Elements of a Basic Economic Challenge Scarce resources Time Money Alternative Uses of those Resources

Scarce resources

Time

Money

Alternative Uses of those Resources

Common Resources Land Labor Capital

Land

Labor

Capital

Land Farmland Parkland Open Space Water Air Minerals Fossil Fuels Receptacle for waste products

Farmland

Parkland

Open Space

Water

Air Minerals

Fossil Fuels

Receptacle for waste products

Labor Time Muscle Power Brainpower

Time

Muscle Power

Brainpower

Capital Buildings Machinery Equipment Roads Bridges Tunnels

Buildings

Machinery

Equipment

Roads

Bridges

Tunnels

Components in Economic Decision Making What goods and services? How are they produced? For whom are they produced? How extensively are resources used?

What goods and services?

How are they produced?

For whom are they produced?

How extensively are resources used?

Questions every economy must answer… What should be produced? How many should be produced? What methods should be used? How should the goods be distributed?

What should be produced?

How many should be produced?

What methods should be used?

How should the goods be distributed?

Two Kinds of Economies Command economy Market economy

Command economy

Market economy

Characteristics of a Pure Market Economy Economic freedom Economic incentives Competition Private ownership Limited government

Economic freedom

Economic incentives

Competition

Private ownership

Limited government

Demand Curve Price Demand Relationship between price and demand Price goes down, demand goes up

Price

Demand

Relationship between price and demand

Price goes down, demand goes up

Supply Curve Quantity Price Relationship between quantity and price Positive relationship = price increases so does quantity supplied

Quantity

Price

Relationship between quantity and price

Positive relationship = price increases so does quantity supplied

Equilibrium Price If the demand increases, the demand curve would shift up and right, and the equilibrium price would increase. If the demand decreases, the demand curve would shift down and left, and the equilibrium price would decrease

If the demand increases, the demand curve would shift up and right, and the equilibrium price would increase.

If the demand decreases, the demand curve would shift down and left, and the equilibrium price would decrease

A Comparison of Four Types of Market Structures Market Number of firms Control over price Type of product Entry Competition Pure competition Very large None Standardized Very easy Price-based Monopolistic competition Large Small Differentiated Fairly easy Non-price Oligopoly Few dominant firms Fair amount of control Standardized or differentiated Difficult Non-price competition for differentiated products Monopoly One Large One Blocked to other firms Non-existant

Bonds Bearer Bonds Registered Bonds

Bearer Bonds

Registered Bonds

Inflation Demand-pull Cost-push

Demand-pull

Cost-push

What is Economics Then? Macroeconomics Microeconomics Economies of scale Law of Diminishing Returns Law of Increasing Costs

Macroeconomics

Microeconomics

Economies of scale

Law of Diminishing Returns

Law of Increasing Costs

Concerns of Unions Job security Wages Job safety Medical benefits Insurance benefits Pension plans

Job security

Wages

Job safety

Medical benefits

Insurance benefits

Pension plans

Key Labor Laws National Labor Relations Act Norris-LaGuardia Act Taft-Hartley Act Landrum-Griffin Act

National Labor Relations Act

Norris-LaGuardia Act

Taft-Hartley Act

Landrum-Griffin Act

Common Contract Issues Pay Fringe benefits Bonuses Working conditions Job security

Pay

Fringe benefits

Bonuses

Working conditions

Job security

Organization Handbook Components Statement of objectives Organization history Organization chart Job descriptions Personnel policies and procedures Terms and conditions of employment Holidays and vacations Employee benefits and services

Statement of objectives

Organization history

Organization chart

Job descriptions

Personnel policies and procedures

Terms and conditions of employment

Holidays and vacations

Employee benefits and services

Common Types of Organizational Structures Primitive Structure or Agency Structure Functional Structure Product Structure Territorial Structure Customer Structure Mixed Structure

Primitive Structure or Agency Structure

Functional Structure

Product Structure

Territorial Structure

Customer Structure

Mixed Structure

Primitive Structure Small Town USA “ A” Baseball Franchise Organizational Chart Founder Employees

Internal Factors Influencing Structure Development Size Product Diversity Employee Characteristics

Size

Product Diversity

Employee Characteristics

Chain of Command Levels of Management First-line or sometimes called the front line Middle Top

First-line or sometimes called the front line

Middle

Top

Pointers to Assure Effective Delegation of Authority Be sure delegates are willing to accept authority Be sure the delegates understand what is expected of them Be sure the delegates are qualified Establish policies to guide decisions Specify deadlines Establish an evaluation process Reward delegates who get things done Admit that others can do a task

Be sure delegates are willing to accept authority

Be sure the delegates understand what is expected of them

Be sure the delegates are qualified

Establish policies to guide decisions

Specify deadlines

Establish an evaluation process

Reward delegates who get things done

Admit that others can do a task

Commonly Encountered Resistance to Delegation Proper job information not received Lack proper training Lack self-confidence & fear failure Not provided proper equipment or tools Not certain the extent of authority provided Not confidence there is anything to gain by accepting the authority Find it easier for the manager to make the decisions Not paid for this responsibility

Proper job information not received

Lack proper training

Lack self-confidence & fear failure

Not provided proper equipment or tools

Not certain the extent of authority provided

Not confidence there is anything to gain by accepting the authority

Find it easier for the manager to make the decisions

Not paid for this responsibility

Organizing for Financial Management For-profit Not-for-profit Sole Proprietorship General Partnership Limited Partnership Limited Liability Partnership Limited Liability Corporation S Corporation C Corporation

For-profit

Not-for-profit

Sole Proprietorship

General Partnership

Limited Partnership

Limited Liability Partnership

Limited Liability Corporation

S Corporation

C Corporation

Common Reasons for Starting a Business … Be own boss Financial Independence Creative Freedom Fully use own skills and knowledge

Be own boss

Financial Independence

Creative Freedom

Fully use own skills and knowledge

Questions to Answer for Identifying the Niche … What business am I interested in starting? What services or products will I sell? Is my idea practical? Will my idea fill a need? What is my competition? What is my business’s advantage over existing firms? Can I deliver a better quality service? Can I create a demand for my business?

What business am I interested in starting?

What services or products will I sell?

Is my idea practical?

Will my idea fill a need?

What is my competition?

What is my business’s advantage over existing firms?

Can I deliver a better quality service?

Can I create a demand for my business?

Pre-business Checklist What skills and experience do I bring to the business? What will be my legal structure? How will my company’s business records be maintained? What equipment or supplies will I needed? How will I compensate myself? What financing will I need? Where will my business be located? What will I name my business?

What skills and experience do I bring to the business?

What will be my legal structure?

How will my company’s business records be maintained?

What equipment or supplies will I needed?

How will I compensate myself?

What financing will I need?

Where will my business be located?

What will I name my business?

Financial Accountability & Reporting Existence and Occurrence Completeness Rights and Obligations Valuation and Allocation Presentation and Disclosure

Existence and Occurrence

Completeness

Rights and Obligations

Valuation and Allocation

Presentation and Disclosure

Internal Control It is a process. It is affected by the people of the organization. It provides reasonable assurance regarding the achievement of objectives It is geared to the achievement of the organization’s objectives.

It is a process.

It is affected by the people of the organization.

It provides reasonable assurance regarding the achievement of objectives

It is geared to the achievement of the organization’s objectives.

Components of a Control Procedure … Control Environment Risk Assessment Control Activities Information and Communication Monitoring

Control Environment

Risk Assessment

Control Activities

Information and Communication

Monitoring

Key Questions the Financial Manager needs to Answer What long-term investments should the organization consider? What lines of business will the organization be in? What sorts of facilities, machinery, and equipment will the organization need? Where will the organization secure the long-term financing to pay for investment? Will the organization bring additional investors? Will the organization borrow the funds needed? How will the organization manage everyday financial activities?

What long-term investments should the organization consider?

What lines of business will the organization be in?

What sorts of facilities, machinery, and equipment will the organization need?

Where will the organization secure the long-term financing to pay for investment?

Will the organization bring additional investors?

Will the organization borrow the funds needed?

How will the organization manage everyday financial activities?

Financial Reports Balance sheet Statement of cash flows Common-size statements Common-size balance sheets Common-sized income statements

Balance sheet

Statement of cash flows

Common-size statements

Common-size balance sheets

Common-sized income statements

Auditing Internal auditing or control External Auditing

Internal auditing or control

External Auditing

The Internal Control Process: Key Objectives Efficiency and effectiveness of operations Reliability and completeness of financial and management information Compliance with applicable laws and regulations

Efficiency and effectiveness of operations

Reliability and completeness of financial and management information

Compliance with applicable laws and regulations

Internal control consists of … Management oversight and the control culture Risk management Control activities Information and communication Monitoring activities

Management oversight and the control culture

Risk management

Control activities

Information and communication

Monitoring activities

Characteristics of Performance Information Understandability Relevance Reliability Comparability Cost beneficial

Understandability

Relevance

Reliability

Comparability

Cost beneficial

What is financial planning? It is the foundation upon which an organization can be a successful future. It is much easier for decisions to be made to be made in a proactive manner when a plan is in place. Risks are reduced and the organization’s competitiveness is increased. Financial planning is an integral part of any strategic plan.

It is the foundation upon which an organization can be a successful future.

It is much easier for decisions to be made to be made in a proactive manner when a plan is in place.

Risks are reduced and the organization’s competitiveness is increased.

Financial planning is an integral part of any strategic plan.

