West Traverse Academy

West Traverse Academy

Business Plan

Traverse City, Michigan

616-920-9048

Joseph P. Helgert, Ph.D. and Daniel S. Paulson, M.S., Co-Founders

Table of Contents

Abstract………………………………………………………………………………………….4

1. Executive Summary…………………………………………………………………5

Summary of Situational Analysis……………………………………………….5

Key Recommendations………………………………………………………….7

Opportunity Summary…………………………………………………………..8

1. Invitation…………………………………………………………………………….10
2. Situational Analysis…………………………………………………………………10

European Model…………………………………………………………………10

Programs of Study………………………………………………………………11

Site Background…………………………………………………………………13

Transportation…………………………………………………………………...14

Demographics……………………………………………………………………17

Tourism………………………………………………………………………….19

Education………………………………………………………………………..19

Environmental Education……………………………………………………….20

1. Strategic Objectives…………………………………………………………………23

Innovative Community and Student Support…………………………………...23

Strategic Goals………………………………………………………………….23

Keys to Success…………………………………………………………………23

1. SWOTT Analysis……………………………………………………………………24

Strengths…………………………………………………………………………25

Weaknesses………………………………………………………………………25

Opportunities…………………………………………………………………….26

Threats…………………………………………………………………………… 26

Trends……………………………………………………………………………26

1. Company Background……………………………………………………………….27

Company Ownership…………………………………………………………….27

Start-up Plan……………………………………………………………………..27

1. Key Products and Services…………………………………………………………..28

Description – Qualities and Dimensions of Effective Environmental Education. 28

Specific Programs / Components………………………………………………...28

Promotional Materials…………………………………………………………… 30

Technology………………………………………………………………………30

1. Future Programming/Products……………………………………………………….31

E-Curriculum Delivery…………………………………………………………..31

Future Development……………………………………………………………..31

1. Market Analysis……………………………………………………………………...31

Market Needs…………………………………………………………………….31

Market Potential………………………………………………………………….36

Market Volume…………………………………………………………………..36

Competitive Analysis…………………………………………………………….39

Industry Market Size and Projections……………………………………………43

1. Marketing Summary………………………………………………………………..44

Market Segmentation…………………………………………………………..44

Target Market…………………………………………………………………..44

Industry Analysis……………………………………………………………….45

Competitive Factors…………………………………………………………….46

Key Competitors………………………………………………………………..46

1. Strategy Implementation Summary…………………………………………………47

Strategy Pyramids……………………………………………………………….47

Competitive Edge……………………………………………………………….48

Marketing Strategy……………………………………………………………...50

1. Management Summary……………………………………………………………...50

Organizational Structure…………………………………………………………50

Communication Plan…………………………………………………………….50

Management Team………………………………………………………………50

Human Resources………………………………………………………………..51

1. Financial Plan………………………………………………………………………..53

Key Assumptions Used in Forecasting………………………………………….53

Key Financial Indicators…………………………………………………………54

Operating Budget………………………………………………………………..56

1. West Traverse Business Incubator (WTBI)………………………………………….65

Overview…………………………………………………………………………65

Mentoring Team…………………………………………………………………66

Invitees………………………………………………………………………….66

WTBI Start-up Budget…………………………………………………………67

Source and Application of Funds……………………………………………….68

Risk Analysis……………………………………………………………………69

Balanced Scorecard for Educational Business Unit…………………………….69

1. Conclusion………………………………………………………………………….71

Now it is your turn……………………………………………………………..71

References………………………………………………………………………………………72

Appendices……………………………………………………………………………………..73

1.Strategic Goals and Objectives…………………………………………………………73

2.Human Resource Plan…………………………………………………………………..77

3.Milestones………………………………………………………………………………84

4.Credentials………………………………………………………………………………85

5.WTBI Cash Flow Projection ………………………………………………………….87

Abstract

Youth of today look at the improving economy and ask, “Where do I fit?” They look at the many students who attended traditional colleges and universities and graduated with enormous student loans to pay on for the rest of their lives, and say, “I don’t want that!” They see the stalemate in government and how the inability to pass progressive legislation is adding to the crushing weight of environmental concerns, and say, “We are doomed.”

