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Strategic Plan

STR 581

Strategic Plan and Presentation

TABLE OF CONTENTS

EXECUTIVE SUMMARY…………………………………………………………...…...3

OJECTIVE………………………………………………………………………,,…….….4

Mission………………………………………………………………………………4

Vision………………………………………………………………………………. 4

COMPANY SUMMARY……………………………………………………...……….….5

Location and Facilities..………………………………………………...…….….…..5 Company Workshop…………………………………...……………...………….….6

PRODUCTS & SERVICES…………………………………………………...……..……8

Service Description…………………………………………….…………….....……8

Product Description……………………………………………….………...….....…9

MARKET ANALYSIS SUMMARY…………………………………….………….....….9

SWOTT Analysis…………………………………………………….……….…....10

ORGANIZATIONAL RESOURCES………………………….……….………,…....….11

Porter Five Sources…...……………………………………………..……….….…..11

Organizational Processes…………………………………………...………………..12

STRATEGY & IMPLEMENTATION SUMMARY…………………………......…..…13

Functional Tactics………………………………………………………...……....….14

Milestones……………………………………………………………………,...…....15

FINANCIAL PLAN………………………………………………………………………..16

Projected Balance Sheet & Projected Profit…………………………………………16

CONCLUSION…………………………………………………………………………….17

Executive Summary

B Limitless Children's Art Museum of San Antonio, is a not-for-profit 501(c)(3) organization. B Limitless is being formed to provide unique and meaningful arts programming for all children, to educate children in the arts, and to build a lifelong audience for the arts. We plan to offer a dynamic and constantly-evolving program. Although we will incorporate all of the fine arts into our programs, our focus is on visual art. Most activities will be open-ended and enjoyed on a walk-in basis. The Museum will be staffed by working artists, and all structured activities will be led by master artist-teachers.

The Arts Education Partnership, in conjunction with the President's Committee on the Arts and Humanities, commenced a study last year to examine the impact of arts experiences on young people and to explore why and how young people were changed through their arts experiences. Evidence demonstrates that children with high levels of arts participation outperform "arts-poor" students by virtually every measure. This study, Champions of Change, found much evidence that learning in the arts helps develop habits that will support other disciplines, and that it can often reach at-risk students when other disciplines cannot. The arts provide young people with authentic learning experiences that engage their minds, hearts, and bodies. Arts education helps students learn, enhance creativity, self-discipline, and the skills and confidence necessary to meet the challenges encountered during their lives.

The three founding board members, all of whom are mothers of young children, are uniquely qualified to bring this project to fruition. Karolyn Kuehner, Executive Director, holds a Bachelor of Music degree in Piano Pedagogy and a Master of Music degree in Piano Performance and Pedagogy, with highest honors, from Chicago Musical College of Roosevelt University. In addition, she served as Lecturer in Piano at Roosevelt University for over 10 years, and has also served on the piano faculties at Concordia University and Elmhurst College. Ms. Kuehner received the D.H. Baldwin Fellowship in recognition of her contributions to piano pedagogy and is listed in the book, Who's Who in American Music. Ms. Kuehner is an active Brownie Troop leader with the Girl Scouts of San Antonio and is an advocate for homeschooling. Sheri Jendra, Operations Director, holds a Bachelor of Arts degree in Public Administration, and a Master of Public Administration degree from Incarnate Word University. She was formerly employed as the Housing Director S.A.G.E., a non-for-profit community organization. She has also served as Assistant Planner for the Obama Administration Commission. Ms. Jendra is active as a volunteer in many capacities at Greater Temple Baptist Church and Booker T Washington Elementary School.  Nancy McGourty, Marketing Director, holds a Bachelor of Science in Commerce degree with a major in Marketing from St. Mary’s University. Previous employment includes the position of Assistant Vice President/Marketing at US Bank, Economic Development Director for the S.A.G.E. Planning Association, and Marketing Officer in the Corporate and Institutional Banking group at US Bank. Ms. McGourty is active in the ML King community as a director of the Southwest ML King Association.

We are seeking funding for initial start-up costs to be used for legal costs, leasehold improvements, rent and related expenses, office equipment, furniture, starting inventory, and initial cash to handle the first few months of expenses.

We estimate that approximately 60% of B Limitless annual revenue will be generated by a combination of membership, admissions, programming, retail sales, and related activities. The remainder of our funding will be generated by: 

· The writing of proposals to secure grants from foundations.

· The solicitation of individuals, corporations, and small businesses.

· An annual large-scale benefit concert, family benefits, and special events.

· A variety of small scale fundraising activities.