Financial planning can help provide solutions … Funding capital projects Developing new products and services Retiring products and services Selling assets Purchasing assets Protecting assets Relocating an organization Tax liabilities

Funding capital projects

Developing new products and services

Retiring products and services

Selling assets

Purchasing assets

Protecting assets

Relocating an organization

Tax liabilities

Financial Staff’s Activities Forecasting and planning Major investment and financial decisions Coordination and control Dealing with the financial markets Risk management

Forecasting and planning

Major investment and financial decisions

Coordination and control

Dealing with the financial markets

Risk management

Cash Planning The process of determining the amount of cash needed at a particular point in the budget year by gathering data from both internal and external sources.

The process of determining the amount of cash needed at a particular point in the budget year by gathering data from both internal and external sources.

Cash Cash is any medium of exchange that a bank will accept at face value. Cash Flow is the difference between the number of dollars that came in and the number that went out. Operating cash flow tells the manager whether cash inflow will meet the daily cash outflow. Cash flow budget records estimates of cash receipts (cash in) and disbursements (cash out) resulting in an estimate of the cash surplus or deficit.

Cash is any medium of exchange that a bank will accept at face value.

Cash Flow is the difference between the number of dollars that came in and the number that went out.

Operating cash flow tells the manager whether cash inflow will meet the daily cash outflow.

Cash flow budget records estimates of cash receipts (cash in) and disbursements (cash out) resulting in an estimate of the cash surplus or deficit.

Profit Profit is the sum remaining after all costs, direct and indirect, are deducted from the revenue of an organization.

Profit is the sum remaining after all costs, direct and indirect, are deducted from the revenue of an organization.

Profit Profit is the sum remaining after all costs, direct and indirect, are deducted from the revenue of an organization. Revenue is the amount charged to customers for goods or services sold to them. There are alternative terms used to identify revenue including sales, fees earned, rent earned, or fares earned.

Profit is the sum remaining after all costs, direct and indirect, are deducted from the revenue of an organization.

Revenue is the amount charged to customers for goods or services sold to them. There are alternative terms used to identify revenue including sales, fees earned, rent earned, or fares earned.

Common Measures of Profitability Profit margins on Sales Return on Total Assets Return on Common Equity Return on Investments

Profit margins on Sales

Return on Total Assets

Return on Common Equity

Return on Investments

Margin Margin is the difference between the cost and the selling price of goods produced and services rendered. Profit margin is a profitability measure that defines the relationship between sales and net income.

Margin is the difference between the cost and the selling price of goods produced and services rendered.

Profit margin is a profitability measure that defines the relationship between sales and net income.

Capital Budgeting Capital budgeting deals with investment decisions involving fixed assets. It is an outline of planned investments in fixed assets. Further, it is a process of analyzing projects and deciding which ones to include in the capital budget. A fixed or permanent asset is one that is long-lived.

Capital budgeting deals with investment decisions involving fixed assets. It is an outline of planned investments in fixed assets. Further, it is a process of analyzing projects and deciding which ones to include in the capital budget.

A fixed or permanent asset is one that is long-lived.

Budget The budget is a part of the foundation upon which an organization justifies its mission. It is an estimate of revenue and expenses for a given period of time, usually 1-2 years. Further, the budget is a restatement of the organization’s objectives in financial terms.

The budget is a part of the foundation upon which an organization justifies its mission. It is an estimate of revenue and expenses for a given period of time, usually 1-2 years. Further, the budget is a restatement of the organization’s objectives in financial terms.

Common Budget Types Line item Program Performance Zero-based Entrepreneurial

Line item

Program

Performance

Zero-based

Entrepreneurial

Budgeting Process Collecting data Analyzing the data Identifying the data collected Preparing the budget document Implementing the approved budget

Collecting data

Analyzing the data

Identifying the data collected

Preparing the budget document

Implementing the approved budget

Sources of Revenue Membership fees Ticket sales Admissions fees Food concessions Corporate sponsorships Licensing agreements Beverage concession Lease agreements Parking concession Merchandise sales Luxury suites Club/Premium seating Premium restaurant agreements

Membership fees

Ticket sales

Admissions fees

Food concessions

Corporate sponsorships

Licensing agreements

Beverage concession

Lease agreements

Parking concession

Merchandise sales

Luxury suites

Club/Premium seating

Premium restaurant agreements

Sample Expenditures Salaries Employee benefits Insurance premiums Guarantees Lease agreements Vehicle rentals Telephone Electricity Computer maintenance Water & Sewage Natural gas Office supplies Postage Duplication Printing Advertising Taxes Scholarships

Salaries

Employee benefits

Insurance premiums

Guarantees

Lease agreements

Vehicle rentals

Telephone

Electricity

Computer maintenance

Water & Sewage

Natural gas

Office supplies

Postage

Duplication

Printing

Advertising

Taxes

Scholarships

Purchasing Process The selection process Needs assessment Procurement

The selection process

Needs assessment

Procurement

Purchasing process ensures purchases will … Meet the program needs Provide quality Be acquired following proper procedures Be properly accounted for Be maintained for future safe use

Meet the program needs

Provide quality

Be acquired following proper procedures

Be properly accounted for

Be maintained for future safe use

Common Components of a Purchasing Program Standardize Quality Prompt payment Early-bird ordering Professional and personal relationships with vendors Businesslike approach

Standardize

Quality

Prompt payment

Early-bird ordering

Professional and personal relationships with vendors

Businesslike approach

Factors to be considered in developing a needs assessment Available space & facilities Desired activities Safety & health of the participants Number of participants Cost Length of season Geographical location Fit inventory Staff & supervision Instructor/coach Continual learning Storage Age of participants Gender of participants Skill of participants Physical & mental abilities Type of organization Prioritizing

Available space & facilities

Desired activities

Safety & health of the participants

Number of participants

Cost

Length of season

Geographical location

Fit

inventory

Staff & supervision

Instructor/coach

Continual learning

Storage

Age of participants

Gender of participants

Skill of participants

Physical & mental abilities

Type of organization

Prioritizing

Guidelines for selecting equipment and supplies … Determine purchasing power Begin & maintain a wish list Determine organization needs Determine quality desired Within budget Maintenance friendly Reputable company Old or new Based on program goals Determine priority need Persons with disabilities Safety standards Review a variety of vendors Consider guarantee Usability of equipment Companies service record

Determine purchasing power

Begin & maintain a wish list

Determine organization needs

Determine quality desired

Within budget

Maintenance friendly

Reputable company

Old or new

Based on program goals

Determine priority need

Persons with disabilities

Safety standards

Review a variety of vendors

Consider guarantee

Usability of equipment

Companies service record

Guidelines for purchasing equipment and supplies … Purchases meet organization’s requirements Purchases have management approval Purchasing should be done in advance of need Specifications clear Low cost with quality Reputable business firm Central purchasing can save dollars All request must have purchase requisitions Consider local firms Obtain competitive bids All purchase should be accompanied with a purchase order

Purchases meet organization’s requirements

Purchases have management approval

Purchasing should be done in advance of need

Specifications clear

Low cost with quality

Reputable business firm

Central purchasing can save dollars

All request must have purchase requisitions

Consider local firms

Obtain competitive bids

All purchase should be accompanied with a purchase order

Purchase order should contain the following … Name and contact information for person submitting request Name and contact information of the vendor Date Account number Department Amount Quantity Unit Description Unit price Special terms: date for delivery, substitutions, discount Requestor’s signature Supervisor’s signature

Name and contact information for person submitting request

Name and contact information of the vendor

Date

Account number

Department

Amount

Quantity

Unit

Description

Unit price

Special terms: date for delivery, substitutions, discount

Requestor’s signature

Supervisor’s signature

Evaluating Equipment before purchase consider … Safety record Special considerations Does product meet program needs? What is the warranty? Who is the manufacturer?

Safety record

Special considerations

Does product meet program needs?

What is the warranty?

Who is the manufacturer?

The Procurement Process Need established Management consultation Initial request submitted Request reviewed Funds available Preparation of specifications Receipt of bids Comparison of bids Recommendation of appropriate bid for purchase Purchase order to supplier Follow-up, receipt of goods Payment authorized

Need established

Management consultation

Initial request submitted

Request reviewed

Funds available

Preparation of specifications

Receipt of bids

Comparison of bids

Recommendation of appropriate bid for purchase

Purchase order to supplier

Follow-up, receipt of goods

Payment authorized

Typical Bid Process Writing specifications for approved item(s) to be purchased Receive bids Evaluate bids to ensure all specifications have been met Choose vendor(s) Submit the purchase order Receive the equipment Pay invoice after equipment or supplies are verified

Writing specifications for approved item(s) to be purchased

Receive bids

Evaluate bids to ensure all specifications have been met

Choose vendor(s)

Submit the purchase order

Receive the equipment

Pay invoice after equipment or supplies are verified

Writing Specifications Incomplete Worth BW8 Powercell Baseball Bat or equivalent (does not specify length requested and allows vendor to make judgment on substitution) Complete (without substitutions) Worth BW8 Powercell Baseball Bat, 35” Length, 32 ounce weight, 2 5/8” diameter – No substitutions or alternatives Complete (with substitutions) Worth BW8 Powercell Baseball Bat, 35” Length, 32 ounce weight, 2 5/8” diameter Or Easton LK8 Magnum Bat, 35” Length, 32 ounces weight, 2 5/8” diameter Or Louisville Slugger “YB-17” Baseball Bat, 35” Length, 32 ounce weight, 2 5/8” diameter

