial HistoricSites

National HistoricSites*

$3.00

$2.25

$4.25

$5.00

–

$2.00

–

$1.50 - $3.00

–

$3.00

$2.00 (group)

–


$5.00

$2.75

$6.00

$6.00

$2.50

$2.50

$10.00

–

$20.00

$20.00

–

$7.00

$3.00

$1.50

$4.25

$4.00

–

$1.50

*This includes sites such as Hawthorne Cottage, CapeSpear, and Castle Hill. Other, larger and more developedsites such as Lanse aux Meadows and Red Bay havesomewhat higher fees.

Sample Admission Fees in Newfoundland & Labrador (2002)


Fees at the lower end of the scale are generally for sitesthat include a single heritage structure or a relatively smallmuseum/interpretation centre. Higher fees are charged forlarger facilities and those that offer more elaborateprogramming (e.g., living history demonstrations).

Some groups suggest that they make as much money byhaving a donation box as they would through admissions. Inactual fact, you should charge admissions and have adonation box. Most visitors appreciate that it takesresources to establish and operate a heritage facility andmany are willing to ‘give to the cause’.

Local Residents – occasionally one hears that local residentsare unwilling to pay to use a local heritage attraction.Again, the reality is that they would have to pay if theywere visiting a similar facility on the mainland. While adifferent admission price for locals than for visitors is notrecommended there are things that you can do to attractlocals who may be somewhat price sensitive:

• offer a reasonably-priced seasonal pass that encourageslocals to visit as often as they like during the year1

• hand out free passes at local schools

• offer an open house once or twice a year to encouragelocal visitation

6) Management – provide a description of how your sitewill be managed. This is important to potential funderswho want to know that your project will be well-managedand sustainable over the long-term. Management couldconsist of a committee, a volunteer, or a full-time, part-time, seasonal or year-round manager. A paid managerhelps to ensure that a facility is run in a professionalmanner and receives the attention that it deserves.

Indicate the tasks that the manager/managingcommittee will be responsible for. Assume thatconsiderable time will need to be devoted to financialissues such as fund-raising and to staff training andsupervision.

1The Colony of Avalon has an annual membership fee ($20 - individual/$35 -family) that offers unlimited visitation at the site. Parks Canada offers aseasonal pass of $12 per person for their sites.


7) Staff – list the number of staff required to operate yourfacility or program and provide brief job descriptions foreach position. This will include duties, season ofemployment and any special qualifications. A briefdescription of staff training will demonstrate yourcommitment to delivering a quality product.

8) Environmental Scan – a description of the environmentin which your project will be operating. It helps toidentify issues, constraints and other considerations thatneed to be taken into account by the project or bypotential funders. It would include:

• a description of regional development strategies (e.g.,heritage or tourism strategies). Your project will havegreater credibility if it is seen to fit into broaderdevelopment plans

• a list of similar or competing facilities with a demonstrationof how your facility will complement them (i.e., fillinterpretive or product gaps). For example, if your groupwants to develop a trail, it would be useful to describehow your trail will complement existing ones in theregion (e.g., satisfy a different market, interpret adifferent habitat). Funders, in particular governmentagencies, are generally quite sensitive to issues aroundcompetition. They don’t want to be accused of harminganother similar venture and of creating unnecessaryduplication. As a project proponent you should have thesame concern.

• a description of the zoning and regulatory environmentin which you will be operating. It is important to identifyany regulations that you will have to comply with so thatyou don’t get any nasty surprises when your project ispartly completed (i.e., such as a stop work order from agovernment agency due to your failure to follow therules!). Take the time to familiarize yourself with allrelevant regulations. It is also crucial to comply withmunicipal and provincial zoning regulations. Thesecould work in your favour. For example, if your naturalheritage project is located within an area zoned‘conservation’ or ‘ecological reserve’, be sure to mentionit. The same might apply to a built heritage project locatedwithin a designated heritage structure or district.

• a listing of any incentives that could favour your project.These might include such things as municipal taxincentives or grants available to designated heritagestructures.