B Limitless objectives during the first year of business are:

· To generate earned revenue from a combination of membership and admission fees, programming, outreach, retail sales, and special events.

· To secure new funding sources including foundation grants, government grants, and private and corporate donations.

· To have 375 total paid memberships.

· To serve 1,500 children through our outreach programs.

Mission

The mission of B-Limitless is to encourage children of all ages to develop their full creative potential through the visual and performing arts. B-Limitless strives, through the fine arts, to create a unique environment in which children of all ages, abilities, and experience can feel free to imagine, create, and welcome the arts into their lives. B-Limitless provides a professional work environment that is challenging, rewarding, creative, and respectful of ideas and individuals.

Organization Summary

B-Limitless is a not-for-profit organization formed to provide a place where children of all ages and abilities are encouraged to develop their full creative potential through the visual and performing arts. We plan to offer a dynamic, unique, and constantly evolving program. Although we will incorporate all of the fine arts into our programs, our focus is on visual art. Most activities will be open-ended and enjoyed on a walk-in basis. The Museum will be staffed by working artists, and all structured activities will be led by master artist-teachers. B-Limitless will offer an art experience to children that will increase awareness of the arts, create an audience for the arts, and cannot be duplicated.

Our facility will house nine permanent open-art stations, including the Little People Lounge for our youngest visitors, Art Journey for toddlers, Sunflower Studio, Daisy Doodle-Shop, the Navajo Weaving Loom, I-MAC Imagination Station, the Sculpture Shop, Poppyseed Palace, and the Daily Special. In addition to our permanent stations, we will have a revolving set of installations, English Garden Light Design Table, City Design Architecture Board, and the Paint-Your-Own Ceramics Studio. We will have three art galleries: the Children's Gallery, a gallery showcasing the work created by the children who visit B-Limitless. The Artworks Gallery, which is dedicated to the presentation of reproductions of work created by famous (and not so famous) grown-up artists; and will provides a venue for our resident artists, as well as other area artists, to showcase their work.

Our facility will also house an extensive children's library that contains high quality books about artists, dancers, musicians, and composers and their lives and work. We will also provide a resource library for adults who are interested in furthering their knowledge of the arts. Our Curiosity Shop will sell affordable, high-quality art supplies, handmade toys, and other unique items. We will offer special artist-led workshops and performances on a daily basis, including a twice daily "Storytime at Poppyseed Palace," and the Daily Special guided art activity. In addition, we will host the First Friday Concert Series, the Second Sunday Family Workshop, Culture Bugs classes for 18-42 month old children, Art Colony for 4-6 year old children, the Apprentice Workshop for teenagers, the Saturday Film Series, Art Encounters outreach program, monthly docent visits led by representatives of Chicago area galleries and museums, scheduled gallery openings, and seasonal special events.

B-Limitless plans to locate on the Eastside of San Antonio across from Dawson Park. Although preliminary plans are being made to find a location, we will secure space when approximately fifty percent of our start-up funding has been raised. Start-up expense totals include legal costs, leasehold improvements, rent, and related expenses. Start-up assets required include assets office equipment, furniture, and initial inventory and initial cash to handle the first few months of expenses. B-Limitless will house nine permanent open-art stations. These stations are the focus of our daily work. Our resident teaching artists will staff the open-art stations and will provide guidance when it is requested. The remainder of their time will be spent demonstrating their skills and maintaining the studio spaces. Each station provides a unique opportunity for B-Limitless to further our purposes as an educational and charitable organization. The permanent open-art stations include:

Little People Lounge

This is a place where our youngest visitors can freely explore their creativity and curiosity. All activities are open-ended and designed for children who are not yet ready for our open-art tables. The Lounge is stocked with an evolving supply of creative and challenging playthings including wall-mounted mirrors, a revolving display of eye level artwork, sorting boxes with color, shape, and texture cards, simple wooden puzzles, stacking toys, including graduated blocks and collapsible pole stacking rings, woolen and knit balls, and cloth blocks.

Art Journey

Art Journey is a studio space that is specifically designed to meet the needs of toddlers. Young children will enjoy working at the Colorful Window (using color form material), sculpting with homemade play-clay using cookie cutters, wooden mallets, rolling pins, and other tools, finger painting, stamping, and building with a variety of blocks, including architecture blocks, Kappa blocks, and tree blocks. In addition, there will be a handmade doll-sized tree house stocked with fairies, trolls, and dolls for creative play.

Sunflower Studio

All painting, printing, and similarly messy projects will take place here. The studio will be generously stocked with a multitude of different types of child friendly paints, inks, and dyes as well as a variety of papers, brushes, brayers, and printing mediums.