They feel burdened with the responsibility of caring for the environment that previous generations have defaulted upon. They hear the news media point out that they will be the first generation who will not have the standard of living that their parents had, and exclaim, “Why us?” Can we give them hope for a better future, a future where the environmental wrongs of the previous generations can be addressed and reversed? We believe so.

Modest thinking outside the box can have various ripple effects that can change the direction of society. At times, it is much better, in the long run, not to follow the traditional paths to higher education and return to an education focused on doing things that have a direct impact on the environment, focus on the staggering alarms of global warming, and provide a pathway for a fulfilling career.

Experience and research has shown that three critical components: a small-class size academy staffed by passionate teachers with direct connections to local business environment can profoundly affect college-age students in very positive ways. West Traverse Academy, as a learning organization, will use a practical apprenticeship-based approach toward education that has proven to be effective in Europe and is being used around the world to connect promising students to engaging careers that ultimately contribute to the remediation of our environment. West Traverse Academy’s programs meet the emotional and intellectual needs of our youth, which allows the person, the student, to grow and learn while understanding the value of their education.

This business plan details a high-level framework and action plan that takes initiative using proven processes that include the formulation of advanced student teams to work for local companies creates an additional revenue stream while providing apprenticeship opportunities for the students and community. The students can develop their own business as well with solid training in entrepreneurship. West Traverse Academy is ingenious, innovative, and timely for our youth, providing an environment and leadership team that facilitate transformational educational and living experiences that truly empower the future leadership of our communities.

Our team has a unique combination of skill sets and knowledge that gives us the ability to develop processes and programs that fit the unique situations of each young person that enters our environment. We have a strong vision and can get results with your help and support.

With Best Regards and Hopes for the Future,

Joseph P. Helgert, BA, MA, MBA, PhD

Daniel Paulson, BS, MS

i.Executive Summary

Summary of Situational Analysis

We are a retired business professor and successful green developer looking to have continued impact on students, the environment and the social economy. We are interested in starting a non-profit academy to support demonstration projects, internship opportunities, and training that support the environment. Based on our experience, the American higher education tradition is not suited to this preparation and we are implementing a curriculum similar to the European apprentice/intern model.

Desirability

Wanting to have an environmental academy in lower northwest Michigan is not enough to substantiate the actual planning for one. What is for certain is that there is global, international and national support for environmental education to help prepare students for jobs stemming from environmental problems. To date, Michigan does not have a good track record when it comes to environmental issues. There is widespread public opinion that since Michigan depends so much on tourism for its economy, that lakeshore esthetics are more important than clean power generation through the operation of offshore wind turbines. This occurs in spite of the fact that Michigan’s lakeshore provides wind generation opportunities that far surpass other Midwestern states. Further, Michigan has become a dumping ground for Canadian trash, and waste providers are benefiting by exchanging short-term profits against long-term environmental problems. To counteract misguided public opinion and profit-driven exigencies, an environmental academy in the state of Michigan is highly desirable.

Feasibility

The discussion of whether an environmental academy can be implemented and be successful in the state of Michigan is another question that needs to be addressed. Certainly a careful review of the demographic factors, location, marketing to make such a facility a destination for students who are environmentally concerned, plus an exhaustive review of strengths, weaknesses, opportunities and threats, is needed.

Location

Some marketing consultants suggest that the best place to locate a new business is right next to yourbiggest competitors, using their location analysis and advertising to drive people to their location. By locating the academy near a competing community college and utilizing the Michigan tourism brand image created by significant state promotional marketing and monies, West Traverse Academy would have a great advantage to launch, promote its initiatives, and establish its presence. The ideal location would have some existing structures for initial classrooms and administrative activity with suitable acreage (100-200) for development and expansion.

Destination

The state of Michigan spends millions of dollars on attracting people to visit the state and spend money though tourism. Combined with agriculture, tourism comprises the top two economic engines for Michigan. An academy can utilize and benefit from Michigan’s marketing campaign by associating itself with the overall appeal of the state and to offer students local potential and not be overshadowed by the state, national and international appeal of a unique environmental education.

