Project

TABLE OF CONTENTS

TABLE OF CONTENTS 2 EXECUTIVE SUMMARY 3 SwOT 3 PESTEL 5 Competitive Analysis 8 Pricing 10 Product 10 appendix 15 Exhibit A - Venue Pricing 15 Exhibit B - Income Projections 20 Exhibit C - Pro Forma Income Statement 21 REFERENCES 22

EXECUTIVE SUMMARY

The Nature Discovery Center's (NDC) mission is to provide and create a 'life-long' relationship between nature and its visitors. This relationship is an understanding and trust developed for personal connectivity with nature and its teaching power through science and exploration. The center looks to expand the creativity and play environment of children while developing social skills. We have focused on industry-specific data related to NDC, such as comparative industry pricing and services, to improve the economic outlook and expand educational opportunities.

With limited full and part-time employees, we identified groups that will help with the maintenance of the facilities and park. Further research has identified marketing and pricing strategies, which will result in an opportunity to utilize NDC resources to promote its vision to its annual 40,000 plus visitors. Implementing these recommendations allow NDC to provide competitive services and opportunities to all visiting educational seekers, regardless of economic position.

Further analysis will provide an understanding of strengths and opportunities of NDC, while unveiling weaknesses and threats. Product proposals will be provided to enhance present sources of income to help offset existing operating expenses. Based on reviewing the possible 25% growth rate, a projection of over $400,000 in profits is the intent to establish through our conclusions. Supplementary analysis will result in accomplishing the sustainable goal of 50-50 revenue, with the intent to surpass the current necessity of substantial donations, grants, and program services.

S.W.O.T.

Strengths (Internal):

· Strategic location amongst affluent residential neighborhoods

· Minimal overhead due to volunteer business model

· Multitude of activities appealing to large age group

· Interactive educational programs and activities

· Large green space to cater events for fundraising and exposure

· Capitalizing on UHD program to obtain graduate student business recommendations

· Executive Director is forward thinking and heavily invested to improve business operations

Weaknesses (Internal):

· Volunteer staff business model or turnovers

· Limited parking detracts guests

· Low social media presence and awareness

· Overgrown outdoor green space and poor condition of outdoor activities

· Indoor space is dated and uninviting

· Interactive animal environments are unwelcoming

Opportunities (External):

· Social media awareness and education

· Host more events that are appropriate and in line with overall mission/vision

· Engage with local groups; i.e. girl/boy scouts to assist with maintenance and clean up

· Capitalize on affluent area and offer more donor opportunities to replace old outdoor

benches, swings, etc.

Threats (External):

· Uncertain economy can result in lower disposable income of the area

· Existing competition continued improvements

· Overgrown green space considered liability due natural inhabitants, such as snake, spiders, vegetation, etc.

· Center may require unforeseen maintenance

PESTEL ANALYSIS

Political

Political factors play a significant role and can adversely affect 501(c) organizations. An example would be Mayoral elections can bring in a new candidate who may limit or not support non-profit organizations. Neighboring city mayoral elections may adversely affect funding sources for non-profit organizations. Government policy changes on environmental maintenance could affect how areas are classified, how non-profit organizations should uphold areas next to residential boundaries, or how the city services may affect the disbursements of services to residents and their neighboring non-profit organizations. Laws put into effect may impact the initial mission of non-profit areas which may cause the organization to re-evaluate their purpose.

Economic

The region is heavily populated by the Oil & Gas influence. The importance in this is that with instability amongst the industry, it could lead to a potential economic downturn in the target consumer market. With downturn, the residual from donations is reduced, or all together diminished. Homes in the immediate area may take value shifts. The negative impact occurs when homeowners decide to vacate the area if their home value drops. The amount of localized area donation output to all non-profit organizations are influenced. The other issue to consider is that if the area homes are open to families with low area pride, it may draw an unwanted population to the area, which may not have high regards or respect for non-profit recreational areas. Another economic factor is that if a downturn occurs, high to middle class homesteads may vacate the area. Funding from local homeowners may affect the taxes pulled in, which in turn affects funding for services that the city is budgeting for during the year. If the city has agreed to provide certain services, such as reduced water, area traffic control, and area road services at a reduced cost for non-profit’s prior to economic swings, such occurrences may require them to re-evaluate services allowed versus service cost increased.

