Executive Summary:

Proposed Merger of the Prince William Regional and Prince William County-Greater Manassas Chambers of Commerce

Why the Time is Right to Create the Prince William Chamber of Commerce

In recent years, east-west divisions in Prince William have begun to disappear with the formation of organizations that serve the entire community, such as educational institutions, parks and recreational facilities, and cultural resources. Improved transportation also makes Prince William accessible from east to west and north to south. Now is the time for the Prince William business community to unite and position itself to take advantage of its increasingly central location in the expanding Northern Virginia market.

As successful business organizations in strong financial positions, the Prince William Regional and Prince William County-Greater Manassas Chambers of Commerce have the resources and ability to form a new organization that offers businesses in the greater Prince William area increased opportunities and support. Uniting our business community will also strengthen the voice of our membership, allowing us to elevate the status of Prince William as a premier location in which to do business, work, live and play.

The new Prince William Chamber of Commerce will offer expanded services for the business community in Prince William County and the Cities of Manassas and Manassas Park. The Chamber will be a comprehensive resource for businesses of all sizes, geographic areas and industry segments, working in cooperation with local economic development and tourism offices to offer a “one-stop shop” for business needs.

The new Chamber will continue to offer outstanding member services, including business-building resources, education, networking and advocacy for its members. It will also coordinate with other regional and local business organizations to leverage collective membership influence and expertise. Members will enjoy unprecedented access to business leaders throughout the region, increasing sales and growth potential exponentially.

One united Prince William Chamber of Commerce will also strengthen our region’s economic climate in a way the two existing business organizations cannot achieve individually. The strengths provided by a singular organization will exceed those of the existing Chambers of Commerce, and the new, stronger voice created will more effectively champion the assets of the greater Prince William region to promote economic development and growth.

The Model

As envisioned, the new organization will initially have a combined central office and ultimately a signature headquarters with district offices to serve the membership. The district offices in Manassas and Gainesville will be maintained, with additional offices to be added mid-county and in the Quantico/Dumfries area. With locations throughout the Prince William region, Chamber services and events will be easily accessible to all area businesses.

This structure will also allow for increasednetworking options, giving members opportunities to build connections with fellow business leaders throughout the Prince William area and beyond.

Memberscan choose totarget aspecific geographic areaor focus their efforts community-wide. This regional approach will expand networking opportunities beyond those currently offered by either of the two existing Chambers and provide greater access to new and expanding markets.

The Prince William Chamber is envisioned as the “go to” place for business and industry, buoyed by partnerships with local economic development, tourism, workforce development and leadership development groups, as well as other business organizations. The synergy created by this union will improve decision-making, expand opportunities and position the Prince William area as THE place to do business in Northern Virginia.

The new Chamber will offer a diversity of programming. Every member—from small to large, nonprofit to corporate—will have access to services that will help them reach their unique organizational goals. Members will be offered more networking, more events, more marketing tools, more contacts, more choices, more exposure, more visibility and more influence.

Events and Programs

Current members will notice much that will be familiar in the new organization, with access to the best programming from both existing Chambers. Signature eventssuch as Connections trade show of the Prince William County-Greater Manassas Chamber and Valor Awards of the Prince William Regional Chamber will continue to be held. Additionally, other successful programming such as the Scholarship luncheons, Business Awards programs, events showcasing local restaurants, Business Before and After Hours and luncheon seminars will continue.

Members will continue to be the driving force for all programming and activities. New events will be developed in response to member needs and ideas as the new Chamber evolves with the needs of the business community it serves.

The Prince William Chamber will continue to offer numerous opportunities for involvement, including:

  • Small Business Services: Seminars, consultations, smaller networkingfunctions and other business-building activities
  • Legislative Connections: Presentations on local, state and national issues, opportunities to “meet and greet” policymakers and legislative updates
  • Community Outreach : Opportunities to get involved in the community and gain knowledge of nonprofit resources and enrich the lives of those who do business and live in Prince William

It is also envisioned that industry-specific programming will be offered, including unique services and networking opportunities for government contractors, technology firms, health and wellness providers and other interested industry segments.

Staffing

Existing Chamber leadership will be critical to the success of the new organization. Although many different staff leadership models have been considered, the new organization will be best served by a new chief executive who will marry the strengths and diversity of the existing organizations. A new CEO will allow the Prince William Chamber to form as a new entity, without the perception of allegiance to either of the original Chambers.

