Business Plan for MilSpo Arts Collective (MAC)

Cheryl Edenfield // BDAL 701 Principles of Business Design and Arts Leadership Project A, Part 9: Final Business Plan // Winter 2016 // Prof. Chance Farago

EXECUTIVE SUMMARY The MilSpo Arts Collective (MAC) has an opportunity to reach military spouses who sacrifice their careers to support their service members. Even though there are a number of support services and places for these (mostly) women to seek help, they are disparate and not always useful. The MilSpo Arts Collective (MAC) seeks to fill the gap in the marketplace for military spouse entrepreneurs, specifically artists, crafters and designers. MAC will be a for profit virtual network for cultivating military spouse arts, crafts, and design businesses.

Military spouses will be invited to become members of the collective. As members, they will have access to the tools they need to start their business as well as market it. MAC will not just be a collective gallery of online shops, but a community that will allow its members to grow as both an artist and small business owner. Members will also have the opportunity to establish a local chapter to host skill building and entrepreneurial workshops as well as local market sales. The MAC market will be open to consumers who would like to purchase or commission one-of-a-kind art. These consumers will be receptive towards supporting a stronger United States military, which will start with supporting military spouses and families.

MAC will be formed by four co-founding partners: Cheryl Edenfield, Stephanie Burbank, Veronica Vasquez and Gwen Martin. Edenfield is a military spouse, artist and previous business owner of the Savannah Historic District Illustrated Map. Co-founding partners Burbank, Vasquez, and Martin, each have a background and expertise in operations, creative and marketing, and finance. They will hold positions as an executive leader with a 10 percent share each with Edenfield as the majority shareholder (70 percent) and CEO. 2

In addition to investments made by each of the co-founding partners, MAC is seeking corporate sponsorships (advertising) and military spouse entrepreneur foundation grants to help establish the company. The majority of funding will go towards setting up the virtual network online, registration, legal and filing fees, insurance, taxes, marketing and equipment. Sponsorships will be exchanged for advertising to new members across the network online and in person at local events.

MAC would like to improve the employment status of military spouses beginning with those who live at Fort Leavenworth, Kansas, through the establishment of a local MAC chapter. Six months into the first year, MAC will compare the local chapter membership to online memberships and adjust the marketing strategy accordingly for the next year. With nearly a million military spouses world wide, there is a lot of opportunity for growth. MAC will plan to leverage each opportunity to reach this market, even if only incrementally, to improve the career trajectories of each military spouse over the next five years.

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CONTENTS Executive summary................................................................................................. 2-3 Table of Contents.........................................................................................................4 Company Description..................................................................................................5 – Mission, vision and values.....................................................................................6 – Member services.....................................................................................................7 – Consumer products.................................................................................................8 Product portfolio.....................................................................................................9-17 Market analysis.................................................................................................... 18-27 Marketing strategies............................................................................................ 28-35 Organization overview........................................................................................36-45 ––History ..................................................................................................................36 ––Beta launch............................................................................................................37 ––Community partnerships and future growth.....................................................38 ––Founders..........................................................................................................39-40 ––Organizational chart and summary..............................................................44-45 ––Organization goals and strategies.................................................................39-40 Finance and budget.............................................................................................. 46-57 ––Financing plan................................................................................................46-50 ––Revenue streams............................................................................................. 51-52 ––Organizational budget.................................................................................... 53-55 ––Five-year pro forma budget............................................................................ 56-57 Appendices........................................................................................................... 58-75 ––Citations..........................................................................................................59-60 ––Sample marketing pieces................................................................................ 61-64 ––Affiliate information (screen shots)............................................................... 65-67 ––MilSpouse and Fort Leavenworth market research reports......................... 68-74 4

MILSPO ARTS COLLECTIVE ABOUT THE COMPANY The MilSpo Arts Collective (MAC) is for “milspo” (military spouse) artists who dream of making and selling art. MAC will guide milspos in their pursuit towards a portable career, and will do this by offering milspos membership to an exclusive online community with public facing gallery/portfolio storefronts for consumers.

Unlike sites like deviantart.com, pixels.com, society6.com, and dribble.com, MAC will also give its members the tools to learn and manage their business both on and offline. Members will be afforded resources tailored for artists versus broad career development information from a military spouse organization such as Blue Star Families. All of this contributes to MAC’s larger business goals, which includes market power — collective marketing, and establishment of a brand identity for the community as a whole — improving business efficiency and enhancing learning.

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MISSION MilSpo Arts Collective’s mission is to provide a virtual network and market to develop and promote military spouse art, craft and design businesses.

VISION MilSpo Arts Collective’s vision is to engage hundreds of military spouses around the world through the cultivation of careers in arts, crafts and design over a virtual network and market.

VALUES MilSpo Arts Collective’s core values are collaboration, creation, enrichment, entrepreneurship and fortitude.

• Collaboration among military spouses and the communities

where each of them live • Creation of meaningful new ideas, relationships, and career paths • Enrichment of military spouse life; as a family; and as a military community • Entrepreneurship to take charge of one’s career goals and to thrive as

individual artists, crafters and designers • Fortitude to stay motivated and committed to overcoming the

obstacles military life brings 6

MEMBER SERVICES MAC member services will include: • • • •

• •

•

business start up tool kit; web hosting with a storefront on the MAC gallery of members; online marketing and promotion of work; access to member exclusive portal online for virtual workshops, tutorial guides, and discussion area to communicate with other members; newsletter updates with news, show and event information; opportunities to participate and/or facilitate workshops and skill building events locally to other members (or prospective members); and opportunities to exhibit and sell at locally organized events.

