Dream Catchers, LLC
2012 AIBL
National Conference
Montana State University Billings
Angela Deputee
Joe Lilienthal
Nik Wong
Table of Contents
I.
Table of Contents
II.
Executive Summary
III.
Business Concept
1. Mission Statement
2. Company Goals and Objectives
3. Daily Life at Dream Catchers
IV.
Industry and Market Analysis
1. Market Description and Trends
2. Consumer Profile
3. Risk Analysis
V.
Management Team
VI.
Operational Plan
VIII.
Marketing Plan
1. Market Potential
2. Brand Positioning Statement
4. Marketing Mix
IX.
Financial Plan
X.
Appendices
XI.
Citations
II. Executive Summary
We suggest that you make it two pages or fewer.
Include everything that you would cover in a five-minute interview.
Explain the fundamentals of the proposed business: What will your product be? Who will your
customers be? Who are the owners? What do you think the future holds for your business and
your industry?
Make it enthusiastic, professional, complete, and concise.If applying for a loan, state clearly how
much you want, precisely how you are going to use it, and how the money will make your
business more profitable, thereby ensuring repayment.
III. Business Concept
Before the Trail of Tears, before Lewis & Clark, before the sail of Columbus, the North
American Continent was populated by a robust culture of more than ten million American
Indians. They inhabited every region of the continent and constituted hundreds of different
tribes. They respected a balance of nature and mother Earth took care of them. The American
Buffalo were the lords of the prairie and an essential component to the heritage of the American
Indians. Bison provided not only food, clothing, and shelter but nearly every material needed.
Because the Indians of the plains depended so much on the bison for their existence, their
religions were centered around the buffalo.
Dream Catchers, LLC recognizes an opportunity to enrich and preserve the American Indian
culture, by providing a place where people can recapture the true Native American Experiencewhen there was an estimated 25 - 70 million bison roaming in North America. Dream Catchers,
LLC will provide a place of education, spiritual wellness, organic mindfulness, and enjoyment.
The concept is similar to a cowboy’s dude ranch where people experience the cowboy way of
life, but instead, provide the most authentic, educational Native American Experience in the
world. It will also have a low environmental impact, in an industry known as agri or ecotourism. The land will be shared with the community of plants and animals.
The owners will have a close relationship with Tana Blackmore, owner of Sacred Grounds
International. Tana has hosted many people from all over the world to enjoy her bison, her land,
and her Native American Heritage. She has a wealth of knowledge and has the Indian name of
“Buffalo Woman.” She also has a buffalo herd of almost 300 roaming on natural grass in the
Pryor Mountains. Dream Catchers, LLC is located within walking distance of Tana’s herd. It is
also located within a few miles of world class fly fishing and within 100 miles of Yellowstone
National Park. These attractions are considered the top reasons eco-tourists travel to these
special resorts anywhere in the world.
1. Mission Statement: To create a profitable authentic Native American Experience, that will
draw people from around the world to experience Native American traditions and ceremonies
before the arrival of Christopher Columbus.
2. Company Goals and Objectives: To be the number one authentic, organic Native American
Experience in the world with a focus on the following:






Land conservation
Spiritual enlightenment
Native American Cultural Conservation
Economic stimulation for the local tribal members
Job opportunities for local Crow members
Teaching people ways of Native Americans
3. Daily Life at Dream Catchers, LLC
The company will start off with 25 teepees, five cabins and a main lodge. There will be various
activities every day. People will live and work the land just as the Native American’s did with
just a little 21st Century comfort. Learning to be one with nature is a vital attribute to the
company.
Daily life will consist of different activities that the Native Americans did a few centuries ago.
Most of the food is going to be collected by hunting & fishing, farming, and raising domesticated
animals. The experience is going to include basket making, rug weaving, bison tanning,
medicine making, organic farming, arrow making, spear fishing, Kachina doll making, teepee
raising and spiritual lessons from the local tribes. There will also be four areas to choose from
each day.
(insert table with packages)

