1. GFSM 1 The Greeley Freight Station Museum Business Plan Dave Trussell Michelle Kempema (970) 392-2934 680 10th St Greeley, CO 80631-4116Where Education and Entertainment Run on the Same Track!
2. GFSM 2I. Table of ContentsI. Table of Contents……………………………………….………..2II. Executive Summary………………………………………….…..3III. General company Description……………………………………4IV. Products and Services…………………………………………….9V. Marketing Plan…………………………………………………..12VI. Operational Plan…………………………………………………20VII. Management and Organization…………………………………..24VIII. Financial Projection……………………………………………...26IX. Appendix A…………………………………………………….28
3. GFSM 3 I. Executive SummaryThe Greeley Freight Station Museum (GFSM) is a model railway exhibit and museumfocused on providing quality entertainment and education about railroads. Theexperience offered by the GFSM is unique to any other form of entertainment in NorthernColorado, and it has the competitive advantage of being the third largest model trainmuseum in the world. The GFSM‟s 5,500 square foot exhibit includes a 1,353 footmainline on hand-made terrain. The trains are operated by trained volunteers on theexhibit floor, where they are available to greet guests and answer any questions the guestsmay have.The GFSM‟s target market consists of young families, elementary schools, University ofNorthern Colorado students, and tourists. The GFSM has a lot to offer children, with itsdinosaur hunt and special children‟s exhibit. It is also a great place for college studentsto spend leisure time, whether they are out with friends, family, or on a date. Touristswill also be interested in the GFSM. Many railroad enthusiast tours come throughColorado every year, and the GFSM serves as a great stop for them.The GFSM is owned by Dave Trussell and managed by Michelle Kempema. As theExecutive Director, Michelle will oversee the processes of the GFSM. Michelle willwork toward new opportunities in marketing, customer retention, sustainability,educating customers, and expansion. With the growing entertainment industry, theGFSM will be able to reach more customers in the local area by implementing a newmarketing plan that will build awareness of the museum. The GFSM will maintain afriendly and inviting environment where every customer will be warmly greeted and feelfree to ask any questions about the exhibit and/or the railway artifacts throughout themuseum. Customers will also have the opportunity to experience informative personaltours of the exhibit, where they can learn more about the layout, and the history of therailroad. The new business plan will lay a foundation for sustainability within thebusiness by outlining the responsibilities of employees and the operations of the business.This plan will also help to create stability while the business works toward expansion.The GFSM is planning on expanding with a new exhibit within the next five years. Thenew exhibit will be donated to the business, so the GFSM is working toward a newbuilding to house the exhibit. This expansion will provide something new to currentcustomers of the GFSM, while creating a larger variety for all customers. It will alsoincrease the GFSM‟s competitive advantage for tourists, because the museum will boasttwo large exhibits in addition to the museum and the children‟s layout. The GFSM has alot to anticipate in the coming years.The Greeley Freight Station Museum is the only model train museum in NorthernColorado. Because of this, it offers a unique experience for people of any age. Somepeople come to reminisce about their childhoods, some to observe the history of therailways, and others come to experience something they have never seen, but all of thesepeople come on a mission to entertain their imaginations. Whatever your reason is, comevisit our 5,500 square foot model train exhibit found on the corner of 7th Avenue and10th Street in Greeley, Colorado.
4. GFSM 4 III. General Company DescriptionThe Greeley Freight Station Museum is in the business of entertainment and education. Itis an out of ordinary place for people to spend leisure time with family, friends, and lovedones. The idea is to provide entertainment to customers, while including educationalaspects as well. The GFSM has artifacts from old railways surrounding a handmademodel train, featuring a “moment in time” on the Oregon, California, and EasternRailway. It is important to those that are apart of the Freight Station museum to teachyounger generations about the history of railways and the importance they had/have tothe success of the nation.Mission Statement:To become the worlds finest model train museum, and successfully educate customers.Goals and Objectives:To achieve the mission sought, The GFSM has set four goals as a primary focus: toobtain new customers, to create returning customers, to educate customers, and to createa savings account for an expansion project. (1) To obtain new customers by: a. Producing and distributing 100 flyers to the determined target market for the month. i. To identify which segment of the target market should be exploited each month (young families, train enthusiasts, tourists, elementary schools, or UNC Students), the GFSM will create a seasonal trends calendar explaining which segment(s) are the most common customers during that particular period of time. b. Target elementary schools. To do this, employees of the museum will contact all of the elementary schools within a 10-mile radius of the Museum by mid- June each year to request an opportunity to attend teacher in- services and pitch the museum as a destination for and educational field trip. i. The idea is to attain at least 4 schools annually, which would be willing to make the trip. From the initial 10-mile radius, it will expand the radius to 30 miles, and then continue the trend outward. c. Make it more obvious where the front door is within the next month. i. Make signs that point out where the front door is from all directions that people might be coming from in the parking lots. ii. It may seem minor, but it is possible that a major deterrent for customers is the idea of making themselves look less educated because they cannot determine where the front door is located, so if the Museum creates an obvious look about the front door, an increased number of customers may result.