Daisy Doodle-Shop.

The focus in the Daisy Doodle-Shop is on drawing, design, and reproduction. This studio will contain a drawing table as well as two easels. Children can choose from a variety of drawing tools including color pencils, crayons, markers, watercolor pencils, chalk, charcoal pencils, and pastels. Discovery is possible through imitation or free exploration. Many paper textures and incomplete reproductions will be available for use.

Sculpture Shop.

All sculpture and three-dimensional art activities are held in the Sculpture Shop. Children are free to produce sculpture using the ever-changing materials, including found objects, purchased supplies, and items donated by local artisans.

Weaving Loom.

The weaving loom is a reproduction of a large Navajo loom. Children can enjoy the rhythmic process of weaving as the Navajo have for generations. The loom is a stationary exhibit and all weaving remains with the loom.

I-MAC Imagination Station

Children can explore lines, shapes, form and design using a computer graphics design program. They can also explore the collection of CD-ROMs, featuring the works found in some of the world's finest art galleries and museums.

Poppyseed Palace.

Story time at Poppy seed Palace takes place twice daily at Poppyseed Palace. Story time will include the reading of quality children's storybooks and poetry books appropriate and challenging for children of all ages. Some story time sessions will be augmented by the addition of live music, interactive theatre, and impromptu storytelling. When there is no story time scheduled, children and their caregivers will be encouraged to choose a book from the children's library and read together or to try their hand at assembling puzzles of famous works of art.

Daily Special

This is an open-art station that hosts the special activities of the day, including beadmaking, quilting, or candlemaking, among others. The Daily Special will be a multi-use area and will be framed by a curtain and small puppet theatre. This area will also be used as a venue for presenting performance art and theatre pieces created by the children. The Daily Special is an in-depth, artist led activity that provides balance between a structured and an unstructured creative experience. The children will benefit from exploring the processes of art through the eyes of a professional artist.

In addition to the nine permanent stations, we will have a revolving set of installations, including a Shell Grotto, English Garden Light Design Table, and the City Design Architecture Board. These special exhibits will rotate on a quarterly basis and will be installed after B-Limitless has been in operation for one full year.

Art Galleries

We will have three art galleries:

1. Children's Gallery. This is an exhibit showcasing the work created by the children who visit Hands On!

2. Artworks Gallery. This gallery is dedicated to the presentation of reproductions of work created by famous (and not so famous) grown-up artists.

3. San Antonio Artists Gallery. This gallery provides a venue for our resident artists, as well as other area artists, to showcase their work.

The resident teaching artists staffing the museum will be available to answer questions and guide visitors through the galleries. These galleries provide an opportunity for our visitors to explore the full range of visual arts in all its forms, past and present. As children are exposed to quality art, it becomes an integral part of their lives. These experiences will be the catalyst to a lifetime of appreciation of and a respect for their own creativity and the creativity of others.

Additional Services

Libraries

Our facility will house an extensive non-circulating children's library that will contain high quality books about artists, dancers, musicians, and composers, and their lives and work. B-Limitless will also provide a resource library for adults who are interested in furthering their knowledge of the arts. The resource library will be a collection of reference books, museum guides, prints, postcard collections, and brochures that will enable the user to learn more about the work of a particular artist, style, or period in art history.

Outreach Program

B-Limitless is dedicated to fostering the creative spirits of all children. To this end, we will offer an extensive outreach program, Art Encounters. B-Limitless will provide programming that meets the needs of schools, community groups, and private organizations. Most programs will run between one and two hours in length, and most will run during regular museum hours, but arrangements will be made to accommodate before and after hours programs. Representative programs include: "Artists Past and Present," "Open-Art Table Extravaganza," "Global Art," and "Girl Scout Badge Work." In addition, B-Limitless will provide programming for children with special needs that will be developed and executed by a licensed art therapist. All other programs will be developed and executed by resident teaching artists. B-Limitless expects that Art Encounters will eventually be a substantial part of its programming.

Classes

B-Limitless will sponsor two classes for young children: Culture Bugs and Art Colony. Participants will have an intensive multi-media arts experience that involves painting, collage, music, and movement. They develop an awareness of their environment through the manipulation of materials, and sensory awareness is expanded through activities that stimulate hearing, sight, and touch. The classes will meet weekly for a six week sessions. B-Limitless will offer a unique program directed toward the interests of young adults between the ages of 13 and 17. We will offer a flexible series of special classes, workshops, and seminars that introduce students to a wide variety of art mediums. Topics include the basics of photography and darkroom, animation, and exploring the art of portraiture. The Apprentice Workshop is held once weekly for three hours. Students can choose to participate on a weekly basis, or cater the program to meet their needs and register for only a portion of the program. All sessions are led by a resident teaching artist. Apprentice Workshop will become a regular part of B-Limitless programming after we have been in operation for one full year.

