How feasible is your new adventure business?

 Adventure Parks, Business Planning, Zip Lines  Comments Off on How feasible is your new adventure business?
Aug 182014
 

2014-06-26 11.13.27

One of the most common questions that we get from prospective clients is whether or not their new business will be profitable. Most potential business owners want us to come to their site, evaluate their business model, check out the land, scope out the competition, crunch some numbers and give them a 100% thumbs up or thumbs down.

Easy, right?

Well…it’s not always that simple. There are a variety of factors that we take into account, any of which could be a make-or-break for the business. What we have done is devise a point-based system that will help determine the success of your business (and no, no one has ever scored a perfect 100%!)

Here are some of the factors that we look at, and questions that any new business owner, whether it is a zip line tour, aerial adventure park, climbing gym, or some other type of adventure business should be asking:

  • How far away is your land from the nearest population or tourist center?
  • How much space does the land have for your proposed attraction, and for future expansion?
  • Is the land currently zoned for commercial use?
  • Does your management team have adventure business management experience? What about other business management experience?
  • Who else do you plan to have on your team, and how much relevant experience do they have?
  • Is your project already capitalized or do you need investors? If so, are the investors already in place?
  • How much of a financial cushion does the business owner have? Are you able to go several months without generating revenue?
  • Who is your target market and where are they coming from?
  • Who are your competitors, and how high-quality are their services compared to your projected business?

If you see a question that you are not sure how to answer, or if you want to know your feasibility score, contact us at (888) 553-0167 or email us at info@strategic-adventures.com to learn more.

We look forward to hearing about your new projects!

http://www.strategic-adventures.com/content/feasibility-studies

The Importance of a Business Model

 Adventure Parks, Business Planning, Value, Zip Lines  Comments Off on The Importance of a Business Model
Mar 202013
 

It’s no secret that one of my favorite shows on television is Shark Tank. My other favorite is Hell’s Kitchen, but that’s a different blog post… On Shark Tank, business owners present their companies and ideas to a panel of successful investors by doing a quick 3 minute presentation before the “Sharks” start asking questions.

The first question is almost always “what are your sales so far?” In other words, are people buying what you are selling? If the answer to that question is a very low number, the sharks ask why no one is buying yet. If the answer is a large number, the sharks will wonder why the business owner is seeking more funding. What they are really trying to discover is what business model the owners are using. How is the business engaging clients and making money?

A business model as several key components that you must consider whether you are starting a new business or looking to grow an existing one. They include:

  • Your Target Market
  • Your Value Proposition
  • Sales Channels
  • Client Engagement Strategies
  • Key Activities of the Business
  • Key Partnerships
  • Key Resources
  • The Cost Structure
  • and Revenue Streams

If one of these components are missing from your business plan or strategic plan, you are not going to be as successful as you could be. One recent contestant on the show recently stated to the sharks when they asked about her business model “We don’t have a business model, we’re making this up as we go!” It should be very telling that all of the sharks lost interest the second that came out of her mouth.

What is your business model? Could you explain it to someone in a few minutes?

Paul

(My 10 year old typically watches the show with me. Last week I had missed the intro of one of the presentations and I asked him what was going on with the proposal. He replied “He’s been in business for six weeks, has $10,000 in sales and is giving his company a valuation of $500,000. I think he’s going home disappointed.” That’s my boy!)

http://www.strategic-adventures.com/content/business-plans

4 things investors want to see in your zip line business plan

 Adventure Parks, Business Planning, Zip Lines  Comments Off on 4 things investors want to see in your zip line business plan
Jan 222013
 

When you are writing your business plan, or having someone write it for you there are four key elements that you want to be sure are detailed in your plan. If investors don’t see all four of these elements, your chances of being funded are greatly diminished.
1. Detailed Financials – This should go without saying, and yet it is surprising how many plans we see here at Strategic Adventures that have minimal financial data. You need at minimum a Profit and Loss Statement, a Balance Sheet, Cash Flow Statement, industry related Business Ratios, and a detailed Start Up Cost Analysis. You should also be prepared to have your personal financial statements and tax returns reviewed.
2. A Business System – Investors also want to see that you have a well thought out method of operating. How are you going to run the day to day business? What marketing tools will you be implementing? Who is responsible for doing what in your business?
3. Experience – You need to show that you and/or your partners have experience in either running a business or in the industry you’ll be operating, preferably both. It may be time to brush up that resume!
4. Skin in the game – What level of financial commitment are you personally making in the new business? Investors don’t want to be in the position of holding all of the responsibility if the business hits a rough patch. They want to be sure that you won’t just walk away!

So as you’re preparing to make your plan or if you think you are ready to present a plan you’ve written, be sure you are covering the above points in as much detail as possible.

Paul

P.S. Are you getting a bit overwhelmed with writing a plan on your own? We can help! Call our office today at 1-888-553-0167 for a no cost consultation.

http://www.strategic-adventures.com/content/business-plans

The Greatest Zip Line in the World!

 Adventure Parks, Marketing, Zip Lines  2 Responses »
Dec 052012
 

Every day, I see marketing for the biggest, fastest, longest, blah blah blah zip line tour. And it’s all crap.

Why? Because that’s why people come the first time, but has zero relevance on whether they come back. If you want a zip line tour that is successful for the long term, you NEED people to come back and what gets them back is your quality of service coupled with how accurately your tour is presented in your marketing.