© 2015 JENNIFER CLARK VAZQUEZ “Modern Longhorn” oil on canvas by J.C. Vazquez

© 2015 JENNIFER CLARK VAZQUEZ “Dog Best Friends” oil on canvas by J.C. Vazquez

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CONSUMER PRODUCTS The MAC shopping experience will give consumers, interested in both the arts and supporting military families, the opportunity to purchase: • one-of-a-kind pieces of art – fine, graphic arts and photography (digital and two-dimensional work) – jewelry, ceramics, woodwork and furniture (three-dimensional work) •

prints in a variety of formats – canvas or framed art – stationery – home goods or gifts

• or commissioned work

© 2015 VERYUNIQUE CAKES

Consumers may also sign up for email updates on new featured art, artists, upcoming events, shows and sales.

“Anchors Aweigh” sculpted cake decorating

by Veronique de Groot at Very Unique Cakes.

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© 2015 MICHELE MOROS WARREN

“Warren Christmas Card” by Michele Moros Warren

PRODUCT PORTFOLIO MAC MEMBER SERVICES MAC member services will be available in three tiers: basic, silver or gold member services. All levels of service include: • business start up tool kit; •

Web hosting (500 GB space with 5 TB bandwidth data transfer), basic Web theme with limited flexibility (single font treatment, add logo, change colors, upload own images), storefront on the MAC gallery of members, and website transfer for members with an existing site;

• online marketing and promotion of work; • access to member exclusive portal online for virtual workshops, tutorial guides, and discussion area to communicate with other members; • newsletter updates with news, show and event information; • opportunities to participate and/or facilitate workshops and skill building events locally to other members (or prospective members); • opportunities to exhibit and sell at locally organized events; and • free 30-day trial to Freshbooks online accounting software for business.

Logo (Bluehost.com, n.d.)

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Silver level membership service will include the following upgrades: • Logo design or choice of business card or rack card layout (digital); • MAC’s guide to social media marketing (PDF); • One year subscription to SoloSEO to drive more customer traffic to site with guide to keyword, content, link and social tools; • Web hosting (1 TB space with 10 TB bandwidth), choice of three flexible Web themes (more font options and gallery layout templates); and • 1 hour one-on-one business consult conversation in person or online (can be broken up in to two 30-minute conversations) with a MAC chief executive.

Gold level membership service will include basic and silver services plus the following upgrades: • Premium advertising in rotating gallery on MAC’s front page with opportunities to submit art and written features to the MAC blog; • 50% off ticket price to Create + Cultivate conference (up to $250 value); • 2 months free email marketing plan with ConstantContact® with MAC’s (PDF) guide to blog and eNewsletter content marketing; • Web hosting (1 TB space with 15 TB bandwidth), choice of five flexible Web themes (more font options and gallery layout templates); • 2 hour one-on-one business consult conversation in person or online (can be broken up in to two 1 hour conversations) with a MAC chief executive; and • one year subscription to Freshbooks online basic accounting software for business (unlimited invoices, expenses, time tracking, and billing up to five regular clients).

Logos (Constant Contact, n.d.;

10 Freshbooks.com, n.d.; SoloSEO, n.d.)

Consumer Products Consumers will have the opportunity to purchase one-of-a-kind pieces of art, or commission work, that will vary from member to member. Email updates on new featured art, artists, upcoming events, shows and sales will also be available to consumers who wish to receive news from MAC. Members will also be guided to establish their own customer relationship management system.

Š 2015 MICHELE MOROS WARREN

Paper machĂŠ, jewelry and paintings

by Michele Moros Warren

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How does this product advance MAC’s mission and goals?

MAC member services will advance the company’s mission and goals by giving military spouses the tools to take charge of their career goals with an art, craft or design business. These services will: • provide a virtual network and market to promote military spouse arts, crafts and design work; • provide a virtual network to learn about entrepreneurship, exchange ideas, and learn new skills; • give consumers the opportunity to support both the arts and military families through their purchases; These services will also foster MAC’s values: • through collaboration online and in person at local MAC chapter events; • creation of relationships between community members and consumers; creating new works of art for sale; creation of a virtual network and platform to run a business; • enrichment by adding another facet to the military spouse life as an entrepreneur, connecting with other military spouses, and a community that supports artists; • entrepreneurship by providing the tools with which to get MAC member businesses started; and • fortitude by offering support through the MAC network community, the chief executives and brand ambassadors to stay motivated and committed to their businesses.

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Member pricing vs. cost of production The cost to produce the website will be $7200 to build the beta site, including member website templates, and $800 to make future upgrades or tweaks to accommodate member growth. The website will be hosted on Bluehost.com’s cloud space which will cost $25.99 per month to maintain. As each member joins, MAC will receive a $65 referral bonus from Bluehost.com as an affiliate.

Members will choose from a pre-designed flexible template for their website. The monthly hosting fee for each member will be included in the member service fee. The increase in monthly cost with Bluehost.com (for gold members) covers the SoloSEO add-on service. Each member will also be automatically enrolled in a 30-day trial of Freshbooks.com online software for business accounting. As an affiliate, MAC will earn $5 per member 30-day trial. Gold members will be automatically subscribed to Freshbooks.com basic services for one year. There is no cost associated with the 2-month trial for Constant Contact affiliates. Here is the breakdown of costs and production or service fees (per member): member level

bluehost.com fee for service

bluehost.com referral income

freshbooks.com fee for service

freshbooks.com referral income

MAC PROFIT

basic: $99 per year

$3.95/month ($47.40/year)

$65

$0 for 30-day trial

$5

$116.60

silver: $149 per year

$6.95/month ($83.40/year)

$65

$0 for 30-day trial

$5

$130.60

gold: $249 per year

$14.95/month ($179.40/year)

$65

$9.95/month ($119.40/year)

$100

$115.20

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The cost of producing workshops and events will vary, but MAC will budget 10 percent of income from membership towards the operation of these services.

