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The Greeley Freight Station Museum

Business Plan

Dave TrussellMichelle Kempema

(970) 392-2934

680 10th StGreeley, CO 80631-4116

Where Education and Entertainment Run on the Same Track!

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I. Table of Contents

I. Table of Contents……………………………………….………..2II. Executive Summary………………………………………….…..3III. General company Description……………………………………4IV. Products and Services…………………………………………….9V. Marketing Plan…………………………………………………..12VI. Operational Plan…………………………………………………20VII. Management and Organization…………………………………..24VIII. Financial Projection……………………………………………...26IX. Appendix A…………………………………………………….28

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I. Executive Summary

The Greeley Freight Station Museum (GFSM) is a model railway exhibit and museum focused on providing quality entertainment and education about railroads. The experience offered by the GFSM is unique to any other form of entertainment in Northern Colorado, and it has the competitive advantage of being the third largest model train museum in the world. The GFSM’s 5,500 square foot exhibit includes a 1,353 foot mainline on hand-made terrain. The trains are operated by trained volunteers on the exhibit floor, where they are available to greet guests and answer any questions the guests may have.

The GFSM’s target market consists of young families, elementary schools, University of Northern Colorado students, and tourists. The GFSM has a lot to offer children, with its

dinosaur hunt and special children’s exhibit. It is also a great place for college students to spend leisure time, whether they are out with friends, family, or on a date. Tourists will also be interested in the GFSM. Many railroad enthusiast tours come through Colorado every year, and the GFSM serves as a great stop for them.

The GFSM is owned by Dave Trussell and managed by Michelle Kempema. As the Executive Director, Michelle will oversee the processes of the GFSM. Michelle will work toward new opportunities in marketing, customer retention, sustainability, educating customers, and expansion. With the growing entertainment industry, the GFSM will be able to reach more customers in the local area by implementing a new marketing plan that will build awareness of the museum. The GFSM will maintain a friendly and inviting environment where every customer will be warmly greeted and feel free to ask any questions about the exhibit and/or the railway artifacts throughout the museum. Customers will also have the opportunity to experience informative personal tours of the exhibit, where they can learn more about the layout, and the history of the railroad. The new business plan will lay a foundation for sustainability within the business by outlining the responsibilities of employees and the operations of the business. This plan will also help to create stability while the business works toward expansion. The GFSM is planning on expanding with a new exhibit within the next five years. The new exhibit will be donated to the business, so the GFSM is working toward a new building to house the exhibit. This expansion will provide something new to current customers of the GFSM, while creating a larger variety for all customers. It will also increase the GFSM’s competitive advantage for tourists, because the museum will boast two large exhibits in addition to the museum and the children’s layout. The GFSM has a lot to anticipate in the coming years.

The Greeley Freight Station Museum is the only model train museum in Northern Colorado. Because of this, it offers a unique experience for people of any age. Some people come to reminisce about their childhoods, some to observe the history of the railways, and others come to experience something they have never seen, but all of these people come on a mission to entertain their imaginations. Whatever your reason is, come

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visit our 5,500 square foot model train exhibit found on the corner of 7th Avenue and 10th Street in Greeley, Colorado.

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III. General Company Description

The Greeley Freight Station Museum is in the business of entertainment and education. It is an out of ordinary place for people to spend leisure time with family, friends, and loved ones. The idea is to provide entertainment to customers, while including educational aspects as well. The GFSM has artifacts from old railways surrounding a handmade model train, featuring a “moment in time” on the Oregon, California, and Eastern Railway. It is important to those that are apart of the Freight Station museum to teach younger generations about the history of railways and the importance they had/have to the success of the nation.

Mission Statement:To become the worlds finest model train museum, and successfully educate customers.

Goals and Objectives:To achieve the mission sought, The GFSM has set four goals as a primary focus: to obtain new customers, to create returning customers, to educate customers, and to create a savings account for an expansion project.

(1) To obtain new customers by:a. Producing and distributing 100 flyers to the determined target market for

the month. i. To identify which segment of the target market should be exploited

each month (young families, train enthusiasts, tourists, elementary schools, or UNC Students), the GFSM will create a seasonal trends calendar explaining which segment(s) are the most common customers during that particular period of time.

b. Target elementary schools.To do this, employees of the museum will contact all of the elementary schools within a 10-mile radius of the Museum by mid-June each year to request an opportunity to attend teacher in-services and pitch the museum as a destination for and educational field trip.

i. The idea is to attain at least 4 schools annually, which would be willing to make the trip. From the initial 10-mile radius, it will expand the radius to 30 miles, and then continue the trend outward.

c. Make it more obvious where the front door is within the next month.i. Make signs that point out where the front door is from all

directions that people might be coming from in the parking lots.ii. It may seem minor, but it is possible that a major deterrent for

customers is the idea of making themselves look less educated because they cannot determine where the front door is located, so if the Museum creates an obvious look about the front door, an increased number of customers may result.