This selection process will be member driven. The transitional Board of Directors, comprised of members of each existing Chamber, will hire the new Chief Executive Officer. This CEO will lead the two existing Presidents of the respective Chambers to form a senior management team. Under this structure, members will benefit from the history and strong leadership of the past while forging the new organization.

The talents and experience of all existing Chamber stafflikewise will be essential. The executive team of the Chief Executive Officer and the two Presidents will work with the staff to create a solid, member-responsive team that builds upon their shared dedication to the Prince William business community.

Finances

The Prince William Chamber will start from an enviable position. Both existing Chambers are financially strongand have significant reserves. This is the result of a historic commitment to conservative financial projections and efforts to realize budgetary goals on the part of the leadership of both Chambers. The Letter of Intent, signed with the approvals of both existing Chambers’ Boards of Directors,mandates that the new organization maintaina balanced budget.

The preliminary fiscal feasibility of the merger has been assessed by a financial team lead by the treasurers from both Chambers. A pro forma budget was developed based on the two existing budgets, which both organizations have historically met and often exceeded.

Pro forma revenues were established by combining existing revenues and removing duplicate dues from businesses that belong to both Chambers, approximately 10 percent of dues revenue. The dues of the new organization will be structured fairly and equitably, based on the current dues structures of the existing organizations.

Likewise, pro forma expenses were based on existing expenses less those that were duplicative. Additionally, two new positions were included in the pro forma budget: the salaries of the new CEO and that of a government relations manager.

Following the tradition of conservative financial projections, the pro forma budget reflects no membership growth in the first year. In the future, the creation of one Chamber is expected to generate membership interest from companies beyond Prince William. Additionally, local organizations that previously refrained from joining either organization in a dual Chamber environment are anticipated to become engaged in a unified and highly visible Chamber.

The budgets of financially sound chambers of commerce increasingly rely on sponsorship versus membership dues income to fund member services. A conservative number of new sponsorships – particularly those that create founding member opportunities – were identified to enhance and balance the budget in the new Chamber’s first year.The expanded organization reaching the entire business community will attract new and upgraded sponsorships.

During year one, it is anticipated that the two organizations will establish a new central office and continue operating in existing facilities. The plan is for the Prince William Chamber to open its signature headquarters in year two. In year three through five, additional district offices would be opened, assuming that revenue meets expectations. Year two through five pro forma budgets include conservative projections for membership and sponsorship growth. Ultimately, the timeline for the addition of a signature headquarters, new facilities and other expenditures will be budget-driven, as the new organization will be committed to maintain the existing organizations’ tradition of balanced budgeting and fiscal responsibility.

Advocating for Prince William Businesses

As the Northern Virginia region expands to encompass Loudoun, Fauquier and StaffordCounties and the City of Fredericksburg, the Prince William area is central in the “new” Northern Virginia. A unified Prince William Chamber of Commerce can forge a new and energized organization that will be better able to enhance the competitive position of Prince William among its neighbors and establish itself as a magnet for new companies. This growth will create additional opportunities for existing businesses, expanding the local economic base.

Creating the Prince William Chamber of Commerce

On October 29, the Boards of Directors of both organizations unanimously authorized the signing of the Letter of Intent to explore a merger. During the two-year period that preceded the signing of the Letter of Intent, members of both Chambers participated in focus groups and served on steering committees and task forces. Many hours of volunteer time were spent defining the new organization’s vision, developing its structure and programming and examining the feasibility of its creation. Although much work has been accomplished, many opportunities exist for interested members to become involved in building an organization that will help them grow as businesses.

Over the next three months, numerous steps will be needed to create the Prince William Chamber. The Boards of Directors will first vote to sign a Merger Agreement, confirming their intent to merge. A 30-day due diligence period will follow, during which the financial records of both organizations will be scrutinized. Finally, both Boards will again vote to confirm their intent to merge. After this second merger vote, the members of both existing organizations will meet in separate membership meetings to vote on the merger. Assuming an affirmative membership vote, the final action to create the Prince William Chamber of Commerce will be filing legal documentation with the State Corporation Commission. The Prince William Chamber could be formed as early as Spring 2010.