Concert Series

The First Friday Concert Series will begin as a bi-monthly event until Hands On! has been in operation for one full year. This programming will then be presented on a monthly basis. The programs will be one hour in length and will feature classical, jazz, and world music, as well as dance, storytelling, and theatre performances presented by San Antonio-based performers. Family Workshops B-Limitless will sponsor the Second Sunday Family Workshop that will give all members of families the opportunity to create art together in a positive and fun environment. Our senior staff artists will introduce new and involved art processes for a creative, yet challenging experience. This workshop will meet in the Daily Special studio.

Film Series

The Saturday Afternoon Film Series will emphasize high quality videos appropriate for the viewing of all children. Most films will be about the lives and work of important artists, composers, musicians, and dancers. Most film viewings will last approximately one hour.

Additional Programs

After B-Limitless has been operating for one full year, we will add additional programming, including quarterly Docent Visits by representatives of different galleries and museums located in the San Antonio area. Docents will be prepared to answer questions about their collections and special exhibits, as well as help participants navigate the gallery or museum with their children.

B-Limitless will sponsor quarterly Field Trips to various cultural destinations throughout San Antonio, including the Art Institute and the Austin Symphony Orchestra children's matinees. B-Limitless plans to open a small Curiosity Shop that will sell affordable, quality art supplies, handmade toys, and other unique items. Most items will be made by artists and sold on a consignment basis. B-Limitless will be focused on families seeking to nurture their children's creative potential through the visual and performing arts. Initially, we will address a segment of the San Antonio market known for its stable, family orientation, and for its willingness to support and patronize local institutions. Once established, we will expand our focus to include the entire San Antonio market. B-Limitless strives, through the fine arts, to create a unique environment in which children of all ages, ability, and experience can feel free to imagine, create, and welcome the arts into their lives. This environment will appeal to a broad cross-section of all families, without regard to racial, educational, or economic background.

Market Segmentation

Using a broad definition of our market, every family with a child is a potential consumer of the programs and services offered by B-Limitless If  we were to temper that broad definition with a geographic boundary of a thirty-mile radius, we still have the opportunity to reach a vast market, the entire San Antonio area. Simply stated, there are literally millions of households that meet this market definition. Our target market is families with children ages seventeen and under. Our core market is families with children between the ages of three and ten. We feel that in order to establish a foothold within this vast market and create brand awareness for the unique and high-quality programs we are offering, we need to focus our initial marketing efforts on a smaller market segment. The initial marketing effort will extend through our first twelve months of operation and target a market segment within a five-mile radius of our location. By any measure, this remains a richly populated market of approximately 78,000 households with children. As a result of scaling our initial efforts in this manner, we are able to leverage our strong ties within the local community, local media, and educational institutions. To drive awareness, we will supplement the support we receive from local institutions with a broad sweeping outreach program, focused direct mail campaigns, and media placement. Sunken Gardens Park is a stable area with a history of supporting family-oriented programs offered both locally and throughout the greater metropolitan area. Once established, we will expand our market reach utilizing the same techniques, but scaled to reach a much broader audience. Our outreach programs will focus primarily on serving children in low to moderate income areas of the city of San Antonio and the surrounding communities. Programming will be tailored to fit the needs of children in the San Antonio Public School system, as well as San Antonio-based private and parochial schools. In addition, our programming will extend to those children in suburban public, private, and parochial schools, homeschoolers, children served by Easter Seals and the Progress Center for Independent Living, among others. Our outreach will also extend to those children enrolled in day care and preschool programs, and to those children who are patients at local children's hospitals. We are in the process of developing relationships with San Antonio-area galleries and arts organizations with the intent of extending our outreach into communities outside the five-mile radius of our location. We will combine programming, special events, and gallery shows with these organizations. Through our singular focus on visual arts targeted to children, we are positioned as a premier source of arts education, enrichment and enjoyment for the entire San Antonio area. Our offerings will include a diverse range of programs and activities on a rotated calendar basis, ensuring a fresh experience for even the most frequent visitors. A key marketing strategy for San Antonio is membership growth as a means to drive recurring revenue. By extending a value proposition to our target market in the form of comprehensive membership benefits, we expect to quickly expand our membership. Closely related to membership are fees from general admissions. Targeted advertising and networking throughout a very active local community will allow us to focus on continually bringing first time attendees to the Museum. Once inside, we will rely upon the dynamic environment and our staff to spark interest in our programs and workshops. Print advertising during our first year will be limited. We plan to distribute flyers through local community groups and specific child-oriented groups that directly reach our initial target market. As we expand our presence in the San Antonio area, we will scale our advertising accordingly. On-site marketing for workshops and special events is an economical and effective way to generate revenue. By reaching attendees, we anticipate a high degree of interest and participation in activities such as workshops and special events. A strong Internet presence is an opportunity to extend our market reach. Initially, our direct marketing efforts will be locally focused, but we will rely upon a dynamic and informative website to support our efforts, while broadcasting our message to a much larger audience. Building and maintaining a solid database of potential customers will be critical to the success of our outreach programs. We are planning direct mail and telemarketing campaigns, and will offer general informational on-site outreach to all interested groups. B-Limitless has begun an extensive fundraising campaign to provide our initial start-up costs. Our current work includes the development of prospect lists of persons who may be interested in providing a financial donation, the solicitation of support from corporations and the local business community, the writing of grant proposals soliciting funds from Illinois foundations, and the temporary hiring of a professional fundraising consultant.