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d. Create a sub name that better identifies what the museum actually entails. i. This should be done strategically over time in order to stray from

confusing already loyal customers because of the hype already established with the name “Greeley Freight Station Museum.” This can be done by slowly tying the new name into the marketing schemes along with the current household name “Greeley Freight Station Museum.” It is expected to take no longer than 10 years and should be helped along with the expansion and introduction of the new building.

(2) Create returning customers. a. In order to create returning customers, good customer service in essential.

i. This will be done through creating and maintaining a friendly, inviting environment, and developing a personal relationship with every customer from the time they enter the building to the last see-you-later.

ii. Each customer will be greeted by a GFSM employee/volunteer within 20 seconds of entering the building, and no one will leave without some sort of thank you and kind valediction.

iii. Also upon entry, each customer will be directed where to go to best tour the building or offered a personal tour with one of the employees or volunteers.

b. Establish deals and offerings. For example: The five-dollar student pass already exist, but the GFSM should place coupons in the campus cash booklets that are distributed throughout campus, which will reach students between August of one year through May of the following year.

i. Along with the family four packs for nine-dollars that are already established, two-day passes should be sold for nine dollars. This will create returning customers because of the discounted price. Regular adult admissions will save three dollars, and even UNC students will save 2 dollars. The GFSM strongly believes that it takes more that one experience to see it all.

c. Complete/host at least one themed event every other month which will be discussed with more detail in the marketing plan. The Star Wars theme was one of the most profitable events the Freight Station Museum has held, so it should continue with similar events. Other options would be holiday themes and other growing trends in entertainment like Harry Potter.

d. The last objective to create returning customers is to use e-marketing. i. Request people to put their email on the guest log as they enter or

exit the building, and use that as an advantage. The people that leave the email are interested in updates, so use this as an advantage and send them and email once a quarter informing them of upcoming events, deals and offerings, and changes being made to the Greeley Freight Stating Museum.

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(3) Create an operations manual within one year.i. The manual should establish the structure of the hierarchy within

the organization, jobs and responsibilities, job descriptions, expectations, and operations. Each employee and volunteer must read, understand, and agree to the manual before working.

ii. The management will hold employees to a high standard by providing evaluation feedback to each employee quarterly.

(4) Educate customers. a. To educate customers, the Greeley Freight Station Museum should

continue tours that allow employees/volunteers to inform customers about the facility and history during their visit.

i. Tours are available for scheduling in advance and should be done only by those most knowledgeable about the history of railways and the model train industry.

b. Classes teaching how to make the elements of the model railroad should also be taught at least once every other week.

i. The elements made during the class can either be taken home by the students attending the class or saved to help make a small-scale version of the model train track that will be made to teach kids how to run the railroad.

c. The mini model should be completed within two years. i. After the completion of the model, other classes will be available

to learn how to run the railway, which will also help provide opportunities for good interaction with customers, creating more sustainability as mentioned previously.

(5) Create a savings account for an expansion project. The expansion project will allow the GFSM to accept a donated model railway that is already made and is estimated to be worth around five million dollars.

a. Retain savings based on a plan to save 10% of profits each month and place these savings in an account solely for the expansion project.

b. At least 25% of the money in the donations jar at the entry door will be place in the expansion savings each month.

c. Use the sales pitch in fundraising activities by February to gain donations to expand. The pitch will include: the history, how it educates, and how it can benefit the community.

i. This will help the GFSM when it holds its “Moonlight Moments In Time” event reaching out to high income, respected, and invested individuals in the Greeley area. After the halfway mark is met for the expansion project, the sales pitch is already established for when the GFSM is ready to approach the Gates foundation that is known for providing grants that match donations. All of these objectives combined should allow the Greeley Freight Station Museum to reach their goals and milestones, putting them one step closer to the success promised in the mission statement.

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The Business Philosophy:To educate customers and give back to the community, while maintaining an entertaining environment.

Dave Trussell is very passionate about giving back to the community, so that (along with his passion for the model railways) is why he decided to create the Greeley Freight Station museum. The people at the GFSM believe strongly that it is a great place for education and entertainment and has so much to offer for the Greeley community, and the only way to deliver is to do so in the best fashion.