Services are included in member fees. At beta launch, and Fort Leavenworth chapter establishment, the expected member sign up will be 7 members ($816.20).

The operation cost will be limited to $82 for the event.

Note: Brand ambassadors will be eligible to receive basic ($99 per year) membership with at least ten referrals that sign up for membership. To maintain continued free basic membership, the brand ambassador must continue to recruit members each year from his/her start date. There will be a ten-member requirement to start a local chapter. An exception will be made for the beta launch location, which will be expected to increase membership by the end of one year.

MAC production and distribution MAC will produce business materials, marketing and website content for its members. MAC will also produce workshops online (and on ground) with input of collaborative members. Members will be responsible for production and fulfillment of their (art) products. As part of the business start up kit, and workshops, members will be given the tools needed to help them price their work.

Profits, minus 3.5 percent sales transaction fees, will go to members. Each sale that begins by clicking through the MAC member gallery will incur a 3.5 percent sales transaction fee. This is another source of revenue for MAC. MAC does not make the product but serves as a retail marketer of member products.

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What makes MAC valuable?

To members, the value will come from the company’s support in getting their business started, marketing for them, hosting their business through an affiliate partner, and providing the tools necessary to make their venture both profitable and fulfilling.

To consumers, the value will come from the opportunity to purchase one-of-akind pieces of art, or commission work, while helping to support the military community. Other military spouses, members of the surrounding cities, and arts supporters with a social media presence will have the opportunity to purchase MAC member art.

What makes MAC different?

What makes this service different from its competitors is that it will provide the tools to make member business ventures successful and profitable. MAC will not just be an online gallery space that provides engagement that is one-sided, but it will foster relationships between MAC and members, members among themselves, members with their communities, and members with consumers. MAC members will also have the opportunity to market MAC to recruit new members and grow the community. Member storefronts will be accessible through one website, but they will each have separate websites hosted on a parallel platform to respect that they each have their own separate business and identity.

151

MAC members will have the opportunity to host and facilitate workshops and events in collaboration with brand ambassadors and the company. They will also be able to organize local on ground chapters with a minimum of ten members per locale.

How do MAC services work?

Services will be hosted on the virtual platform but will be also be available on ground depending on the activity of each individual local chapter. On ground learning events will be recorded for accessibility to all members, including those who do not have a local chapter organized yet.

On ground sales events will give more opportunity to sell work, in person, to the communities where MAC members reside. This will give them another venue to for marketing and to profit from separate online sales. This will also allow members to cultivate in person relationships with their customers to extend service outside of the virtual realm.

Which products will receive the most attention from MAC and the market?

The basic membership will most likely receive the most attention from my company, as it will be the most affordable option for members. For consumers, other than premium advertising in a rotating gallery on the front page, the member levels will not be as transparent because the basic theme for member websites will have enough variety to cater to individual artist needs.

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Limitations Web space limitations have been considered. This is why each member website will be hosted on a separate but shared hosting platform. The storefront of each member will be mirrored in the MAC online gallery, which will allow for future growth. The only production or cost that will need to increase will be bandwidth and performance, which is built in to the cost of contracted services and operations for each year. Other limitations will be dependent upon each artist member and how active he/she decides to be in the collective. MAC will make every effort possible to ensure participation, production and sales by all members.

Future Plans Future plans for this product, in the next five years, will be to have at least one local chapter established in each of the ten states where most military families live — Washington, California, Hawaii, Colorado, Texas, Virginia, North Carolina, South Carolina, Georgia, and Florida (Office of the Deputy Under Secretary of Defense, n.d.). Other future plans will include expanding services through partnerships with Skillshare, #Girlboss, Create & Cultivate, and The MilSpo Project to co-host or sponsor more entrepreneurial or skill building seminars and conferences.

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MARKETPLACE GEOGRAPHY + AREA

70%

OF ALL ACTIVE DUTY PERSONNEL

ARE STATIONED IN THESE 10 STATES

(Office of the Deputy Under Secretary of Defense, n.d.)

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Map illustration (TrueMitra - FreeVectors.com, 2013)

Military installations (bases), and the areas around each, make up the geographic area of the MilSpo Arts Collective marketplace. Military towns are known to be some of the best and worst for military families because areas around each installation varies based on a variety of metrics such as housing costs, school quality, local recreation and health care. (Bushatz, 2015) More than half of military personnel and their families live outside of the base. The choice for living on or off the base is given up to each family based on their personal preferences. Some reasons to live on base are for the tight-knit community, and proximity to shopping centers and amenities. The options to live off base are sometimes more appealing because some government-owned military housing lacks modern amenities or upgrades. (Office of the Deputy Under Secretary of Defense, n.d.)

DEMOGRAPHICS

20% OFFICERS

42.8%

57.2%

SERVICE MEMBERS

FAMILY MEMBERS

80% ENLISTED

1

SERVICE MEMBERS

MILLION SPOUSES

5 MILLION TOTAL SERVICE AND FAMILY MEMBERS

$1500-$4300 AVERAGE MONTHLY INCOME (depending on pay grade and years of service)

All demographic chart statistics (Office of the Deputy Under Secretary of Defense, n.d.)

