Dream Catchers, LLC

2012 AIBLNational Conference

Montana State University Billings

Angela DeputeeJoe Lilienthal

Nik Wong

Table of Contents

I. Table of Contents   

II. Executive Summary

III. Business Concept

1. Mission Statement

2. Company Goals and Objectives

3. Daily Life at Dream Catchers

IV. Industry and Market Analysis

1. Market Description and Trends

2. Consumer Profile

3. Risk Analysis

V. Management Team   

VI. Operational Plan

VIII. Marketing Plan   

1. Market Potential

2. Brand Positioning Statement

4. Marketing Mix

IX. Financial Plan

X. Appendices   

XI. Citations

II. Executive Summary

We suggest that you make it two pages or fewer.Include everything that you would cover in a five-minute interview.Explain the fundamentals of the proposed business:  What will your product be? Who will your customers be? Who are the owners? What do you think the future holds for your business and your industry?Make it enthusiastic, professional, complete, and concise.If applying for a loan, state clearly how much you want, precisely how you are going to use it, and how the money will make your business more profitable, thereby ensuring repayment.

III. Business Concept

Before the Trail of Tears, before Lewis & Clark, before the sail of Columbus, the North American Continent was populated by a robust culture of more than ten million American Indians.  They inhabited every region of the continent and constituted hundreds of different tribes.  They respected a balance of nature and mother Earth took care of them.  The American Buffalo were the lords of the prairie and an essential component to the heritage of the American Indians.  Bison provided not only food, clothing, and shelter but nearly every material needed. Because the Indians of the plains depended so much on the bison for their existence, their religions were centered around the buffalo.  

Dream Catchers, LLC recognizes an opportunity to enrich and preserve the American Indian culture, by providing a place where people can recapture the true Native American Experience- when there was an estimated 25 - 70 million bison roaming in North America.  Dream Catchers, LLC will provide a place of education, spiritual wellness, organic mindfulness, and enjoyment. The concept is similar to a cowboy’s dude ranch where people experience the cowboy way of life, but instead, provide the most authentic, educational Native American Experience in the world.  It will also have a low environmental impact, in an industry known as agri or eco-tourism.  The land will be shared with the community of plants and animals.

The owners will have a close relationship with Tana Blackmore, owner of Sacred Grounds International.  Tana has hosted many people from all over the world to enjoy her bison, her land, and her Native American Heritage.  She has a wealth of knowledge and has the Indian name of “Buffalo Woman.”  She also has a buffalo herd of almost 300 roaming on natural grass in the Pryor Mountains.  Dream Catchers, LLC is located within walking distance of Tana’s herd. It is also located within a few miles of world class fly fishing and within 100 miles of Yellowstone National Park.  These attractions are considered the top reasons eco-tourists travel to these special resorts anywhere in the world.

1. Mission Statement:  To create a profitable authentic Native American Experience, that will draw people from around the world to experience Native American traditions and ceremonies before the arrival of Christopher Columbus.

2. Company Goals and Objectives:  To be the number one authentic, organic Native American Experience in the world with a focus on the following:

Land conservation Spiritual enlightenment Native American Cultural Conservation Economic stimulation for the local tribal members Job opportunities for local Crow members Teaching people ways of Native Americans

3. Daily Life at Dream Catchers, LLC

The company will start off with 25 teepees, five cabins and a main lodge. There will be various activities every day.  People will live and work the land just as the Native American’s did with just a little 21st Century comfort.  Learning to be one with nature is a vital attribute to the company.

Daily life will consist of different activities that the Native Americans did a few centuries ago. Most of the food is going to be collected by hunting & fishing, farming, and raising domesticated animals.  The experience is going to include basket making, rug weaving, bison tanning, medicine making, organic farming, arrow making, spear fishing, Kachina doll making, teepee raising and spiritual lessons from the local tribes. There will also be four areas to choose from each day.

(insert table with packages)

Creative

Native American Painting Jewelry Music: Flutes/drums Making wood flute and making drums

Recreation o Horse Back Ridingo Indian Games o Pipe smoking o Arrow makingo Arrow tournament

Spiritual o Nightly Native American Ceremonieso Medicine walk o Storytelling around the fireo Prayer o Pow-Wow

Survival o Bison hide tanningo Bison tracking/ hunting for additional feeso Mountain hike and organic trekking

write this out Annual Events include the Crow Fair, the.....