Target Markets:The Greeley Freight Station Museum welcomes anyone and everyone interested in its exhibit. To be more specific, the markets sought are: young families in northern Colorado because children enjoy learning about trains and the Museum provides a good environment for family interaction, elementary schools because of the large concentration of children who will likely be interested, and because the Museum has plenty to offer when it comes to teaching fourth graders history, UNC students because it is a beautiful sight where students can appreciate the art, and work efforts in making the model, as well as, using the GFSM as a good experience to take a date, train enthusiasts because of the known passion already established for trains and their historical value, and tourists because it is a unique museum that people from anywhere can enjoy.

Industry:The Greeley Freight Station Museum does not fit into one particular industry, but two industries. The determined industries suitable for the Greeley Freight Station Museum are the entertainment and museum industry. To narrow the entertainment industry, more focus should be placed on the amusement industry, though it is very different from and amusement park. According to Entertainment Industry Economics, the amusement industry had 25 billion dollars in revenues in 2005, and is still growing; although, it is at a slower rate (compared to previous years) that may eventually level out. The museum industry has about 865 million people attend the nations 16,000 museums each year raking in more attendance than that of all professional baseball, football, and basketball games combined (D.C.-based American Association of Museums). The concluded industry is stable. The main advantage that the GFSM has is that it is a very unique type of museum especially considering its size. There are very few other model train railways that compare; only one being located northern Colorado, allowing the Greeley Freight Station Museum to compare with potentially more stability (Entertainment Industry Economics, Oct. 2011).

Vogel, Harold L. Entertainment Industry Economics: A Guide for Financial Analysis. Eighth ed. New York: Cambridge UP, 2011. Google Books. Web. 08 Oct. 2011. <http://books.google.com/books?id=BfyFFCyRvX0C>.

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Core Competencies: Core competencies seemingly come natural for the Greeley Freight Station Museum. The GFSM has a very large market share due to limited number of model train displays in the world. As mentioned earlier, there is only one other model train museum of comparable size in North America, and it’s located in Chicago. The other one is in Hamburg, Northern Germany. Another would be the opportunity to expand mainly through donations, allowing the Greeley Freight Station Museum to potentially become the largest model railway in the world, which would also help another strength, which is giving back to the community. The GFSM likes to view people’s ability to dream as another strength because that’s what the museum was built off of and that is what has allowed it to maintain its success. Additionally is the number of volunteers. The museum has volunteers coming from all over the world, so it gets thousands of hours of free work and time from people of different backgrounds, which helps keep the place alive an interesting.

Legal Form of Ownership:Currently, the Greeley Freight Station Museum is a Non-Profit organization and it should maintain that entity. The reasons it should continue to be a non-profit organization is the goal of the Greeley Freight station Museum is not built around the idea to turn a profit other than for expansion and to preserve the business itself, rather it’s to provide education and entertainment. Along with that, there is the option to attain government grants to help the business along, and no taxes are charged to the business.

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IV. Products and Services GFSM

Products and/or Services: Model Train- Open hours (Entertainment-Service)

o Hours: Winter Hours (Labor Day-Memorial Day) Friday & Saturday: 10am – 4pm

Sunday: 1pm – 4pmSummer Hours (Memorial Day-Labor Day)Wednesday-Saturday: 10am-4pmSunday: 1pm-4pmFirst Friday of Each Month: 6pm-9pm

o For children, there is a Scavenger Hunt for Dinosaurs in the layout. Museum (Entertainment/Education-Service)

o This consists of the historical items throughout the museum. There are old model train cars, lanterns, train seats, maps, a

real train car, etc. Group Tours (Entertainment-Service)

o These are scheduled for times other than the open hours. To schedule a tour, customers can call the museum or fill out a

Group Tour Request online. Classes (Entertainment/Education-Service)

o They provide classes on different parts of the model train. Example: Making the terrain of the layout

Train Cars (Product)o HO Scale Cabooses o HO Scale OC&E Boxcars o These are sold both in the museum and online on the website.

Calendars (Product)o They sell 2011 Calendars.

These include pictures of the GFSM layout These are sold both in the museum and online on the website.