Purchase Order Number 014325 Account Number 10-15320-201 Date June 4, 2003 Subtotal 790.00 Shipping $40.00 Balance Due $830.00 __________________________ _______________________ Requestor Approved by Special Delivery Instructions: Ship via UPS Ground for arrival by August 1, 2003. To: FlagHouse Physical Education & Recreation 601 FlagHouse Drive Hasbrouck Hts., NJ 07604-3116 Ship/Bill To: Julia Ann Hypes Dept. of Health, Physical Education and Sport Sciences Morehead State University 201 Laughlin Health Building Morehead, KY 40351 QUANTITY ITEM UNITS DESCRIPTION UNIT PRICE TOTAL 5 G11655 Ea. Wilson Impact Rubber Basketball Size 7 14.00 70.00 10 G5786 Ea. Rawlings “RWW” Leather Basketball Size 6 56.00 560.00 3 G5976 Pr. Thera-Brand Dumbbell Roller 20.00 60.00 10 G11970 Doz. Spalding Top Flight Series X-Out Golf Balls 10.00 100.00

Public Revenue Streams Tax abatement Grants Hard Taxes Local income tax Real estate Personal property General sales Soft Taxes Car rental Hotel-motel player Restaurant Sin Cigarettes Alcohol Gambling Prostitution Taxi

Tax abatement

Grants

Hard Taxes

Local income tax

Real estate

Personal property

General sales

Soft Taxes

Car rental

Hotel-motel

player

Restaurant

Sin

Cigarettes

Alcohol

Gambling

Prostitution

Taxi

Private Funding Sources Cash donations In-kind contributions Naming rights Concessionaire exclusivity agreements Food serving rights Beverage serving rights Premium restaurant rights Sponsorship packages Life insurance packages Lease agreements Luxury suites Premium seating Personal seat licenses Parking fees Advertising rights Vendor/contractor equity Bequests and trusts Real estate gifts

Cash donations

In-kind contributions

Naming rights

Concessionaire exclusivity agreements

Food serving rights

Beverage serving rights

Premium restaurant rights

Sponsorship packages

Life insurance packages

Lease agreements

Luxury suites

Premium seating

Personal seat licenses

Parking fees

Advertising rights

Vendor/contractor equity

Bequests and trusts

Real estate gifts

10 Common Types of Broadcast Media ABC, CBS, NBC, FOX, Westinghouse Broadcasting, and Public Broadcasting Service, Ultra High Frequency (UHF) Channels, Superstations (namely, WGN in Chicago, and WTBS in Atlanta), Cable Channels (i.e., TNT in Atlanta, and USA Network in New York City), Sports Channels (i.e., Entertainment and Sports Programming Network [ESPN], Sportsvision and Sports Channels in Chicago, St. Louis, Ohio, and Orlando, Prime Network in Houston, Prism in Philadelphia, and Sunshine Network in Orlando, Independent Producers, Local TV Stations (local Very High Frequency [VHF]), Cable Franchises, Pay-For-View, and Local AM and FM Radio.

10 Common Types of Broadcast Media

ABC, CBS, NBC, FOX, Westinghouse Broadcasting, and Public Broadcasting Service,

Ultra High Frequency (UHF) Channels,

Superstations (namely, WGN in Chicago, and WTBS in Atlanta),

Cable Channels (i.e., TNT in Atlanta, and USA Network in New York City),

Sports Channels (i.e., Entertainment and Sports Programming Network [ESPN], Sportsvision and Sports Channels in Chicago, St. Louis, Ohio, and Orlando, Prime Network in Houston, Prism in Philadelphia, and Sunshine Network in Orlando,

Independent Producers,

Local TV Stations (local Very High Frequency [VHF]),

Cable Franchises,

Pay-For-View, and

Local AM and FM Radio.

Essentials in Financial Planning The mission, goals, and objectives for the overall plan An analysis of the organization’s current financial situation An analysis of revenue projections versus expense projections An analysis of capital projections throughout the financial period of the plan Specific information regarding the intended financial state at the end of the time period

The mission, goals, and objectives for the overall plan

An analysis of the organization’s current financial situation

An analysis of revenue projections versus expense projections

An analysis of capital projections throughout the financial period of the plan

Specific information regarding the intended financial state at the end of the time period

Mechanisms for Financing Debt Bonds Full-faith and credit obligations Non-guaranteed Revenue bonds Tax increment bonds Certificates of participation Taxable bonds Asset-backed securitizations Special bonding authorities

Bonds

Full-faith and credit obligations

Non-guaranteed

Revenue bonds

Tax increment bonds

Certificates of participation

Taxable bonds

Asset-backed securitizations

Special bonding authorities

Luxury Seats in Sport Facilities League # suites 2001 # Teams Annual Lease Price MLB 2,286 30 $ 85,000 NBA 2,533 29 $113,000 NFL 4,294 31 $100,000 NHL 2,813 30 $ 77,000 Total 11,926 120 $ 93,750 average price Source: Modified from Howard and Crompton, 2004, 265, 266. Note: NBA/NHL Shared Arena annual lease price = $199,000.

Sampling of the Number of Club Seats at Various Venues and the prices charged by Teams for their Occupancy Team Facility Number of Price Range/year Club Seats Lakers (NBA) Staples Ctr 4,500 $12,995 to 14,995/season TrailBlazers (NBA) Rose Garden 2,500 $7,500 to 11,500/season Nuggets (NBA) Pepsi Ctr 1,854 $65 to 100/game Knicks (NBA) Madison Square 3,000 $175 to 1,350/game Coyotes (NHL) American West 1,651 $72/game;$3,250/season Bengals (NFL) Paul Brown 7,700 $995 to 1,900/season Bucs (NFL) Raymond James 12,000 $950 to 2,500/season Ravens (NFL) PSINet 3,196 $108 to 298/game Indians (MLB) Jacobs Field 2,064 $32/game; $1,905/season Rockies (MLB) Coors Field 4,400 $30 to 32/game Rangers (MLB) Arlington 5,700 $2,00 to 3,000/season Source: Modified from Howard and Crompton, 2004, 270

PSLs Average Cost by League League Average Price Range MLB $3,615 –14,600 NBA $ 900 - 5,000 NFL $ 600 – 3,350 NHL $ 750 - 4,000

Groups Benefiting from a Sponsorship The business interest of the sponsoring corporation The business interests of the event and participants Sponsor’s direct customers Customer who buys the product or entertainment

The business interest of the sponsoring corporation

The business interests of the event and participants

Sponsor’s direct customers

Customer who buys the product or entertainment

Element in Developing a Sponsorship Philosophy The exchange process Philanthropy Advertising cost and value Return on investment Market reaserch

The exchange process

Philanthropy

Advertising cost and value

Return on investment

Market reaserch

Sponsorship Objectives Achieving sales objectives Generating media benefits Securing entitlement Securing naming rights Increasing public awareness of the company, the product, or both Altering/reinforcing public perception of the company Identifying company with a market segment Involving company in the community Building good will among decision makers Creating an advantage over competitors Gaining unique opportunities in terms of hospitality and entertainment

Achieving sales objectives

Generating media benefits

Securing entitlement

Securing naming rights

Increasing public awareness of the company, the product, or both

Altering/reinforcing public perception of the company

Identifying company with a market segment

Involving company in the community

Building good will among decision makers

Creating an advantage over competitors

Gaining unique opportunities in terms of hospitality and entertainment

Examples of Athletic Platform The team The sport The event The athlete Professional athletics Collegiate athletics Interscholastic athletics Recreational athletics

The team

The sport

The event

The athlete

Professional athletics

Collegiate athletics

Interscholastic athletics

Recreational athletics

Components of a Sponsorship Proposal or Agreement Objectives of the sponsorship Profile and background of sponsoree Promotional opportunities available Levels of sponsorship Sponsor benefits Fee structure Payment schedule Contract length Contract renewal options Evaluation methodology

Objectives of the sponsorship

Profile and background of sponsoree

Promotional opportunities available

Levels of sponsorship

Sponsor benefits

Fee structure

Payment schedule

Contract length

Contract renewal options

Evaluation methodology

Questions for the planner to ask before drafting proposal How would you describe the organization? What is the event to be sponsored? What impact do you have on the local community? What is the purpose of your event? How will the organization involve the community? Will the event allow sponsors to reach their consumers? Is the event based on a similar successful event? Why is the event unique?

How would you describe the organization?

What is the event to be sponsored?

What impact do you have on the local community?

What is the purpose of your event?

How will the organization involve the community?

Will the event allow sponsors to reach their consumers?

Is the event based on a similar successful event?

Why is the event unique?

Levels of Sponsorship Exclusive sponsorship Primary sponsorship Subsidiary sponsorship Official supplier

Exclusive sponsorship

Primary sponsorship

Subsidiary sponsorship

Official supplier

Customizing the Package Official status Sponsorship fee Title rights Television exposure Public relations and media exposure Logo use signage Advertising rights Hospitality rights Point-of-sale promotions Direct-mail lists Product sampling Legal liabilities Future options

Official status

Sponsorship fee

Title rights

Television exposure

Public relations and media exposure

Logo use

signage

Advertising rights

Hospitality rights

Point-of-sale promotions

Direct-mail lists

Product sampling

Legal liabilities

Future options

Sponsor Benefits Season tickets Advertisement in yearbook, program, or media guide Scoreboard/PA exposure Special event nights Arena signage Special items (VIP room, luxury suite, club seats, parking passes)

Season tickets

Advertisement in yearbook, program, or media guide

Scoreboard/PA exposure

Special event nights

Arena signage

Special items (VIP room, luxury suite, club seats, parking passes)

Sponsorship Pricing Cost-plus Competitive market Relative-value

Cost-plus

Competitive market

Relative-value

Review the following before establishing a price … Degree of primary consumer match with company’s target market Size of the primary consumer base Potential media publicity Sales opportunity, psychological association Exposure opportunity

Degree of primary consumer match with company’s target market

Size of the primary consumer base

Potential media publicity

Sales opportunity, psychological association

Exposure opportunity

Why Licensing? Consumer demand for logoed apparel has provided sport programs to financially benefit through licensing. In addition to financial gains, exposure for the program is created through the availability of logoed products in the marketplace.