A SWOT Analysis can be an effective method to undertakean environmental scan (see Module 3)

9) Market Analysis – this is an assessment of who willuse your facilities or services. You cannot assume thateveryone will avail of what you have to offer. Certaingroups are more likely to be interested in visiting a siterelated to natural history interpretation; others to onerelated to cultural history, such as an historic site ormuseum. It is also important to understand your usersin terms of their interests and needs. Challengingwilderness trails will likely attract younger, well-educated professionals, while seniors are more likely tobe looking for an easily-accessible trail of relativelyshort duration with washroom facilities available. (Forinformation on user profiles see ‘Understanding yourAudience’, Module 10)

The market for natural and cultural heritage facilitiesand programs is divided into a number of differentsegments:

Local Market – likely the largest portion of your marketwill come from the region in which you are located (i.e.,within a 1 hour drive). Locals have the potential to berepeat users and to visit on a year-round basis. Onecould argue that it is really for local residents that onedevelops a natural or cultural attraction or facility. Andif one does a good job of sharing heritage with locals,visitors will, naturally, be attracted as well. Schoolgroups and youth are an important component of thelocal market

Visitors/Tourists – these are divided into in-provinceand out-of-province tourists. They can be furtherseparated into sub-categories based on geographicaldistribution and purpose of visit. For example, visitorsto Newfoundland & Labrador from other parts of Canadawould consist of a significant number who are visitingfriends and relatives while European visitors wouldcomprise a significant number of touring married couples.The in-province market would likely consist of a highernumber of families than the out-of- province market.

The Province’s Tourism Product Market Match Studyprovides a lot of useful information on the markets fordifferent types of tourism products. It also containsinformation about the characteristics and preferences of different market segments. The study also breaks down the number of visitors by region of the province.

Portions of this material can be found at the end of thissection. Another place to look for tourism marketinformation is your Regional Tourism Association whichmay have developed detailed visitor profiles of your region:

Avalon Conventions and Visitors Bureau -

http://www.canadasfareast.com/

Baccalieu Trail Tourism Association -

http://www.baccalieutourism.com/contact.htm

Discovery Trail Tourism Association -http://www.thediscoverytrail.org/

Doset Trail Tourism Association -http://www.ezc.ca/webs/web.asp?user=dorsettrail

Exloits Valley Tourism Association -http://www.centralnewfoundland.com/exploitsvalley.php3

Gateway Tourism Association -http://gatewaytonewfoundland.com/

Green Bay Tourism Development Association -

http://www.ezc.ca/webs/list_pages.asp?user=gbtourism&

sub_category=About+Us

Heritage Run Tourism Association -http://www.theheritagerun.org/

Kittiwake Coast Tourism Association -http://www.kittiwakecoast.com/

Labrador Stratis Historical Development Corporation -

http://www.ourlabrador.ca/member.php?id=24

Labrador West Tourism Development Corporation -

http://www.newfoundlandlabrador.com/TravelTrade/

Services/RegionalTourismAssociations.aspx

Viking Trail Tourism Association -http://www.vikingtrail.org

Calculating Potential Market Share

When analysing your market it will be useful to projectthe percentage of the total market (market share) youwill be able to attract. Market share consists of thatportion of the total number of people visiting yourregion that your facility/program can, realistically, hopeto attract. This can be used to estimate the numbers oftourists visiting your facility. Such numbers areimportant for estimating potential revenues (e.g., basedon entrance fees, spending at your gift shop, etc).

For an example of market share calculations see section7.1 of the sample business plan at the end of this Module.


financial

It is useful to check visitation numbers with other similarexisting attractions in your region as this will let you know ifyou are ‘in the ballpark’. It is best to be somewhatconservative in your estimates, especially during the firstcouple of years when your facility will be new and relativelyunknown.

10) Marketing/Promotional Strategies

This sections addresses how you will promote yourfacility. For detailed information on promotionalstrategies see Module 9.

I I . F I N A N C I A L P R O F I L E

This is, in many ways the most important part of thebusiness plans. It includes projections for how youexpect your facility to operate, financially, as well as

requirements to cover capital expenditures. The figures youinclude here, especially for revenue projects, become a goaltoward which you can strive.

Your financial projections should be as realistic as you canmake them and based on solid, well-researched assumptions.You may be tempted to inflate revenue figures or decreaseexpenditures but, ultimately, you may only be fooling yourselfif you do. Potential funders will likely see through inflated orunrealistic projections.

a) Capital Expenditures – provide a list of all capitalexpenditures associated with your project. This shouldinclude the costs of construction (labour and materials) andequipment. This is important information for funders whowant to know how their investments will be spent. It isgenerally a good idea to add a contingency of 10 to 15% toyour budget for capital items, as unforseen costs almostalways appear.

b) Projected Income – provide an outline of all sources ofrevenue for your project along with the assumptions made ingenerating projections for each. Typically, for a heritagefacility income will come from several sources. • admission fees (generally cover around 20% of total revenue)• program fees• facility rental• fund-raising• sales• grants• in-kind contributions (donations of materials, services, land)


c) Income Statement

This is the real guts of the business plan. The incomestatement projects all revenues and costs and subtracts onefrom the other, to give an indication of the bottom line (i.e.,whether a facility can be self-sustaining). Even if it is notrealistic to expect a heritage facility to wholly pay for itself,the income statement will give an indication of additionalfinancial resources needed to keep the operation afloat.Generally, income statements are provided for the first two orthree years of operation for a new venture. This is useful, asit usually takes a few years for a new venture to fully get offthe ground financially. If your facility is already in operationinclude income statements from the last few years to showyour ability to successfully manage things financially.