GFSM DVDso Sold in-store only

Children’s Bookso Sold in-store only

Clothingo Children’s T-Shirtso Youth T-Shirtso Adult T-Shirtso GFSM Polo Shirtso Sweatshirtso Knit Caps, Necklaces, Foot Fashiono GFSM Visors

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o Knit Skull Caps Toys

o Fat Brain Toyso Pullback Trainso Stuffed Animalso ‘Opoly’ Gameso Adult Train Puzzleso Miscellaneous Souvenir Toys

Miscellaneouso Educational Birthday Cardso Stuffed Animals/Tooth Fairy Pillowso Thomas Workbooks/Flashcards/Stickerso Animal Key Chainso Cookie Cutterso GFSM Mouse Padso GFSM Calendarso Piggy Table Mats, Art Folio, Nap ‘n Sacko Decorative Plaques and Signso Hobo Coffee

Competitive Advantage: The Greeley Freight Station Museum is the only Model Train Museum in the

local area.o It offers a very unique experience for the local community.

It is the 3rd largest model train museum in the world.

Pricing: Admission: Adults: $6

Seniors (65+): $5 Children (12 & Under): $3 Military w/ ID: $5 UNC/AIMS Students w/ ID: $5 Babies in arms and people w/ disabilities: FreeGroup Rates:

Groups of 10-24: $4 per personGroups of 25+: $3 per person

Group Tours:o Groups of 10-24: $8 per persono Groups of 25+: $6 per person

Productso HO Scale Cabooses: $25 + $5 Shippingo HO Scale OC&E Boxcars: $25 + $5 Shippingo Yearly Calendars: $9.95

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o GFSM DVDs: $45o Children’s Books: $3.95-$45o Clothing

Children’s T-Shirts: $12 Youth T-Shirts: $16 Adult T-Shirts: $16-$21 GFSM Polo Shirts: $12 Sweatshirts: $30 Knit Caps, Necklaces, Foot Fashion: $7-$16.95 GFSM Visors: $18.95 Knit Skull Caps: $16.95

o Toys Fat Brain Toys: $7.95-$9.95 Pullback Trains: $6.95 Stuffed Animals: $10.95-$15.95 ‘Opoly’ Games: $19.95 Adult Train Puzzles: $12.95-$16.95 Miscellaneous Souvenir Toys: $1.95-$6.95

o Miscellaneous Educational Birthday Cards: $8.95 Stuffed Animals/Tooth Fairy Pillows: $6.95-$10.95 Thomas Workbooks/Flashcards/Stickers: $3.95 Animal Key Chains: $8.95 Cookie Cutters: $4.25 GFSM Mouse Pads: $10.95 Piggy Table Mats, Art Folio, Nap ‘n Sack: $10.25-$26.95 Decorative Plaques and Signs: $12.95-$24.95 Hobo Coffee: $6.95-$12.95

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V. - Marketing Plan

Economics:Facts About the Industry:The GFSM can be classified into a few different industries. It can be classified in the museum industry, the entertainment industry, or the educational industry. The main industry to look at is the museum industry. “This industry comprises establishments primarily engaged in the preservation and exhibition of objects of historical, cultural and/or educational value and includes art galleries, art museums and other museums in general.” The museum industry in the United States is an $8.5 billion industry. The industry is in the maturing stage of its lifecycle however the industry is growing in terms of revenue growth, and is expected to keep growing for the next few years. The growth will continue at 3.8% a year, until the year 2016. “The dominant factors aiding revenue growth will be rising per capita disposable income, reduced unemployment and enhanced consumer sentiment. Increased disposable income will allow more families and individuals to spend on discretionary services, such as museum visits” (2011).

Barriers to Entry: The barriers to entry in the museum are low. “There is a moderate level of competition in the industry, with an estimated 4,666 museums currently in operation. The majority of these museums are small and local in nature; however, there are some larger museums which account for a significant share of the market” (2011). One of the main barriers in the museum industry is obtaining a desirable collection. The collection needs to be of public interest otherwise the museum will have no customers.

M o l d v a y , C . ( 2 0 1 1 ) .   M u s e u m s i n t h e U S   R e t r i e v e d f r o m h t t p : / / c l i e n t s . i b i s w o r l d . c o m / i n d u s t r y u s / d e f a u l t . a s p x ? i n d i d = 1 6 4 0

Factors that may affect the GFSMChange in technology: The GFSM will always be on top of technology changes because it is a beta tester for model train components. If the components benefit the GFSM, they will be implemented into everyday use. This means that the GFSM will always have the best technology in the industry.