5. GFSM 5 d. Create a sub name that better identifies what the museum actually entails. i. This should be done strategically over time in order to stray from confusing already loyal customers because of the hype already established with the name “Greeley Freight Station Museum.” This can be done by slowly tying the new name into the marketing schemes along with the current household name “Greeley Freight Station Museum.” It is expected to take no longer than 10 years and should be helped along with the expansion and introduction of the new building.(2) Create returning customers. a. In order to create returning customers, good customer service in essential. i. This will be done through creating and maintaining a friendly, inviting environment, and developing a personal relationship with every customer from the time they enter the building to the last see-you-later. ii. Each customer will be greeted by a GFSM employee/volunteer within 20 seconds of entering the building, and no one will leave without some sort of thank you and kind valediction. iii. Also upon entry, each customer will be directed where to go to best tour the building or offered a personal tour with one of the employees or volunteers. b. Establish deals and offerings. For example: The five-dollar student pass already exist, but the GFSM should place coupons in the campus cash booklets that are distributed throughout campus, which will reach students between August of one year through May of the following year. i. Along with the family four packs for nine-dollars that are already established, two-day passes should be sold for nine dollars. This will create returning customers because of the discounted price. Regular adult admissions will save three dollars, and even UNC students will save 2 dollars. The GFSM strongly believes that it takes more that one experience to see it all. c. Complete/host at least one themed event every other month which will be discussed with more detail in the marketing plan. The Star Wars theme was one of the most profitable events the Freight Station Museum has held, so it should continue with similar events. Other options would be holiday themes and other growing trends in entertainment like Harry Potter. d. The last objective to create returning customers is to use e-marketing. i. Request people to put their email on the guest log as they enter or exit the building, and use that as an advantage. The people that leave the email are interested in updates, so use this as an advantage and send them and email once a quarter informing them of upcoming events, deals and offerings, and changes being made to the Greeley Freight Stating Museum.
6. GFSM 6(3) Create an operations manual within one year. i. The manual should establish the structure of the hierarchy within the organization, jobs and responsibilities, job descriptions, expectations, and operations. Each employee and volunteer must read, understand, and agree to the manual before working. ii. The management will hold employees to a high standard by providing evaluation feedback to each employee quarterly.(4) Educate customers. a. To educate customers, the Greeley Freight Station Museum should continue tours that allow employees/volunteers to inform customers about the facility and history during their visit. i. Tours are available for scheduling in advance and should be done only by those most knowledgeable about the history of railways and the model train industry. b. Classes teaching how to make the elements of the model railroad should also be taught at least once every other week. i. The elements made during the class can either be taken home by the students attending the class or saved to help make a small-scale version of the model train track that will be made to teach kids how to run the railroad. c. The mini model should be completed within two years. i. After the completion of the model, other classes will be available to learn how to run the railway, which will also help provide opportunities for good interaction with customers, creating more sustainability as mentioned previously.(5) Create a savings account for an expansion project. The expansion project will allow the GFSM to accept a donated model railway that is already made and is estimated to be worth around five million dollars. a. Retain savings based on a plan to save 10% of profits each month and place these savings in an account solely for the expansion project. b. At least 25% of the money in the donations jar at the entry door will be place in the expansion savings each month. c. Use the sales pitch in fundraising activities by February to gain donations to expand. The pitch will include: the history, how it educates, and how it can benefit the community. i. This will help the GFSM when it holds its “Moonlight Moments In Time” event reaching out to high income, respected, and invested individuals in the Greeley area. After the halfway mark is met for the expansion project, the sales pitch is already established for when the GFSM is ready to approach the Gates foundation that is known for providing grants that match donations. All of these objectives combined should allow the Greeley Freight Station Museum to reach their goals and milestones, putting them one step closer to the success promised in the mission statement.