d) Cash Flow Statements – a breakdown of the incomestatement on a monthly basis. This helps you to identify periodswhen expenses exceed income (e.g., the winter months whenincome is lower or non-existent) and, as such, is a good toolfor analysing your financial situation. Even if, on an annualbasis, your bottom line is on the positive side, there may betimes of the year when you need additional money to coverexpenses. This is important to know so that you don’t run intoa cash crunch. The cash flow statement could help you totime fund-raisers or suggest that you need a line of credit.Like the income statement it is good to prepare cashflowstatements for two or three years. For a sample cash flowstatement see the end of the following sample business plan.

Who Can Help

For assistance with preparing a business plan contact:

• ACOA can assist with funding feasibility studies forqualified projects through its Business Development Program.It offers some interesting on-line tools under its ‘SmallBusiness Toolbox’ that include an Interactive BusinessPlanner and a Small Business Workshop (see: http://www.cbsc.org/english/ )

• The Canadian Business Centre offers information on avariety of federal and provincial business support programs(1-800-668-1010 website: http://www.cbsc.org/nl )

• The Community Business Development Centres are locatedin several locations throughout the province. They canoffer guidance on the preparation of business plans. For a list of BDCs see: http://www.cbdc.ca/index.php?rid=3



INCOME STATEMENT WORKSHEET

Income: Year 1 Year 2 Year 3

Revenues/Fees

Gross Sales (e.g., gift shop)

Less cost of goods sold

Net sales

Fund-raising

Grants

Total income

Expenses:

Utilities

Property Taxes

Salaries

Rent

Advertising

Travel

Professional fees

Office expenses

Materials

Insurance

Interest

Payment on loan

Bank fees

Total Expenses

Net Income

FACILITATION GUIDE

1. Discuss with your group the benefits that the development of a business plan will bring for yourproject/facility

2. Have your group try to identify individuals in the community or elsewhere (e.g., educational institutions)who could assist in the preparation of a business plan (i.e., people with business/accounting skills).

3. Ask for volunteers (or small committees) from your group to undertake research for your business plan,considering such areas as: product/services; pricing; management staffing requirements/salaries;environmental scan; market analysis. Have them report back to the group to seek feedback andadditional ideas.

sampleB U S I N E S S & M A R K E T I N G P L A N for ‘On the Land’ Living History FarmWinterland, Newfoundland

Table of Contents Page

Executive Summary 83

1.0 The Concept 84

2.0 Profile of WHDC 85

3.0 Product/Services/Pricing 85

4.0 Management 87

5.0 Staff 87

6.0 Environmental Scan 88

7.0 Marketing Strategies 90

8.0 Promotional Strategies 91

9.0 Financial Projections 92

Appendix A: Financial Statements


BUSINESS & MARKETING PLAN for ‘On the Land’ L iv ing HistoryFarm Winter land, NewfoundlandOctober 2000

Executive Summary

The Winterland Heritage Development Corporation (WHDC)is a community-based, non-profit group located in thetown of Winterland, Newfoundland. In 1997 the Corporation

established the very successful Winterland Ecomuseum on a2,000 acre nature reserve within the municipality of Winterland.As part of the Ecomuseum, the WHDC plans to develop the‘On the Land’ Living History Farm. This facility is intended tointerpret Winterland’s history as a planned farming communityunder the Commission of Government in the late 1930s. It willcomprise a replica of the model farmsteads (house and barn)established in the community.

This project will benefit the community of Winterland and thesurrounding region in several ways. Firstly, it will provide animportant educational facility – the only one of its kind in theprovince – that interprets Newfoundland and Labrador’sagricultural history. As such it will help to promote awarenessof Winterland’s heritage and to build community pride. It willalso form a significant tourism attraction for the Burin Peninsula,drawing on both out of province and in-province visitors. It isprojected to draw approximately 4,000 visitors in its first year,rising to around 6,000 by its third year. It is anticipated that it will have an important economic impact on Winterland andthe surrounding area. It will provide, directly, four seasonaljobs annually. Indirectly, it will create local businessopportunities through the provision of hospitality services.

The Living History Farm is projected to be self-sustainingwithin a three year period. It will generate revenues fromadmissions (approximately 25%); special programming; amembership program and various fund-raising activities. Thefacility will operate with an annual budget of around $45,000.A two year Employment Subsidy will be sought from HRDCfor the hiring of a coordinator to manage the project. Theproject will be managed by a full-time manager working on an8 month a year basis.