Change in government regulations:The biggest problem for the GFSM in terms of government regulations would be the company’s non-profit status. In the industry there is certain criterion that must be met in order for a company to stay non-profit. The IRS regulates all non-profit museums. “These regulations include issues such as disclosure and filing requirements, tax liabilities for unrelated business income and sanctions for excess benefit transaction.” The entire industry also must comply with the ADA regulations as well as Section504 of the Rehabilitation Act that prohibits employers from discriminating applicants based on

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disabilities. Any changes in regulations will require the GFSM to meet and comply with changes to stay a non-profit business. Change in the economy:Changes in the economy can always affect any business. In good economic times people are more likely to go out and spend money on leisure activities. However, in trying economic times people are going to be more conservative with their money. As with any business, the GFSM relies on its customers, so how willing consumers are to spend their money is a major factor.

Change in your industry:According to the industry research on IBISWorld there is expected to be growth in revenue for the museum industry because of a slight boost in the economy. This is good for the business. However, the GFSM is different from many museums because of the model train exhibit, so it has some flexibility from the museum industry itself.

Product: (Features and Benefits) Model Train (Service)

o One of a kindo Will provide entertainment

Museumo Largest in the areao Knowledge of railroad history

Group Tours o Private o Will provide in depth knowledge of museum

Classes o Learning the low down of model railroading o Teaches customers how to do their own set up

Train Cars o Actual Caboose from Greeley, CO o Insight of how train cars looked

Calendarso Tells story through actual pictures from GFSMo Provides a way to keep track of the days

Train DVD’so Cannot get this anywhere else in the area o Educate them on Trains

Children’s Books o Train oriented o Provide entertainment

T-Shirtso GFSM logoo A way to remember a memory created at GFSM

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Customers:The GFSM has several different types of customers. Train Enthusiasts: This group is made up of all ages and both genders. They live worldwide and have various income levels.

Young Families in Northern Colorado: These families have younger children, are in the middle class, and are educated.

Local Elementary Schools:This group mostly consists of 4th grade classes because they are learning about railroads in their curriculum.

Tourists in the Northern Colorado Area: This group is made up of all ages and both genders. They come from all over the world and have various income levels.

Competition:Because the GFSM is the only model train museum in the state there are no competitors in Colorado that compete directly with the museum. The GFSM is the third largest model railroad museum in the world. GFSM competes on a national level with The Great Train Story in the Museum of Science and Industry located in Chicago and the San Diego Model Train Museum, in California. There are a few companies that are classified in the same genera, who compete with GFSM. The first is the Colorado Railroad Museum. This is an indirect competitor that attracts a similar consumer. The Colorado Railroad Museum does have a large advantage in terms of location, located only 12 miles out of downtown Denver. The major Railroads in Colorado are also an indirect competitor. These may also attract the same niche market as the GFSM. Some of these Railroads are: the Georgetown Loop, The Royal Gorge Route, and the Rio Grande Scenic Railroad. The last competitor would be the entertainment industry in general. The entertainment industry includes any other leisure activity. The main competitors in this area are: Family Funplex, Cinemark Movie Theater, and The Greeley History Museum, to name a few. These businesses compete with GFSM more on a location based level being they are in close proximity therefore competing for leisure dollars spent.

Colorado Railroad Museum 17155 W 44th Ave Golden, CO 80403

Family Funplex1501 65th Ave Greeley, CO 80634

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Cinemark Movie Theater 2160 Greeley MallGreeley, CO 80631

Greeley History Museum 714 8th StGreeley, CO 80631

Factor GFSM Strength Weakness Colorado Rail Road Museum Family FunPlex Importance to Customer1=Very Important 5=Not Important

Products Above industry average X

Tours, historical artifacts, special events (santa day,

cultural events) educational activities, library, Giftshop type

store

Pool, minigolf, fitness center, Sports fields,

senior social,

3

Price Below industry average X $8 for adults $5 children

Memberships can be purchsed and range

anywhere from $360 to $225

1

Quality Above industry average X4 1/2 out of 5 stars from google

reviews High quality1

Selection Standard with industry 3Service Above industry average X 1Reliability Above industry average X City run facility 2Stability Below industry average X Very stable business 3Expertise Above industry average X Good 1Company Reputation Above industry average X Reviews seemeed good 3

Location Below industry averageX

Just 12 miles from downtown Denver (Golden)

Located on 65th ave in Greeley, CO

2

Appearence Below industry average

Reviews of the place seemed only good, one mentioning that

it is only getting betterWell maintained

building inside and out1

Sales Method Below industry average 3Credit Policies Below industry average 2Advertising Below industry average X 3Image Above industry average X 2

Niche:GFSM will stimulate and educate about model trains. The GFSM offers a completely unique experience to anyone in the Northern Colorado Area, and has a reputation for being one of the finest model train exhibits.