Creative








Native American Painting
Jewelry
Music: Flutes/drums
Making wood flute and making drums
Recreation
o Horse Back Riding
o Indian Games
o Pipe smoking
o Arrow making
o Arrow tournament
Spiritual
o Nightly Native American Ceremonies
o Medicine walk
o Storytelling around the fire
o Prayer
o Pow-Wow
Survival
o Bison hide tanning
o Bison tracking/ hunting for additional fees
o Mountain hike and organic trekking
write this out Annual Events include the Crow Fair, the.....
Guests stay week long package Monday- Sunday, Weekend stay Friday leave Sunday , One night
at a time also available
These specialized experience packages and annual events will be the first in the industry or at the
introduction stage of the product life cycle. Dream Catchers LLC will have most of the market
share and competitive advantage in terms of Native American experiences at this authentic,
organic level. By continuously fine tuning the experience, the company will be well known for
providing the best Native American experience in the world, as the Agri-tourism industry
continues to grow.
(The business concept section should describe your business model. Define the company culture
and provide a detailed description of the product(s) and/or service(s) that will be offered. How
will the success of your business be determined? I think this is in finance The company provides
something novel/unique/special that gives it a competitive advantage in its target market( the
target market is described in the marketing plan). Its plan to develop and commercialize their
products/service is clearly described and is credible. (Mainly in the operations and marketing
plan) Maybe strengths and weaknesses would best be covered in Operations Plan.)
IV. Industry and Market Analysis.
1. Market description and trends
The World Tourism Organization estimates that ‘nature tourism’ accounts for 20 percent of all
international travel. It is the fastest growing sector at 10 – 30 percent growth overall. Estimates
show that each living shark in the Maldives fetches $3300. At Sacred Grounds, each sacred
buffalo is hunted spiritually for $2500.
This tourism is defined as viewing wildlife in an atmosphere that is more natural than the run of
the mill ride on a jeep or the back of an elephant. Eco-tourists paid $1200 more than the average
tourist back in 2000 according to Trails.com.
Currently, resorts are trying to establish a Green Star System or accreditation system to improve
sustainability. It must be “low impact, education, ecologically and culturally sensitive that
benefits local and host communities.” (12)
Is there growth potential? If there is, please describe it. The industry and market analysis section
should provide a market description, general market trends, a customer/consumer profile, and
risk analysis. (Use Porter Model)
New industry that is developing with few competitors
Long term in industry
Increased competition
Montana had 10.5 million nonresidents visit the state in 2010, spending $2.48 billion.
Yellowstone and Glacier Parks are the most visited sites, overall. A survey indicated fishing,
wildlife watching, hiking and shopping as primary Montana tourist activities. (7)
100 million tourists come to North Americas. (8)




10.4 Million visitor came to MT in 2010 spending $2.4 billion dollars
Outfitter/guide-spent $34.7 million of 1% of total expenditures
Campground and RV-$425.1 million
Licenses and entrance fees- $50.6 million 2% of total expenditures

Hotels/b & b-$315.7 million 13% of total expenditures
Tourism is now the largest industry in the world, and one of the fastest growing. Two billion
tourists worldwide spend trillions of dollars every year in the places they visit. In 2006, 846
million international tourists generated $7,345,654,563 in tourism receipts (World Tourism
Organization, 2007
In the United States, domestic travel combined with international tourism is a $1.3 trillion
industry, with a direct payroll of $162 billion representing 1 out of 8 jobs [Travel Industry
Association of America (TIA), 2005].In Washington, tourism ranks as the state’s third largest
industry, with 2007 revenues from tourism estimated at $14.8 billion. Since 2002, tourism
spending in Washington has increased an average of 7.4% annually, considerably above the rate
of inflation over that same period. (13)
The American Indian Tourism Association noted the growing interest in Aboriginal culture
worldwide, looking for more than gaming venues in which to spend their money. Their study
found that slightly more than half the respondents visited a casino but 48% of visitors to a Native
community dined at a Native American restaurant and 37% purchased authentic arts and
crafts. 22% toured a museum and 20% attended a powwow.
2. Consumer Profile
Demographics interested in agri-tourism, according to a study by the US Small Farm Center: (9)
27% are 44 years or younger, 23% are between 45 and 54
20% are 55 to64 and 30% were 65 and older.
56% were male.
Upper income $75,000 and more educated, college and beyond were more representative,
40% and 67% respectively
78% were European descent
79% were urban suburban
Actually overall more interested in nature/eco -tourism than just agri tourism
Highest rankings of interest were fresh homemade food, nature, vacation, fun relaxation.
Woodlands and grazing animals combined were rated as attractive to orchards and vineyards as
the first place choice.
3. Risk Analysis
V. Management and Organization
Legal form of ownership: Limited liability corporation (LLC)? Why have you selected this
form?
Who will manage the business on a day-to-day basis? What experience does that person bring to
the business? What special or distinctive competencies? Is there a plan for continuation of the
business if this person is lost or incapacitated?
If you’ll have more than 10 employees, create an organizational chart showing the management
hierarchy and who is responsible for key functions.
Professional and Advisory Support
List the following:








Board of directors
Management advisory board
Attorney
Accountant
Insurance agent
Banker
Consultant or consultants
Mentors and key advisors AJ. and Tana
VII. Operational Plan
Its plan to develop and commercialize their products/service is clearly described and is credible.
(Every day will be scheduled in order to get 4 attributes that we offer or accommodate
customers)
Production
Possibly cabins-later on
Shower house
Main Lodge








Solid structure
Recycled LEED Building
Some Rooms
Kitchen
Dining Hall
Storm Shelter
Green House/Food Storage
Gift Shop
How and where are your products or services produced?
Explain your methods of:





Production techniques and costs
Quality control
Customer service
Inventory control
Product development
Location
What qualities do you need in a location? Describe the type of location you’ll have.
Physical requirements:




Amount of space
Type of building
Zoning
Power and other utilities
Access:
Is it important that your location be convenient to transportation or to suppliers?
What are your requirements for parking and proximity to freeway, airports, railroads, and
shipping centers?
Include a drawing or layout of your proposed facility if it is important, as it might be for a
manufacturer.
GOOGLE PICTURE
Construction? Most new companies should not sink capital into construction, but if you are
planning to build, costs and specifications will be a big part of your plan.
Cost: Estimate your occupation expenses, including rent, but also including maintenance,
utilities, insurance, and initial remodeling costs to make the space suit your needs. These
numbers will become part of your financial plan.
What will be your business hours?
Legal Environment
Describe the following:







Licensing and bonding requirements
Permits
Health, workplace, or environmental regulations
Special regulations covering your industry or profession
Zoning or building code requirements
Insurance coverage-dude ranch
Trademarks, copyrights, or patents (pending, existing, or purchased)
Personnel


20 total employees
2 Storytellers













3 Maintenance employees
5 Experience coordinators
6 Kitchen staff
1 Animal caretaker
Accountant/bookkeeper
Where and how will you find the right employees?
Quality of existing staff
Pay structure
Training methods and requirements
Who does which tasks?
Do you have schedules and written procedures prepared?
Have you drafted job descriptions for employees? If not, take time to write some. They
really help internal communications with employees.
For certain functions, will you use contract workers in addition to employees?
Inventory





What kind of inventory will you keep: raw materials, supplies, finished goods?
Average value in stock (i.e., what is your inventory investment)?
Rate of turnover and how this compares to the industry averages?
Seasonal buildups?
Lead-time for ordering?
Suppliers
Identify key suppliers:




Names and addresses – this will be who will be used
o Cabin – research bids from MT companies
o Tepees – research bids from regional companies
Type and amount of inventory furnished
Credit and delivery policies
History and reliability
Should you have more than one supplier for critical items (as a backup)?
Do you expect shortages or short-term delivery problems?
Are supply costs steady or fluctuating? If fluctuating, how would you deal with changing costs?
Local, state and federal regulations will need to be addressed on such topics as zoning,
signage, food service, animal exhibits and health