Vector art: woman silhouette (Freepik.com, 2015)

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DEMOGRAPHICS

20.4% OVER AGE

35%

41

44.6%

UNEMPLOYED

35% BETWEEN AGES 31-40

LESS THAN HALF OF ALL

UNDER AGE

NEARLY HALF OF MILITARY SPOUSES ARE

MILITARY SPOUSES ARE UNEMPLOYED,

93% OF MILITARY SPOUSES ARE WOMEN

UNDER THE AGE OF

AND THEY ARE WELL EDUCATED

The MilSpo Arts Collective can potentially reach 35,000 military spouses who are unemployed, most of who are women under 30 years old.

All demographic chart statistics (Office of the Deputy Under Secretary of Defense, n.d.)

Vector art: man and woman silhouette (Freepik.com, 2015)

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30

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PSYCHOGRAPHICS Milspos, the majority of whom are women, are a powerful consumer market.

More often than not, they make most of the household purchasing decisions and manage the family budget. (2014 Marketing to Military Consumers, 2014) The most common single word to describe these women is resilient. Milspos share a bond beyond the love of their respective service members. Not only are they strong, independent, flexible and adaptable, but they are also supportive, proud, patient, courageous and resourceful. (Sweeney, 2012)

Vector art: superwoman multitasking illustration (Freepik.com, 2015)

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COMPETITION: PRODUCT + SERVICE COMPARISONS Basic product and service comparisons

MilSpoArts.com Online gallery and hosted space for member Web sites and opportunity to sell/buy original work or prints through an external print/product fulfillment site

Unique to MAC: business start up kit, business tools (i.e. accounting and marketing), custom web templates, member exclusive virtual workshops, training guides, and discussion area for coaching and to communicate with other members; on ground, in person, events for training and sales

Deviantart.com Online gallery space for member portfolios and opportunity to sell/buy original work or prints through an external print/product fulfillment site

Dribble.com Online gallery space for member portfolios and opportunity to sell/buy original work or prints through an external print/product fulfillment site

Member forums, groups, chats, journals and critiques to communicate with each other

Member profiles + design teams listed for hire

(Deviantart, n.d.)

Job listings Meetups for members (Dribbble, n.d.)

Pixels.com Online gallery space for member portfolios and opportunity to sell/buy original work or prints

Society6.com Online gallery space for member portfolios and opportunity to sell/buy original work or prints

Additional options: create a catalog, add watermarks, sell in 150 retail locations, participate in group chats and contests

(Society6, n.d.)

Consumers able to design and print their own products (Pixels, n.d.)

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COMPETITION: FEES, SALES + PROFITS Membership fees, consumer sales and profits

MilSpoArts.com $99/year basic membership $149/year silver level membership $249/year gold level membership Each artist sets own profits; 3.5 percent transaction fee is paid to MAC

Unique to MAC: tiered membership plan; free for brand ambassador volunteers (limited time offer in new markets)

Deviantart.com Free for basic member; core members $15/3 months or $50/year Artists are paid 20% commission on default art prices for prints; product prices range from photo prints as low as $4.79 to rolled canvas as high as 156.00 (Deviantart, n.d.)

Dribble.com Free by invitation only to designers

Pixels.com Free membership for creators

Society6.com Free membership for creators

For employers: free for basic member; individuals $20/year; and $100/year for teams

Pixels.com allows the artist to set product prices so the profits vary greatly from one artist to the next.

The artist can set a print price as low as $2 if he/she chooses. Pixels. com provides guidance for recommended pricing based on print size.

Each artist sets his/her own profit on art prints, but there is a set profit for other products sold ranging for as little as $1.20 for stationery (depending on quantity) up to $12.90 on a duvet cover. Society6. com consumers typically pay $12 for stationery (3 cards) and $99 for duvets with the artists’ work printed on it

Profits and sales determined by external print/product fulfillment site of artist’s choosing; current consumer prices range from free vector art packs to $89 for a website theme

(Pixels, n.d.)

(Dribbble, n.d.)

(Society6, n.d.)

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COMPETITION: PRODUCT DELIVERY Member service delivery; product fulfillment and delivery

MilSpoArts.com Member service delivery through company website and affiliate partnership (Bluehost) Consumer product delivery will be determined by artists

Unique to MAC: Member and consumer on ground events will be facilitated by MAC partners, brand ambassadors and volunteers near military installations

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Deviantart.com Member service and delivery through company website

Dribble.com Member service and delivery through company website

Pixels.com Member service and delivery through company website

Society6.com Member service and delivery through company website

Product fulfillment and delivery through orders on company website

Product fulfillment and delivery determined by external print/product fulfillment site of artist’s choosing

Product fulfillment and delivery through orders on company website

Product fulfillment and delivery through orders on company website

(Pixels, n.d.)

(Society6, n.d.)

(Deviantart, n.d.)

(Dribbble, n.d.)

MAC SWOT ANALYSIS Strengths • •

• •

• •

Focus is a specific field for entrepreneurship Member exclusive virtual network for workshops, training guides, and a discussion area to coach and communicate with other members On ground, in person, events for training and sales Free membership for brand ambassador volunteers (limited time offer in new markets) Member and consumer on ground events Low overhead (volunteer run, no current staff)

Weaknesses • Service delivery method is the same as its competitors • No control over external product fulfillment channels • Membership fee might be a barrier to lower income families • Membership fee might not cover all operation costs to sustain the collaborative; dependent on volunteers • No requirement for member participation in events or to volunteer to be a brand ambassador

Opportunities •

•

•

•

New ways to deliver its products and services, such as an app versus a mobile enhanced website Improve membership fees, such as an invitation only model Include member and consumer product fulfillment as a membership service Train and lead volunteers to eventually become paid staff as the organization grows

Threats • Service delivery method is the same as its competitors • Competitors who offer product fulfillment as part of their service • Membership fee might be a barrier to lower income families • Membership fee might not cover all operating costs to sustain the collaborative; dependent on volunteers • Other military spouse organizations could be priority for spouse volunteer time and availability 251

COMPETITOR AND SWOT ANALYSIS SUMMARY The products and services unique to MAC are where most of its strengths are.