7. GFSM 7The Business Philosophy:To educate customers and give back to the community, while maintaining an entertainingenvironment.Dave Trussell is very passionate about giving back to the community, so that (along withhis passion for the model railways) is why he decided to create the Greeley FreightStation museum. The people at the GFSM believe strongly that it is a great place foreducation and entertainment and has so much to offer for the Greeley community, and theonly way to deliver is to do so in the best fashion.Target Markets:The Greeley Freight Station Museum welcomes anyone and everyone interested in itsexhibit. To be more specific, the markets sought are: young families in northern Coloradobecause children enjoy learning about trains and the Museum provides a goodenvironment for family interaction, elementary schools because of the large concentrationof children who will likely be interested, and because the Museum has plenty to offerwhen it comes to teaching fourth graders history, UNC students because it is a beautifulsight where students can appreciate the art, and work efforts in making the model, as wellas, using the GFSM as a good experience to take a date, train enthusiasts because of theknown passion already established for trains and their historical value, and touristsbecause it is a unique museum that people from anywhere can enjoy.Industry:The Greeley Freight Station Museum does not fit into one particular industry, but twoindustries. The determined industries suitable for the Greeley Freight Station Museum arethe entertainment and museum industry. To narrow the entertainment industry, morefocus should be placed on the amusement industry, though it is very different from andamusement park. According to Entertainment Industry Economics, the amusementindustry had 25 billion dollars in revenues in 2005, and is still growing; although, it is ata slower rate (compared to previous years) that may eventually level out. The museumindustry has about 865 million people attend the nations 16,000 museums each yearraking in more attendance than that of all professional baseball, football, and basketballgames combined (D.C.-based American Association of Museums). The concludedindustry is stable. The main advantage that the GFSM has is that it is a very unique typeof museum especially considering its size. There are very few other model train railwaysthat compare; only one being located northern Colorado, allowing the Greeley FreightStation Museum to compare with potentially more stability (Entertainment IndustryEconomics, Oct. 2011).Vogel, Harold L. Entertainment Industry Economics: A Guide for Financial Analysis. Eighthed. New York: Cambridge UP, 2011. Google Books. Web. 08 Oct. 2011.<http://books.google.com/books?id=BfyFFCyRvX0C>.
8. GFSM 8Core Competencies:Core competencies seemingly come natural for the Greeley Freight Station Museum. TheGFSM has a very large market share due to limited number of model train displays in theworld. As mentioned earlier, there is only one other model train museum of comparablesize in North America, and it‟s located in Chicago. The other one is in Hamburg,Northern Germany. Another would be the opportunity to expand mainly throughdonations, allowing the Greeley Freight Station Museum to potentially become thelargest model railway in the world, which would also help another strength, which isgiving back to the community. The GFSM likes to view people‟s ability to dream asanother strength because that‟s what the museum was built off of and that is what hasallowed it to maintain its success. Additionally is the number of volunteers. The museumhas volunteers coming from all over the world, so it gets thousands of hours of free workand time from people of different backgrounds, which helps keep the place alive aninteresting.Legal Form of Ownership:Currently, the Greeley Freight Station Museum is a Non-Profit organization and it shouldmaintain that entity. The reasons it should continue to be a non-profit organization is thegoal of the Greeley Freight station Museum is not built around the idea to turn a profitother than for expansion and to preserve the business itself, rather it‟s to provideeducation and entertainment. Along with that, there is the option to attain governmentgrants to help the business along, and no taxes are charged to the business.