Capital costs for the project amount to $80,800 over a two-year period. Funding for this project will be sought fromHRDC, the Province of Newfoundland & Labrador, andACOA, and through fund-raising activities by the WHDC. The Town of Winterland has agreed to donate the land required.


1 . 0 T H E C O N C E P T

As part of its long-term strategic development plan theWinterland Heritage Development Corporation (WHDC)has identified the development of a heritage farm as a

way to preserve an important part of its heritage and to generateeconomic opportunities for the residents of Winterland and theBurin Peninsula. Such a facility would interpret thecommunity’s establishment as an agricultural settlement underthe Commission of Government’s Land Settlement Program ofthe 1930s and 40s. Using ‘living history’ techniques everyattempt will be made to bring visitor’s back to the early 1940sto get a sense of what life was really like for the pioneers ofWinterland. As such it would represent the only effort tointerpret this aspect of Newfoundland’s history and one of thefew attempts to portray the province’s agricultural heritage.

The expression ‘on the land’ has been adopted as the name forthe heritage farm and interpretation program. This expressionwas commonly used to describe where people were when theywere working the fields of Winterland.

As no original collections of farm buildings exist in thecommunity, the decision has been made to recreate a smallworking farm within the Winterland Ecomuseum. Establishedin 1997 the Ecomuseum consists of a high quality fivekilometre trail located within the Winterland WetlandStewardship Area. The trail interprets a variety of differentlandscapes and the interactions that local residents traditionallyhave had with them (e.g., forest, wetlands, barrens). Theheritage farm will complement the trail and will broaden thecultural interpretation of the Ecomuseum. It will be located atthe western end of the Ecomuseum, adjacent to the Grand BankHighway in an area that has been partially cleared and used inthe past for agricultural purposes. Future plans includeincorporating other reconstructed buildings used in thecommunity during the pioneering period including a communitygarage (which would be used to display early farm machineryand implements), a co-op store, and a community workshop(which could also be used to manufacture gift items for sale).

Currently the Winterland Ecomuseum attracts over 30,000visitors annually. The heritage farm should broaden the appealof the facility and draw a greater number of tourists. For amore indepth description of the heritage farm and its programsplease see Appendix A.


2This Business Plan was prepared for the Winterland Heritage Development Corporation in 2000 and does not, necessarily, reflectthe actual financial operations of the Corporation at the present time

2 . 0 P R O J E C T P R O P O N E N T

The WHDC is a community-based non-profit organizationdevoted to preserving and developing the natural and culturalheritage resources of the community. It is governed by anincorporated board and is a registered charity. Staffing variesdepending upon current projects that the board is undertaking.Currently there is a staff of seven, consisting of a programcoordinator and six interpreters.

The WHDC is well-recognized in the region for the highquality of its facilities and programming. Funding agenciesrecognize the group for its financial management and anability to make the most of financial resources. The annualbudget of the corporation is approximately $100,000. Pleasesee Appendix B for financial statements from the last three years.

3 . 0 P R O D U C T / S E R V I C E S / P R I C I N G

Admission fees & Special Programming - it is anticipated thatadmission fees will cover approximately 25% of income for theLiving History Farm. In setting admission fees a survey of threeheritage facilities in the province was undertaken (NewfoundlandScience Centre, Colony of Avalon, Grand Bank Seaman’sMuseum), all of which fell within a close range:

Adults $4.00 to $4.50

Youth/Seniors $3.25 to $3.50

Children over 5 $2.25 to $3.25

Children under 5 Free

School groups $3.00 per student

Based on the above and recognizing the scale of this operationa recommended fee structure for the ‘Out on the Land’Heritage Farm is as follows:

Adults $3.00

Youth/Seniors $2.50

Children over 5 $2.00

Family $8.00

School Groups $3.00 per student

Projected revenues* from admission fees based on visitornumbers described under marketing are:

2002 2003 2004

Regular admissions $ 7,500 $10,000 $12,500

School Programs $ 2,550 $ 2,400 $ 2,350

Totals $10,050 $12,400 $14,850


*An average admission fee of$2.50 per visitor has been used

In addition to regular interpretive programming a number ofspecial programs are planned each with their own feestructure:

Children’s Farm Camp – to be held Wednesday afternoonsthrough July and August it will offer a variety of activities togroups of children (up to 15 in number) from ages 5 to 12. Thecost will be $10 per child per session. The target revenue fromthis activity is based on an average of 10 children x $10 x 8weeks = $800

A Winterland Time – a traditional ‘Newfoundland Time’ toconsist of singing and entertainment will be staged on Thursdaynights throughout the summer at the Ecomuseum stage. Costs:$3.00 per adult; $1.00 per child (under 12); $7.00 per family.Entertainment will be provided by members of Winterland andthe Burin Peninsula Arts Council. Targeted revenues are basedon an average of 50 attendees x average fee of $2.00 x 8 weeks= $800.