Guests stay week long package Monday- Sunday, Weekend stay Friday leave Sunday , One night at a time also available

These specialized experience packages and annual events will be the first in the industry or at the introduction stage of the product life cycle. Dream Catchers LLC will have most of the market

share and competitive advantage in terms of Native American experiences at this authentic, organic level.  By continuously fine tuning the experience, the company will be well known for providing the best Native American experience in the world, as the Agri-tourism industry continues to grow.

(The business concept section should describe your business model. Define the company culture and provide a detailed description of the product(s) and/or service(s) that will be offered. How will the success of your business be determined? I think this is in finance The company provides something novel/unique/special that gives it a competitive advantage in its target market( the target market is described in the marketing plan).  Its plan to develop and commercialize their products/service is clearly described and is credible. (Mainly in the operations and marketing plan)   Maybe strengths and weaknesses would best be covered in Operations Plan.)

IV. Industry and Market Analysis.

1. Market description and trends

The World Tourism Organization estimates that ‘nature tourism’ accounts for 20 percent of all international travel.  It is the fastest growing sector at 10 – 30 percent growth overall.  Estimates show that each living shark in the Maldives fetches $3300.   At Sacred Grounds, each sacred buffalo is hunted spiritually for $2500.

This tourism is defined as viewing wildlife in an atmosphere that is more natural than the run of the mill ride on a jeep or the back of an elephant.  Eco-tourists paid $1200 more than the average tourist back in 2000 according to Trails.com.

Currently, resorts are trying to establish a Green Star System or accreditation system to improve sustainability.  It must be “low impact, education, ecologically and culturally sensitive that benefits local and host communities.” (12)

Is there growth potential? If there is, please describe it. The industry and market analysis section should provide a market description, general market trends, a customer/consumer profile, and risk analysis. (Use Porter Model)

New industry that is developing with few competitors Long term in industryIncreased competition

Montana had 10.5 million nonresidents visit the state in 2010, spending $2.48 billion. Yellowstone and Glacier Parks are the most visited sites, overall. A survey indicated fishing, wildlife watching, hiking and shopping as primary Montana tourist activities. (7)

100 million tourists come to North Americas. (8)

10.4 Million visitor came to MT in 2010 spending $2.4 billion dollars Outfitter/guide-spent $34.7 million of 1% of total expenditures

Campground and RV-$425.1 million Licenses and entrance fees- $50.6 million 2% of total expenditures Hotels/b & b-$315.7 million 13% of total expenditures

Tourism is now the largest industry in the world, and one of the fastest growing. Two billion tourists worldwide spend trillions of dollars every year in the places they visit. In 2006, 846 million international tourists generated $7,345,654,563 in tourism receipts (World Tourism Organization, 2007

In the United States, domestic travel combined with international tourism is a $1.3 trillion industry, with a direct payroll of $162 billion representing 1 out of 8 jobs [Travel Industry Association of America (TIA), 2005].In Washington, tourism ranks as the state’s third largest industry, with 2007 revenues from tourism estimated at $14.8 billion. Since 2002, tourism spending in Washington has increased an average of 7.4% annually, considerably above the rate of inflation over that same period. (13)

The American Indian Tourism Association noted the growing interest in Aboriginal culture worldwide, looking for more than gaming venues in which to spend their money.  Their study found that slightly more than half the respondents visited a casino but 48% of visitors to a Native community dined at a Native American restaurant and 37% purchased authentic arts and crafts. 22% toured a museum and 20% attended a powwow.

2. Consumer Profile

Demographics interested in agri-tourism, according to a study by the US Small Farm Center: (9)

27% are 44 years or younger, 23% are between 45 and 54

20% are 55 to64 and 30% were 65 and older.

56% were male.  

Upper income $75,000 and more educated, college and beyond were more representative,40% and 67% respectively

78% were European descent

79% were urban suburban

Actually overall more interested in nature/eco -tourism than just agri tourism

Highest rankings of interest were fresh homemade food, nature, vacation, fun relaxation.

Woodlands and grazing animals combined were rated as attractive to orchards and vineyards as the first place choice.