9. GFSM 9 IV. Products and Services GFSMProducts and/or Services: Model Train- Open hours (Entertainment-Service) o Hours: Winter Hours (Labor Day-Memorial Day) Friday & Saturday: 10am – 4pm Sunday: 1pm – 4pm Summer Hours (Memorial Day-Labor Day) Wednesday-Saturday: 10am-4pm Sunday: 1pm-4pm First Friday of Each Month: 6pm-9pm o For children, there is a Scavenger Hunt for Dinosaurs in the layout. Museum (Entertainment/Education-Service) o This consists of the historical items throughout the museum. There are old model train cars, lanterns, train seats, maps, a real train car, etc. Group Tours (Entertainment-Service) o These are scheduled for times other than the open hours. To schedule a tour, customers can call the museum or fill out a Group Tour Request online. Classes (Entertainment/Education-Service) o They provide classes on different parts of the model train. Example: Making the terrain of the layout Train Cars (Product) o HO Scale Cabooses o HO Scale OC&E Boxcars o These are sold both in the museum and online on the website. Calendars (Product) o They sell 2011 Calendars. These include pictures of the GFSM layout These are sold both in the museum and online on the website. GFSM DVDs o Sold in-store only Children‟s Books o Sold in-store only Clothing o Children‟s T-Shirts o Youth T-Shirts o Adult T-Shirts o GFSM Polo Shirts o Sweatshirts o Knit Caps, Necklaces, Foot Fashion o GFSM Visors o Knit Skull Caps Toys
10. GFSM 10 o Fat Brain Toys o Pullback Trains o Stuffed Animals o „Opoly‟ Games o Adult Train Puzzles o Miscellaneous Souvenir Toys Miscellaneous o Educational Birthday Cards o Stuffed Animals/Tooth Fairy Pillows o Thomas Workbooks/Flashcards/Stickers o Animal Key Chains o Cookie Cutters o GFSM Mouse Pads o GFSM Calendars o Piggy Table Mats, Art Folio, Nap „n Sack o Decorative Plaques and Signs o Hobo CoffeeCompetitive Advantage: The Greeley Freight Station Museum is the only Model Train Museum in the local area. o It offers a very unique experience for the local community. It is the 3rd largest model train museum in the world.Pricing: Admission: Adults: $6 Seniors (65+): $5 Children (12 & Under): $3 Military w/ ID: $5 UNC/AIMS Students w/ ID: $5 Babies in arms and people w/ disabilities: Free Group Rates: Groups of 10-24: $4 per person Groups of 25+: $3 per person Group Tours: o Groups of 10-24: $8 per person o Groups of 25+: $6 per person Products o HO Scale Cabooses: $25 + $5 Shipping o HO Scale OC&E Boxcars: $25 + $5 Shipping o Yearly Calendars: $9.95 o GFSM DVDs: $45 o Children‟s Books: $3.95-$45 o Clothing Children‟s T-Shirts: $12
12. GFSM 12 V. - Marketing PlanEconomics:Facts About the Industry:The GFSM can be classified into a few different industries. It can be classified in themuseum industry, the entertainment industry, or the educational industry. The mainindustry to look at is the museum industry. “This industry comprises establishmentsprimarily engaged in the preservation and exhibition of objects of historical, culturaland/or educational value and includes art galleries, art museums and other museums ingeneral.” The museum industry in the United States is an $8.5 billion industry. Theindustry is in the maturing stage of its lifecycle however the industry is growing in termsof revenue growth, and is expected to keep growing for the next few years. The growthwill continue at 3.8% a year, until the year 2016. “The dominant factors aiding revenuegrowth will be rising per capita disposable income, reduced unemployment and enhancedconsumer sentiment. Increased disposable income will allow more families andindividuals to spend on discretionary services, such as museum visits” (2011).Barriers to Entry:The barriers to entry in the museum are low. “There is a moderate level of competition inthe industry, with an estimated 4,666 museums currently in operation. The majority ofthese museums are small and local in nature; however, there are some larger museumswhich account for a significant share of the market” (2011). One of the main barriers inthe museum industry is obtaining a desirable collection. The collection needs to be ofpublic interest otherwise the museum will have no customers.Moldvay, C. (2011). Museums in the US Retrieved fromhttp://clients.ibisworld.com/industryus/default.aspx?indid=1640Factors that may affect the GFSMChange in technology:The GFSM will always be on top of technology changes because it is a beta tester formodel train components. If the components benefit the GFSM, they will be implementedinto everyday use. This means that the GFSM will always have the best technology in theindustry.Change in government regulations:The biggest problem for the GFSM in terms of government regulations would be thecompany‟s non-profit status. In the industry there is certain criterion that must be met inorder for a company to stay non-profit. The IRS regulates all non-profit museums.“These regulations include issues such as disclosure and filing requirements, taxliabilities for unrelated business income and sanctions for excess benefit transaction.”The entire industry also must comply with the ADA regulations as well as Section504 ofthe Rehabilitation Act that prohibits employers from discriminating applicants based on