Tagline:Where education and entertainment run on the same track!

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Logo:

Pitch:30 Second Pitch:ALL ABOARD! The Greeley Freight Station Museum is the only model train museum in Northern Colorado. It also happens to be the third largest model train museum in the world! Because of this, it offers a unique experience for people of any age. Some people come to reminisce about their childhoods, some to observe the history of the railways, and others come to experience something they have never seen, but all of these people come on a mission to entertain their imaginations. Whatever your reason is, come visit our 5,500 square foot model train exhibit found on the corner of 7th Avenue and 10th Street in Greeley, Colorado. We can’t wait to see you at the Greeley Freight Station Museum, where education and entertainment run on the same track!

Paragraph Pitch:ALL ABOARD! The Greeley Freight Station Museum is the only model train museum in Northern Colorado. It also happens to be the third largest model train museum in the world! Because of this, it offers a unique experience for people of any age. Some people come to reminisce about building and playing with model trains during their childhood, some to observe the history of the railways with our railroad artifacts, maps, and brochures, and others come to experience something they have never seen, but all of these people come on a mission to entertain their imaginations. Our 5,500 square foot exhibit displays multiple trains running on real time, hand-made, lifelike terrain, and a dinosaur hunt for the kids. Come visit us on the corner of 7th Avenue and 10th Street in Greeley, Colorado. We can’t wait to see you at the Greeley Freight Station Museum, where education and entertainment run on the same track!

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Strategy:To spread the word to customers:(1) GFSM will do cold calls to the elementary schools in order to establish a date and time to sell the historical idea of the museum to the 4 th grade teachers. Generally, the best time would be at teacher in-services once or twice a year, before the beginning of each semester.

(2) A discount coupon will be placed in the campus cash booklets that are distributed to college students along with flyers distributed around campus every third month during the fall and spring semesters.

(3) To reach train enthusiasts, ads will be placed in magazines for train enthusiasts (ex. - Railroad Explorer, The Railroad Press, iTreni-an Italian magazine, Railpace Newsmagazine). These ads should be utilized at least once every other month. They should contain news and interesting occurrences at the GFSM in order to be accepted by the magazine. They aren’t necessarily advertisements, more so news that would draw media publicity.

Railroad Explorer is always looking for contributors to the magazine, so if the article and photos are good, they will add to the issue for free, according to railroadexplorer.com. Obviously there are certain guidelines that have to be followed; the contributions must be related to trains.

(4) Young families will be targeted through flyers and brochures that will be distributed to different restaurants and stores in the Northern Colorado area and along Interstate-25. There will also be ads in local newspapers like the Tribune. They should include upcoming events within the next three months and be updated and redistributed every three months.

(5) Tourists will be targeted with the brochures that can be found along I-25 as well as in the enthusiast magazines. A majority of tourists will not come from those ads, which is why the Greeley Freight Station Museum is working closely with tourist companies in cities like Denver. Not only will these companies provide support for tourists to visit the museum, but also to explore the rest of Northern Colorado.

There reason these marketing strategies and marketing mediums were chosen is because of the target market GFSM is trying to reach with its limited resources to allocate to marketing. In general, these mediums are relatively inexpensive and reach a sizeable audience.

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The Schedule for Promotions should be:

Media:The main media being that will be utilized is paper print (magazines, brochures, newspapers, fliers) this is because print ads are solidified and create a burning image in a persons mind, being allowed to view the ad for a longer period of time. Generally, print is cheaper than television ads and social media ads, especially because the GFSM does not currently have the capacity or capability to pay for the social media support.

Image:The idea behind the marketing for the Greeley Freight Station museum is to position it as a place for anyone and everyone to come and let their imagination take control, but still learn something in the process. It is a place to reminisce, as well as create new lasting memories.

Graphic Image Support:Currently, the GFSM has a relationship with the Monfort College of Business, more particularly, senior web design classes. The Museum can place a large majority of its dependence on those classes and on the CIS interns hired. This is mainly because there isn’t much need for graphic image support, and most of the graphic imaging comes simply from pictures of the exhibit. As long new interns are hired and the partnership with Monfort is maintained, the GFSM will have sufficient graphic image support.

Repeat customers:

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In order to track repeat customers, each customer will be requested to leave his/her email and a few comments about their experience in a guest log. Having each customers email will allow the GFSM to track repeat customers and send news and updates to all.

