Business Plan


Table of Contents


1.Executive Summary
2.The Company Storefront
3.Objectives
4.Management and Personnel
5.Market Analysis – Customers
6.Competition
7.Marketing Strategy
8.Pricing and Profitability
9.Operations
10.Financial Statements



1. Executive Summary


You are invited to visit rural Nevada and experience all the outdoor recreation, state and national parks, and many unique attractions like the Ghost Train of Ely or the California Trail Center in Wells. Millions of dollars will be spent on television ads, full color print ads, websites, travel and trade shows, and countless brochures to highlight the attractions of each rural community. When you arrive in the community and have questions or need assistance, you may or may not find a welcome center or friendly person to help you. Why??? Because with all the funding spent on enticing you to come visit, there is no reliable funding to make sure an office or staff person is there when you arrive.

What business would spend huge amounts to advertise and then have the store closed when you go there? Not one that wanted to stay in business.

But this is exactly what is happening with the marketing of rural Nevada. The entire world is invited to come experience the other side of Nevada, but no one makes sure the welcome mat is out or someone is there to answer questions.

Every rural community in Nevada has a Chamber of Commerce but most are only open on a limited schedule, some as little as a few hours a week. Most are staffed by a part-time person or a volunteer. This is not adequate to serve all the visitors everyday.

A look at the Survey conducted last fall by the Rural Nevada Associated Chambers shows the impact that a few volunteers with limited resources can make on an area. Think what could be accomplished with full time staff in a facility with modern equipment.

Case study. This past July 4th, the community of Ely hosted a five-day event that attracted several hundred persons who stayed a total of 1345 room nights. Using the Nevada Commission on Tourism formula of $125 per person per day, this resulted in an impact of over $13 million. Every hotel was full. Every restaurant served many extra meals, local service organizations hosted barbecues and breakfasts which generated funds, and people enjoyed events during the five days that they will be talking about for years. All of this was done with volunteers working with one staff person at the local Chamber office. If this kind of event can be done with volunteers working on limited budget, think what can happen in rural Nevada if the product and service of tourism is presented like any other business would market its product line to its customers.


2. The Company Storefront

No business expects to be successful without a storefront for its customers. Tourism and economic development are no different. When people want to buy a product, they expect a location in which to obtain that product.

The most successful businesses have developed franchises where the same store is available in many locations. Customers know what the product/service line is; they can count on consistent menus, service, hours, and convenient facilities. Each McDonalds offers the same menu at the same price with convenient hours, a playroom, and handicapped restrooms. People know what to expect when they enter a McDonalds whether it is in Los Angeles, Salt Lake City or Elko. Customers have come to depend on the consistency of the business.

Nevada tourism and economic development have the same structure of storefronts available – the local Chamber of Commerce office. Visitors know they will receive friendly service, helpful brochures, current information, and a chance to meet and talk to a local resident of the area.

Reno-Lake Tahoe and Las Vegas recognize the importance of the CVA or Chamber of Commerce. The executives and their staff who operate these facilities are highly trained, well-paid people who know the economic benefit they bring to their local economy as well as the state.

Most rural towns in Nevada have had Chambers of Commerce actively working in their towns for many years. The White Pine Chamber of Commerce in Ely has been serving the entire county for over 80 years.

One or two staff people with a few volunteers generally run the Chamber storefronts. Most Chambers are funded by member dues, which may cover the bare necessities of a roof over their head and utilities. Additional funding may come from room tax money according to NRS 244A.621 “The county fair and recreation board, in addition to the other powers conferred upon a county fair and recreation board by NRS 244A. 597 to 244.655, inclusive, may … solicit and promote tourism.”

Volunteers are critical to the task of promoting rural Nevada. This is best demonstrated by the attendance each year at Rural Round Up. Three to four hundred people (many times the same people) show up year after year, eager to learn the most effective ways of promoting their area, making people feel welcome, and finding revenue sources.

The grant requests from each community each year demonstrate the critical need for funding each area faces. There is no lack of events and attraction to promote. Nor is there a lack of volunteers to assist, but there certainly is a need for funding.