Social

Looking into the Social aspect, the shift of area demographic from an older homeowner to a younger demographic will make a difference as to whether the status-quo lifestyle of the area can withstand a newer style of living. The general one-family household is looking to change visual scenery to their collective desire which might impact recreational areas and their present view. Collective ideas of family or homeowner safety can become an issue where this may have direct constraint on how local recreational areas maintain their status-quo. A shift in zone cultures can evolve where their visions may clash with area organizations as a result taking direct impact on what is supported, and what is not.

Technological

Technology is always evolving; therefore, one must be aware of changes and its affects on their standing. The use of QR codes for identifying local areas can become heavily impactful for locating businesses or organizations in secluded areas. Search engines, such as Google maps and their real-life view can help or hurt when inquirers are searching for destinations. Being able to utilize modern tools and technology can be rewarding. Other tools such as ‘searchable access’ on search engines, much like Google or Bing can determine if an organization or area can be discovered. Utilizing social media such as Instagram, Facebook, Snapchat, or Twitter to incorporate ‘Likes’, # (hashtags), or ‘Save’ tools impact usage of free marketing.

Environmental

Climate change can inadvertently cause changes to organizations that rely on its weather to support habitat environments. Species can become protected because of local conservationist who can determine the future of organizations that thrive on this need. The industry of providing an opportunity to be outdoors should capitalize on the sustainability mindset through highlighting how nature centers can utilize eco-friendly goods, repurposing of waste, and recycling of non-biodegradable consumable type items.

Legal

On the legal side, environmental groups can decide to place focus on areas which capitalize on any gains of areas where animals are kept confined. With this in mind, recreational areas where animals are not placed in free roaming habitats can come under scrutiny. Another legal issue to consider is the environment of the area and its impact to close quartered homesteads. Any spawning from the environment, such as harmful pollen, may inflict severe allergic reactions. Poisonous insects or animals can become major liabilities should they encroach on neighboring residential communities. Newly implemented laws of incidental patron coverage for accidents or incidents can extend outside of organizational insurance coverage.

COMPETITIVE ANALYSIS

Nature Discovery Center

· Non-Profit Center nature trails – Free to the public

· Birthday party hosting (3) Different venues (Price Range: $290, with $50 add-on depending on options added. Prices are for NDC members)

· Event hosting areas (Adult centered) (Price Range: $200 - $700 depending on venue. Discounts available depending on day selection)

· Building Center for indoor meetings, events, and day camp classrooms (Prices start at $75.00 per hour)

· Memberships (Price Range: $35 - $250 per year depending on package)

Houston Arboretum & Nature Center

· Non-profit educational center for school field trips (Price Range: $6 - $25 depending on person and status)

· Updated Nature center for hosting Summer Camps with learning classrooms (Price Range: $165 - $350 depending on terms and guest status)

· Facilitates weddings and receptions (Price Range: $1500 - $2000 depending on guests)

· Birthday parties (Price Range: $350 - $550 depending on guests)

· Provides souvenir shops, meeting rooms, and exercise classes

· Walking and garden trails (free – although parking ranges from $1 to $5)

Fort Bend Discovery Center

· Museum and interactive learning centers

· Birthday parties (Price Range: $250 - $300 depending on guest)

· Active memberships (Price Range: $135 - $500 depending on package)

· Located in suburbs (newly developed)

· Centered around children and learning (Price Range: $6 - $10 depending on status)

· Event Rental (Price Range: $3000 for an occupancy to facilitate 300)

George Ranch Historical Park

· 20,000 acres (historic) with Colonial education homes for all ages

· Memberships (Price Range: $35 - $2500 depending on desired package)

· Field trips with interactive presentations (Price Range: $10 - $15 depending on guest age, military discounts offered)

· Private events (Price Range: $1000 - $4000.00 depending on guests)

· Support youth and school groups (scouts)

· Group tours for adults

Sam Houston Park

· Old homes (colonial & native historic) modernized

· Located in downtown Houston

· Tour guides with classroom set-ups (Price Range: $10 - $20 depending on package)

· A part of Houston’s elite social scenic crowd

· Offers recreational fitness classes (cost is free depending on available classes offered)

PRICING

Appendix A highlights the organizations in our competitive analysis and their schedule of fees. Part of our pricing scheme is to diversify our product offering to ensure people of all income levels have a diversified menu of activities to choose from.