Promotional BudgetThe current marketing budget should be expanded to around $3,900 on an annual basis. Distributions of the budget should be similar to:

Flyers-$400 annually, which is $100 every third month. In-services-Free (regular labor hours) Campus cash coupons- $759 annually for 36,000 publications

o See Appendix A Magazines-Free (articles written voluntarily) Brochures- $800 annually, which is $200 every third month Newspaper ads (Tribune)- $1,848 for a 4x6 colored ad one week a month

in April, May, June, August, September, November, and December.o 20,000 copies Monday-Saturdayo 22,000 copies on Sunday

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VI. Operational Plan

Production:Techniques and Costs:The actual train set was donated, however, all the landscape and other scenery was all made in house by Dave and multiple volunteers. The volunteers also are there on a daily basis running the trains, cleaning, and doing other in house maintenance to the layout.

Quality Control:Every aspect of the operation as a whole must be the highest and finest quality in the industry. Anything less will deter customers, and not provide the overall experience that the GFSM aims to offer. This will include proper maintenance (repairs, cleaning, etc.) of the exhibit. Quality control will be outlined in the operations manual.

Customer Service:The volunteers are very knowledgeable on the subject; however, they do not go out of their way to make sure the customer has a great experience. Customer service is very important especially in a nonprofit service orientated company and without great customer service the sustainably of the business is jeopardized. The volunteers are the main face of the museum and can leave a lasting impression on their customers; but in the customer service area, the volunteers lack good communication skills and friendly social interaction skills. A section of the operations manual will cover this being it is a very important aspect of the museum.

Inventory Control:The goal of the company is to keep excess inventory at a minimum. The main point of the museum is to educate and share an experience with others; therefore, excess space should not be cluttered with boxes of inventory. Inventory of the Little Shop That Could will be taken continuously, and inventory records will be kept to keep track of sales and losses of product.

Product Development:The company will keep up to date on the trends and new techniques in the industry as far as the layout and the track itself. This information will be used in the development offuture exhibits.

Location:

Amount of Space:The building the Greeley Freight Station Museum is in now houses a 5,500 square foot layout with a track that stretches over 1,200 feet. The building is also home to a full size Colorado caboose that visitors can enter as well as a children’s section and a gift shop.

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Type of Building:The building itself is a large metal barn structure. Being the train and landscape needs to be kept in a very particular climate the building is well insulated and the climate is kept constant by a humidifier.

Zoning:Industrial Low Intensity (I-L)

Power and Other Utilities:All utilities that are necessary for the building are paid for through the grant. Utilities include: electricity, gas, and water.

Access:The building itself is very accessible, due to its corner location; medium sized parking lot, as well as multiple surrounding empty parking lots. Depending on where you park in the lot, finding the correct entrance to the inside of the building isn’t clearly marked and can be challenging.

Construction: The building the GFSM will build will need to be even larger as the train set to be donated is larger than the original. The GFSM also hopes that the buildings can be connected for easier access to both. Before this is able to happen, the law states; that they will need to have exact specifications for the whole project; in which they are still in the process of coming up with. Without all of the specific details; name, size, location etc, they aren’t able to receive the grant funding.

Cost:GFSM has a contract cleaner that comes in for general cleaning duties once a week on Sunday. The cleaner is paid $500 a month to do general cleaning of the floors, bathrooms, and general public areas. The business hours the GFSM will be specific to the season. Summer hours will have more open days, as traffic will be heavier. In winter hours when there is less traffic, the museum will be closed more. Summer hours will be Wednesday – Saturday 10:00 – 4:00, Sunday 1:00 – 4:00, and the first Friday night of each month 6:00 – 9:00. Summer hours are Memorial Day – Labor Day. Winter hours will be Fridays and Saturdays 10:00 – 4:00 and Sundays 1:00 – 4:00. Winter hours are Labor Day – Memorial Day.

Legal Environment:They have insurance that covers the building and contents of the building. The only trademark that they have is their name, The Greeley Freight Station Museum.

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Personnel: (see page 24 for Positional Descriptions) Number of Employees:The GFSM will need four paid employees instead of the one employee they have now. The staff will consist of an executive director in charge of the entire museum, as well as a train’s operations director, a storefront director, and a volunteer director. There will continue to be a large volunteer pool, which is the backbone of the museum.

Type of Labor:The overall layout project is very skilled labor, being all of the aspects and components of the layout are very detailed and all made by the volunteers.

New Employees:An application process will be implemented to help the GFSM find the right employees. Applicants with backgrounds in model trains, trains, and non-profits will be the preferred in this application process.