Its competitors offer similar, if not exactly the same, ways to deliver its products and services – online through the company website and through external print production fulfillment partnerships. There’s an opportunity for the organization to strategize a new way to deliver its products and services, such as an app versus a mobile enhanced website. This could occur based on member users if there are enough to justify the cost of developement of a mobile app. The service and product delivery methods are MAC’s biggest weakness and also its threat from competitors. There are opportunities within its competition and among itself to improve upon membership fees, such as an invitation only model, on opportunities for sales/profit, and product fulfillment.

The most important threat and weakness to call out would be the possibility of retaining active volunteers. This is common among many volunteer versus staff run organizations. Time, leadership, and participation are issues. (Klein, 2015) When a volunteer prioritizes elsewhere, the organization suffers. There are many opportunities for military spouses to volunteer on a base, so MAC must position itself to be a priority through leadership, and offer benefits that outweigh the time spent allocated to the organization. Unique to MAC, the first benefit to be offered is to waive membership fees for brand ambassadors. A plan for engagement, retention, and incentives must also be formulated for members and volunteers in order to meet MAC’s business goals.

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INDIRECT COMPETITION Other competition is indirect: • career planning and entrepreneurship through the Military Spouse Foundation (Military Spouse Foundation, n.d.)

• career portal through the Department of Defense military spouse employment partnership (Military Spouse Employment Partnership, n.d.)

• education and employment information at Military One Source (Military One Source, n.d.)

• employment toolkit from Blue Star Families (Blue Star Families, 2014) • entreprenuer resources from The MilSpo Project (The MilSpo Project, n.d.)

The difference between these services and MAC are that they are broad resources for education and career opportunities, or starting a new business, versus entrepreneurial efforts and the arts. These services do not facilitate a culture of creativity balanced with entrepreneurship. There is an opportunity to partner with these organizations in order to gain balance and reach the same audience.

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MARKETING STRATEGIES PRIMARY TARGET MARKET Marketing to this audience will begin in the beginning of the PCS (permanent change of duty station) season (June 2016). This will continue through the first year with emphasis in November, January and May to coincide with holiday shopping, New Year’s resolutions, and receipt of orders to move to a new duty station.

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UNEMPLOYED FEMALE MILITARY SPOUSES UNDER AGE 40 WHO LIVE NEAR MILITARY INSTALLATIONS. IN THE FIRST YEAR OF BUSINESS, MAC WILL FOCUS ON (400) SPOUSES WHO LIVE NEAR FORT LEAVENWORTH, KANSAS, AND LISTEN TO OR FOLLOW THE ARMY WIFE NETWORK. (Fort Leavenworth Garrison Public Affairs Office, 2015; Office of the Deputy Under Secretary of Defense, n.d.)

12k podcast listeners 82k social media followers around the world (Army Wife Network, n.d.)

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Map illustration (Freepik.com, 2015) Woman silhouette (Flaticon.com, 1999)

SECONDARY TARGET MARKET MAC’s secondary target market is the community that surrounds military installations. These are people who are interested in purchasing arts, design and crafts for personal or business use. In the first year of business, MAC will focus on the communities surrounding Fort Leavenworth, and Kansas City in Kansas and Missouri. The secondary target market will be approached after Halloween and when holiday season shopping begins (November 1, 2016). Marketing to this audience will continue to follow peak gift giving and retail purchasing holidays such as Valentine’s Day, Presidents Day, Easter, Mother’s Day and Father’s Day.

6k FAMILIES WHO LIVE ON FORT LEAVENWORTH 29k MILITARY FAMILY MEMBERS, SERVICE MEMBERS, DEPARTMENT OF ARMY CIVILIANS, AND MILITARY RETIREES WHO LIVE IN 37 COUNTIES AROUND FORT LEAVENWORTH IN KANSAS AND MISSOURI (Fort Leavenworth Garrison Public Affairs Office, 2015)

Map illustration (Freepik.com, 2015) Family silhouette (Flaticon.com, 1999)

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ESSENTIAL MARKETING MESSAGE The brand and image MAC that will communicate to the market is patriotic, small business oriented, stable, strong and modern. The colors (red, white and blue) along with the choice of font and images will convey this. The essential marketing message will emphasize the benefits and values MAC will bring to both members and consumers.

Attention will be given to MAC’s position in the marketplace, which will give military spouses the opportunity to take charge of their career goals through an art, craft or design business. For consumers, the support of military families will be stressed.

EXPECTED RESPONSE The response sought for the primary target population will be to sign up for MAC membership, and to become active members with their local chapter or online. For the secondary target population, it will be to purchase or to commission art made by MAC members and to encourage their friends and family to do the same.

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MARKETING TECHNIQUES

Take charge of your

art & design

career

Advertising Advertising will be digital display and banner ads posted on social media and the Army Wife Network website. Ads will be digitally created in-house by MAC partners to save on production costs. Social media advertising will also be free through MAC’s partnership with the Army Wife Network, and will begin in June 2016.

A limited number of printed flyers will be made and distributed through the Fort Leavenworth Arts and Crafts shop at the old prison. This will reach the military spouses who are interested in arts and crafts but either limit social media or do not follow the Army Wife Network. Printed advertising will begin in July 2016, before children have begun school, and when the target audience will be exploring career options.

coming to fort leavenworth, ks, & online this fall 2016. sign up for email updates at

MilSpoArts.com The MilSpo Arts Collective (MAC) is for “milspo” (military spouse) artists who dream of making and selling art. MAC will guide milspos in their pursuit towards a portable career, and will do this by offering milspos membership to an exclusive online community with storefronts for consumers.

