Developing Your Airport s Business Plan

1. Developing Your Airport�s Business Plan Bobbi Thompson Airport Business Solutions

2. Why Do You Need a Business Plan? Identifies where you are and where you have been Establishes goals and objectives Reference document for different departments and employees Reference document for contract service providers

3. What is Your Business? Can you easily describe your airport�s business activities? Can you easily describe your airport�s specific business function? What are your airport�s strengths and weaknesses?

4. Mission Statement A clear statement of your airport�s short and long term mission. Identifies and directs the growth of your airport. It should be as brief and concise as possible.

5. Mission Statement Why does the airport exist? Who is our customer? What services do we offer? Where do we want to go from here?

6. Goals & Objectives Are the airport�s goals the same as their current activities? What is realistic and objective? What should the plan accomplish? Operational strategies Planned enthusiasm Growth Revenue enhancement Operational efficiency Management documents

7. Development Team Identify key staff people Consultants Local business leaders Airport Commission Community Leaders Tenants

8. Team Structure Identify the hierarchical structure of the airport Organizational Chart Flow Chart Establish the responsibilities of each team member Assign specific tasks Determine milestones

9. Business Plan Components Business Goals Financial Plan Marketing Plan Management Documents Updates Plan Manager(s)

10. Goals & Objectives Be Specific How much? When? Percentages Goals Financial Growth Improved services Better tenant relations Better community relations

11. Realistic Goals What is obtainable? 20% growth? 5 new tenants? Customer satisfaction? Improved relationships? Cost/Benefit Analysis Long Term Process

12. Financial Plan Business Plan Budget Revenue Projections No Action, moderate success, & maximum success Expenses & Expense Projections Marketing Budgets Internal Other funding sources (DOT, Economic Development Groups) What happens when the budget changes?

13. Information Resources Airport personnel Industry associations Community involvement Airport records Master Plan Airlines Tenants Other airports

14. Market Summary Objectively evaluate the market Past, Present, Future Review the changes in market share, leadership, players, market shifts, costs, pricing, or competition that provide the opportunity for the airport�s success.

15. Marketing Plan Know the airport�s strengths and weaknesses Identify your competition How do you compare to the competition? Be creative (avoid the same old, same old) Sell the sizzle

16. What are our benefits? Land for lease Terminal Space Growing Market Intermodal Attractive lease terms Quality Infrastructure Good community relations

17. Marketing Plan Identify your service area Identify your targets Users Tenants Define how you will get your message out (e.g., personal visits, mailings, open house, promotional items, conferences etc;)

18. Who is My Competition? Internationally Nationally Locally Operationally Perceived or Actual Now define your Airport�s competitive advantage

19. Potential Obstacles Community concerns Noise Accidents Political opposition Changes in leadership Financial constraints Local, State or Federal Physical constraints Limited land availability

20. Opportunities Clearly state and understand the airport user�s problem, and define nature of product/service opportunities created by those problems.

21. More Goals & Objectives Immediate Goal Finish the plan Distribute the plan Identify and seek funding Five Year Goals Specific measurable objectives Market share objectives Revenue/profitability objectives

22. Financial Plan Funding for development of business plan Cost to get the airport ready to �sell� Financial model Business plan cost Marketing cost Plan updates and tracking expenses

23. More Financial Planning Financial Projections Expected new profit centers Retaining current business Cost of no action Three year projections Five year projections

24. Getting Ready to �Sell� How does your airport look to users? Do you have an efficient method of working with new and existing tenants? When they call, will you be ready?

25. Management Documents Operating Documents Minimum Standards Leasing Policy Rates & Charges Policy Rules & Regulations Corporate Self-Fueling Policy

26. Minimum Standards FAA definition � �Qualifications which may be established by an airport owner as the minimum requirements to be met as a condition for the right to conduct an aeronautical activity on the airport� One size does not fit all Be specific (avoid interpretive terms) Threshold requirements Protection for current and future tenants

27. Leasing Policy Procedures for issuing, monitoring , renewing and assigning leases Applications Forms, time frame, deposits, references, etc; Grounds for denial Standard lease language Insurance requirements, EEO language, default and bankruptcy procedures, etc.

28. Leasing Policy Base requirements Experience in the field Funding Building facilities or leasing existing ones When to use competitive bids FAA position Local position Practical position

29. Rates & Charges Policy Provides defined guidelines for rate-setting methodologies and adjustment, not the actual rates Definitions and types of rates and fees Goal of self-sufficiency Cycle for modification of policy Lease language

30. Rules & Regulations Designed to set forth the rules and regulations for the safe, orderly, and efficient operation and use of your airport and to protect the public health, safety, interest and welfare of airport users Does not duplicate Federal, state or local laws, ordinances or regulations Vehicles, hangar use, fueling, equipment, training, accidents/incidents, reporting, etc;

31. Corporate Self-Fueling Policy FAA definition �Fueling or maintenance of an aircraft on airport property, performed by the aircraft owner or operator in accordance with the airport�s reasonable standards or requirements and using fuel obtained by the aircraft owner from sources of his/her preference.� Establishing thresholds and standards Monitoring activity Co-ops and consortiums

32. Business Plan Review Who will review? How or the process for the review? Modifications after the review (who/how) Time Limits � clearly define how much time for review and changes

33. Implementation? Resource requirements Personnel requirements Financial requirements Time allocation Corrective actions

34. Milestones Draft Plan Final Plan Funding First Marketing Effort Review of Marketing Effort Annual Modifications to Plan

35. Risks & Rewards Rewards Improved community relations Increased revenue Increased efficiency Improved tenant relations Increased activity More effective operating documents Risks Not finishing the Plan Not updating the Plan Poorly constructed Plan

36. Living & Breathing Document Airport changes Economic changes Management changes Regulatory changes Legislative impacts Modify to keep up with the industry

37. Trite, but True Failing to plan, is planning to fail Do what you have always done, and you will get what you have always gotten. Garbage In � Garbage Out

38. Thank you for your attention! For more information: Bobbi Thompson Airport Business Solutions (239) 573-9647 bthompson@airportbusiness.net