Case in point: I was developing a feasibility study for a client and had to go ride the competing tours in the area. I know, I suffer for my craft… Anyway, the first tour I visit said on their web site that they had the only tour in the area with zero hand braking. Intrigued, I booked my tour. Upon arriving at their office I signed my liability waiver. As I handed it to the check in person they loudly proclaimed “First to sign, first to die!” I was stunned. If I hadn’t been “undercover” I would have let loose on this unsuspecting individual. However, I kept quiet and waited for the rest of our tour group to finish signing their lives away.

On to the course! As with most tours, we start on a short training line to get everyone ready to tackle the longer lines. Now, guess what they show us how to do… Hand Brake! And not only do they show us how, they proceed to tell us that it is required for every single one of their 12 lines. Major disappointment.

From there I witness many other gaffes:

  • Guides not clipping in on platforms
  • Duct tape being used to finish cable ends
  • More jokes about safety and the impending doom of each rider
  • and many others…

    • All told, one of the worst experiences I’ve had on a zip line/canopy tour. Now hopefully I’m not describing your course! However, take a look at your marketing and see how it compares to the actual experience. It may be worthwhile to hire a secret shopper or two and get some solid feedback to see how your business is or isn’t attracting repeat business.

    Paul

    Perspective

     Photography, Project Management, Zip Lines  Comments Off on Perspective
    Nov 192012
     

    I was having a wonderful conversation with a fellow photographer the other day and we were discussing how our perception of our surroundings have changed since we started our journeys as photographers. How we notice the changes of color in the clouds as the sun rises and sets in the sky, and know how long the color will last (20 minutes at most…) How the right angle can make a rather boring scene more interesting. How leaving an element out of a photograph can have more impact than having it in.

    I was brought back to this conversation this morning as I was reviewing some financials for a client. They have been struggling a bit with their profitability and hired us to do some investigative work for them to see what might be the cause. Just as I was getting ready to close the file, a number hit me as out of place. There it was, just like the moment when the lighting is just right for a photograph, I knew I found what I was looking for.

    Just as a rock climber cannot look at a cliff without trying to figure out a route, or a cyclist cannot drive up a hill without imagining the ride, you have a unique perspective in your work and your hobbies. That perspective helps you do whatever it is that you do better. How has your perspective changed as a result of your experience?

    Paul

    The 4 things every business owner must know, part 1 of 4

     Marketing, Zip Lines  Comments Off on The 4 things every business owner must know, part 1 of 4
    May 172012
     

    The very first thing you must know about your business is that you are a sales and marketing firm. It doesn’t matter if you operate a zip line tour, a challenge course, a whitewater outfitter, or are an experiential trainer. Your very first priority is to market and sell your services.

    “Nothing happens until we sell something”

    I first saw this phrase on a sign in a clients office and it immediately rang true for me. It really begins at the start of your business. You have to sell people on the idea of your new venture… the banker, your spouse, your new employees, and especially the community! Only then can you even begin to think about marketing and selling to paying clients.

    Speaking of paying clients, do you have a great marketing plan and sales process to make it easy for them to buy your services? Do you have it written down? And have you given it to your employees so that they understand what your expectations are?

    If you don’t, go do it now. It can transform the way clients interact with you and re-energize your business!

    In the words of Dennis Miller, “But that’s just my opinion, I could be wrong.”

    Peace, Love, and Marketing! (and Selling!)

    Paul

    Are Adventure Parks hotter than Zip Line Tours?

     Adventure Parks, Zip Lines  Comments Off on Are Adventure Parks hotter than Zip Line Tours?
    Apr 262012
     

    Judging by the inquiries we have received over the last month, I’d venture to say yes. We are also seeing much less push back from the surrounding communities when these aerial adventure park projects are being batted around at the county and state level, which I find interesting since many of these parks include zip lines. Has the recent negative press put zip lines and canopy tours in a defensive position? Share your thoughts!

    Paul

    Zip Lining in South Park

     Marketing, Zip Lines  Comments Off on Zip Lining in South Park
    Apr 242012
     

    Zip Lines have officially hit pop culture. Last week, the latest episode of the cartoon South Park did a not so nice parody of the boys going on a zip tour. While they say that any publicity is good publicity, the episode actually pointed at some of the weaknesses in the average zip line experience.

    If you want to see the episode, you can find it online. I’m not going to provide a link due to the crude nature of the show, but if you really want to see it you can find it. Let’s just say that their experience is not what they expected it to be.

    While I was watching it, I was struck by how I have actually had many of the same experiences when I’ve gone on various zip tours. I’m not going to name names, but feel free to ask me if one of them was at your tour. Here are some of the take-aways:

    • The anticipated experience – The experience you market must match the experience you deliver. If you don’t know, hire a secret shopper to evaluate it.
    • Feigned enthusiasm – Clients can tell if you are being fake with your smile, your manners, and your enthusiasm. Be real.
    • Branding Image consistency – Nothing screams adventure like an airport shuttle bus. (This is sarcasm, although Stephanie has quite a story about a recent Super Shuttle experience…)

    So, what can you do to improve the delivery of your services so that they are genuine, consistent, and enticing people to come back for more?

    Paul

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