Consumer demand for logoed apparel has provided sport programs to financially benefit through licensing. In addition to financial gains, exposure for the program is created through the availability of logoed products in the marketplace.

Trademark Classifications Class 6 – metal goods Class 16 – paper goods and printed materials Class 18 – leather goods Class 21 – housewares and glass Class 24 – fabrics (pennants and banners) Class 25 - clothing Class 26 – fancy goods (patches for clothing buttons) Class 28 – toys and sporting goods Class 41 – education and entertainment services TM = Trademark notification ® = Federally registered mark © = Copyright notification

Class 6 – metal goods

Class 16 – paper goods and printed materials

Class 18 – leather goods

Class 21 – housewares and glass

Class 24 – fabrics (pennants and banners)

Class 25 - clothing

Class 26 – fancy goods (patches for clothing buttons)

Class 28 – toys and sporting goods

Class 41 – education and entertainment services

TM = Trademark notification

® = Federally registered mark

© = Copyright notification

In-house or Outsourced Scope of the licensing program Potential for the sale of the product Budget Availability of specialized expertise

Scope of the licensing program

Potential for the sale of the product

Budget

Availability of specialized expertise

Licensing Agreement Components Parties involved Descriptive marks Details of marks Exclusive or non-exclusive Product sample included Compliance review schedule Royalty Royalty audits Royalty exemptions Payment schedule International distribution Contract length Contract renewal options

Parties involved

Descriptive marks

Details of marks

Exclusive or non-exclusive

Product sample included

Compliance review schedule

Royalty

Royalty audits

Royalty exemptions

Payment schedule

International distribution

Contract length

Contract renewal options

Typical Financial Arrangements with a Franchise The franchisor allowing the franchisee to see its name or brand The franchisor exercising continuing control over the franchisee The franchisor providing assistance to the franchisee The franchisee making periodical payments to the franchisor

The franchisor allowing the franchisee to see its name or brand

The franchisor exercising continuing control over the franchisee

The franchisor providing assistance to the franchisee

The franchisee making periodical payments to the franchisor

Questions to ask before buying a franchise … Are you willing and able to take on the responsibilities of managing your own business? Will you enjoy the franchise? Are you willing to completely follow the franchise system? Do you have a history of success in dealing and interacting with people?

Are you willing and able to take on the responsibilities of managing your own business?

Will you enjoy the franchise?

Are you willing to completely follow the franchise system?

Do you have a history of success in dealing and interacting with people?

Questions continued Can you afford the franchise? Have you carefully studied the legal documents? Does the franchise you are considering have a track record of success? Are the franchisees generally happy and successful? Do you like the franchise’s staff whom you will be working with?

Can you afford the franchise?

Have you carefully studied the legal documents?

Does the franchise you are considering have a track record of success?

Are the franchisees generally happy and successful?

Do you like the franchise’s staff whom you will be working with?

Financing a Sport Franchise Public sources Government bonds Tax dollars Sales Hotel-motel Utility Car rental Taxi Liquor, cigarettes, gambling Road Capital improvement Private sources Food serving rights Beverage serving rights Premier restaurant rights Luxury suites Club seats Parking rights Merchandise sales Sponsorship contracts Licensing agreements Land & money gifts

Public sources

Government bonds

Tax dollars

Sales

Hotel-motel

Utility

Car rental

Taxi

Liquor, cigarettes, gambling

Road

Capital improvement

Private sources

Food serving rights

Beverage serving rights

Premier restaurant rights

Luxury suites

Club seats

Parking rights

Merchandise sales

Sponsorship contracts

Licensing agreements

Land & money gifts

Product of a Box Office Seating plans Ticket system Ticketing software Outsourcing ticketing Online ticketing Pricing structure Credit card service Group sales Discounted prices Advanced sales Sales incentive plans Tickets General admission Reserved

Seating plans

Ticket system

Ticketing software

Outsourcing ticketing

Online ticketing

Pricing structure

Credit card service

Group sales

Discounted prices

Advanced sales

Sales incentive plans

Tickets

General admission

Reserved

Types of Tickets General admission Reserved Season ticket Mini-season plans Individual event Complimentary Press Student Rain check

General admission

Reserved

Season ticket

Mini-season plans

Individual event

Complimentary

Press

Student

Rain check

Typical Seating Seating configuration Discounting ticket prices On sale date Group sales Tickets to be held Usher seats Obstructed seats House seats Obstructed view seats When to release house seats Seats required for performers VIP seats Press passes Complimentary tickets Latecomer seats Waiting line policy Complimentary tickets unclaimed Unpaid reservations unclaimed Standing room

Seating configuration

Discounting ticket prices

On sale date

Group sales

Tickets to be held

Usher seats

Obstructed seats

House seats

Obstructed view seats

When to release house seats

Seats required for performers

VIP seats

Press passes

Complimentary tickets

Latecomer seats

Waiting line policy

Complimentary tickets unclaimed

Unpaid reservations unclaimed

Standing room

Retail Operations Sporting events Beverage Fast food Parking Premium Restaurants Merchandise sales Non-sporting events Rentals Downhill ski facilities& services Equestrian services Golf facilities & services Marina services Shuttle bus service Theater productions Movie theaters Vending machine services Aquatics facilities & services Hotel/motel services

Sporting events

Beverage

Fast food

Parking

Premium Restaurants

Merchandise sales

Non-sporting events

Rentals

Downhill ski facilities& services

Equestrian services

Golf facilities & services

Marina services

Shuttle bus service

Theater productions

Movie theaters

Vending machine services

Aquatics facilities & services

Hotel/motel services

Major Concessionaires Aramark Compass Fine Hosts Corporation Global Spectrum Sodexho Sportservice Corporation Volume Services Ameria

Aramark

Compass

Fine Hosts Corporation

Global Spectrum

Sodexho

Sportservice Corporation

Volume Services Ameria

Food Concession Guidelines Employee appearance Training goals Maintenance goals Operation goals Regulations Inspections Patron comforts Safety certification Sanitation Guest relations Professional signs & pricing Decorations Food handlers guidelines

Employee appearance

Training goals

Maintenance goals

Operation goals

Regulations

Inspections

Patron comforts

Safety certification

Sanitation

Guest relations

Professional signs & pricing

Decorations

Food handlers guidelines

Effective Alcohol Sales Develop an alcohol management plan Develop procedures to stop outside alcohol from entering venue Establish crowd control procedures for alcohol management Install signage to enlighten patrons about responsible drinking Establish a strong ejection policy Do not promote or advertise drinking during the event

Develop an alcohol management plan

Develop procedures to stop outside alcohol from entering venue

Establish crowd control procedures for alcohol management

Install signage to enlighten patrons about responsible drinking

Establish a strong ejection policy

Do not promote or advertise drinking during the event

Continued Sales Strategy Make sure security personnel are aware of crowd demographics All staff should complete alcohol management school Establish consumption policies Tailgating only permitted in parking lots under strict supervision of security personnel Establish non-alcohol sections within the venue Develop a designated-driver program

Make sure security personnel are aware of crowd demographics

All staff should complete alcohol management school

Establish consumption policies

Tailgating only permitted in parking lots under strict supervision of security personnel

Establish non-alcohol sections within the venue

Develop a designated-driver program

Strategies for a successful Parking Concession Purchase adequate liability insurance Provide adequate surfacing for the proposed traffic Ensure safe entrance and exit areas Provide adequate lighting Plan for immediate snow and ice removal Establish an emergency plan for the space Ensure that adequate supervision and security is available Provide for the safety of the pedestrians Plan a graphic system Provide an adequate number of cashiers and attendants

Purchase adequate liability insurance

Provide adequate surfacing for the proposed traffic

Ensure safe entrance and exit areas

Provide adequate lighting

Plan for immediate snow and ice removal

Establish an emergency plan for the space

Ensure that adequate supervision and security is available

Provide for the safety of the pedestrians

Plan a graphic system

Provide an adequate number of cashiers and attendants

Parking Controls Sensors or loops buried in each entrance line A single pass lane A cashier or checker watching the sellers and authorizing passes Spot checks on sellers Different colored tickets for different events, days, or hours Cash registers, TV monitors Clean graphics and signs indicating special entrances

Sensors or loops buried in each entrance line

A single pass lane

A cashier or checker watching the sellers and authorizing passes

Spot checks on sellers

Different colored tickets for different events, days, or hours

Cash registers,

TV monitors

Clean graphics and signs indicating special entrances

Questions for Finding a Retail Niche How is my store special and unique? What groups of people would most benefit by what I offer? How have I physically set up my store to be user-friendly in a concerted effort to serve this group of people? Is my advertising targeted to the customers I desire to serve? What products do I like?

How is my store special and unique?

What groups of people would most benefit by what I offer?

How have I physically set up my store to be user-friendly in a concerted effort to serve this group of people?

Is my advertising targeted to the customers I desire to serve?

What products do I like?