Sample print ad for membership (flyer)

311

© 2015 MICHELE MOROS WARREN

Sales promotions Other advertising, for sales promotions, will be done through the Leavenworth Chamber of Commerce and will require an ad that has a message that targets the community to purchase MAC member art work. Public relations will also be employed through networking with the local chamber of commerce. This will start with attending chamber events in August, with limited printed flyers, for sales that will begin September. Priority will be given to public relations efforts to distribute sales promotions digitally.

Paper maché, jewelry and paintings by Michele Moros Warren

coming to fort leavenworth, ks, & online this fall 2016. sign up for email updates at

MilSpoArts.com The MilSpo Arts Collective (MAC) is for “milspo” (military spouse) artists who dream of making and selling art. Milspos are invited to join an exclusive online community, and the community is invited to shop their storefronts online.

Sample print ad for consumers and potential members (flyer)

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business tool kit: personal sales guide Who do you know? List family, friends, neighbors, teachers, coaches, caregivers, and other people you come into regular contact with. Include their full names and contact info (email, phone number, social media connection to you).

Name

Email/phone

Social media connection

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

Personal selling Personal selling will be done through MAC founder, Cheryl Edenfield’s, personal network at Fort Leavenworth. Edenfield will seek candidates who already run a small arts business (for example, local photographers) to join and lead a local chapter as a brand ambassador. This will tie in to sales promotion because the brand ambassador will be given free membership for the first year. The brand ambassador will also conduct personal selling through her network. Each new member will be given a marketing, communications and network strategies work sheet, in their business start up tool kit, which will include how to conduct personal sales through their existing network.

MilSpoArts.com

Sample business tool kit page (fillable form)

331

Public Relations A rapport will also be established with the following groups to ensure visibility and active involvement in the community as part of MAC’s public relations strategy: • Fort Leavenworth MWR (morale, welfare and recreation) office • Fort Leavenworth public affairs office • Fort Leavenworth Lamp (newspaper) • The Leavenworth Times (newspaper) • ArtsKC (Kansas City regional arts council) • Army Wife Network

Logos and mastheads (Army Wife Network, n.d.; ArtsKC regional arts council, n.d.; Fort Leavenworth FMWR, n.d.; The Lamp, n.d.; Leavenworth Times, n.d.; U.S. Army Garrison Fort Leavenworth, n.d.)

34

MAC will reach out to each of these groups beginning in May 2016 in person at networking events or personal office visits, email communication with media kit attachments, and follow up phone calls. The media kit will include current digital display ads saved in formats suitable for social media distribution, or digital editorial news placement, editorial copy, and a marketing calendar of events for the year. Future media correspondence will be sent via email in time with future promotion strategies and will include new digital ads, editorial copy and images highlighting new members and events.

media kit MilSpoArts.com

coming to fort leavenworth, ks, & online this fall 2016

Summary These techniques were chosen due to low financial requirements. It will require time and some local travel, but the relationships that will be built through the network for print, digital, and editorial placement, have the potential to become strong and valuable in the future. The inclusion of marketing, communications, and network strategies in the business start up tool kit will expand MAC’s reach with each new member who will join the organization. This will help increase MAC’s return on investment through lower costs up front.

Over the first six months, MAC will track marketing metrics against online and Fort Leavenworth chapter memberships to incrementally adjust the marketing strategy and reach for new members by the end of the first year. 30 percent of income in the first year is alloted for marketing to push for this growth.

The MilSpo Arts Collective (MAC) is for “milspo” (military spouse) artists who dream of making and selling art. Milspos are invited to join an exclusive online community, and the community is invited to shop their storefronts online.

Sample media kit (cover page)

351

ORGANIZATIONAL OVERVIEW The MilSpo Arts Collective (MAC) will be a for-profit company providing services to the “milspo” (military spouse) community of artists, and selling to arts consumers interested in supporting military families. The idea for this company is from co-founder Cheryl Edenfield’s personal experience as both an artist and a milspo. Many milspos find they have to give up their careers to follow their spouses from one duty station to the next, and discover twenty years later when their spouses retire that their résumés are filled with gaps in work experience. The purpose of MAC is to unite milspo artists while also empowering them to pursue a portable career that’s more than just a hobby.

MAC will start by bringing artists within each of their locales, inside and outside the perimeters of military installations worldwide, together and online. By doing this, MAC will invigorate the economy of surrounding areas in which they live because these milspos will have more purchasing power with their additional income. This will also affect the morale of the military family. It will improve with the milspo who is able to stay home with a flexible career; as it will also have a positive effect on the military service member, who many times feels guilty for putting his/her family through the multiple moves, travel and deployments. While the MilSpo Arts Collective will be a service for the milspo artist, it will also be a place for consumers to choose to shop for one-of-a-kind art while also feeling good about supporting a military family.

36

BETA LAUNCH MilSpo Arts Collective will first roll out to the Fort Leavenworth community (Kansas City, Kansas and Missouri region) in beta form while all founding partners continue with their day jobs. This will be done initially by finding brand ambassadors through social media, reaching the members of the Fort Leavenworth Spouse Facebook group, and word of mouth through the Army Community Service office for employment readiness. Brand ambassadors will be given a free trial membership for one year as they help to test the system in beta form, and help to recruit new members. This same model will be applied as MAC rolls out new chapters to other military installations. The first members to sign on, at each newly represented installation, will be asked to be a brand ambassador and volunteer to recruit at least ten new members to waive their membership fee.