Approximately 60% of B-Limitless annual revenue will be generated by a combination of membership, admissions, programming, retail sales, and related activities. The remainder of our funding will be generated by:

· The writing of proposals to secure grants from foundations.

· The solicitation of individuals, corporations, and small businesses.

· An annual large scale benefit concert, family benefits, and special events.

· A variety of small scale fundraising activities.

We anticipate that we will be able to manage our consumable expenses through the pursuit of in-kind donations from businesses and individuals, the creative use of found objects, and inexpensive means of purchasing bulk items.

Competitive Edge

We start with a critical competitive edge: there is no competitor we know of that can offer the unique art experience for children provided by B-Limitless Through our singular focus on visual arts targeted to children, we are positioned as a premier source of arts education, enrichment, and enjoyment for the entire San Antonio area. Our offerings include a diverse range of programs and activities on a rotated calendar basis, ensuring a fresh experience for even the most frequent visitors.

A key strategy for B-Limitless is membership growth as a mechanism to drive recurring revenue. By extending a value proposition to our target market in the form of comprehensive membership benefits, we expect to quickly expand our membership. Our membership plan is structured to allow members to determine the frequency of visits to the museum and the degree of participation in special programming. We will offer four levels of membership that include an "Introductory Membership," "Friend," "Frequent Artist," and "Sponsor." All members will receive a ten percent discount on retail purchases, special programming, and events. Our quarterly newsletter will keep members informed and involved. Our diverse and calendar of programs and events, coupled with the uniqueness of the B-Limitless experience, will deliver high member retention rates. 

Closely related to membership, but anticipated to be a larger source of revenue, are fees from general admissions. Through a grassroots approach, we will continually communicate the compelling influence and value that attendance at B-Limitless will deliver to children and their families. Targeted advertising and networking throughout a very active local community will allow us to focus on continually bringing first time attendees to the museum. Once inside, we will rely upon the dynamic environment and our staff to spark interest in our programs and workshops. We will also employ PSAs on radio stations and well timed press releases as effective and affordable vehicles to deliver our message.  Print advertising during our first year will be limited and placed in the less expensive local media such as the Express News, Villager, and News Marketer. We plan to distribute flyers through local community groups. Dawson Park area has highly active community groups who provide a proven communication network throughout the area. These civic organizations coupled with specific child oriented groups have shown to be receptive to similar messages in the past and directly reach our initial target market.  As we expand our presence in the San Antonio area, we will scale our advertising accordingly: San Antonio Parent magazine and the weekend sections of the major newspapers.  On-site marketing for workshops and special events represents an economical and effective way to generate revenue. By reaching attendees, people who have already made the initial step to engage in our experience, we anticipate a high degree of interest and participation in revenue producing activities such as workshops and special events.  We recognize that a strong Internet presence is an opportunity to extend our market reach in a manner consistent with our mission. Initially, our direct marketing efforts will be locally focused, but we will rely upon a dynamic and informative website to support our efforts, while broadcasting our message to a much larger audience. The goal of our site is to create interest, inform and entertain visitors, facilitate requests for membership, renewals and registrations, and generate additional revenue. We will direct visitors to our site through consistent references in all of our marketing materials and the strategic placement of links to our site from other related websites. Building and maintaining a solid database of potential customers will be critical to the success of our outreach programs. We are currently in the process of developing a database of contact persons at all local and San Antonio-area schools, community groups, and private organizations whose programming serves the youth of San Antonio and her surrounding communities. Examples include San Antonio Public Library branches, local public, private, and parochial elementary and high schools, field houses, local and regional Girl and Boy Scout troops and service units, Indian Princesses and Guides, art supply stores, children's retailers, local churches, daycare centers and preschools, sports programs, teacher stores, local civic associations, and pediatric dentist and doctor offices. We are planning direct mail and telemarketing campaigns, and will offer general informational on-site outreach to all interested groups. Additionally, we are developing a prospect database of persons who may be interested in making a financial contribution and/or giving their time as volunteers.

