bankable business for communal properties associations in
TRANSCRIPT
Bankable Business for Communal Properties Associations
in Tourism Presented by: Chanel du PlessisUrban-Econ Development Economists
Discussion Points
Who is Urban-Econ?
CPAs and their challenges
Need for a business plan
Idea formulation
Feasibility study criteria
Business plan component
What then?
33Years
ExperienceEst 1985
6Branches
6048Projects
Completed
18Countries Worked In
90Professionals
A proud member of
Communal Properties Associations (CPAs)
1. In 2002 the Department of Environmental Affairs signed an MOA with the Department of Rural Development
2. Biodiversity Economy Strategy
3. Protected Areas Governance - Transformation Programme
4. People and Parks Access and benefit sharing
Social and economic benefits
Good governance
Challenges faced by CPAs
1. Inconsistent & inefficient business operations2. Management Structures3. Poor infrastructure4. Market access5. Access to information, support & regulations6. Access to credit & finance7. Involvement and beneficiation of community8. Limited skills9. Tribal authority, CPA and Management Authority relation10. Land-use plans and agreements
Opportunities for CPAs
1. Wildlife economy (Hunting, harvesting, breeding, etc.)
2. Accommodation and hospitality
3. Tourist or field guides
4. Craft and related trades
5. Auxiliary services
6. Trade and catering services
7. Agricultural activities
8. Internal Economy
Need for a Business Plan
1. Business plan is a roadmap that helps provide direction to both start-ups as well as more established businesses
2. Identify and mitigate potential risks
3. Plan for the future through the use of financial projections
4. Guide operations
5. Plan and achieve the milestones set
6. To source funding or attract investors
Business Development
Idea
Feasibility Study
Business Plan
Funding
Implementation
Idea
Feasibility Study
Business Plan
Funding
Implementation
Idea
Business Development
Business Prospect Idea
Business Profile
Business Name Status Objective Technical
components
Idea
Feasibility Study
Business Plan
Funding
ImplementationFeasibility
Study
Business Development
Feasibility Criteria
1. Determining the suitability of the existing project for further development.
2. Assessing the location of the proposed project, and the infrastructure’s capacity.
3. Analysing the cost of current and potential operations.
4. Determining whether or not there is a market as well as sufficient room in the market for your idea.
5. Evaluating the viability of the enterprise
Locational Aspects
1. Zoning of land
2. Land claims and deeds
3. Settlement Agreements
4. Co-Management Agreements
5. Strategic Management Plan
6. Beneficiation structure
7. Community issues & in-fighting
8. National Environmental Management: Protected Areas Act [No. 57 of 2003]
Market Demand
Industry Overview
Industry Trends
and Problems
Potential Demand
Industry specific
risks
Target Market
Competitor Analysis
Business Viability
CAPEX• Construction Costs• Equipment• Improvement/ expansion• Acquiring intellectual
property assets
OPEX• Fixed expenses
o Wages/ salaries o Rent
• Variable expenseso Maintenance o Marketingo Rent, etc.
INCOME STATEMENT
BALANCE SHEET
CASH FLOW ANALYSIS
FINANICAL STATEMENTS
INTERNAL RATE OF RETURN
NET PRESENT VALUE
PROFITABILITY INDEX
PERFORMANCE INDICATORS
Impact Assessment
ProductionGDPEmploymentIncomeTaxes
CulturalSkills & EducationSocial StructuresBeneficiation
BiodiversityPollution
Sensitive Areas
Idea
Feasibility Study
Business Plan
Funding
Implementation
Business Plan
Business Development
Business Plan Components
1.
2. Market Analysis
3. Value Chain Analysis
4.
5. Operational Analysis
6. Property & Infrastructure Assessment
7.
8.
9. Statutory Requirements
10.
11. SWOT Analysis
12.
Marketing & Sales Plan
Management and Human Resources
Ownership Model
Concluding Remarks & Implementation Plan
Financial Analysis
Product/Service Analysis
Idea
Feasibility Study
Business Plan
Funding
Implementation
Funding
Business Development
Funding Channels
Idea
Feasibility Study
Business Plan
Funding
ImplementationImplementation
Business Development
Implementation Cycle
Business Plan
Secure Funding
Statutory Compliance
Professional Team
Implementation & Development
Operations & Maintenance
Monitoring & Evaluation
Final Tips for Success
1. Take other activities or future developments in the area into account
2. Keep the process transparent 3. Map the process forward – Implementation & Engagement4. Establishment of ownership, management and beneficiation
structures5. Provision and monitoring of Contractual Agreements6. Ownership and skills transfer critical for CPA’s7. Update the business plan regularly to take account of the
changing environment
SAVE THE DATE FOR OUR NEXT TOURISM TALK
Date: 17 May 2018
A platform for people interested in tourism
development to network and discuss
topical tourism issues in an informal
setting. @UrbanEconDevelopmentEconomists
THANK YOU
Chanel du PlessisUrban-Econ Development Economists
Tourism Planning and ResearchTel: 012 342 8686
Email: [email protected]