3. Risk Analysis

V. Management and Organization

Legal form of ownership: Limited liability corporation (LLC)?  Why have you selected this form?Who will manage the business on a day-to-day basis? What experience does that person bring to the business? What special or distinctive competencies? Is there a plan for continuation of the business if this person is lost or incapacitated?If you’ll have more than 10 employees, create an organizational chart showing the management hierarchy and who is responsible for key functions.

Professional and Advisory Support

List the following:

Board of directors Management advisory board Attorney Accountant Insurance agent Banker Consultant or consultants Mentors and key advisors AJ. and Tana

VII. Operational PlanIts plan to develop and commercialize their products/service is clearly described and is credible.  (Every day will be scheduled in order to get 4 attributes that we offer or accommodate customers)

Production

Possibly cabins-later on Shower houseMain Lodge

Solid structure Recycled LEED Building Some Rooms Kitchen Dining Hall Storm Shelter Green House/Food Storage Gift Shop

How and where are your products or services produced?Explain your methods of:

Production techniques and costs Quality control Customer service Inventory control Product development

Location

What qualities do you need in a location? Describe the type of location you’ll have.Physical requirements:

Amount of space Type of building Zoning Power and other utilities

Access:Is it important that your location be convenient to transportation or to suppliers?What are your requirements for parking and proximity to freeway, airports, railroads, and shipping centers?Include a drawing or layout of your proposed facility if it is important, as it might be for a manufacturer.GOOGLE PICTUREConstruction? Most new companies should not sink capital into construction, but if you are planning to build, costs and specifications will be a big part of your plan.Cost: Estimate your occupation expenses, including rent, but also including maintenance, utilities, insurance, and initial remodeling costs to make the space suit your needs. These numbers will become part of your financial plan.What will be your business hours?

Legal Environment

Describe the following:

Licensing and bonding requirements Permits Health, workplace, or environmental regulations Special regulations covering your industry or profession Zoning or building code requirements Insurance coverage-dude ranch Trademarks, copyrights, or patents (pending, existing, or purchased)

Personnel

20 total employees 2 Storytellers 3 Maintenance employees 5 Experience coordinators 6 Kitchen staff 1 Animal caretaker Accountant/bookkeeper Where and how will you find the right employees? Quality of existing staff Pay structure Training methods and requirements Who does which tasks? Do you have schedules and written procedures prepared? Have you drafted job descriptions for employees? If not, take time to write some. They

really help internal communications with employees. For certain functions, will you use contract workers in addition to employees?

Inventory

What kind of inventory will you keep: raw materials, supplies, finished goods? Average value in stock (i.e., what is your inventory investment)? Rate of turnover and how this compares to the industry averages? Seasonal buildups? Lead-time for ordering?

Suppliers

Identify key suppliers:

Names and addresses – this will be who will be usedo Cabin – research bids from MT companieso Tepees – research bids from regional companies

Type and amount of inventory furnished Credit and delivery policies History and reliability

Should you have more than one supplier for critical items (as a backup)?Do you expect shortages or short-term delivery problems?Are supply costs steady or fluctuating? If fluctuating, how would you deal with changing costs?Local, state and federal regulations will need to be addressed on such topics as zoning, signage, food service, animal exhibits and health

Lodge

o Gift shopo Snack shop

25 teepees 5 Cabins 5 Giant teepees (activity) Land price Construction

VIII. Marketing  Plan

1. Market Potential

Segmentation Strategy and Target Audience

O’Reilly’s and Binna Burra resorts in Australia both have 15,000 to 20,000 annual visitor nights capacity, priced about $100 per night, marketing is brochures, internet, tour operators, guidebooks.  They have 150 room capacity, which is three times as much a us, so we could have a max of 5,000 visitor annual nights.

Based on this article and study, we will use this segmentation strategy.

see diagram

We will primarily target Harder, 34%, Eco-tourists, as they would favor the Tee-pees, nature based learning, a preference for undisturbed destinations, less service, willing to experience hardship which the Softer Target is not.  They are motivated most by environmental clubs and organizations where structured target audience is motivated by media and travel agents. Brochures and word of mouth are important for both.