Steps to Becoming a Good Buyer Be specific in defining needs Understand the options Tell the supplier Aim for a win-win situation Impose deadlines and conditions Seek assistance Educate the seller about your special needs Look for after-sale service Yell for help when necessary

Be specific in defining needs

Understand the options

Tell the supplier

Aim for a win-win situation

Impose deadlines and conditions

Seek assistance

Educate the seller about your special needs

Look for after-sale service

Yell for help when necessary

Four Ms in Retail Merchandising Markups Marketing Methodology

Merchandising

Markups

Marketing

Methodology

Keys to Effective Store Layout Maximizing the space Controlling & directing traffic flow Maximizing exposure

Maximizing the space

Controlling & directing traffic flow

Maximizing exposure

Common Mistakes Made by Retailers No business plan No marketing plan No sales plan No advisory plan No cash reserve or real cash flow Ignoring the numbers Not being automated Not knowing your customer Ignoring employees Being a lone ranger

No business plan

No marketing plan

No sales plan

No advisory plan

No cash reserve or real cash flow

Ignoring the numbers

Not being automated

Not knowing your customer

Ignoring employees

Being a lone ranger

Minimizing the Damage Lock it up Play traffic cop Watch who cleans after the employee store closes Encourage employees Keep an eye on the future

Lock it up

Play traffic cop

Watch who cleans after the employee store closes

Encourage employees

Keep an eye on the future

Successful Retail Stores Accomplish the following Found in prominent locations Offer personalized service Offer competitive pricing Print catalogues for employees Merchandise their goods/products Consider themselves retail outlets Sell innovative goods/products Concentrate on apparel and accessories Stock regularly needed supplies Sell licensed merchandise

Found in prominent locations

Offer personalized service

Offer competitive pricing

Print catalogues for employees

Merchandise their goods/products

Consider themselves retail outlets

Sell innovative goods/products

Concentrate on apparel and accessories

Stock regularly needed supplies

Sell licensed merchandise

Critical Areas for Customers Identify the customers Differentiate the customers from one another Interact with the customers Customize items for the customers

Identify the customers

Differentiate the customers from one another

Interact with the customers

Customize items for the customers

Identifying Customers Use drip irrigation Verify & update customer data Take inventory of all customer data Locate customer-identifying information Devise strategies for collecting more data Verify information at least every two years

Use drip irrigation

Verify & update customer data

Take inventory of all customer data

Locate customer-identifying information

Devise strategies for collecting more data

Verify information at least every two years

Customer Date Gathered Name Mailing address Business phone Home phone Fax number E-mail Position & title Account number Frequencies of purchases Billing & invoice records Warranty records Coupon redemption Credit card number Birthdays Anniversaries Spouses or significant other’s name Children’s names Buying history Preferences Sales force records Repair & service records Loyalty user-card Customer comments List swaps

Name

Mailing address

Business phone

Home phone

Fax number

E-mail

Position & title

Account number

Frequencies of purchases

Billing & invoice records

Warranty records

Coupon redemption

Credit card number

Birthdays

Anniversaries

Spouses or significant other’s name

Children’s names

Buying history

Preferences

Sales force records

Repair & service records

Loyalty user-card

Customer comments

List swaps

Customer Task List Determine first how many customers are known Devise programs to increase the number of customers known Establish a common format for identifying customers Determine how to link customer with purchases Make it easy to capture customer data Allow customers to enter & update information Develop a system to ensure the contact information is current Track all referred to and referred by parameters for all prospects & customers Consider programs to increase referrals by current customers

Determine first how many customers are known

Devise programs to increase the number of customers known

Establish a common format for identifying customers

Determine how to link customer with purchases

Make it easy to capture customer data

Allow customers to enter & update information

Develop a system to ensure the contact information is current

Track all referred to and referred by parameters for all prospects & customers

Consider programs to increase referrals by current customers

Ranking Customers Prioritize efforts & gain most advantage with most valuable customers Tailor behavior toward each customers needs Develop a customer profitability and valuation model Categorize customers by their differing needs

Prioritize efforts & gain most advantage with most valuable customers

Tailor behavior toward each customers needs

Develop a customer profitability and valuation model

Categorize customers by their differing needs

How-to Interact with Customers Direct sales calls E-mail and electronic data interchange Fax messages Mail Point-of-purchase Telephone Website

Direct sales calls

E-mail and electronic data interchange

Fax messages

Mail

Point-of-purchase

Telephone

Website

Why Sport Teams Lose Fans Not important Cost outweighs enjoyment Dirty facilities Boring food service Poor seating Inconvenient parking No luxury seating No picnic areas No non-smoking areas No non-drinking areas No place to change the young children Souvenirs too expensive No other entertainment but the game itself Team is not exciting Team fails to win consistently No opportunities to meet the players

Not important

Cost outweighs enjoyment

Dirty facilities

Boring food service

Poor seating

Inconvenient parking

No luxury seating

No picnic areas

No non-smoking areas

No non-drinking areas

No place to change the young children

Souvenirs too expensive

No other entertainment but the game itself

Team is not exciting

Team fails to win consistently

No opportunities to meet the players

Increasing the Audience Pre-event entertainment Youth games at half-time Special group promotions Special rates for groups Giveaways Scheduling doubleheaders Use of pep band at events Face-painting contest Team color night Reduced ticket fees Shoot-out contests at half-time Event buses Special days Student athletes visiting schools as role models Clip-out coupons Radio giveaways to listeners

Pre-event entertainment

Youth games at half-time

Special group promotions

Special rates for groups

Giveaways

Scheduling doubleheaders

Use of pep band at events

Face-painting contest

Team color night

Reduced ticket fees

Shoot-out contests at half-time

Event buses

Special days

Student athletes visiting schools as role models

Clip-out coupons

Radio giveaways to listeners

Customer Needs over the Internet Security Support Information privacy

Security

Support

Information

privacy

What Sets Customers Off Long delays Service or sales problems Uncaring or sloppy attitude Wasted time Failure to listen Feeling that you are a number and not an important customer Failure to follow customer’s instructions Broken promises Financial losses = poor service Inability to provide needed answers Impolite salespersons

Long delays

Service or sales problems

Uncaring or sloppy attitude

Wasted time

Failure to listen

Feeling that you are a number and not an important customer

Failure to follow customer’s instructions

Broken promises

Financial losses = poor service

Inability to provide needed answers

Impolite salespersons

Outsourcing Outsourcing is where a third-party service provider hosts a family of integrated applications and infrastructure services. A key element of outsourcing revolves around the transfer of control over the outsourced process.

Outsourcing is where a third-party service provider hosts a family of integrated applications and infrastructure services.

A key element of outsourcing revolves around the transfer of control over the outsourced process.

Why outsource? Reduction in operating costs Increase in controlling operation costs Changing management focus to core business functions Accessing world class expertise and capabilities Redirecting resources toward activities which have a greater return on investment Improve production and eliminate backlogs Accessing information and professional solutions to non-business core functions

Reduction in operating costs

Increase in controlling operation costs

Changing management focus to core business functions

Accessing world class expertise and capabilities

Redirecting resources toward activities which have a greater return on investment

Improve production and eliminate backlogs

Accessing information and professional solutions to non-business core functions

What could be outsourced? Accounting and bookkeeping services Financial services Pension record keeping services Auditing and taxation services Data entry and processing E-mail system Software development Website Head hunting Concessions Safety and security Risk management Parking

Accounting and bookkeeping services

Financial services

Pension record keeping services

Auditing and taxation services

Data entry and processing

E-mail system

Software development

Website

Head hunting

Concessions

Safety and security

Risk management

Parking

Advantages of Outsourcing Volume purchasing Concessionaire can return more revenue to the facility Capital outlays for equipment avoided Management, staff, purchasing, maintenance, inventory, storage, and vendor relations are eliminated The vendor takes the financial risks

Volume purchasing

Concessionaire can return more revenue to the facility

Capital outlays for equipment avoided

Management, staff, purchasing, maintenance, inventory, storage, and vendor relations are eliminated

The vendor takes the financial risks

Disadvantages of Outsourcing Losing some or all control of the operation Vendor failing to recognize needs Customer dissatisfied with merchandise or services offered Scheduling part-time employees Purchasing perishable foodstuffs or imported souvenirs Determining what stands are open on a given day Deciding whether or not the sanitation policies are enforced Determining who is stealing money, food, or merchandise

Losing some or all control of the operation

Vendor failing to recognize needs

Customer dissatisfied with merchandise or services offered

Scheduling part-time employees

Purchasing perishable foodstuffs or imported souvenirs

Determining what stands are open on a given day

Deciding whether or not the sanitation policies are enforced

Determining who is stealing money, food, or merchandise

Advantages of In-House Operations Management has complete control Management controls pricing The quality of product or service is controlled There is greater potential for generating revenue

Management has complete control

Management controls pricing

The quality of product or service is controlled

There is greater potential for generating revenue

Components for Concessionaire Agreement Date submitted Name, address, phone, fax, and e-mail Principal contact Historical background of company Full description of business philosophy Full description of financial objectives Commission Equipment to be provided Insurance coverage Full description of personnel training program Advertising and promotional efforts

Date submitted

Name, address, phone, fax, and e-mail

Principal contact

Historical background of company

Full description of business philosophy

Full description of financial objectives

Commission

Equipment to be provided

Insurance coverage

Full description of personnel training program

Advertising and promotional efforts

Contract Components Type of merchandise or service to be provided License to products or provide a service Where products are produced Option to renew contract Termination clause Commission clause Insurance Indemnification Right to remove merchandise Maintenance clause Establish company-vendor committee Store or service hours Security Vending machine contract Monthly management meeting Exclusions from the contract Definition of gross versus net Audit controls Buyout provisions

Type of merchandise or service to be provided

License to products or provide a service

Where products are produced

Option to renew contract

Termination clause

Commission clause

Insurance

Indemnification

Right to remove merchandise

Maintenance clause

Establish company-vendor committee

Store or service hours

Security

Vending machine contract

Monthly management meeting

Exclusions from the contract

Definition of gross versus net

Audit controls

Buyout provisions

Typical Concession Contracts Commission Management Fee

Commission

Management Fee

Fund Raising Fund raising is the art of soliciting money for charitable organizations, schools, college/universities, political parties, as well as other worthy organizations and projects.