Adult Farm Programs – two hour programs for pre-booked adultgroups will be offered to include a one-half hour interpretationat the field site with the remainder spent learning about andparticipating in traditional farm/ domestic activities. This programwill be targeted in particular to senior’s groups. Cost per person is$10. The target will be to hold a minimum of 10 programs peryear with an average of 10 participants each = $1,000.

Membership Program – a membership program or ‘Friends ofthe Winterland Ecomuseum’ is seen as an excellent way forinterested people to get more involved with a facility. It willallow local residents to visit the trail and the heritage farm ona regular basis in a cost-effective way. Members will receiveunlimited access as well as a newsletter and notification ofspecial events. Members can be particularly helpful in fund-raising activities and as a signal to potential outside fundingagencies that the organization is a strong one.

Typical annual membership fees for provincial organizationsare as follows:

Family $45.00 to $50.00Individual $25.00 to $30.00

Recognizing the rural nature of much of the Burin Peninsulaand the fact that incomes are lower than in the St. John’s areaa membership fee structure is recommended that is somewhatbelow these rates.

Family $30.00Individual $15.00


Targets for memberships sold and revenues on an annual basis are:

2001 – 250 family and 100 individual = $9,000 x 50%* = $4,5002002 – 275 family and 110 individual = $9,900 x 50% = $4,9502003 – 275 family and 110 individual = $9,900 x 50% = $4,950

*Based on splitting membership revenues equally between theheritage farm and the Ecomuseum.

Fees for Services – the heritage farm can offer services for a fee tothe general public, specifically in the form of training workshops ina variety of traditional skills (e.g., the production of textiles andcrafts, food, furniture and traditional gardening techniques andheritage plants). It is planned that 12 of these will be held yearly.With a workshop fee of $25 per person x 10 participants each it isprojected that $3,000 annually can be generated.

4 . 0 M A N A G E M E N T

The On the Land Living History Farm, together with the WinterlandEcomuseum will be managed by a full-time manager working foreight months of the year (May to December). Qualifications for thisposition include: experience in educational/ interpretive programming;book keeping skills; fund-raising; and a proven ability to work atthe community level. The manager will be overseen by andanswerable to the chairperson of the Winterland HeritageDevelopment Corporation.

The managers duties will be as follows:

• supervision of all staff

• staff orientation

• financial operations and book keeping

• liaison with the board of directors

• coordination of fund-raising and grantsmanship activities

• promotion and marketing

• coordination of interpretive programming

5 . 0 S TA F F

The Heritage Farm living history program will operate with thefollowing staff:

• 2 seasonal interpreters (July to October) at a salary of $400/week

• 1 seasonal student interpreter (June to August) at a salary of$250/week

• volunteer interpretive staff (to fill in on weekends and shoulderseason)


Qualifications for the interpretive positions includeexperience in education/working with children/interpretiveprogramming. The goal with the two seasonal interpreters willbe to find individuals who are interested in long-termseasonal employment. This will allow for the development ofa skilled and experienced core workforce. Volunteerinterpreters will be drawn largely from retired individuals inthe community with an interest in and/or experience ofworking with children and the public.

Interpretive staff will be responsible for the following:

• delivery of interpretive programming

• assisting in the development of interpretive programming

• maintenance and small construction projects whererequired

An on-going skills development program is to be developedfor interpretive staff in conjunction with HospitalityNewfoundland & Labrador and MANL.

6 . 0 E N V I R O N M E N TA L S C A N

The On the Land Living History Farm will be the onlyfacility of its type in Newfoundland that interprets theprovince’s agricultural history. As well, it will be one of thefew living history programs offered on the Burin Peninsula.

Located on the Winterland Ecomuseum Trail, the Farm willcomplement well the natural heritage programming currentlyoffered by the WHDC. The interpretive approach at theEcomuseum has been to integrate the natural and culturalheritage of the area and to show the interaction of residentswith the local landscape and natural resources.

Other attractions in the region include:

• Golden Sands Park (private) - 4 km

• Burin Heritage Museum (community) -15 km

• Southern Newfoundland Seaman’s Museum (provincial) -30 km (Grand Bank)

• Harris House Museum (community) - 30 km (Grand Bank)

• Grande Meadows Golf Course - 10 km (Frenchman’s Cove)

• Frenchman’s Cove Provincial Park - 10 km

All of these are seen as being complementary to the LivingHistory Farm and should provide an existing visitor base onwhich to draw.