PRODUCT

Scout Camps

We are suggesting weekend scout camps which would involve marketing out to troops in neighboring areas. This involves having troops rent out designated sections of the area or center to carry-out required badge accomplishments. The size can accommodate troops or dens. The designated area should be able to accommodate a span of 30-50 children along with an adult (their parent). Since most troop leaders are also parents of their scout, that number has been accounted for as well. The activities can encompass over night stays or day-camp only, nature walks for identifying habitat, areas for active learning other badges required. This product requires the existing maintenance of the grounds already encompassed. For over-night stay overs, (2) personnel may be needed which can be an added cost to the troop. Charging $1.00 for scout and $5.00 per parent for day stay only will generate additional revenue. For over night stays, charging $5.00 per scout and $10.00 per parent (providing a $3.00 discount if both parents stay overnight) will attract troops marketing the fact that the grounds are within the city limits for any need of quickly required incidents. The outcome is that you are encouraging the continued learning and respect for nature to an organization whose principle is to build up leadership and skills to help them in the future.

Catering

Since NDC hosts events and galas, the need for catering falls hand in hand. We suggest that NDC partners with a couple or single catering entity to provide a one-stop shop for interested event seekers. The idea is to utilize an entity such as Hickory Hollow to solely provide limited options to be catered at key events. They offer economical budgeted price ranges as well as set-up accommodations. They will charge the organization a set fee for a range of people. NDC can add an additional percentage ranging 5% to 7% (depending on the event). These catering companies come with food and their set-ups, personnel to assist with setting up, distributing and tearing down. Minimal need is required from the NDC staff aside from direction and possibly tables, which should already be available. The outcome provides means of becoming a one-stop shop with minimum staff intervention for your dining needs.

Wine Tasting

In order to get the attention of older secular interests, we are introducing ‘Sip with Nature’. This monthly event entails providing local and regional wine makers the opportunity to test their products to wine enthusiasts. Enthusiasts can taste and reserve their bottle of choice for future purchase. This entails reaching out to an established marketer for adult libations and selling the idea of bringing wine makers to the venue with the intent to test their new products and sell existing ones. The marketer will make their commission off sales from wine seller’s and expand their name in the industry. The wine seller makes their sale from the on-line purchase of later distributed bottles. The other selling point is that wine sellers can sell heavily inventoried low moving stock as well, which allows them to reduce their costs. NDC makes their profit through entrance costs into the event itself at cost of $40 per person and $60.00 per couple. The need of a TABC liquor license is not needed since a physical product is not taken from the ground. Wine tasting does not require a TABC or liquor license from the venue. City permits may be required.

Scavenger Hunts

We want the younger adult crowds! Presenting “Did you find it!” New venue for clue finding team building have started to become the next go to for both thrill seeking groups and corporate exercises. This entails the use of technology and brains, along with a little moving around. Information is initially loaded into a web-base of facts within the NDC grounds. The web-base provides questions significant to loaded information. Groups log-in to the site and are given random questions which sends the group(s) searching for the answer. Once they find the solution, they enter their answer, and this prompts another question to be generated. The web-based program can manipulate the number of questions, random shuffle the questions among the group (so that numerous groups are not chasing the same answer) and can provide statistical timed results to accurately provide the winner and placement of teams. The initial cost of this web base system would be $2,000.00 to $3,000.00. This includes questions entered into the system, app created to be distributed to clients. A maintenance fee would be required to keep the needed updates and change questions. The NDC would be able to charge individual 4-6 man groups (non-corporate)) $125.00. Corporate Team building events can range from $300.00 to $500.00 per 6-man groups. There logo and their respective tailored products would be included in the hunt. Focusing more on the corporate or church/community customers can re-coup investment within 2-3 session. Including social media hashtags will allow free advertisement throughout a broader spectrum. Minimal staff is required during the session. A company liaison would be needed for prep stations and refreshment areas.