Lodge
o
o


Gift shop
Snack shop
25 teepees
5 Cabins



5 Giant teepees (activity)
Land price
Construction
VIII. Marketing Plan
1. Market Potential
Segmentation Strategy and Target Audience
O’Reilly’s and Binna Burra resorts in Australia both have 15,000 to 20,000 annual visitor nights
capacity, priced about $100 per night, marketing is brochures, internet, tour operators,
guidebooks. They have 150 room capacity, which is three times as much a us, so we could have
a max of 5,000 visitor annual nights.
Based on this article and study, we will use this segmentation strategy.
see diagram
We will primarily target Harder, 34%, Eco-tourists, as they would favor the Tee-pees, nature
based learning, a preference for undisturbed destinations, less service, willing to experience
hardship which the Softer Target is not. They are motivated most by environmental clubs and
organizations where structured target audience is motivated by media and travel agents.
Brochures and word of mouth are important for both.
Self-discovery, being physically active and having new experiences motive these
tourists. Structured tourists also want to meet people with similar interests or they are more
social. Both targets value rest and relaxation.
The most favorite activities are national park visits, hiking and wildlife viewing.
Harder are younger than structured and are more likely to have attained a university degree and
are more liberal.
The secondary target would be the Structured eco-tourists or 40% of the market as they do like
packages and rely on travel agents and group travel. They also have a desire to return to favored
destinations. They like to learn about the natural environment and experience nature in a wild
setting. They would tend to stay in the lodge instead of the Teepees.
Quantified Objectives
2 Billion International Tourists, Or 1.4 Million MT Tourists, Or $1.3 Trillion Industry in US.
Eco-tourism is conservatively 10% of each =
20 Billion International Tourists, Or 140,000 MT Tourists, or $13 Billion Industry in US.
34% is Harder Target and 40% is Structured Target and we will target.
6.8 Million International Harder Tourists, 8 Million International Structured Tourists
Equals $5.2 Billion and $4.4 Billion in US Eco-Tourism.
56,000 and 42,000 MT eco-tourists so we need less than 4% of each target to reach 4,000 vistor
annual nights. That is the current MT market but we are not counting on it as the international
eco-tourists market is bigger and growing.
2. Brand Positioning Statement
According to four separate studies, promotional activities should highlight the environmental
features in order to attract green tourists. Uysal (et al., 1994) suggests that in order to attract the
green tourist market, the destination must be promoted using flora and fauna, natural attractions
and un-crowded facilities, as this is what their study identifies as being the major benefits sought.
3. Marketing Mix.
Means End Chain
Perceptual Map
Pricing
Packages


M-Sunday week-lifestyle $1,500
o Sunday-Maintenance Day
 Clean teepees/recoup
Friday-Sunday-condensed fun atmosphere $500
o Bonfires
o Events
Tee Pee / Mud Hut $150 a night