The Living History Farm will be located within theWinterland Ecomuseum, which is a 2,000 acre conservationarea of the Town of Winterland. It will be situated on awooded area of mineral soils, away from sensitive wetlands.As the farm is meant to interpret a Winterland farmsteadprior to the coming of electricity it will not be necessary toprovide any services. An outdoor privy will offer toiletfacilities.

Access for an off-highway parking area has been approvedby the Department of Public Works, Services andTransportation as has permission to mount highway signage.

7 . 0 M A R K E T I N G S T R AT E G Y

The experience of other heritage village/farm facilitiessuggests that approximately two-thirds of visitors come fromthe local region with another 20% being in-province and theremaining 15% from the rest of Canada and overseas. Theparticular market for such facilities generally comprisesthree primary groups:

a) Elementary School Groups (grades 3 to 8) on school tripsrelated to their school curriculum. For the BurinPeninsula School Board, the projected number of studentsat these grade levels for 2001 is around 1,960 with aprojected decrease of 0.5% over each of the two followingyears. The target will be to attract around 30% ofstudents annually. By tying school interpretationalprograms closely to curriculum it should be possible tooffer a meaningful experience to students on a repeatbasis in subsequent grades. It is anticipated that studentswill bring their parents along for repeat visits if aninterested schedule of events is offered throughout theseason.

b)Married couples with children interested in an enjoyableand educational experience. This segment of the marketwould comprise both residents of the Burin Peninsula andtourists. Close to one-quarter of out-of province touriststraveling by automobile were couples with children whilefor those traveling by air the figure was only 5% whichwould represent an average of 15% of the total or 1,500individuals. The target would be to attract at least 20% ofthese individuals or 300.


A major attraction for families to the area is Golden SandsTrailer Park which is located within 5 kms of Winterland.While visitation statistics are not available it is known thatapproximately 80% of their visitors stay overnight and thatthe overwhelming majority of these come from the AvalonPeninsula. This group offers significant potential forvisitation to the Winterland Heritage Farm. As suchsignificant effort will be made to promote at Golden Sandsand to undertake joint advertising. Such promotional effortsshould be quite mutually beneficial. It is estimated thatapproximately 25 % of individuals who visit Golden Sandscould be attracted to the heritage farm, most of whom wouldrepresent families traveling from the Avalon Peninsula.

c) Mature Adults & Seniors comprise both local residentsoften interested in reminiscing about the past or bringingalong visiting friends and relative, and tourists. This willbe an important group to target for a couple of reasons. Forone thing, the local population, is an aging one due, in nosmall way, to out-migration. Many of the visitors toNewfoundland represent a more mature segment of thepopulation with above-average incomes. Approximatelyone-half of all out-of province tourists, or 5,000 individualsfall within this classification. A target of 20% of thismarket would yield about 1,000 visitors on an annual basis.

d)Non-Resident Tourists to the Burin Peninsula numberaround 10,400 annually (based on 1997 figures). While theregion is not one of the province’s major tourist destinationsit is the connecting route to St. Pierre & Miquelon andenjoys one of the highest figures for length of tourist staysin the Province (6.5 days). With good promotions andpackaging with other local attractions it should be possibleto increase the number of visitors from Eastern Newfoundland.

7 . 1 P r o j e c t e d M a r k e t S h a r e


Group Total Population Projected % Projected Market Share Market Share (individuals)

Local Adult Residents 18765 10% 1870

Local Students (K-12) 1900 30% 570

Non-Resident Tourists 10400 10% 1040

In-province Tourists 540000 .01% 540

Total 4020

8 . 0 P R O M O T I O N A L S T R AT E G Y

The Living History Farm will be promoted in conjunctionwith the Winterland Ecomuseum Nature Trail. A number oflow-cost, yet effective media will be used to promote the twoattractions:

• Signage – an additional sign for the Living History Farmwill be mounted below the Ecomuseum signs located atthe major highway entrances to Winterland

• Brochure – to be developed for distribution at provincialtourist chalets and at all other tourist attractions andhospitality businesses in the region.

• Press releases and public service announcements – attemptswill be made to issue several press releases a year toannounce new developments and special activities at theEcomuseum. Public service announcements in the localnewspaper and radio station (as well as CBC Radio) willbe used to notify the public of upcoming events.

• Website – a website will be developed, hopefully inconjunction with a local highschool. It can provide aflexible source of information on the Ecomuseum as wellas an educational site. The participation of the localhighschool will help to build links with the educationalcommunity and provide a cost-effective way to develop awebsite.