Self-discovery, being physically active and having new experiences motive these tourists. Structured tourists also want to meet people with similar interests or they are more social.  Both targets value rest and relaxation.

The most favorite activities are national park visits, hiking  and wildlife viewing.Harder are younger than structured and are more likely to have attained a university degree and are more liberal.

The secondary target would be the Structured eco-tourists or 40% of the market as they do like packages and rely on travel agents and group travel.  They also have a desire to return to favored destinations.  They like to learn about the natural environment and experience nature in a wild setting.   They would tend to stay in the lodge instead of the Teepees.

Quantified Objectives

2 Billion International Tourists, Or 1.4 Million MT Tourists, Or $1.3 Trillion Industry in US.

Eco-tourism is conservatively 10% of each =

20 Billion International Tourists, Or 140,000 MT Tourists, or $13 Billion Industry in US.

34% is Harder Target and 40% is Structured Target and we will target.

6.8 Million International Harder Tourists, 8 Million International Structured Tourists

Equals $5.2 Billion and $4.4 Billion in US Eco-Tourism.

56,000 and 42,000 MT eco-tourists so we need less than 4% of each target to reach 4,000 vistor annual nights.  That is the current MT market but we are not counting on it as the international eco-tourists market is bigger and growing.

2. Brand Positioning Statement

According to four separate studies, promotional activities should highlight the environmental features in order to attract green tourists. Uysal (et al., 1994) suggests that in order to attract the green tourist market, the destination must be promoted using flora and fauna, natural attractions and un-crowded facilities, as this is what their study identifies as being the major benefits sought.

3. Marketing Mix.

Means End Chain

Perceptual Map

Pricing

Packages

M-Sunday week-lifestyle $1,500o Sunday-Maintenance Day

Clean teepees/recoup Friday-Sunday-condensed fun atmosphere  $500

o Bonfires o Events

Tee Pee / Mud Hut   $150 a night

Authentic Bedding, Steam Cleaned No power / Fire pit Beautiful Views, Pryor and Beartooth Mountains

Sales Channels

Similarly Wight (1996) concludes that given green tourists are seeking a wide range of activities, and the product offering should highlight the range of experiences available or develop links with other companies who can offer complimentary experiences.  Weaver and Lawton found that some green tourists tend to be affiliated with environmental clubs and organizations which could provide a useful access point. (11)

See Tanna’s partners in other countries....partner with high end travel agents, you will need to travel to trade events and direct sell in the agri tourism, there will be a commisssion to pay in finances

Promotional Plan

Finally Wurzinger and Johansson (2000) state that advertising declaring the destination/product as environmentally friendly will attract green tourists because of their high level of environmental concern.  Ryan, Hughes and Chirgwin (2000) found the top three sources of information about destinations to be another person (38%), brochures and other materials collected at information centres (23%), and tour operators (10%). These four studies suggest destination managers seeking to attract green tourists should focus their targeting efforts on word of mouth, travel guides and brochures. (11)

Put magazines etc. here  Talk about budget.

IX.  Financials

Startup Expenses and Capitalization

You will have many expenses before you even begin operating your business. It’s important to estimate these expenses accurately and then to plan where you will get sufficient capital. This is a research project, and the more thorough your research efforts, the less chance that you will leave out important expenses or underestimate them.Even with the best of research, however, opening a new business has a way of costing more than you anticipate. There are two ways to make allowances for surprise expenses. The first is to add a little “padding” to each item in the budget. The problem with that approach, however, is that it destroys the accuracy of your carefully wrought plan. The second approach is to add a separate line item, called contingencies, to account for the unforeseeable. This is the approach we recommend.Talk to others who have started similar businesses to get a good idea of how much to allow for contingencies. If you cannot get good information, we recommend a rule of thumb that contingencies should equal at least 20 percent of the total of all other start-up expenses.Explain your research and how you arrived at your forecasts of expenses. Give sources, amounts, and terms of proposed loans. Also explain in detail how much will be contributed by each investor and what percent ownership each will have.

