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Sustainability

Thoughts on Creating a Stable Funding Model for anInteractive Science Museum

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There is more than one kind ofsustainability

This presentation focuses on the

Creation of a business model that will provide long

term sustainability

Rather than

Net Zero Energy and other excellent sustainability

goals also worthy of discussion!

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Point of View

Museum master plans and founding teams areoften focused on the site, facility and openingprograms.

Operating revenue and organizational plans maybe considered secondary (and less interesting).

Early development of a sustainable business

model supports a vibrant Day 2 institution,helping to achieve the mission over long term.

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Sustainable Business ModelKey Features

Serves the mission directly and indirectly

Diversified; mitigates risk

Responsive to changing conditions

Aligned with organizational and operational plans

Part of the culture of the institution

Deeply rooted in the community

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3 Kinds of Revenue

Public Funding government grants, contractfees and/or direct subsidy of operations, program,R&D.

Contributed Income Donations, Bequests,Private Foundation Grants and Endowmentinterest.

Earned Incomerevenue from institutionalenterprises including admissions, membership,rentals, cafs, retail, corporate partnerships, saleof goods and services, licensing, etc.

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National Science Museum Model

Majority public funding

Free admission

Large collections to maintain High operational costs

Corporate sponsors for some exhibitions

Earned income relatively small % of total

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Regional Science Center Model(USA)

Majority earned income

Admissions

Membership

Concessions

Significant contributed income

Minority public funding

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Global R&D Center ExploratoriumBalanced Revenue Model

Substantial public grants

NSF ($75M+), DOE, etc.

Decreasing as % of total

Significant contributed income

Including private foundation grants

Earned income increasing at new site

Gate-related (admissions, membership, retail,concession)

Corporate Partnerships, Rentals, Global Studios

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Some Questions to Consider inRelation to Business Model

What is your mission? Target audiences, demographic Regional hub? Commitment to R&D

What is your funding landscape? Public: local, regional, national Contributed Donors, Private Foundations

What is the revenue potential of your site ?

Visitor Services Rentals Community & Corporate Partnerships

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Initial MICBA ObservationsBased on Limited Information

Rich array of programs including Teacher Institute,Outreach, Public Programs, Workshops, etc.

Nested in Bio District of scientific and educational

innovation with many resources, contributors

Prominent international destination city

Balanced revenue model seems appropriate and

desirable (many parallels to Exploratorium)

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MICBA Earned Income Opportunities

Admissions

Pricing consider split strategy for locals & tourists Offer add-on experiences

Membership

Segmentation strategy not just transactional Integrate pricing with gate

Caf & Food Court Concessions integrate catering

Store make street accessible feature proprietary products

Rentals design spaces for events

Corporate Engagement start early, hybridize

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Recommendations

Create senior positions focused on earnedincome, contributed income and public funding;hire early

Make site-based earned income and associatedoperations a priority for architectural design

Engage potential corporate and community

partners in early planning for MICBA and itsprograms

Look for ways to leverage MICBA as regional huband digital studio scale of impact matters

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In Conclusion

MICBAs mission to awaken public interest,

deepen understanding and increase personalagency with regard to science, technology and

environmental sustainability is fabulous and much-needed.

A sustainable business model will simultaneouslyfund and help to implement this mission.

Invest early and reap the benefits for years tocome!