Organizational Structure

Our initial team includes three directors, a curator, four senior staff working artists, and two store clerks. During the second month of operation we will add two junior staff members, and in the third month of operation we will add another. In the fourth month, we will add the Culture Bugs/Art Colony program coordinator. All staff positions are part-time. The Executive Director will assume the responsibility of the program coordinator until that position is filled. As stated in our articles of incorporation, our board of directors is to consist of a minimum of five and a maximum of twelve persons. We currently have seven persons serving on our board of directors representing various facets of both the arts and business.

Personnel Plan

The basis for our financial planning has been looking forward with conservative estimates for revenue and expenses. We are committed to consistent growth of our cash balances through prudent management of our expenses. Our focus will be on remaining profitable year to year, while also building adequate cash reserves.

Important Assumptions Personnel burden is relatively low at 15% based on the assumption that the only benefits included will be minimal vacation time based on the number of hours worked. Personnel burden also includes taxes. We anticipate carrying one month's worth of inventory in the Curiosity Shop. The majority of items in the shop are sold on a consignment basis, and therefore do not affect inventory turnover. The estimate of 8% funding on credit refers to the delay between the commitment of funding and the actual receipt of funds. We anticipate the great majority of our revenues will be paid by cash or check.

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	6.50%	6.50%	6.50%
Long-term Interest Rate	7.00%	7.00%	7.00%
Tax Rate	0.00%	0.00%	0.00%
Other	0	0	0

Break-even Analysis

The table and chart below show the level of funding, from all sources combined, we need on a monthly average, to cover our operating expenses.

Break-even Analysis
Monthly Revenue Break-even	$24,111
Assumptions:
Average Percent Variable Cost	7%
Estimated Monthly Fixed Cost	$22,493

Projected Surplus or Deficit

Our projected annual surplus or deficit is shown on the following table.

Surplus and Deficit
	Year 1	Year 2	Year 3
Funding	$287,643	$318,966	$351,605
Direct Cost	$19,303	$22,570	$24,451
Other	$0	$0	$0
Total Direct Cost	$19,303	$22,570	$24,451
Gross Surplus	$268,340	$296,396	$327,153
Gross Surplus %	93.29%	92.92%	93.05%
Expenses
Payroll	$170,400	$182,100	$191,929
Sales and Marketing and Other Expenses	$54,325	$56,000	$56,700
Depreciation	$2,004	$2,004	$2,004
Leased Equipment	$600	$600	$600
Utilities	$14,400	$15,000	$15,000
Insurance	$2,625	$3,500	$3,500
Payroll Taxes	$25,560	$27,315	$28,789
Other	$0	$0	$0
Total Operating Expenses	$269,914	$286,519	$298,523
Surplus Before Interest and Taxes	($1,574)	$9,877	$28,631
EBITDA	$430	$11,881	$30,635
Interest Expense	$0	$0	$0
Taxes Incurred	$0	$0	$0
Net Surplus	($1,574)	$9,877	$28,631
Net Surplus/Funding	-0.55%	3.10%	8.14%

Projected Cash Flow

Management of cash flow is critical to our success. The monthly cash flow is shown in the illustration, with one bar representing the cash flow per month, and the other bar the monthly balance. The annual cash flow figures are included here and the more important detailed monthly numbers are included in the appendix. Should our monthly cash flows fail to meet expectations, directors salaries will not be paid. If further action is required, we will utilize revolving credit facilities.

Pro Forma Cash Flow
	Year 1	Year 2	Year 3
Cash Received
Cash from Operations
Cash Funding	$264,632	$293,449	$323,476
Cash from Receivables	$19,666	$25,153	$27,749
Subtotal Cash from Operations	$284,297	$318,602	$351,225
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
Subtotal Cash Received	$284,297	$318,602	$351,225
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$170,400	$182,100	$191,929
Bill Payments	$106,718	$126,009	$128,808
Subtotal Spent on Operations	$277,118	$308,109	$320,737
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$0	$0
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
Subtotal Cash Spent	$277,118	$308,109	$320,737
Net Cash Flow	$7,179	$10,493	$30,488
Cash Balance	$32,179	$42,672	$73,160

Projected Balance Sheet

The following balance sheet shows our projected financial position during the next three years. The monthly estimates are included in the appendix.