Expansion

There is a strong positive correlation between interaction with nature and psychological wellbeing. Incorporating the above products would boost various age groups interest and awareness in nature and their involvement. Incorporating various communities and localized schools would initially promote the diversity in the Center’s capabilities. Social media allows an outreach to areas with minimal costs resulting in higher revenue. Establishing that first interest peak can assist in further research to become sustainable in a growing

Twilight Gala

The Twilight Gala, which takes place at the Briar Club, intent is to provide dinner, drinks, dancing and auction with the purpose of raising funds for the Nature Discovery Center. We are looking to enhance this event by proposing to add a non-cash winning casino night. The winnings will allow the guest to obtain further credit for auction item. An initial buy-in of $150.00 will provide a value of $200.00 valued chips to be only used at event tables. The purchase of more chips will also be available at face-value. At the end of the casino event, credit slips will be issued prior to auction. We are also suggesting (2) auctions to be available; silent and live. For the silent and live auction, we suggest that display of items be known or revealed a week prior to gala. Those attendees should have access or encouraged to utilize social media so that NDC may utilize this a functional marketing method at minimal costs. The center can create advertisement with the help of volunteers, who can send out daily reminders to draw anticipation to the event. The auction winnings should be honed into local incentives, such as team suite tickets or recreational theme parks or other desirable high-priced activities.

The event should be marketed to middle to upper class parties who are heavily fluent in local team or active enthusiasts. They will understand and pay for the opportunity to partake in these winnings. It would be necessary to also review the membership donors and to gauge their interest and occupation. This will provide a good collective basis of the beginning basis for entry tickets and expected residual. Success will be measure in multiple levels. The initial marker is from the interest created from social media and likes from the initial social media send out. The next success would be through the obtaining the auction prizes. The next success will be measured through pre-sold casino night packages. Another means of success will be measured by attendees. Another success would be measured from the comparison of total market value of winnings compared to funds raised from both auctions.

APPENDIX A

PRICING

APPENDIX B

APPENDIX C

21

Rate of Taxes30%

Month123456789101112

Revenue1,000,000$ 1,050,000$ 1,102,500$ 1,157,625$ 1,215,506$ 1,276,282$ 1,340,096$ 1,407,100$ 1,477,455$ 1,551,328$ 1,628,895$ 1,710,339$

COGS360,000$ 364,500$ 369,056$ 373,669$ 378,340$ 383,070$ 387,858$ 392,706$ 397,615$ 402,585$ 407,617$ 412,713$

Gross Profit640,000$ 685,500$ 733,444$ 783,956$ 837,166$ 893,212$ 952,238$ 1,014,394$ 1,079,840$ 1,148,743$ 1,221,277$ 1,297,627$

SG&A300,000$ 303,750$ 307,547$ 311,391$ 315,284$ 319,225$ 323,215$ 327,255$ 331,346$ 335,488$ 339,681$ 343,927$

Operating Profit340,000$ 381,750$ 425,897$ 472,564$ 521,882$ 573,987$ 629,023$ 687,139$ 748,495$ 813,255$ 881,596$ 953,699$

Taxes/Other102,000$ 114,525$ 127,769$ 141,769$ 156,565$ 172,196$ 188,707$ 206,142$ 224,548$ 243,977$ 264,479$ 286,110$

Net Profit238,000$ 267,225$ 298,128$ 330,795$ 365,318$ 401,791$ 440,316$ 480,997$ 523,946$ 569,279$ 617,117$ 667,590$

Rate of Taxes 30%Costs Growth Rate0.0125

Monthly

Customer

Growth Rate 0.051.0125

Monthly

Growth

Factor1.05

RevenueTransaction EventReported Revenue

MonthNew CustomersAverage PriceRevenueCOGS

110001,000$ 1,000,000$ 360,000$

210501,000$ 1,050,000$ 364,500$

311031,000$ 1,102,500$ 369,056$

411581,000$ 1,157,625$ 373,669$

512161,000$ 1,215,506$ 378,340$

612761,000$ 1,276,282$ 383,070$

713401,000$ 1,340,096$ 387,858$

814071,000$ 1,407,100$ 392,706$

914771,000$ 1,477,455$ 397,615$

1015511,000$ 1,551,328$ 402,585$

1116291,000$ 1,628,895$ 407,617$

1217101,000$ 1,710,339$ 412,713$

New Product: Catering