• Press Conference – a press conference will be held,hopefully with the participation of high level politiciansand community leaders (Minister of Tourism, Culture &Recreation) and the local MP and MHA, as part of theofficial opening of the Living History Farm

• Newsletter – a twice yearly newsletter will be publishedand distributed to partner groups and to members of the‘Friends of the Ecomuseum’. This will be an effective toolto publicize activities, to demonstrate how donorcontributions are being spent and to acknowledgecontributions to the Living History Farm.


9 . 0 F I N A N C I A L P R O F I L E

9 . 1 C a p i t a l E x p e n d i t u r e sThe bulk of capital expenditures required, which total $80,800,

will be to build a recreation of a typical farmstead fromWinterland’s pioneering era (1939-1940). The followingrepresents all capital costs associated with the project and,source of funding or contribution (committed or anticipated).

9 . 2 P r o j e c t e d I n c o m eAs indicated, it is assumed that over the long-term operatingcosts will be covered by self-generated revenues and fund-raising activities of the WHDC. The experience of otherorganizations in the province suggest that this is possible butthat considerable efforts and time need to be expended. Assuch, it is anticipated that the program coordinator will spend atleast one-third of his/her time in fund-raising and grantsmanship.

It is also anticipated that it will take a couple of years for theheritage farm to be self-sufficient in terms of revenues. As suchit will be desirable to develop a funding relationship with agovernment agency and/or foundation for a period of two to threeyears (see discussion below).

A) Revenues – Revenues from admissions, programming andmemberships are projected as follows:

Annual increases in admissions and memberships are based onincreased awareness of the Heritage Farm based on word ofmouth and promotional efforts.


Project Component Cost of Materials/Equipment Cost of Labour Source

Land acquisition $ 4,500 Town of Winterland (donation)

Dwelling $12,000 $20,400 HRDC

Furnishings/Equipment $ 6,400 – WHDC/HRDC

Barn $ 8,000 $20,000 Prov. Gov/HRDC

Parking $ 2,000 $ 1,500 ACOA

Signage $ 3,500 $ 500 ACOA

Promotional Materials $ 2,000 ACOA

Total $38,400 $42,400

Year 1 Year 2 Year 3

Admissions $10,050 $12,400 $14,850

Special Programs 2,600 2,600 2,600

Membership 6,750 7,450 7,450

Workshops 3,000 3,000 3,000

$22,400 $25,450 $27,900

B) Fund-raising – this forms an important portion ofprojected revenues and includes:

a) Special fund-raising events (4) will be held every year.All of these except for the Harvest Festival have alreadybeen staged for a number of years. These are:

• The Winterland Heritage Arts Show (Spring) – displaysand sales of antiques and heritage craft items

• Family Farm Fun Day (July) – a variety of activities forall ages which celebrate Winterland’s agriculturalheritage

• Winterland Harvest Festival (October) – a variety ofactivities, competitions and food and craft sales whichcelebrate the annual fall harvest

• Old-fashioned Christmas Concert and Fund-raiser

• Winterland Ecomuseum Auction & Dinner (late fall) –dinner and silent art auction to raise funds forEcomuseum activities

The target net revenue generation for the first 4 activities is$1,000 x 4 = $4,000 and $5,000 for the Auction & Dinner fora total of $9,000. Two-thirds of this ($6,000) will go towardsthe Heritage Farm and the remainder to the Ecomuseum.

• Corporate solicitation – while not a significant aspect ofoperational funding, businesses may be willing to provideassistance for special activities or projects, particularly ifthey can get recognition (e.g., through a plaque or bannerindicating sponsorship). Such assistance can often bethrough in-kind contribution of product, materials, orprofessional services. The goal will be to raise $1,500annually through corporate solicitation.

• Grantsmanship – grants may be available through governmentagencies and non-profit foundations. The experience ofsome facilities is that funding is hard to get for on-goingoperations (core funding), particularly from government andthat the time and energy required to get foundation grantsis not particularly productive. During the start-up phase ofthe program it may be possible to access the ‘TargetedWage Subsidy’ of HRDC which can provide assistance upto a period of 78 weeks. This program is cost-shared withHRDC paying 60% of wage the first and last 26 weeks. Ifsuccessful this could provide $7,800 during each of 2001and 2002.


In the case of both government and foundations, funding is morereadily secured for special projects and initiatives that fit wellwith their funding criteria and mandate. The goal is to raise$1,000 annually through foundation grants.

• Sales of Gift Items - the success of museum groups ingenerating revenues through gift shops and the sale of giftitems is quite varied. Those that are successful (e.g., Colonyof Avalon and Twillingate Museum) have a couple of importantingredients, namely high quality products and goodmanagement with often a major commitment on the part ofvolunteer board members. Items that are generally the mostattractive to visitors are those that relate in some way to thespecific site or region.