13. GFSM 13disabilities. Any changes in regulations will require the GFSM to meet and comply withchanges to stay a non-profit business.Change in the economy:Changes in the economy can always affect any business. In good economic times peopleare more likely to go out and spend money on leisure activities. However, in tryingeconomic times people are going to be more conservative with their money. As with anybusiness, the GFSM relies on its customers, so how willing consumers are to spend theirmoney is a major factor.Change in your industry:According to the industry research on IBISWorld there is expected to be growth inrevenue for the museum industry because of a slight boost in the economy. This is goodfor the business. However, the GFSM is different from many museums because of themodel train exhibit, so it has some flexibility from the museum industry itself.Product: (Features and Benefits) Model Train (Service) o One of a kind o Will provide entertainment Museum o Largest in the area o Knowledge of railroad history Group Tours o Private o Will provide in depth knowledge of museum Classes o Learning the low down of model railroading o Teaches customers how to do their own set up Train Cars o Actual Caboose from Greeley, CO o Insight of how train cars looked Calendars o Tells story through actual pictures from GFSM o Provides a way to keep track of the days Train DVD‟s o Cannot get this anywhere else in the area o Educate them on Trains Children‟s Books o Train oriented o Provide entertainment T-Shirts o GFSM logo o A way to remember a memory created at GFSM
14. GFSM 14Customers:The GFSM has several different types of customers.Train Enthusiasts:This group is made up of all ages and both genders. They live worldwide and havevarious income levels.Young Families in Northern Colorado:These families have younger children, are in the middle class, and are educated.Local Elementary Schools:This group mostly consists of 4th grade classes because they are learning about railroadsin their curriculum.Tourists in the Northern Colorado Area:This group is made up of all ages and both genders. They come from all over the worldand have various income levels.Competition:Because the GFSM is the only model train museum in the state there are no competitorsin Colorado that compete directly with the museum. The GFSM is the third largestmodel railroad museum in the world. GFSM competes on a national level with The GreatTrain Story in the Museum of Science and Industry located in Chicago and the San DiegoModel Train Museum, in California. There are a few companies that are classified in thesame genera, who compete with GFSM. The first is the Colorado Railroad Museum.This is an indirect competitor that attracts a similar consumer. The Colorado RailroadMuseum does have a large advantage in terms of location, located only 12 miles out ofdowntown Denver. The major Railroads in Colorado are also an indirect competitor.These may also attract the same niche market as the GFSM. Some of these Railroads are:the Georgetown Loop, The Royal Gorge Route, and the Rio Grande Scenic Railroad.The last competitor would be the entertainment industry in general. The entertainmentindustry includes any other leisure activity. The main competitors in this area are: FamilyFunplex, Cinemark Movie Theater, and The Greeley History Museum, to name a few.These businesses compete with GFSM more on a location based level being they are inclose proximity therefore competing for leisure dollars spent.Colorado Railroad Museum17155 W 44th AveGolden, CO 80403Family Funplex1501 65th AveGreeley, CO 80634
15. GFSM 15Cinemark Movie Theater2160 Greeley MallGreeley, CO 80631Greeley History Museum714 8th StGreeley, CO 80631 Factor GFSM Strength Weakness Colorado Rail Road Museum Family FunPlex Importance to Customer 1=Very Important 5=Not Important Tours, historical artifacts, special events (santa day, cultural events) educational Pool, minigolf, fitness 3 activities, library, Giftshop type center, Sports fields,Products Above industry average X store senior social, Memberships can be purchsed and range 1 anywhere from $360 toPrice Below industry average X $8 for adults $5 children $225 4 1/2 out of 5 stars from google 1Quality Above industry average X reviews High qualitySelection Standard with industry 3Service Above industry average X 1Reliability Above industry average X City run facility 2Stability Below industry average X Very stable business 3Expertise Above industry average X Good 1Company Reputation Above industry average X Reviews seemeed good 3 Just 12 miles from downtown Located on 65th ave inLocation Below industry average 2 X Denver (Golden) Greeley, CO Reviews of the place seemed only good, one mentioning that Well maintained 1Appearence Below industry average it is only getting better building inside and outSales Method Below industry average 3Credit Policies Below industry average 2Advertising Below industry average X 3Image Above industry average X 2Niche:GFSM will stimulate and educate about model trains. The GFSM offers a completelyunique experience to anyone in the Northern Colorado Area, and has a reputation forbeing one of the finest model train exhibits.Tagline:Where education and entertainment run on the same track!