Quality of Existing Staff:The one paid employee that the GFSM has is an excellent employee and is very dedicated to her job and the success of the museum. The volunteers the GFSM currently have are very knowledgeable and very committed when it comes to model trains; however, customer service is an issue that has been raised. The operations manual we plan to implement will hopefully solve this problem.

Pay Structure:The pay structure that we will be setting up will have one full-time position and three part-time positions. The executive director, the full-time position will be paid the most and be on salary while the part-time positions will be paid an hourly rate. The part-time employees will make $8.00 an hour while the executive director will be making $30,000 annually.

Training Methods and Requirements:All of the training for the volunteers and the staff will be clearly stated in the GFSM operations manual, which will be a required text for all. Employees and volunteers will be walked through the manual with the executive director other ranking directors prior to working at the GFSM to ensure the concepts were all understood.

Tasks:Executive director will be in charge of operations as a whole and overlook the staff members as well as the volunteers. Storefront director will be in charge of admissions as well as the gift shop in the museum, “The Little Shop That Could”. Trains operations director will be the head of dispatch and the model train supervisor. Volunteer director will be in charge of the volunteer group.

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Operations Manual:The operations manual will contain valuable information on daily operations to be preformed in the museum by staff members and volunteers. The operations manual will contain sections having to do with training, hierarchical structure, written procedures, and job descriptions. The manual will need to stay current with museum operations. Suggestions or additions to the manual will be welcomed from all staff members and volunteers as long as the executive director approves them. Inventory:The only inventory that the GFSM has is in their “Little Shop That Could”, their gift shop. The shop is very small, so their inventory is limited and not much is kept on hand. It is more about the actual train sets and the take away experience than trying to sell items to make a profit.

Seasonal buildups:Seasonality plays a large part in the GFSM’s business; during their busier summer months, more products are moved through the shop, and in the less busy winter months, turnover is much slower.

Suppliers:Huston Graphics and Printing- Promotional screen printing and embroidery

700 Automation Drive Unit BWindsor, CO 80550Phone: 970-686-0174

Maple Landmark- Wooden supplies1297 Exchange StreetMiddlebury, VT 05753Phone: 800-421-4223

Book Wholesales- Railroad-Related books

Credit Policies:The GFSM will sell on credit for admissions and in the “The Little Shop That Could” gift shop. They accept Visa and MasterCard.

Managing Your Accounts PayableInvoices are paid either by credit card or by check. These payments are made by the GFSM Guild Treasurer.

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VII. Management and Organization

The GFSM will be managed by the executive director. The executive director will bring a knowledgeable experience to GFSM. The distinctive competencies that the executive director will bring:

Knowledge- They will have complete knowledge of all the day-to-day operations. Including historical information on Trains. Along with knowledge in curetting.

Problem Management- Able to handle any situation with a professional manner. Customer Service- They will provide a welcoming environment to employees,

customers, and volunteers. Coaching Ability- The ability to coach any employee/ volunteer to provide

exquisite customer service.

Continuation of the Business:The GFSM will always continue in times of loss or incapacitation. This will be obtainable only by a full operational plan of GFSM.

Organizational Chart:

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Positional Description: Executive Director:This is a full time position that will require full knowledge of GFSM. The position requires the abilities to successfully innovate marketing plans, fundraising plans, group bookings, programs, classes, and training programs. They will update all areas of the business/business plan as necessary. A required knowledge of curetting is necessary. Daily accounting will be necessary to be able to provide the accountant monthly numbers. This position will require managing of the company through coaching and feedback.

Trains Operation Director: This is a part time position that will require expertise in the running of model trains. They will be in charge of training and managing all people that are involved in the running of trains at GFSM. They will report to the executive director on a monthly basis to keep training up to date.

Store Front Director: This is a part time position that will require managing of the store front and maintaining good customer service. They will train all new employees/ volunteers on running the admissions counter and The Little Shop That Could. They will be required to clean and maintain the store front. On an everyday basis they will provide the executive director with all funds and numbers for the day.

Volunteer Director: This is a part time position that will require exquisite customer service values. They will be responsible for creating and revising a training program. They will provide training to all new volunteers that come to work at GFSM. They will build a monthly volunteer schedule based on availability of each volunteer. On a monthly basis they will meet with the executive director to talk about overall performance and customer service of volunteers.

Professional and Advisory Support:

Attorney- TBA Accountant- Joel Rothman Banker- TBA Consultant or consultants- Northeast-East Central Colorado Small Business

Development Center

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VII. Financial Projections

2012

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2013

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Appendix A

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