Rather than operating a full-fledged gift shop at the livinghistory site a corner of the interpretation facility will be devotedto the display and selling of a limited range of products that areclosely linked with the agricultural and pioneering heritage ofWinterland. By doing so it will be unnecessary to have a staffperson devoted strictly to sales. Products to be sold wouldconsist of those produced by interpretive staff during slowperiods or as part of demonstrations and by volunteers in thecommunity as well as by items produced by area artisans on acommission basis. In the case of the latter it will be useful tomake product design recommendations to potential producers.

The WHDC will also promote local artisans and craft productiongenerally in a number of ways:

• displaying promotional material of artisans

• encouraging local producers to demonstrate their skills duringspecial events

• organizing information and training sessions to promote craftproduction amongst local residents.

Net revenue projections from sales are as follows:

2001 - $2,500 2002 - $4,000 2003 - $4,500

9 . 2 O p e r a t i n g C o s t sThe experience of other non-profit organizations in the provincemanaging educational facilities/attractions suggests that self-sufficiency is key for a successful operation. While governmentfunding can be available for capital expenditures and projectsrequiring labour, as well as short-term operational funding, over the long-term the WHDC will rely on self-generatedrevenues and its own fund-raising initiatives to cover on-goingoperating costs.


Total Salaries $33,100Employer Costs (@ 15%) 4,965Travel 750Training 1,000Promotions 1,500Building Maintenance 750Supplies/Materials 1,500Telephone/Internet 1,200Miscellaneous 1,000Total Operating Costs $45,765

9.3 Income Statement (for 3 years)


4Fund-raising activities will be increased to reflect the end of government wage subsidy in Year 2.

Income 2001 2002 2003

Admissions $10,050 $12,400 $14,850

Special Programs 2,600 2,600 2,600

Membership 6,750 7,450 7,450

Workshops 3,000 3,000 3,000

Fund-raising 6,000 6,000 7,8003

Corporate/Foundations ,500 2,500 2,500

Targeted Wage Subsidy 7,800 7,800 –

HRDC Youth Employment Grant 2,750 2,750 2,750

Sales 2,500 4,000 4,500

Total Revenues $43,950 $48,500 $45,450

Expenses

Wages $39,032 $39,032 $39,032

Office Rental4 – – –

Travel 750 750 750

Training 1,000 1,000 750

Promotions 1,500 1,500 1,000

Building Maintenance 750 750 500

Supplies/Materials 1,500 1,500 1,500

Telephone/Internet 1,200 1,200 1,200

Miscellaneous 1,200 1,200 1,000

Total Operating Costs $46,182 $46,182 $46,182

Net Income/Loss ( ) $ (2733)5 $ 2,318 $ (282)

9.4 Cashf low Statement for Year 1

Income Jan Feb March April May June July August Sept Oct Nov Dec Year 1

Admissions 1,000 3,000 3,000 2,000 1,050 – – 10050

Special Programs 600 – 1400 1000 1400 600 600 – 2600

Membership 4000 550 550 550 550 550 – – 6750

Fund-raising/Grantsmanship 1675 – 1175 – 675 1000 3,300 675 8500

Wage Grants 3900 1375 – 1375 – 3900 – – 10500

Gift Sales 300 500 800 500 400 – – 2500

Total Income 0 0 0 0 10175 3,225 6,625 6,725 5,125 7,500 3,900 675 43,950

Expenses

Wages 2167 4650 6630 6630 5630 3900 2167 2167 33941

MERC 325 697 995 995 844 585 325 325 5091

Travel 100 100 100 100 100 100 50 100 750

Training 750 250 1000

Promotions 1000 250 250 1500

Maintenance 500 500

Supplies/Materials 180 180 180 180 180 180 180 240 1500

Telephone/Internet 100 100 100 100 100 100 100 100 100 100 100 100 1200

Miscellaneous 150 150 150 150 150 150 150 150 1200

Total Expenses 100 100 100 1100 3022 7127 8405 8155 7004 5265 3222 3082 46682

Surplus/Deficit -100 -100 -100 -1100 7152 -3902 -1780 -1430 -1879 2235 678 -2407

Balance -100 -200 -300 -1400 5752 1850 70 -1360 -3239 -1004 -326 -2732 -2732


5Operating loss for first year will be covered by a bank line of credit

Documents

MODULE 8 - nztri.aut.ac.nznztri.aut.ac.nz/ahinl/HeritageGuide/module08.pdf · on his desk and one includes a business plan and the other one doesn’t, who will get the most serious