Pro Forma Balance Sheet
	Year 1	Year 2	Year 3
Assets
Current Assets
Cash	$32,179	$42,672	$73,160
Accounts Receivable	$3,346	$3,710	$4,090
Inventory	$1,686	$2,793	$2,803
Other Current Assets	$0	$0	$0
Total Current Assets	$37,211	$49,175	$80,053
Long-term Assets
Long-term Assets	$8,500	$8,500	$8,500
Accumulated Depreciation	$2,004	$4,008	$6,012
Total Long-term Assets	$6,496	$4,492	$2,488
Total Assets	$43,707	$53,667	$82,541
Liabilities and Capital	Year 1	Year 2	Year 3
Current Liabilities
Accounts Payable	$10,281	$10,364	$10,607
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
Subtotal Current Liabilities	$10,281	$10,364	$10,607
Long-term Liabilities	$0	$0	$0
Total Liabilities	$10,281	$10,364	$10,607
Paid-in Capital	$70,000	$70,000	$70,000
Accumulated Surplus/Deficit	($35,000)	($36,574)	($26,697)
Surplus/Deficit	($1,574)	$9,877	$28,631
Total Capital	$33,426	$43,303	$71,934
Total Liabilities and Capital	$43,707	$53,667	$82,541
Net Worth	$33,426	$43,303	$71,934

Our projected business ratios for the three years of this plan are shown below, along with ratios for an industry profile, based on the Standard Industry Classification (SIC) Index, 8412, for Museums and Art Galleries. 

Ratio Analysis
	Year 1	Year 2	Year 3	Industry Profile
Funding Growth	n.a.	10.89%	10.23%	9.50%
Percent of Total Assets
Accounts Receivable	7.65%	6.91%	4.95%	18.90%
Inventory	3.86%	5.20%	3.40%	1.00%
Other Current Assets	0.00%	0.00%	0.00%	36.40%
Total Current Assets	85.14%	91.63%	96.99%	56.30%
Long-term Assets	14.86%	8.37%	3.01%	43.70%
Total Assets	100.00%	100.00%	100.00%	100.00%
Current Liabilities	23.52%	19.31%	12.85%	32.50%
Long-term Liabilities	0.00%	0.00%	0.00%	28.50%
Total Liabilities	23.52%	19.31%	12.85%	61.00%
Net Worth	76.48%	80.69%	87.15%	39.00%
Percent of Funding
Funding	100.00%	100.00%	100.00%	100.00%
Gross Surplus	93.29%	92.92%	93.05%	0.00%
Selling, General & Administrative Expenses	93.84%	89.83%	84.90%	82.00%
Advertising Expenses	2.66%	2.82%	2.70%	0.90%
Surplus Before Interest and Taxes	-0.55%	3.10%	8.14%	1.70%
Main Ratios
Current	3.62	4.74	7.55	1.71
Quick	3.46	4.48	7.28	1.52
Total Debt to Total Assets	23.52%	19.31%	12.85%	61.00%
Pre-tax Return on Net Worth	-4.71%	22.81%	39.80%	1.10%
Pre-tax Return on Assets	-3.60%	18.40%	34.69%	2.90%
Additional Ratios	Year 1	Year 2	Year 3
Net Surplus Margin	-0.55%	3.10%	8.14%	n.a
Return on Equity	-4.71%	22.81%	39.80%	n.a
Activity Ratios
Accounts Receivable Turnover	6.88	6.88	6.88	n.a
Collection Days	57	50	51	n.a
Inventory Turnover	9.45	10.08	8.74	n.a
Accounts Payable Turnover	11.38	12.17	12.17	n.a
Payment Days	27	30	30	n.a
Total Asset Turnover	6.58	5.94	4.26	n.a
Debt Ratios
Debt to Net Worth	0.31	0.24	0.15	n.a
Current Liab. to Liab.	1.00	1.00	1.00	n.a
Liquidity Ratios
Net Working Capital	$26,930	$38,811	$69,446	n.a
Interest Coverage	0.00	0.00	0.00	n.a
Additional Ratios
Assets to Funding	0.15	0.17	0.23	n.a
Current Debt/Total Assets	24%	19%	13%	n.a
Acid Test	3.13	4.12	6.90	n.a
Funding/Net Worth	8.61	7.37	4.89	n.a
Dividend Payout	0.00	0.00	0.00	n.a