12-Month Profit and Loss Projection

Many business owners think of the 12-month profit and loss projection as the centerpiece of their plan. This is where you put it all together in numbers and get an idea of what it will take to make a profit and be successful.Your sales projections will come from a sales forecast in which you forecast sales, cost of goods sold, expenses, and profit month-by-month for one year.Profit projections should be accompanied by a narrative explaining the major assumptions used to estimate company income and expenses.Research Notes: Keep careful notes on your research and assumptions, so that you can explain them later if necessary, and also so that you can go back to your sources when it’s time to revise your plan.

Four-Year Profit Projection (Optional)

The 12-month projection is the heart of your financial plan. This section is for those who want to carry their forecasts beyond the first year.Of course, keep notes of your key assumptions, especially about things that you expect will change dramatically after the first year.

Projected Cash Flow

If the profit projection is the heart of your business plan, cash flow is the blood. Businesses fail because they cannot pay their bills. Every part of your business plan is important, but none of it means a thing if you run out of cash.The point of this worksheet is to plan how much you need before startup, for preliminary expenses, operating expenses, and reserves. You should keep updating it and using it afterward. It will enable you to foresee shortages in time to do something about them—perhaps cut expenses, or perhaps negotiate a loan. But foremost, you shouldn’t be taken by surprise.There is no great trick to preparing it:  The cash-flow projection is just a forward look at your checking account.For each item, determine when you actually expect to receive cash (for sales) or when you will actually have to write a check (for expense items).You should track essential operating data, which is not necessarily part of cash flow but allows you to track items that have a heavy impact on cash flow, such as sales and inventory purchases.You should also track cash outlays prior to opening in a pre-startup column. You should have already researched those for your startup expenses plan.Your cash flow will show you whether your working capital is adequate. Clearly, if your projected cash balance ever goes negative, you will need more start-up capital. This plan will also predict just when and how much you will need to borrow.Explain your major assumptions, especially those that make the cash flow differ from the Profit and Loss Projection. For example, if you make a sale in month one, when do you actually collect the cash? When you buy inventory or materials, do you pay in advance, upon delivery, or much later? How will this affect cash flow?Are some expenses payable in advance? When?Are there irregular expenses, such as quarterly tax payments, maintenance and repairs, or seasonal inventory buildup, that should be budgeted?Loan payments, equipment purchases, and owner's draws usually do not show on profit and loss

statements but definitely do take cash out. Be sure to include them.And of course, depreciation does not appear in the cash flow at all because you never write a check for it.

Opening Day Balance Sheet

A balance sheet is one of the fundamental financial reports that any business needs for reporting and financial management.  A balance sheet shows what items of value are held by the company (assets), and what its debts are (liabilities). When liabilities are subtracted from assets, the remainder is owners’ equity.Use a startup expenses and capitalization spreadsheet as a guide to preparing a balance sheet as of opening day. Then detail how you calculated the account balances on your opening day balance sheet.Optional:  Some people want to add a projected balance sheet showing the estimated financial position of the company at the end of the first year. This is especially useful when selling your proposal to investors.

Break-Even Analysis

A break-even analysis predicts the sales volume, at a given price, required to recover total costs. In other words, it’s the sales level that is the dividing line between operating at a loss and operating at a profit.Expressed as a formula, break-even is:Breakeven Sales          = Fixed Costs

1- Variable Costs

X. Appendices

Financials Blueprints and plans Maps and photos of location

XII. Citations

1. The "Locavore" Trend2. Concerns about Health and Obesity Trends I3. An Economic Crisis that Brings Us back to Basics4. The Green Movement5. Demographic Shifts are Changing the Face of the Consumer6. Especially where diet is concerned7. https://lh5.googleusercontent.com/xyk8wWYl8NipEjLZcILY3qcyxlRYkFUFI3eme_rOjLL9 8. http://media.unwto.org/en/press-release/2012-01-16/international-tourism-reach-one-

billion-20129. Agri-tourism: Cultivating Tourists on the Farm, Curtis E. Beus, The huge, dynamic industry of

tourism.10. Overnight Eco-tourist Market Segmentation in the Gold Coast Hinterland of Australia. Weaver,

David, Journal of travel research /40. 200211. Journal of Hospitality & Leisure, Marketing, Are Green Tourists a Managerially Useful Target

Segment? Sara Dolnicar a & Katrina Matus12. (Honey, 1999, Washington DC Press, Who Own Paradise?)13. (Dean Runyan Associates, 2007)