INTRODUCTION

Can a Tourism/Recreation Enterprise Help Achieve Your Goals?

An Enterprise Assessment Handbook

Our chief aim for this resource-guide is that it be concise because we understand that your time is very valuable. But we have also strived for it to address the most important questions and issues that need to be considered for a new tourism/recreation enterprise. To that end we believe that it will provide valuable guidance, but it cannot provide all the answers on these topics. We have included an additional resources section at the end for those interested in more information.

This guide is designed to lead you through a process in a step-wise fashion so that you will have a clear idea about: 

1) whether a agritourism, nature/alternative tourism or recreation business will work for you, your family and your current ranch/farm operation, 
2) if the answer to the above is Yes-you will have a clear and specific idea about what that business will be, 
3) you will also have a first assessment of whether or not that business will be economically feasible, and 
4) you will have some plans about how to enter into that business based on sound research and planning. 

Tourism/recreation is significantly different from traditional ranching/farming activities. It will be necessary for you to put on a new pair of glasses when considering these opportunities. However, as those who have been in the business will tell you, it can be very compatible with a rural agricultural lifestyle, and it can provide significant benefits economically and in other ways. 

In addition to these ideas this handbook is

-for landowners who have an interest in tourism/recreation enterprises that take 
advantage of the natural and heritage resources of the land.

-a guide to information sources where landowners can pursue more in-depth answers to 
questions not fully covered in this handbook.

-focused on tourism enterprises, but the framework for decision making can be applied to 
other enterprises considered as alternatives to traditional agriculture products.

-designed so that landowners who complete the steps in this handbook will have the 
beginning of a business plan describing their enterprise and an estimate of its revenue 
potential.
Tourism enterprises--defined

For the purpose of this handbook, tourism (or recreational) enterprises are those that utilize the natural and heritage resources of the land, by inviting people to come on to the ranch/ farm to experience the unique natural, cultural and historic resources of their place, with the aim to create a sustainable income stream. 

This handbook is designed to

-be a 5-week assessment process, requiring about 2 or 3 hours of activities per week. Each weekly topic includes a section of the handbook, exercise and worksheet(s) to build on those topics. Some weeks require more time than others. Also, you could surely invest more time because you will likely benefit in the long-run.
-provide space for you to compile your ideas as you consider your own situation.
-have an exercise worksheet that accompanies each chapter that captures your ideas for your potential operation.
-result in a business plan framework at the end of the process, e.g., topics addressed in the worksheets can be inserted into an outline to become the beginning of your business plan including a five year projection of revenues and costs.
 

Contents
Introduction

I. Getting Started
    1.1 What are my options?
            Tourism and recreation options for my operation
            Defining tourism and recreation products
    1.2 Where do I want to be?
            Why tourism
            Thinking about your values and goals, where do you want to be in the next
     1.3 Tourism/recreation: is it for me and my family?
            Tourism recreation ingredients for success
            Evaluating your initial potential

II. Enterprise Selection and Product Development

     2.1 What do people want and what will they pay for?
            Perspective 1: Market perspective
            Perspective 2: Resource perspective
     2.2 Market Perspective
            Information gathering methods
            Information gathering questions
     2.3 Resources Perspective
            Important note about resources facilities and planning
            Comparing with others
            Other useful resources
     2.4 Does the enterprise match my resources and the market?
            Do these enterprises fit with my current situation--Ranking possibilities
            Time allocation
     2.5 Interpretation Plan
            Definitions 
            Principles of interpretation
            Developing the story of your place

III. Creating A Financial Plan 

     3.1 Defining your product: The Experience 
            #1 Enterprise
            Experience description activity
     3.2 What is a financial plan?
            Mr. Js cattle ranch
            The Question-- Can Mr. Jones meet his goals with this idea?
     3.3 How do I determine if I will make money?
            Getting started questions
            Project gross revenue
            Projecting expenses
            Projecting net income
            Creating income and cash flow projection

IV. Developing a Marketing Plan

     4.1 What is marketing?

     4.2 How do I create a customer profile?

     4.3 How do I describe my ideal customer?

     4.4 Marketing Methods
           Table of options
           Selected promotional pieces
           Web sites
           Developing a brochure
     4.5 Better understanding where your customers come from?

     4.6 How do I evaluate the plan?

V. Enterprise Selection & Moving Forward

     5.1 How do I make and evaluate my decision?
            Revisiting goals
            Exploring Alternatives
     5.2 Next steps in more detail?
            Completing your business plan
            Legal and regulatory issues
                 Legal forms of business
                 Liability and insurance
                 Regulatory Issues
            Risk Management-Reducing Liability and Financial Risks
            Resource Assessment, Site/Activity and Facilities Planning
            Taxes
            Employees
            Administrative planning
            Reservation Requests
            Office Equipment and Supplies
            Bookkeeping/Accounting
            Job Responsibilities
            Safety procedures
            Operation planning
            Customer service planning 

Appendixes: More details on a few topics
     Appendix A. Business plans
     Appendix B. Forming a business
     Appendix C. Liability exposure and insurance
     Appendix D. Helpful Resources by Topic 
          Goals writing
          Comparables
          Financial planning
          Business plans
          Marketing
          Information on Developing Interpretive Materials
          Texas Organizations Providing Assistance for Tourism
          A short list of ranches with nature-based tourism/recreation enterprises

Worksheets

     W1: Potential Enterprises
     W2: Resource Map
     W3: Enterprise Information Gathering
     W4: Operating Schedule
     W5: My Enterprise Description
     W6: Financial Plan
     W7: Marketing Plan
     W8: Next Steps