Student Availability/Uptake/Draw

To estimate marketpotential, a similar educational institution is picked: Northwestern Michigan College in Grand Traverse County. This school breaksdown percentages of students into four categories: In-District, In-State, Out-of-State, and International. If these percentages are applied to the West Traverse Academy target of 300 students, anestimate of thetarget number ofstudents in each category can be made. The totals of the four categories can be used as an estimate of market size/volume.

Percentage Source of Student Body in Competitive Institution

NMC
(4,847 students)
In-District / 55%
In-State / 41%
Out-of-State / 3%
International / 1%
100%

Source: NMC and WSCC View Books

Looking through Northwestern Michigan College’s curriculum, there is actually very little direct competitionwith very few programs in environmental studies and renewable energy.

Default Tax Support

With the dwindling of state support for higher education falling from a high of 75% to presently under 25%, a case may be made for the alternative funding scheme for West Traverse Academy. Parents are overwhelmed with trying to pay for higher education in Michigan and students are, on the average, burdened with over $35,000 in student debt for attendance at a four-year academy. There may be some blowback on the idea that the competitive community colleges in the area are funded by property taxes and many people may not see the advantage in utilizing such community services that are not paid by taxes. Private businesses see no such conflict in either providing support to higher education directly or for paying for environmental services provided by student teams.

People

One important factor that is not reflected in the aggregate demographic data is the impact of individuals in helping to establish and build the brand of the West Traverse Academy in Grand Traverse County. Because of the environmental activities and involvement of individuals, businesses, and community groups in the county, Grand Traverse maintains an already high-level of environmental activism. Dan Paulson, a developer of green communities in Grand Traverse County, would need no such socialization. As a past dean for a renewable energy institute, Mr. Paulson provides a ready-made champion and community conduit for the establishment of our proposed West Traverse Academy.

Key Recommendations

To facilitate the development of this environment, combine a post high-school residential vocational and training academy with a West Traverse Business Incubator (WTBI). Experience and research have shown that these two areas can indeed work as one, which is what we intend to demonstrate through the creation of such an environment. We call this environment West Traverse Academy. Long-term sustainability is attainable through the use of the WTBI as an environmental resource with engaging teams of students working on community environmental problems.

The approximate start-up cost of the project approaches $3 million. Investor dollars’ return begins in year five, with a 15% SROI achieved by year 15.

After reviewing the demographic reports and marshaling the data through some analysis, the best location for the West Traverse Academy is in Grand Traverse County. The present infrastructure, community involvement, individual contributors and the ability to draw students to the academy by having the Traverse City area being a state, national and international destination are the reasons for this recommendation.

Alison Keener, MS, the joint author of the geographic assessment report, concurs that Grand Traverse County is the most appropriate location for an academy of this caliber. Grand Traverse County has a population size that can support a rich pool of applicants. The area also has a rich pool of working environmental groups that West Traverse Academy could potentially partner with on future projects. The proliferation of such activist groups indicates a great social awareness and a collective academy of thought that will translate into greater community support for the academy’s initiatives. Further, the highly acclaimed agricultural production of cherries and wine create potential avenues of collaboration with farmers interested in the organic farming program.

A healthy life includes several areas of mastery, which most adults still have difficulty achieving in their daily living and working experience. Youth today have an even more demanding scenario as the world around them continues to rapidly change. These basic areas of focus include work, intellect, life planning, fulfillment, recreation, motivations, personal goals, health, and relationships. West Traverse Academy, structured as a 501(c)3 educational non-profit corporation, has determined that the synergy of a residential environmental academy combined with the clean tech business team will result in a successful collaborative endeavor. Additionally, the process and programs will be developed through best practices of pedagogy and management philosophy.

Opportunity Summary

West Traverse Academy’s unique program offers students structure to find success in new experiences and provide valuable work opportunities, reflecting in increased personal value and self-esteem. Nurturing the individual is an important part of West Traverse Academy’s plan, and its disciplined structure provides some latitude while offering students the guidance to learn how to make positive choices in their lives.