371

COMMUNITY PARTNERSHIPS Edenfield has secured a guest speaking engagement with the Army Wife Network (AWN), whose reach on Facebook is more than 82,000 followers, to talk about milspo career portability on a future monthly podcast. (Army Wife Network, n.d.) The current monthly podcast statistic is an average of 12,000 downloads.

(Army Wife Network, 2015) This engagement is one of future planned strategic partnerships in order to build membership and solicit financial contributions from sponsors.

FUTURE GROWTH MilSpo Arts’ intention is to build brand recognition and grow to no more than five hundred members in five years with at least one brand ambassador for each of the top ten states where active duty military personnel reside — California, Virginia, Texas, North Carolina, Georgia, Florida, Washington, Hawaii, Colorado and South Carolina. In ten years, the goal is to have at least 50 brand ambassadors, one representing each state (or United States territories) and 2000 members. The target twenty years from now would be to grow membership to a minimum of one half percent of all military spouses (no more than 5000), and to have brand ambassadors near every armed forces installation world wide to represent each branch of service — Army, Air Force, Coast Guard, Marine Corps and Navy. (Office of the Deputy Under Secretary of Defense, n.d.)

38

FOUNDERS

Cheryl Edenfield

Cheryl Edenfield, who will serve as chief executive officer of the company, originally conceived the MilSpo Arts Collective as a part of her master of arts in design management final project. Over the last twenty years, her career as a graphic designer and art director evolved into publisher and entrepreneur.

Over the past eight years, while operating a publishing company, she was also a marketing and communications manager, and career adviser and content manager at the Savannah College of Art and Design. Edenfield invited fellow design thinkers and entrepreneurs to partner, and plan to get the company off the ground by fall of 2016 to coincide with many military spouse PCS (permanent change of duty station) dates to a new military installation.

Stephanie Burbank

Other founding partners are Stephanie Burbank as chief operating officer, Veronica Vasquez as chief creative and marketing officer, and Gwen Martin as chief financial officer. Burbank will bring her expertise in multimedia design and creative project management from both the Savannah College of Art and Design and Baldwin Wallace University. As chief operating officer, Burbank will have the opportunity to apply her skills with digital asset management, strategy and workflow.

391

Vasquez has multiple talents as an artist, illustrator, cake designer and high school art teacher. One of Vasquez’s strengths is her background in educational technology and teaching, which she will be able to apply towards leading virtual online workshops for our members. Martin’s qualifications are equally impressive.

As vice president of brand alignment for HTI Buying Group, Martin will bring her strong understanding of financial programs to grow sales and profits.

Veronica Vasquez

Gwen Martin

OWNERSHIP Ownership is divided in proportion to investment by all four founding partners.

Edenfield is contributing $15,000 for a 70 percent share. Burbank, Vasquez and Martin are each contributing $2000 from her personal finances for a 10 percent share each. Total contibutions equal $21,000 which will cover start-up and the first year’s operating costs. Their investments along with their respective marketing, design and project management expertise will be used to reserve Web space, build MilSpoArts.com, recruit members, advertise (to both prospective members and consumers), implement, launch and establish the first local MAC chapter.

40

ORGANIZATIONAL CHART CHIEF EXECUTIVE OFFICER (CEO)

CHIEF OPERATING OFFICER (COO)

CHIEF CREATIVE & MARKETING OFFICER (CCO)

CHIEF FINANCIAL OFFICER (CFO)

REGIONAL COMMUNITY

BRAND AMBASSADOR VOLUNTEERS

MANAGERS (RCMs)

411

ORGANIZATIONAL CHART SUMMARY OF ROLES The chief executive officer (CEO) will manage the overall operations and resources of the company in a hands-on role with the other chiefs and founding partners. Along with the chief operating officer and chief creative officer, the CEO will create the operations strategy and policies, and will guide the creative marketing strategy respectively. The CEO will also take an active role to communicate and participate in programs and events with brand ambassadors.

The chief operating officer (COO) will report to the CEO and will be responsible for the day-to-day business operations. With the CEO, the COO will develop the operations strategy and policies, oversee regional community managers, recruit brand ambassadors and facilitate programs and events within the virtual community.

The chief creative and marketing officer (CCO) will report to the CEO and will be responsible for the creative marketing strategy and branding for the organization — including the design and content for advertising, public relations, social media, Web design and printed materials. The CCO will also take part in the business and creative program development for its members.

42

The chief financial officer (CFO) will report to the CEO and will be responsible for company finance management — financial planning, budgeting, record keeping, monitoring cash flow and quarterly evaluations to suggest plans for improvement. The CFO will also be in charge of ensuring compliance with federal and state tax laws wherever the company conducts business.

Regional community managers (RCMs) will support the chief executives as the first line of supervision over company brand ambassadors. RCMs will also assist to organize and recruit brand ambassadors, communicate marketing strategy to them, and be responsible for the collection/disbursement of funds for locally held workshops or events.

Under the supervision of the RCM, brand ambassadors will be the first line of recruitment for members to join the MilSpo Arts Collective. Brand ambassadors will be given the resources, which will follow the marketing and communications strategy, to promote membership as well as help organize local workshops, events and sales.

431

GOALS & STRATEGIES Establish the MilSpo Arts Collective to improve the employment status of military spouses at Fort Leavenworth, Kansas by September 2017.

• Raise the capital needed to establish contract with Web and application developer by June 2016. Launch the website by September 2016.

• Launch beta roll out at Fort Leavenworth, Kansas, by September 2016, and recruit at least one brand ambassador to get membership roll started.

• Share marketing strategies with brand ambassador(s) to enroll new members and establish MAC member community by September 2016.