Fund raising is the art of soliciting money for charitable organizations, schools, college/universities, political parties, as well as other worthy organizations and projects.

Fundraising is … Anything that increases revenue streams including, but not limited to: Deferred giving Donations Grants Merchandising Licensing Promotions Naming events Sponsorships Special events

Anything that increases revenue streams including, but not limited to:

Deferred giving

Donations

Grants

Merchandising

Licensing

Promotions

Naming events

Sponsorships

Special events

Case Statement A case statement is a clear, concise, and compelling explanation why the organization merits the support of its members and others. It explains the rationale and objectives of the fund raising program. It is the basis for proposals, which will be submitted to corporations, foundations, and individuals.

A case statement is a clear, concise, and compelling explanation why the organization merits the support of its members and others.

It explains the rationale and objectives of the fund raising program.

It is the basis for proposals, which will be submitted to corporations, foundations, and individuals.

Steps for Gathering Information for the Critical Review Develop a questionnaire to interview the various stakeholders Develop a list of stakeholders Critique the mission and beliefs statements and compare to other like organizations Examine the goals and objectives of the organization and other similar organizations Survey other case statements from similar organizations and communities

Develop a questionnaire to interview the various stakeholders

Develop a list of stakeholders

Critique the mission and beliefs statements and compare to other like organizations

Examine the goals and objectives of the organization and other similar organizations

Survey other case statements from similar organizations and communities

Key Ingredients in the Case Statement Description of the compelling need Description why the organization is uniquely suited to implement the project The purpose and mission of the organization which enables it to implement successfully this project How and why the organization was started What is the organization doing today in this area that would further support this project Where will the organization be five years from now.

Description of the compelling need

Description why the organization is uniquely suited to implement the project

The purpose and mission of the organization which enables it to implement successfully this project

How and why the organization was started

What is the organization doing today in this area that would further support this project

Where will the organization be five years from now.

Basic Elements of a Fund Raising Program Management structure Volunteer requirements established Volunteer recruitment Identification of giving opportunities Overall goal and goals by source Cultivation and solicitation strategies Public relations Prospects at the end of the funnel timetable

Management structure

Volunteer requirements established

Volunteer recruitment

Identification of giving opportunities

Overall goal and goals by source

Cultivation and solicitation strategies

Public relations

Prospects at the end of the funnel

timetable

Guidelines for Fund Raising Plan Must be program specific Must establish a prospect list Accounting system must be established Devise an acknowledgement & follow-up system Establish a timetable Must have not-for-profit tax status Establish a board of directors Short- and long-term plan developed Prioritized goals Simple organizational structure Involve an attorney and CPA Choose cost-effective projects Train staff & volunteers

Must be program specific

Must establish a prospect list

Accounting system must be established

Devise an acknowledgement & follow-up system

Establish a timetable

Must have not-for-profit tax status

Establish a board of directors

Short- and long-term plan developed

Prioritized goals

Simple organizational structure

Involve an attorney and CPA

Choose cost-effective projects

Train staff & volunteers

Fund Raising Issues Definable financial need Can fund raising meet needs Is this the best why Project worthy of support Adequate and competent leadership Cross-section of volunteers Support organization in existence Positive reputation Cost of raising dollars Downside risks Time and resource requirements Legal issues Financial & political climate conducive to success

Definable financial need

Can fund raising meet needs

Is this the best why

Project worthy of support

Adequate and competent leadership

Cross-section of volunteers

Support organization in existence

Positive reputation

Cost of raising dollars

Downside risks

Time and resource requirements

Legal issues

Financial & political climate conducive to success

Components of a Fund Raising Program What Where Why When By whom Categories or vehicles for giving Feasibility

What

Where

Why

When

By whom

Categories or vehicles for giving

Feasibility

Common Models of Fund Raising Contributor campaigns Grant seeking Major/planned giving programs Product sales Membership campaigns Special events Capital campaigns Person-to-person solicitation Single-person cultivation Telemarketing Direct mail solicitation Contests of chance Annual campaigns Memorial requests

Contributor campaigns

Grant seeking

Major/planned giving programs

Product sales

Membership campaigns

Special events

Capital campaigns

Person-to-person solicitation

Single-person cultivation

Telemarketing

Direct mail solicitation

Contests of chance

Annual campaigns

Memorial requests

Benefits to Contributors Preferred parking Complimentary tickets Reduced ticket prices Special seating VIP lounge membership card Press guide Other publications Mention and recognition in game programs Travel with team Special apparel A private booth for home contests Named scholarship Free golf Free or reduce membership to health and wellness center Special event ticket priority Dinner & banquet seating priority Plaques Invitations to special events Periodic newsletter Auto decal Away game ticket priority Access to press box Named scholarship Named room

Preferred parking

Complimentary tickets

Reduced ticket prices

Special seating

VIP lounge membership card

Press guide

Other publications

Mention and recognition in game programs

Travel with team

Special apparel

A private booth for home contests

Named scholarship

Free golf

Free or reduce membership to health and wellness center

Special event ticket priority

Dinner & banquet seating priority

Plaques

Invitations to special events

Periodic newsletter

Auto decal

Away game ticket priority

Access to press box

Named scholarship

Named room

Common Types of Major Gifts Bequests Trusts Life income Life insurance Outright gift

Bequests

Trusts

Life income

Life insurance

Outright gift

Role of Staff/Board for Grants Board Members Set annual goals Identifies grantmakers Cultivates grantors Influence to gain access/appointments Asks for gift Staff Develops & administers plan Conducts research on grantmakers Organizes cultivation process Writes proposal Provides information for visits Accompanies board member and provides information regarding visit

Board Members

Set annual goals

Identifies grantmakers

Cultivates grantors

Influence to gain access/appointments

Asks for gift

Staff

Develops & administers plan

Conducts research on grantmakers

Organizes cultivation process

Writes proposal

Provides information for visits

Accompanies board member and provides information regarding visit

Role of Board/Staff for Major Gifts Board member Sets annual goal Identifies prospects Cultivates prospect Uses influence to gain access Asks for gift Staff Develops & administers plan Conducts research on grantmakers Organizes cultivation process Writes proposal Provides information for visits Accompanies board member and provides information regarding visit

Board member

Sets annual goal

Identifies prospects

Cultivates prospect

Uses influence to gain access

Asks for gift

Staff

Develops & administers plan

Conducts research on grantmakers

Organizes cultivation process

Writes proposal

Provides information for visits

Accompanies board member and provides information regarding visit

Role of Board/Staff for Special Events Board member Set annual goal Serves on event committees Recruits & solicits sponsorships Attends event & recruits attendees/sells tickets Staff Develops & Administers plan Provides staff support to event committee Provides research on sponsorship prospects Provides staff support during the event

Board member

Set annual goal

Serves on event committees

Recruits & solicits sponsorships

Attends event & recruits attendees/sells tickets

Staff

Develops & Administers plan

Provides staff support to event committee

Provides research on sponsorship prospects

Provides staff support during the event

Role of Booster Club Board Help develop fund raising plan Ensure the case statement is strong Help develop strategies for cultivation Evaluate expectation of giving from board Solicit gifts at various levels Involve other board members

Help develop fund raising plan

Ensure the case statement is strong

Help develop strategies for cultivation

Evaluate expectation of giving from board

Solicit gifts at various levels

Involve other board members

How Board Members Participate Make a personal contribution Understand the fund raising plan Understand and endorse the case Raise money from outside sources Identify prospects Cultivate prospects Ask for gifts

Make a personal contribution

Understand the fund raising plan

Understand and endorse the case

Raise money from outside sources

Identify prospects

Cultivate prospects

Ask for gifts

Why Committees? Provides for representation Provides for valuable input Establishes policy and procedures Increases communication Allows employee involvement in decision making

Provides for representation

Provides for valuable input

Establishes policy and procedures

Increases communication

Allows employee involvement in decision making

Advantages of Committees Unification Representation Motivation Coordination Consolidation communication

Unification

Representation

Motivation

Coordination

Consolidation

communication

Disadvantages of Committees Increased costs Extra time needed to complete task Compromise decisions Leadership struggles Unbalanced representation

Increased costs

Extra time needed to complete task

Compromise decisions

Leadership struggles

Unbalanced representation

Types of Committees Standing committees Nomination Awards Finance Human Resource Audit Constitution or by laws Special committees or ad hoc Administrative Project committees

Standing committees

Nomination

Awards

Finance

Human Resource

Audit

Constitution or by laws

Special committees or ad hoc

Administrative

Project committees

Structure of a Committee Meeting Call to order Roll call Minutes of previous meeting State the purpose of the meeting State briefly the program (agenda) for the meeting Discuss and resolve agenda items New business Adjourn meeting

Call to order

Roll call

Minutes of previous meeting

State the purpose of the meeting

State briefly the program (agenda) for the meeting

Discuss and resolve agenda items

New business

Adjourn meeting

Sample Agenda Call to order Welcome and introductions Roll call or attendance Approval of the agenda Review and acceptance of minutes from last meeting Treasurers report Other reports Action items and discussion Discussion items Old business New business Adjournment

Call to order

Welcome and introductions

Roll call or attendance

Approval of the agenda

Review and acceptance of minutes from last meeting

Treasurers report

Other reports

Action items and discussion

Discussion items

Old business

New business

Adjournment

Chairperson’s Duties Planning the meeting and establishing the agenda Conducting the meeting Maintaining records and information Getting action on items on the agenda Evaluation of committees

Planning the meeting and establishing the agenda

Conducting the meeting

Maintaining records and information

Getting action on items on the agenda

Evaluation of committees

Secretary’s Duties Take minutes Take attendance Prepare minutes for approval Maintain a file for the minutes Collect committee reports Collect staff reports

Take minutes

Take attendance

Prepare minutes for approval

Maintain a file for the minutes

Collect committee reports

Collect staff reports

Treasurer’s Duties Prepare monthly financial reports Sign checks (i.e., payroll, expenses, etc.) Invest surplus dollars Maintain checks and balances Prepare a financial report to the board monthly

Prepare monthly financial reports

Sign checks (i.e., payroll, expenses, etc.)