Vision: West Traverse Academy will provide a proactive and progressive vocational and training educational environment, identifying and addressing the changing socio-economic needs of high academy graduates, while empowering transformational change toward environmental sensitivity and community participation.

Vocational and training education is concerned with the growth of every person’s life and career fulfillment. We are unique as a proactive leader in the research, design, and implementation of vocational and training environmental education using state-of-the-art technology. Our collaborative alliances and partnerships with industry leaders bridge 21st Century learners with 21st Century technology and our emerging global culture.

Mission: The mission of West Traverse Academy is to provide an alternative state-of-the-art vocational and training educational and living environment for high academy graduates using a proven apprenticeship-based program and transformative processes, supportive of the community socio-economic structure, resulting in productive young adults who contribute to society and the betterment of the environment through environmental stewardship.

We believe that our first responsibility is to prepare the students to meet the challenges of the rapidly changing world around them. A vocational and training strategy in a holocratic-based community atmosphere facilitates students to perceive and understand the various contexts that shape and give meaning to life. Introducing students to an extended and sophisticated view of the planet, life on Earth, the emerging world community, and the students’ interdependence - demonstrates best practices of systems-thinking. A collaborative and holocratic approach toward problem solving develops critical interpersonal skills. Emerging technologies and their integration into our curriculum provide students with real-time, real-world experiences that prepare them to enter post-higher education – the next step in life.

Imagine a fully integrated approach to inspire and challenge students with knowledge and awareness of the environmental problems we face today and quickly focus on creative solutions that empower balanced choices. Empowered adults can now empower our youth, and with commerce, education,and the administration of resources, ouryouth then have the opportunity to turn stumbling blocks into stepping-stones.

Seed Money Needs

Legal / Business Structure
Registrations
Licenses/Permits / $5,000
$250
$250
Website Design / $15,000
Promotional Marketing / Social Media/Radio
Print/Brochures
Signage/Announcements / $12,500
Office Equipment / Laptop Computer
Accounting Software / $1,000
$250
Office Supplies / Business cards / $250
Consultants / Fundraising / $10,000
Training / Research trip to Blue Planet Life (Switzerland) / $3,500
Travel / In-State Mileage / $1,000
Miscellaneous / $1,000
Total / $50,000

Forecasted Operational and Financial Results

●Beginning of year five - 150 students - environmental academy is financially operational

●Sixth month of year five - Forecasted Business Nursery (WTBN) business unit breaks even

●Forecasted budget for the residential academy @ 40 beds to be $2.5 million

ii.Invitation

Imagine a fully integrated approach to inspiring and challenging today’s youth to be aware of environmental problems and quickly focus on creative solutions. We are unveiling the embryo of a plan - unifying youth and adults- that could solve the environmental difficulties we face while building individual and community respect and collaboration.

We need solutions to bridge concepts and creators, and chaotic experiences with order and structure. Chaos is only the beginning of the process of establishing natural order, and conflict, used wisely, can evolve into harmony.

Can we acknowledge that we have been going in the wrong direction? Better yet, can we accept that we have done the best we can with the limited information and resources available, yet now have better information and greater resources to affect positive change? West Traverse Academy will offer solutions that can change the patterns of our current environmental problems by offering youth-powered, creative and innovative solutions for the future. We invite you to join us and to please consider collaborating in this important endeavor – one that will empower our youth, now and for generations to come.

iii.Situational Analysis

Across the boundaries of Michigan, America, and the world - our environment is suffering and continues to suffer while the complexity of the issues rise exponentially as the global village expands. Educational systems and family environments no longer seem to nurture or inspire the creative spark in our young people. A progressive environment that provides the emotional and intellectual support along with the freedom to respond to our current environmental concerns is desperately needed.

European Model

The apprenticeship model was developed over 10 years ago in Europe and has become the dominant method for training young people to enter the workforce, particularly in the green jobs market. The selected academy sites focus on supporting local small business with a team-approach. A network will be created between the academics, business and local suppliers, while students partner with local contractors to perform services and provide products. Student productivity will be linked with the academy revenue from implementing projects and providing services.