Funding Forecast
		Month 1	Month 2	Month 3	Month 4	Month 5	Month 6	Month 7	Month 8	Month 9	Month 10	Month 11	Month 12
Funding
Membership	0%	$1,500	$2,000	$2,500	$2,400	$2,400	$2,400	$2,400	$2,300	$2,200	$2,200	$2,200	$2,500
Admissions	0%	$4,080	$5,280	$6,000	$6,600	$6,600	$6,600	$6,600	$6,000	$4,200	$4,200	$4,200	$6,000
Culture Bugs/Art Colony/Apprentice	0%	$2,600	$2,800	$3,000	$4,533	$4,533	$4,533	$4,533	$4,533	$3,200	$3,200	$3,200	$4,533
Family Wkshp/Film & Concert Series	0%	$205	$505	$205	$505	$205	$505	$205	$505	$205	$505	$205	$505
Birthday Parties/Rentals	0%	$0	$275	$275	$275	$275	$275	$275	$275	$275	$275	$275	$275
Outreach Programs	0%	$400	$900	$1,100	$1,200	$1,200	$1,200	$1,200	$1,200	$1,100	$1,100	$1,100	$1,200
Curiosity Shop	0%	$700	$1,500	$1,800	$1,400	$1,600	$1,700	$1,700	$1,700	$1,500	$1,500	$1,500	$1,600
Foundation Grants	0%	$0	$0	$10,000	$0	$10,000	$0	$0	$10,000	$0	$10,000	$0	$10,000
Corporate Sponsorship	0%	$1,000	$1,000	$1,000	$1,000	$1,000	$1,000	$1,000	$1,000	$1,000	$1,000	$1,000	$1,000
Annual Family Benefit/Events	0%	$0	$5,000	$0	$0	$0	$35,000	$0	$0	$5,000	$0	$0	$0
Affinity Campaigns	0%	$0	$300	$400	$0	$500	$500	$0	$500	$500	$0	$500	$500
Total Funding		$10,485	$19,560	$26,280	$17,913	$28,313	$53,713	$17,913	$28,013	$19,180	$23,980	$14,180	$28,113
Direct Cost of Funding		Month 1	Month 2	Month 3	Month 4	Month 5	Month 6	Month 7	Month 8	Month 9	Month 10	Month 11	Month 12
Membership		$60	$80	$90	$100	$110	$110	$110	$110	$90	$90	$90	$90
Admissions		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Culture Bugs/Art Colony/Apprentice		$100	$130	$140	$200	$200	$200	$200	$200	$150	$150	$150	$200
Family Wkshp/Film & Concert Series		$25	$275	$25	$275	$25	$275	$25	$275	$25	$275	$25	$275
Birthday Parties/Rentals		$0	$63	$63	$63	$63	$63	$63	$63	$63	$63	$63	$63
Outreach Programs		$20	$45	$55	$65	$75	$75	$75	$70	$55	$55	$55	$75
Curiosity Shop		$350	$750	$900	$700	$800	$850	$850	$850	$750	$750	$750	$800
Foundation Grants		$15	$15	$15	$15	$15	$15	$15	$15	$15	$15	$15	$15
Corporate Sponsorship		$10	$10	$10	$10	$10	$10	$10	$10	$10	$10	$10	$10
Annual Family Benefit/Events		$0	$500	$0	$0	$0	$2,500	$0	$0	$500	$0	$0	$0
Affinity Campaigns		$0	$5	$5	$0	$5	$5	$0	$5	$5	$0	$5	$5
Subtotal Cost of Funding		$580	$1,873	$1,303	$1,428	$1,303	$4,103	$1,348	$1,598	$1,663	$1,408	$1,163	$1,533

CLOSING

With the future of the youth in our hands in this day and age, we as adults need to mold our children and create the best opportunities as possible. America is the strongest nation in the world and in order to keep it that way one must educate the youth so that one day they will be able to follow in our footsteps of success. The San Antonio Art Institute is just the beginning of a leading nation.

REFERENCES

Joyce, James. A Portrait of the Artist as a Young Man. New York: Bantam Books,

1992.

Adams, Robert M. James Joyce: Common Sense and Beyond. Random House, 1966.

232. Rpt. in Twentieth Century Literary Criticism. ed. Dennis Poupard.

Detroit: Gale Research Company, 1985. 16:234-37.

Anderson, C.G. "The Sacrificial Butter". Accent. vol. 12. no. 1. Winter,

1952. 3-13. Rpt. in Twentieth Century Literary Criticism. ed. Dennis

Poupard. Detroit: Gale Research Company, 1985. 16:208-12.

http://sanantonio.eventful.com/events/categories/fundraisers