In most cases, rural Chambers ask for room tax money from their local CVA or fair and recreation board and get a small donation for yearly operating funds. In the case of the White Pine Chamber of Commerce, the grant award is .05% of the total local room tax revenue. This usually amounts to about $20,000 per year of $450,000 - $500,000. $20,000 does not go very far for facility and staffing needs. Other rural Chambers face the same funding issues from their local fair and recreation boards as can be seen in a review of the RNAC Member Survey, page 3.

What successful business would try to operate with a staff of mostly volunteers in storefronts, which are open only on a limited basis?

If you invite people to visit, shouldn’t someone be there to welcome them?


3. Objectives

The goal of rural Nevada as represented by the Rural Nevada Chambers is stated in our mission statement: Promote the economic development and tourism in Rural Nevada for the benefit of all Rural Chambers of Commerce.

This goal reflects what the Nevada Commission on Tourism and the Nevada Commission on Economic Development strive toward in their efforts to promote and develop rural Nevada.

The marketing strategy of the Rural Nevada Chambers is to work in conjunction with the Nevada Commission on Tourism and Nevada Commission on Economic Development to inform interested visitors and businesses of the opportunities in Nevada. Websites, brochures, trade shows, television and print advertisements, seminars, and familiarization tours are all used to promote Nevada. Nevada spends a great deal of money on all these means of promotion, but when the visitor comes to the local community, who is there to greet him or her and answer questions?

A case in point can illustrate the importance of a live person in greeting someone. A visitor and his wife walked into the Chamber office about three years ago. They had traveled through here for years visiting friends and family. They wanted to relocate their business to eastern Nevada which was midway between locations they traveled to and from. A few phone calls later, they had appointments with local realtors, the economic development office, and city hall. The business is now relocated with 15 – 20 new jobs and the couple has purchased a home here. Being able to meet face to face with someone who knew who to call provided what they were looking for and resulted in a new business for the community. Ely has seen nearly twenty new businesses in the past three years open here (resulting in over 100 jobs) who made initial contact through the Chamber office.

Providing this type of individual service in promoting what rural Nevada has to offer is our main objective.

Long term objectives include having a fully staffed, facility available in each community that can provide local information for those visiting and/or looking to relocate themselves and/or their businesses.


4. Products and Services

Rural Nevada offers a variety of products (attractions) that the visitor is looking for.

These range from State and National Parks to multi-use trails, and outdoor recreation opportunities including hunting, birding, and fishing. Each rural community has special attractions to draw visitors. The Ghost Train of Ely, Stokes Castle of Austin, the Eureka Opera House, and the Hoover Dam in Boulder City, the Colorado River in Laughlin and many more offer a variety unmatched in other states. Special events vary from open road races to rodeos to Native American Pow Wows to Pony Express Re-Rides. Horse races, county fairs, railroad events, car shows, motorcycle and BMX bike races all draw fans as well as participants.

The service that is offered in rural Nevada at the Chamber offices is the one-on-one experience for a visitor to meet and talk with a local. People from other states and especially other countries want a chance to talk to someone who lives in the area and can tell him or her about life here. People ask “What do people do for a living here?” “Why did people come here?” “What do you do for recreation?” “Where is the best place to eat?” “What events are happening this weekend?” The one-on-one chance to talk to someone is critical to making people feel welcome. Chambers often receive letters from visitors after they get home where they mention how much they enjoyed meeting locals and having the chance to talk to them. Often these become long time contacts when people plan to return or send their friends to Nevada.

Travelers know that if they come into a Chamber office, they can get current, accurate, information, colorful brochures and maps, business or attraction recommendations, and calendars of events. They may also get goodies to take home like a CD of the area or key chains or pins (which people collect). Sometimes they need to get special service. People who are stranded because of car trouble may need help with a rental car or other transportation. They may need medical assistance or rooms for a day or two. People often have items sent to the Chamber office when they are on the road and need an item sent to them. The White Pine Chamber recently had a person traveling by motorcycle receive a new breathing machine shipped to him. People stop in to use the internet to get email or do research. A family from England communicated by email for several months as they planned their trip to central Nevada. When they arrived in Ely, they learned that the McGill Swimming Pool, a sand-bottomed natural spring fed pool, was open. The two boys in the family spent a great day swimming in an old-fashioned pool.