Invest surplus dollars

Maintain checks and balances

Prepare a financial report to the board monthly

Components of an Orientation Program Emphasize the importance of being a committee member Explain duties of members and officers Review committee’s authority Review committee’s charge Review organization’s policies, practices, and procedures Review constitution and by-laws Provide a list of all members and contact information Review previous minutes Review committee’s projects Review schedule of meetings, locations, dates, and times Review all current assignments of individual committee members Review previous membership Criteria for selecting new members Identify staff and their roles Review short- and long-range strategic plan

Emphasize the importance of being a committee member

Explain duties of members and officers

Review committee’s authority

Review committee’s charge

Review organization’s policies, practices, and procedures

Review constitution and by-laws

Provide a list of all members and contact information

Review previous minutes

Review committee’s projects

Review schedule of meetings, locations, dates, and times

Review all current assignments of individual committee members

Review previous membership

Criteria for selecting new members

Identify staff and their roles

Review short- and long-range strategic plan

Components of a Grant Workbook Developing & evaluating proposal ideas, how-to Proposal list Redefining proposal ideas to find more funding sources Expanded and redefined proposal list Needs assessment Documenting need Private funding source research tools How to contact private funding source Uniqueness Case statement Advocates, how to use the Advocate list Advisory committees, how to develop community support Advisory committee list Government funding sources List government funding programs with deadlines Sample letters of proposal

Developing & evaluating proposal ideas, how-to

Proposal list

Redefining proposal ideas to find more funding sources

Expanded and redefined proposal list

Needs assessment

Documenting need

Private funding source research tools

How to contact private funding source

Uniqueness

Case statement

Advocates, how to use the

Advocate list

Advisory committees, how to develop community support

Advisory committee list

Government funding sources

List government funding programs with deadlines

Sample letters of proposal

Brainstorming Technique Appoint a neutral group leader or employ an outside facilitator Appoint a recorder Set a time limit – 10 minutes State one question or problem As each group to generate answers to the problem Encourage group members to piggyback on each other’s answers Record and post all answers, combining those that are similar.

Appoint a neutral group leader or employ an outside facilitator

Appoint a recorder

Set a time limit – 10 minutes

State one question or problem

As each group to generate answers to the problem

Encourage group members to piggyback on each other’s answers

Record and post all answers, combining those that are similar.

Reviewing Project from Different Perspectives Subject areas Constituencies group Type of grant Project location

Subject areas

Constituencies group

Type of grant

Project location

Needs Assessment Approaches Key informant Case studies Community forum Social indicators survey

Key informant

Case studies

Community forum

Social indicators

survey

Typical Proposal Sequence Cover letter Title page Executive summary Introduction Problem/need Goals and objectives Methods Assessment or evaluation of the project Future funding Dissemination Budget attachments

Cover letter

Title page

Executive summary

Introduction

Problem/need

Goals and objectives

Methods

Assessment or evaluation of the project

Future funding

Dissemination

Budget

attachments

Common Writing Tips Follow the guidelines exactly Fill in all the blanks Double check all computations Repeat anything they ask for Your writing style must reflect what the funding source wants Begin each section with a strong motivating lead sentence Vocabulary – shorter words are generally better than long, complex words Style –easily skimmable Use short sentences Use an active voice and describe emotions and feelings Use humor Ask the funding source a question and answer it Use contractions Use short paragraphs – five to seven lines Visual attractiveness – use underlining, bullets, bold headings, pictures, charts and graphs

Follow the guidelines exactly

Fill in all the blanks

Double check all computations

Repeat anything they ask for

Your writing style must reflect what the funding source wants

Begin each section with a strong motivating lead sentence

Vocabulary – shorter words are generally better than long, complex words

Style –easily skimmable

Use short sentences

Use an active voice and describe emotions and feelings

Use humor

Ask the funding source a question and answer it

Use contractions

Use short paragraphs – five to seven lines

Visual attractiveness – use underlining, bullets, bold headings, pictures, charts and graphs

Trends Affecting Not-for-Profits Leadership’s role Value-return on investment Responsiveness Technology use Change loops Revenue sources Generational issues Workforce Outsourcing &co-souring Governance Competition & alliances Consolidation & mergers Globalization Image building

Leadership’s role

Value-return on investment

Responsiveness

Technology use

Change loops

Revenue sources

Generational issues

Workforce

Outsourcing &co-souring

Governance

Competition & alliances

Consolidation & mergers

Globalization

Image building

What is a Booster Club? A booster club is a not-for-profit entity organized to raise funds for a sport or other organization. It is generally an organization operated by volunteers and, in some cases, a few paid staff.

A booster club is a not-for-profit entity organized to raise funds for a sport or other organization.

It is generally an organization operated by volunteers and, in some cases, a few paid staff.

Typical Components of a Constitution or by laws Officers terms Board Terms Criteria for membership Committees Standing Ad Hoc Board meetings Membership categories Purpose Dissolution

Officers

terms

Board

Terms

Criteria for membership

Committees

Standing

Ad Hoc

Board meetings

Membership categories

Purpose

Dissolution

Typical Officers President Vice president Secretary Treasurer

President

Vice president

Secretary

Treasurer

Volunteer Characteristics 25% rule 20% rule Volunteers have feelings Volunteers have needs Volunteers have specific interests Volunteers have specific competencies Volunteers are individuals Volunteers are not professionals Volunteers are not paid staff Volunteers desire to be of assistance Volunteers have the potential to be excellent recruiters Volunteers can be educated to assume a variety of roles Volunteers are able to grow in professional competency

25% rule

20% rule

Volunteers have feelings

Volunteers have needs

Volunteers have specific interests

Volunteers have specific competencies

Volunteers are individuals

Volunteers are not professionals

Volunteers are not paid staff

Volunteers desire to be of assistance

Volunteers have the potential to be excellent recruiters

Volunteers can be educated to assume a variety of roles

Volunteers are able to grow in professional competency

Recruiting Methods for Volunteers Making the event or activity fun Finding out what the volunteer(s) respond to Involving the volunteer and family Making it easy, attractive, and interesting to volunteer Making the volunteer responsible for something Treating the volunteer with respect Asking for referrals Planning social events for the volunteers Paying for a volunteer’s training Placing volunteers’ photographs on bulletin boards

Making the event or activity fun

Finding out what the volunteer(s) respond to

Involving the volunteer and family

Making it easy, attractive, and interesting to volunteer

Making the volunteer responsible for something

Treating the volunteer with respect

Asking for referrals

Planning social events for the volunteers

Paying for a volunteer’s training

Placing volunteers’ photographs on bulletin boards

Before Recruiting Begins Train recruiters Develop job descriptions Identify potential volunteers Match people with jobs Obtain approvals Annual plans Establish recruiting techniques Grow your own volunteers Appointment from within Referrals Friendship groups Family involvement Benefit packages Peripheral groups Use of media to communicate volunteer opportunities

Train recruiters

Develop job descriptions

Identify potential volunteers

Match people with jobs

Obtain approvals

Annual plans

Establish recruiting techniques

Grow your own volunteers

Appointment from within

Referrals

Friendship groups

Family involvement

Benefit packages

Peripheral groups

Use of media to communicate volunteer opportunities

Retaining Volunteers by making The event or activity attractive to belong Certain the event is well organized People feel needed and appreciated Sure there is a friendly atmosphere A special effort to call volunteers Certain the volunteer understands duties Sure to get volunteers input A special effort to recognize or reward volunteers The event or activity fun Certain that everyone receives an appropriate thank you

by making

The event or activity attractive to belong

Certain the event is well organized

People feel needed and appreciated

Sure there is a friendly atmosphere

A special effort to call volunteers

Certain the volunteer understands duties

Sure to get volunteers input

A special effort to recognize or reward volunteers

The event or activity fun

Certain that everyone receives an appropriate thank you

Volunteer Orientation Models Large group sessions Small group sessions Personal, one-on-one orientation sessions Personal, one-on-one mentoring

Large group sessions

Small group sessions

Personal, one-on-one orientation sessions

Personal, one-on-one mentoring

Orientation Agenda Philosophical & conceptual framework of the organization Content of the various organization’s programs Governance of the organization Organization of the various organization’s programs History of the organization Policies & procedures of the organization Bylaws and the proper conduct of business Ethics issues Benefits of volunteering and special privileges Identification of key people in the organization Telephone numbers of key people Realistic job previews

Philosophical & conceptual framework of the organization

Content of the various organization’s programs

Governance of the organization

Organization of the various organization’s programs

History of the organization

Policies & procedures of the organization

Bylaws and the proper conduct of business

Ethics issues

Benefits of volunteering and special privileges

Identification of key people in the organization

Telephone numbers of key people

Realistic job previews

Elements of Supervision Establishing criteria of success, standards of performance, and programs objectives such as the job description and annual plan of work Measuring actual volunteer performance with respect to these stated criteria of success through observation, conferences, and evaluation Making corrections, as needed, through managerial action.