16. GFSM 16Logo:Pitch:30 Second Pitch:ALL ABOARD! The Greeley Freight Station Museum is the only model train museumin Northern Colorado. It also happens to be the third largest model train museum in theworld! Because of this, it offers a unique experience for people of any age. Some peoplecome to reminisce about their childhoods, some to observe the history of the railways,and others come to experience something they have never seen, but all of these peoplecome on a mission to entertain their imaginations. Whatever your reason is, come visitour 5,500 square foot model train exhibit found on the corner of 7th Avenue and 10thStreet in Greeley, Colorado. We can‟t wait to see you at the Greeley Freight StationMuseum, where education and entertainment run on the same track!Paragraph Pitch:ALL ABOARD! The Greeley Freight Station Museum is the only model train museumin Northern Colorado. It also happens to be the third largest model train museum in theworld! Because of this, it offers a unique experience for people of any age. Some peoplecome to reminisce about building and playing with model trains during their childhood,some to observe the history of the railways with our railroad artifacts, maps, andbrochures, and others come to experience something they have never seen, but all ofthese people come on a mission to entertain their imaginations. Our 5,500 square footexhibit displays multiple trains running on real time, hand-made, lifelike terrain, and adinosaur hunt for the kids. Come visit us on the corner of 7th Avenue and 10th Street inGreeley, Colorado. We can‟t wait to see you at the Greeley Freight Station Museum,where education and entertainment run on the same track!
17. GFSM 17Strategy:To spread the word to customers:(1) GFSM will do cold calls to the elementary schools in order to establish a date andtime to sell the historical idea of the museum to the 4th grade teachers. Generally, the besttime would be at teacher in-services once or twice a year, before the beginning of eachsemester.(2) A discount coupon will be placed in the campus cash booklets that are distributed tocollege students along with flyers distributed around campus every third month duringthe fall and spring semesters.(3) To reach train enthusiasts, ads will be placed in magazines for train enthusiasts (ex. -Railroad Explorer, The Railroad Press, iTreni-an Italian magazine, RailpaceNewsmagazine). These ads should be utilized at least once every other month. Theyshould contain news and interesting occurrences at the GFSM in order to be accepted bythe magazine. They aren‟t necessarily advertisements, more so news that would drawmedia publicity. Railroad Explorer is always looking for contributors to the magazine, so if the article and photos are good, they will add to the issue for free, according to railroadexplorer.com. Obviously there are certain guidelines that have to be followed; the contributions must be related to trains.(4) Young families will be targeted through flyers and brochures that will be distributedto different restaurants and stores in the Northern Colorado area and along Interstate-25.There will also be ads in local newspapers like the Tribune. They should includeupcoming events within the next three months and be updated and redistributed everythree months.(5) Tourists will be targeted with the brochures that can be found along I-25 as well as inthe enthusiast magazines. A majority of tourists will not come from those ads, which iswhy the Greeley Freight Station Museum is working closely with tourist companies incities like Denver. Not only will these companies provide support for tourists to visit themuseum, but also to explore the rest of Northern Colorado.There reason these marketing strategies and marketing mediums were chosen is becauseof the target market GFSM is trying to reach with its limited resources to allocate tomarketing. In general, these mediums are relatively inexpensive and reach a sizeableaudience.
18. GFSM 18The Schedule for Promotions should be:Media:The main media being that will be utilized is paper print (magazines, brochures,newspapers, fliers) this is because print ads are solidified and create a burning image in apersons mind, being allowed to view the ad for a longer period of time. Generally, print ischeaper than television ads and social media ads, especially because the GFSM does notcurrently have the capacity or capability to pay for the social media support.Image:The idea behind the marketing for the Greeley Freight Station museum is to position it asa place for anyone and everyone to come and let their imagination take control, but stilllearn something in the process. It is a place to reminisce, as well as create new lastingmemories.Graphic Image Support:Currently, the GFSM has a relationship with the Monfort College of Business, moreparticularly, senior web design classes. The Museum can place a large majority of itsdependence on those classes and on the CIS interns hired. This is mainly because thereisn‟t much need for graphic image support, and most of the graphic imaging comessimply from pictures of the exhibit. As long new interns are hired and the partnershipwith Monfort is maintained, the GFSM will have sufficient graphic image support.Repeat customers:
19. GFSM 19In order to track repeat customers, each customer will be requested to leave his/her emailand a few comments about their experience in a guest log. Having each customers emailwill allow the GFSM to track repeat customers and send news and updates to all.Promotional BudgetThe current marketing budget should be expanded to around $3,900 on an annual basis.Distributions of the budget should be similar to: Flyers-$400 annually, which is $100 every third month. In-services-Free (regular labor hours) Campus cash coupons- $759 annually for 36,000 publications o See Appendix A Magazines-Free (articles written voluntarily) Brochures- $800 annually, which is $200 every third month Newspaper ads (Tribune)- $1,848 for a 4x6 colored ad one week a month in April, May, June, August, September, November, and December. o 20,000 copies Monday-Saturday o 22,000 copies on Sunday
20. GFSM 20 VI. Operational PlanProduction:Techniques and Costs:The actual train set was donated, however, all the landscape and other scenery was allmade in house by Dave and multiple volunteers. The volunteers also are there on a dailybasis running the trains, cleaning, and doing other in house maintenance to the layout.Quality Control:Every aspect of the operation as a whole must be the highest and finest quality in theindustry. Anything less will deter customers, and not provide the overall experience thatthe GFSM aims to offer. This will include proper maintenance (repairs, cleaning, etc.) ofthe exhibit. Quality control will be outlined in the operations manual.Customer Service:The volunteers are very knowledgeable on the subject; however, they do not go out oftheir way to make sure the customer has a great experience. Customer service is veryimportant especially in a nonprofit service orientated company and without greatcustomer service the sustainably of the business is jeopardized. The volunteers are themain face of the museum and can leave a lasting impression on their customers; but in thecustomer service area, the volunteers lack good communication skills and friendly socialinteraction skills. A section of the operations manual will cover this being it is a veryimportant aspect of the museum.Inventory Control:The goal of the company is to keep excess inventory at a minimum. The main point ofthe museum is to educate and share an experience with others; therefore, excess spaceshould not be cluttered with boxes of inventory. Inventory of the Little Shop That Couldwill be taken continuously, and inventory records will be kept to keep track of sales andlosses of product.Product Development:The company will keep up to date on the trends and new techniques in the industry as faras the layout and the track itself. This information will be used in the development offuture exhibits.Location:Amount of Space:The building the Greeley Freight Station Museum is in now houses a 5,500 square footlayout with a track that stretches over 1,200 feet. The building is also home to a full sizeColorado caboose that visitors can enter as well as a children‟s section and a gift shop.
21. GFSM 21Type of Building:The building itself is a large metal barn structure. Being the train and landscape needs tobe kept in a very particular climate the building is well insulated and the climate is keptconstant by a humidifier.Zoning:Industrial Low Intensity (I-L)Power and Other Utilities:All utilities that are necessary for the building are paid for through the grant. Utilitiesinclude: electricity, gas, and water.Access:The building itself is very accessible, due to its corner location; medium sized parkinglot, as well as multiple surrounding empty parking lots. Depending on where you park inthe lot, finding the correct entrance to the inside of the building isn‟t clearly marked andcan be challenging.Construction:The building the GFSM will build will need to be even larger as the train set to bedonated is larger than the original. The GFSM also hopes that the buildings can beconnected for easier access to both. Before this is able to happen, the law states; that theywill need to have exact specifications for the whole project; in which they are still in theprocess of coming up with. Without all of the specific details; name, size, location etc,they aren‟t able to receive the grant funding.Cost:GFSM has a contract cleaner that comes in for general cleaning duties once a week onSunday. The cleaner is paid $500 a month to do general cleaning of the floors,bathrooms, and general public areas. The business hours the GFSM will be specific tothe season. Summer hours will have more open days, as traffic will be heavier. In winterhours when there is less traffic, the museum will be closed more. Summer hours will beWednesday – Saturday 10:00 – 4:00, Sunday 1:00 – 4:00, and the first Friday night ofeach month 6:00 – 9:00. Summer hours are Memorial Day – Labor Day. Winter hourswill be Fridays and Saturdays 10:00 – 4:00 and Sundays 1:00 – 4:00. Winter hours areLabor Day – Memorial Day.Legal Environment:They have insurance that covers the building and contents of the building. The onlytrademark that they have is their name, The Greeley Freight Station Museum.