4. Market Analysis – Customers

Our customers come from all over the world. Everyone wants to visit the west and Nevada in particular. For most travelers, the trip begins in either Reno-Lake Tahoe or Las Vegas. Both of those areas have lots to offer, but people then want to venture into rural Nevada to see the other side of Nevada. Nevada Commission on Tourism knows this market well and how to attract visitors. Rural Nevada can piggyback on this expertise and market what we know best – rural Nevada.


5. Competition

Our competition is any other vacation place. But our advantage is our front door – Reno- Lake Tahoe or Las Vegas as a starting place. No other place on earth can offer what either of these two places can. Rural Nevada adds real western experience with history in an authentic setting. Our outdoor recreation opportunities further enhance what rural Nevada has to offer.


6. Marketing Strategy

Our strategy is to continue to work together with both the Nevada Commission on Tourism and Nevada Commission on Economic Development to provide the product and service to those visiting the area. The Rural Nevada Associated Chambers organization offers a collective marketing group with rural communities working together. We are not in competition with each other, but realize that if people don’t come to our town on this trip, they will come on another trip. Every community benefits when people come to rural Nevada.

In addition to the state entities, each community works with its Territory on a regional level to market its attractions.


7. Pricing and Profitability

Pricing for any business is determined by what goods cost. Part of that cost is the cost of advertising. If the state of Nevada is marketed world-wide with glitzy television ads, catchy phrases (What happens here, stays here), and full color print ads, doesn’t it make sense to spend some money on the local storefront so people have a local contact point? Merely providing a website or a brochure won’t keep the customer happy if he has car trouble or needs specific information. There is no price that can placed on this type of service, but there will certainly be a cost if the visitor has an unpleasant experience because he couldn’t get help when he needed it.


8. Operations

Each Chamber office is conveniently located in the heart of the rural community. They provide an outlet for printed material, internet access, local travel information, and current calendar of events. For special needs, the Chamber staff knows whom to call in an emergency, where medical help can be obtained, and countless other services that may be needed.

Case in point. A few years ago, a van with a dozen international travelers had an accident about thirty miles outside of town. EMT’s were dispatched with the ambulances. When they arrived on scene, they found people with serious injuries who did not speak English. They took care of the most pressing needs and transported the visitors to the local hospital. When they arrived, someone thought to call a person from the local Chamber of Commerce to find out who spoke various languages. In a short time, people were contacted who spoke Spanish, German, French, etc who came to the hospital to helped translate and assist the hospital personnel. This certainly made the visitors feel more welcome and taken care of.

Often people have emergencies while traveling. Having a contact point in each community to assist helps make their trip much better. You can be assured that people will talk about the care they received, or did NOT receive, when they get home.


9. Financial Statements

Each rural Chamber receives some funds from their members, but there are only so many businesses in each town and they have limited resources. Room tax money may be available but most of the rural Chambers receive very little of that. Grants are only available in a limited amount and are very specific in what they may be used for and cannot be used for facilities or staffing. Special events can generate some revenue but this is limited. Most events are lucky to break even, let alone make a profit.

A reliable source of income is needed to operate rural Chambers for the benefit of the entire state.

What each community has to offer is a ready source of knowledgeable, friendly, and willing people to staff a working office.


11. Summary

Chamber of Commerce offices in rural Nevada function as the host for the community. When people have been invited from all over the world to visit Nevada, they enjoy (and expect) to meet local people as they arrive in each community.

As the tour business and international market expand in Nevada,. The critical need to utilize the local storefront will only increase. When we travel to someplace else, especially a foreign country, we want to meet people from the area we travel to. We want to feel welcome and be able to ask questions. Guests coming here feel the same way. Chamber staff are interested in greeting visitors and are trained to know their area. Why not use this resource of a local storefront to assist the visitor? Working together, all of Nevada benefits.