Establishing criteria of success, standards of performance, and programs objectives such as the job description and annual plan of work

Measuring actual volunteer performance with respect to these stated criteria of success through observation, conferences, and evaluation

Making corrections, as needed, through managerial action.

Common Solutions to Conflict Management Retraining Reassignment Redesign Dismissal

Retraining

Reassignment

Redesign

Dismissal

Factors causing Conflict Lack of agreement about program goals Ill-defined & unmeasurable objectives Absence of a preconceived plan Excluded from the planning process Inaccessibility of leaders Distortion of information accidentally or deliberately Lack of trust Hidden agendas Ineffective listening A belief in absolutes A belief that only two sides of an issue exist and that one must be right and the other wrong Individual differences Misunderstandings about territory, policy, authority, and role expectations

Lack of agreement about program goals

Ill-defined & unmeasurable objectives

Absence of a preconceived plan

Excluded from the planning process

Inaccessibility of leaders

Distortion of information accidentally or deliberately

Lack of trust

Hidden agendas

Ineffective listening

A belief in absolutes

A belief that only two sides of an issue exist and that one must be right and the other wrong

Individual differences

Misunderstandings about territory, policy, authority, and role expectations

Common Types of Awards Group recognition Individual Recognition Informal recognition Public & media recognition Formal recognition

Group recognition

Individual Recognition

Informal recognition

Public & media recognition

Formal recognition

Possible Areas of Liability Buildings Motor vehicles Program activities Employee conduct Business general liability Performance guarantees Financial security Fringes for employees as prescribed by law

Buildings

Motor vehicles

Program activities

Employee conduct

Business general liability

Performance guarantees

Financial security

Fringes for employees as prescribed by law

Insurance Coverages Available Professional teams, athletes and events Amateur athletes and events College and high teams and athletes Athletic associations Accident and injury coverage Sport venues Promotions & special events General public liability Liability coverage protecting employees, directors, and officers Sports camps Transportation insurance Catastrophic injury Disability Youth & adult teams and leagues Health, fitness, sport clubs Vehicle insurance Protection of finances and operations

Professional teams, athletes and events

Amateur athletes and events

College and high teams and athletes

Athletic associations

Accident and injury coverage

Sport venues

Promotions & special events

General public liability

Liability coverage protecting employees, directors, and officers

Sports camps

Transportation insurance

Catastrophic injury

Disability

Youth & adult teams and leagues

Health, fitness, sport clubs

Vehicle insurance

Protection of finances and operations

Components of a Comprehensive Insurance Program Should include , but not limited to: Property Fire, flood, hurricane, tornado, and/or earthquake Business income Commercial liability Machinery and equipment Employment practice liability Special liability Bonding Crime insurance Employee benefits

Should include , but not limited to:

Property

Fire, flood, hurricane, tornado, and/or earthquake

Business income

Commercial liability

Machinery and equipment

Employment practice liability

Special liability

Bonding

Crime insurance

Employee benefits

Basic Liability Areas Insurance Companies Review to Determine Insurability Security Maintenance Housekeeping Emergency services Parking and traffic control Concessions Chemical usage & storage Staff training & preparedness Fiscal operations Staff supervision Activity planning Equipment used in building & grounds maintenance and sport equipment

Security

Maintenance

Housekeeping

Emergency services

Parking and traffic control

Concessions

Chemical usage & storage

Staff training & preparedness

Fiscal operations

Staff supervision

Activity planning

Equipment used in building & grounds maintenance and sport equipment

Checklist for Securing Insurance - Never assume you are covered; - Always check your insurance coverage; - Check insurance policy at least twice a year for changes and to be sure you still have adequate coverage; - File a report on an incident as soon as it happens and submit a proper claim to the insurance company; - Anyone involved in an activity outside their job jurisdiction or areas of control may seek to secure more personal liability coverage; - Be aware of potential hazards and report them to the necessary people or group; - Secure a short-term group accident policy to cover special activities when risk is forseeable; - Analyze the liability aspects of your program or area and ensure adequate coverage in these areas; - Have release forms; they may solve small liability problems because the participants acknowledge the risk they are assuming and their voluntary participation in the program, but do not rely on them to solve any negligent actions and have participants in events obtain medicals.

Considerations Before Selecting Deductible Access student-athlete’s or patron’s primary insurance first Select a higher deductible Review physical activity involved and gender, lower for contact activities and lower for non-contact activities Coordinate all medical care through HMO or a special arrangement with local hospital Consider placing a physician on a stipend Establish a referral policy to maximize in-house medical services

Access student-athlete’s or patron’s primary insurance first

Select a higher deductible

Review physical activity involved and gender, lower for contact activities and lower for non-contact activities

Coordinate all medical care through HMO or a special arrangement with local hospital

Consider placing a physician on a stipend

Establish a referral policy to maximize in-house medical services

Selecting Appropriate Insurance Program Select a competent independent insurance consultant Know insurance vendors and the various types of products available Secure a number of quotes Seek adequate coverage Identify risks Insure the correct risks Always reduce insurance costs by establishing a risk management plan and preventing or reducing risks Understand the basic policy and exclusions

Select a competent independent insurance consultant

Know insurance vendors and the various types of products available

Secure a number of quotes

Seek adequate coverage

Identify risks

Insure the correct risks

Always reduce insurance costs by establishing a risk management plan and preventing or reducing risks

Understand the basic policy and exclusions

Elements in Effective Financial Governance Defining the roles & responsibilities of the board of directors & senior management in the risk management process Developing appropriate checks and balances for effective oversight & control of risk development Establishing policy & control guidelines Designing risk measurement & reporting procedures

Defining the roles & responsibilities of the board of directors & senior management in the risk management process

Developing appropriate checks and balances for effective oversight & control of risk development

Establishing policy & control guidelines

Designing risk measurement & reporting procedures

Checklist for risk management Is there a risk management policy? Does the policy clearly define the underlying business rationale? Is the hedge orientation towards a “market view” or a defined strategy? Does the policy include approval levels? Is there an oversight function? Is there a clear reporting to senior management about business risks? Do proper expertise & systems reside in-house to identify & identify risk? Is there risk management expertise within the organization? Are management reports reviewed by senior management? Does the Board periodically review performance?

Is there a risk management policy?

Does the policy clearly define the underlying business rationale?

Is the hedge orientation towards a “market view” or a defined strategy?

Does the policy include approval levels?

Is there an oversight function?

Is there a clear reporting to senior management about business risks?

Do proper expertise & systems reside in-house to identify & identify risk?

Is there risk management expertise within the organization?

Are management reports reviewed by senior management?

Does the Board periodically review performance?

Sport Entity Risk Management Concerns Property loss Stationary, mobile, & leased Employee safety & health Accident prevention Industrial hygiene Personnel Workers compensation Pension plans Key personnel loss Contractual employees Insurance Life, disability, & health Liability control General, vehicle, & product Environmental protection Storage, pollution control, & waste disposal Emergency planning Crowd control, fire, bombing, & spectator health emergencies Financial risk Interest rate risk Credit risk Currency risk Liquidity risk Theft of product Theft or money Market risk

Property loss

Stationary, mobile, & leased

Employee safety & health

Accident prevention

Industrial hygiene

Personnel

Workers compensation

Pension plans

Key personnel loss

Contractual employees

Insurance

Life, disability, & health

Liability control

General, vehicle, & product

Environmental protection

Storage, pollution control, & waste disposal

Emergency planning

Crowd control, fire, bombing, & spectator health emergencies

Financial risk

Interest rate risk

Credit risk

Currency risk

Liquidity risk

Theft of product

Theft or money

Market risk

Property Insurance Checklist Identify & value buildings, equipment, and land Identify & value property leased from others Identify & value property leased to others Identify location & value of stationary inventory (average cost) Identify and value inventory being transported (average cost) Identify & value property under construction Identify & value owned or leased vehicles Identify special perils to which property is exposed

Identify & value buildings, equipment, and land

Identify & value property leased from others

Identify & value property leased to others

Identify location & value of stationary inventory (average cost)

Identify and value inventory being transported (average cost)

Identify & value property under construction

Identify & value owned or leased vehicles

Identify special perils to which property is exposed

Liability Loss Sources Bodily or personal injury to employee, customers, or guests Property damage to real or personal property of others Intentional injury to people or their reputations, including illegal accusations or restraint of alleged shoplifters Wrongful hiring, sexual harassment, or invasion of privacy or employees or job applicants Vicarious liability

Bodily or personal injury to employee, customers, or guests

Property damage to real or personal property of others

Intentional injury to people or their reputations, including illegal accusations or restraint of alleged shoplifters

Wrongful hiring, sexual harassment, or invasion of privacy or employees or job applicants

Vicarious liability

Potential Methods for Dealing with Potential Losses Risk avoidance Risk assumption Risk transfer through insurance Risk transfer other than insurance Self-insurance Loss prevention Loss reduction

Risk avoidance

Risk assumption

Risk transfer through insurance

Risk transfer other than insurance

Self-insurance

Loss prevention

Loss reduction

Assuming risk = Loss costs are small and will be funded by current cash flow Loss exposure are retained and funded with a cash reserve Loss exposures are retained & recognized in an unfunded reserve account A self-insured plan is in operation

Loss costs are small and will be funded by current cash flow

Loss exposure are retained and funded with a cash reserve

Loss exposures are retained & recognized in an unfunded reserve account

A self-insured plan is in operation

Common Loss Reduction Activities Automatic fire sprinkler system Fire walls and doors Training replacement personnel Regular training of all personnel Evacuation plans Crowd control plans Disaster plans Security plans

Automatic fire sprinkler system

Fire walls and doors

Training replacement personnel

Regular training of all personnel

Evacuation plans

Crowd control plans

Disaster plans

Security plans