22. GFSM 22Personnel: (see page 24 for Positional Descriptions)Number of Employees:The GFSM will need four paid employees instead of the one employee they have now.The staff will consist of an executive director in charge of the entire museum, as well as atrain‟s operations director, a storefront director, and a volunteer director. There willcontinue to be a large volunteer pool, which is the backbone of the museum.Type of Labor:The overall layout project is very skilled labor, being all of the aspects and componentsof the layout are very detailed and all made by the volunteers.New Employees:An application process will be implemented to help the GFSM find the right employees.Applicants with backgrounds in model trains, trains, and non-profits will be the preferredin this application process.Quality of Existing Staff:The one paid employee that the GFSM has is an excellent employee and is very dedicatedto her job and the success of the museum. The volunteers the GFSM currently have arevery knowledgeable and very committed when it comes to model trains; however,customer service is an issue that has been raised. The operations manual we plan toimplement will hopefully solve this problem.Pay Structure:The pay structure that we will be setting up will have one full-time position and threepart-time positions. The executive director, the full-time position will be paid the mostand be on salary while the part-time positions will be paid an hourly rate. The part-timeemployees will make $8.00 an hour while the executive director will be making $30,000annually.Training Methods and Requirements:All of the training for the volunteers and the staff will be clearly stated in the GFSMoperations manual, which will be a required text for all. Employees and volunteers willbe walked through the manual with the executive director other ranking directors prior toworking at the GFSM to ensure the concepts were all understood.Tasks:Executive director will be in charge of operations as a whole and overlook the staffmembers as well as the volunteers. Storefront director will be in charge of admissions aswell as the gift shop in the museum, “The Little Shop That Could”. Trains operationsdirector will be the head of dispatch and the model train supervisor. Volunteer directorwill be in charge of the volunteer group.
23. GFSM 23Operations Manual:The operations manual will contain valuable information on daily operations to bepreformed in the museum by staff members and volunteers. The operations manual willcontain sections having to do with training, hierarchical structure, written procedures, andjob descriptions. The manual will need to stay current with museum operations.Suggestions or additions to the manual will be welcomed from all staff members andvolunteers as long as the executive director approves them.Inventory:The only inventory that the GFSM has is in their “Little Shop That Could”, their giftshop. The shop is very small, so their inventory is limited and not much is kept on hand.It is more about the actual train sets and the take away experience than trying to sell itemsto make a profit.Seasonal buildups:Seasonality plays a large part in the GFSM‟s business; during their busier summermonths, more products are moved through the shop, and in the less busy winter months,turnover is much slower.Suppliers:Huston Graphics and Printing- Promotional screen printing and embroidery 700 Automation Drive Unit B Windsor, CO 80550 Phone: 970-686-0174Maple Landmark- Wooden supplies 1297 Exchange Street Middlebury, VT 05753 Phone: 800-421-4223Book Wholesales- Railroad-Related booksCredit Policies:The GFSM will sell on credit for admissions and in the “The Little Shop That Could” giftshop. They accept Visa and MasterCard.Managing Your Accounts PayableInvoices are paid either by credit card or by check. These payments are made by theGFSM Guild Treasurer.
24. GFSM 24 VII. Management and OrganizationThe GFSM will be managed by the executive director. The executive director will bring aknowledgeable experience to GFSM. The distinctive competencies that the executivedirector will bring: Knowledge- They will have complete knowledge of all the day-to-day operations. Including historical information on Trains. Along with knowledge in curetting. Problem Management- Able to handle any situation with a professional manner. Customer Service- They will provide a welcoming environment to employees, customers, and volunteers. Coaching Ability- The ability to coach any employee/ volunteer to provide exquisite customer service.Continuation of the Business:The GFSM will always continue in times of loss or incapacitation. This will beobtainable only by a full operational plan of GFSM.Organizational Chart: Executive Director Michelle Kempema Trains Operations Store Front Volunteer Director Director Director TBD TBD TBD
25. GFSM 25Positional Description:Executive Director:This is a full time position that will require full knowledge of GFSM. The positionrequires the abilities to successfully innovate marketing plans, fundraising plans, groupbookings, programs, classes, and training programs. They will update all areas of thebusiness/business plan as necessary. A required knowledge of curetting is necessary.Daily accounting will be necessary to be able to provide the accountant monthlynumbers. This position will require managing of the company through coaching andfeedback.Trains Operation Director:This is a part time position that will require expertise in the running of model trains. Theywill be in charge of training and managing all people that are involved in the running oftrains at GFSM. They will report to the executive director on a monthly basis to keeptraining up to date.Store Front Director:This is a part time position that will require managing of the store front and maintaininggood customer service. They will train all new employees/ volunteers on running theadmissions counter and The Little Shop That Could. They will be required to clean andmaintain the store front. On an everyday basis they will provide the executive directorwith all funds and numbers for the day.Volunteer Director:This is a part time position that will require exquisite customer service values. They willbe responsible for creating and revising a training program. They will provide training toall new volunteers that come to work at GFSM. They will build a monthly volunteerschedule based on availability of each volunteer. On a monthly basis they will meet withthe executive director to talk about overall performance and customer service ofvolunteers.Professional and Advisory Support: Attorney- TBA Accountant- Joel Rothman Banker- TBA Consultant or consultants- Northeast-East Central Colorado Small Business Development Center