Authentic Bedding, Steam Cleaned
No power / Fire pit
Beautiful Views, Pryor and Beartooth Mountains
Sales Channels
Similarly Wight (1996) concludes that given green tourists are seeking a wide range of activities,
and the product offering should highlight the range of experiences available or develop links
with other companies who can offer complimentary experiences. Weaver and Lawton found that
some green tourists tend to be affiliated with environmental clubs and organizations which could
provide a useful access point. (11)
See Tanna’s partners in other countries....partner with high end travel agents, you will need
to travel to trade events and direct sell in the agri tourism, there will be a commisssion to pay in
finances
Promotional Plan
Finally Wurzinger and Johansson (2000) state that advertising declaring the destination/product
as environmentally friendly will attract green tourists because of their high level of
environmental concern. Ryan, Hughes and Chirgwin (2000) found the top three sources of
information about destinations to be another person (38%), brochures and other materials
collected at information centres (23%), and tour operators (10%). These four studies suggest
destination managers seeking to attract green tourists should focus their targeting efforts on word
of mouth, travel guides and brochures. (11)
Put magazines etc. here Talk about budget.
IX. Financials
Startup Expenses and Capitalization
You will have many expenses before you even begin operating your business. It’s important to
estimate these expenses accurately and then to plan where you will get sufficient capital. This is
a research project, and the more thorough your research efforts, the less chance that you will
leave out important expenses or underestimate them.
Even with the best of research, however, opening a new business has a way of costing more than
you anticipate. There are two ways to make allowances for surprise expenses. The first is to add
a little “padding” to each item in the budget. The problem with that approach, however, is that it
destroys the accuracy of your carefully wrought plan. The second approach is to add a separate
line item, called contingencies, to account for the unforeseeable. This is the approach we
recommend.
Talk to others who have started similar businesses to get a good idea of how much to allow for
contingencies. If you cannot get good information, we recommend a rule of thumb that
contingencies should equal at least 20 percent of the total of all other start-up expenses.
Explain your research and how you arrived at your forecasts of expenses. Give sources, amounts,
and terms of proposed loans. Also explain in detail how much will be contributed by each
investor and what percent ownership each will have.
12-Month Profit and Loss Projection
Many business owners think of the 12-month profit and loss projection as the centerpiece of their
plan. This is where you put it all together in numbers and get an idea of what it will take to make
a profit and be successful.
Your sales projections will come from a sales forecast in which you forecast sales, cost of goods
sold, expenses, and profit month-by-month for one year.
Profit projections should be accompanied by a narrative explaining the major assumptions used
to estimate company income and expenses.
Research Notes: Keep careful notes on your research and assumptions, so that you can explain
them later if necessary, and also so that you can go back to your sources when it’s time to revise
your plan.
Four-Year Profit Projection (Optional)
The 12-month projection is the heart of your financial plan. This section is for those who want to
carry their forecasts beyond the first year.
Of course, keep notes of your key assumptions, especially about things that you expect will
change dramatically after the first year.
Projected Cash Flow
If the profit projection is the heart of your business plan, cash flow is the blood. Businesses fail
because they cannot pay their bills. Every part of your business plan is important, but none of it
means a thing if you run out of cash.
The point of this worksheet is to plan how much you need before startup, for preliminary
expenses, operating expenses, and reserves. You should keep updating it and using it afterward.
It will enable you to foresee shortages in time to do something about them—perhaps cut
expenses, or perhaps negotiate a loan. But foremost, you shouldn’t be taken by surprise.
There is no great trick to preparing it: The cash-flow projection is just a forward look at your
checking account.
For each item, determine when you actually expect to receive cash (for sales) or when you will
actually have to write a check (for expense items).
You should track essential operating data, which is not necessarily part of cash flow but allows
you to track items that have a heavy impact on cash flow, such as sales and inventory purchases.
You should also track cash outlays prior to opening in a pre-startup column. You should have
already researched those for your startup expenses plan.
Your cash flow will show you whether your working capital is adequate. Clearly, if your
projected cash balance ever goes negative, you will need more start-up capital. This plan will
also predict just when and how much you will need to borrow.
Explain your major assumptions, especially those that make the cash flow differ from the Profit
and Loss Projection. For example, if you make a sale in month one, when do you actually collect
the cash? When you buy inventory or materials, do you pay in advance, upon delivery, or much
later? How will this affect cash flow?
Are some expenses payable in advance? When?
Are there irregular expenses, such as quarterly tax payments, maintenance and repairs, or
seasonal inventory buildup, that should be budgeted?
Loan payments, equipment purchases, and owner's draws usually do not show on profit and loss
statements but definitely do take cash out. Be sure to include them.
And of course, depreciation does not appear in the cash flow at all because you never write a
check for it.
Opening Day Balance Sheet
A balance sheet is one of the fundamental financial reports that any business needs for reporting
and financial management. A balance sheet shows what items of value are held by the company
(assets), and what its debts are (liabilities). When liabilities are subtracted from assets, the
remainder is owners’ equity.
Use a startup expenses and capitalization spreadsheet as a guide to preparing a balance sheet as
of opening day. Then detail how you calculated the account balances on your opening day
balance sheet.
Optional: Some people want to add a projected balance sheet showing the estimated financial
position of the company at the end of the first year. This is especially useful when selling your
proposal to investors.
Break-Even Analysis
A break-even analysis predicts the sales volume, at a given price, required to recover total costs.
In other words, it’s the sales level that is the dividing line between operating at a loss and
operating at a profit.
Expressed as a formula, break-even is:
Breakeven Sales
=
Fixed Costs
1- Variable Costs
X. Appendices



Financials
Blueprints and plans
Maps and photos of location
XII. Citations
1.
2.
3.
4.
5.
6.
7.
8.
The "Locavore" Trend
Concerns about Health and Obesity Trends I
An Economic Crisis that Brings Us back to Basics
The Green Movement
Demographic Shifts are Changing the Face of the Consumer
Especially where diet is concerned
https://lh5.googleusercontent.com/xyk8wWYl8NipEjLZcILY3qcyxlRYkFUFI3eme_rOjLL9
http://media.unwto.org/en/press-release/2012-01-16/international-tourism-reach-onebillion-2012
9. Agri-tourism: Cultivating Tourists on the Farm, Curtis E. Beus, The huge, dynamic industry of
tourism.
10. Overnight Eco-tourist Market Segmentation in the Gold Coast Hinterland of Australia. Weaver,
David, Journal of travel research /40. 2002
11. Journal of Hospitality & Leisure, Marketing, Are Green Tourists a Managerially Useful Target
Segment? Sara Dolnicar a & Katrina Matus
12. (Honey, 1999, Washington DC Press, Who Own Paradise?)
13. (Dean Runyan Associates, 2007)