Foster a culture of entreprenurship and creativity to educate and enrich MAC member experiences by September 2017.

• Facilitate and record monthly, on ground (entrepreneurial or skill sharing), workshops for members at Forth Leavenworth, Kansas.

• Facilitate and lead discussions on the MAC discussion board.

• Provide best practices guides and resources on theMAC website.

Increase capital to be able to maintain MAC operations (website, materials for programming, and employee benefits) beyond its first year by September 2017.

• Create a roll out plan to open local chapters at least at two military installations in states bordering Kansas by January 2017.

44

• Sustain at least half a dozen members (to represent 1 percent of unemployed military spouses) at Fort Leavenworth, Kansas, by September 2017.

• Secure sponsorship partner deals by September 2017.

Establish MAC’s brand awareness in the Fort Leavenworth community to improve sales and profits for MAC and its members by September 2017.

• Share marketing materials and strategies with brand ambassadors and members to get the word out by social media or word of mouth.

• Provide branded swag – such as tote bags or travel cups – to brand ambassadors, other volunteers, and its members to be seen carrying around the installation and in town.

Improve the employment status of at least one hundred military spouses nationwide by September 2018.

• By January 2017, create an open enrollment strategy to reach communities and installations in the top ten military family populated states.

•

By September 2017, open enrollment to communities and installations where members from Fort Leavenworth, Kansas, may have moved so that they may continue their membership; give them the option to be brand ambassadors to recruit new members on ground.

Establish MAC’s brand awareness nationwide to improve profits for MAC and its members by September 2018.

• Create a communications and marketing plan by January 2017.

451

FINANCE & BUDGET FINANCING PLAN Founders’ Investment Cheryl Edenfield, co-founder and partner Personal investment for 70 percent share of the company • Amount: $15,000 • Need by: May 2016 Stephanie Burbank, co-founder and partner Personal investment for 10 percent share of the company • Amount: $2000 • Need by: May 2016 Veronica Vasquez, co-founder and partner Personal investment for 10 percent share of the company • Amount: $2000 • Need by: May 2016 Gwen Martin, co-founder and partner Personal investment for 10 percent share of the company • Amount: $2000 • Need by: May 2016

46

Advertising sales Frontier (Fort Leavenworth) Community Credit Union Exchange for advertising to new members (Fort Leavenworth chapter launch flyers and social media communications) • Amount: Eleven $20 Visa gift cards (total value $220) to use as door prizes at Fort Leavenworth chapter launch and special events • Need by: August 2016 ($100); December 2016 ($60); and May 2017 ($60) Daylight Doughnuts Exchange for advertising to new members (Fort Leavenworth chapter launch flyers and social media communications) • Amount: $200 worth of doughnuts to use at events to promote Fort Leavenworth chapter launch and special events • Need by: August 2016 ($75); December 2016 ($50); and May 2017 ($75) Fort Leavenworth Arts & Craft Center Exchange for advertising to new members (Fort Leavenworth chapter launch flyers and social media communications)) • Amount: Two $125 gift certificates (total value $250) to redeem for custom framing at the arts and crafts center; use as door prize at Fort Leavenworth chapter launch and special events • Need one each by: August 2016; December 2016

471

Hobby Lobby Exchange for advertising to new members (Fort Leavenworth chapter launch flyers and social media communications) • Amount: Three $50 gift cards (total value $150) to use as door prizes at Fort Leavenworth chapter launch and special events • Need one each by: August 2016; December 2016; and May 2017 Create + Cultivate (#BossLady blog) Exchange for advertising to new members (Fort Leavenworth chapter launch flyers, MAC website partner link and social media communications) • Amount: $500 value of advertising space at next conference plus 50% off ticket for first time conference attendees who are MAC gold level members • Need by: August 2016 Army Wife Network (AWN) Podcast guest speaking engagements (12k listeners) exchange for advertising to new members (Fort Leavenworth chapter launch flyers, MAC website partner link and social media communications) • Amount: $500 value of advertising space on the Army Wife Network website and social media blast to more than80k followers • Need by: July 2016; December 2016; and May 2017

48

Foundation grant #Girlboss Foundation One-time individual grant to founding member, Cheryl Edenfield • Amount: $15,000 • Need by: April 2016 (foundation only awards grants to individuals starting a business; so the funds must be received prior to the formal organization of the company) Alternative income source options: SimplyCash Business Card from American Express To cover other-discretionary, travel, contracted labor, fundraising, event rental fees, inventory expenses, and uncategorized expenses if advertising sponsorships, and or foundation grant falls through • Amount: $5000 max • Need by: April 27, 2016 to be eligible for $250 statement credit for qualifying purchases of $5,000 or more within the first six months of card membership

491

Business Line of Credit (available through Bank of America) To cover other-discretionary, travel, contracted services, contracted labor, fundraising, event rental fees, inventory expenses, equipment, and uncategorized expenses if advertising sponsorships, and or foundation grant falls through • Amount: $10,000 max • Need by: May 2016 to cover first expenses contracted services (Web site design and set up) and registration/state filing fees Veterans Banker (no interest) term loan for small business To cover insurance, travel, marketing, contracted services and operations if co-founder/partner contributions and or the foundation grant falls through • Amount: $22,000 max • Need by: January 2017 (loan process is highly competitive and not available to businesses who have not been established for at least nine months) Patriot SBA Express Loan (available through Bank of America) To cover working capital, equipment and all company expenses if co-founder/ partner contributes and or foundation grant falls through • Amount: $22,000 max • Need by: May 2016 to cover first expenses contracted services (Web site design and set up) and registration/state filing fees

50

REVENUE STREAMS (fiscal year august 1, 2016-july 31, 2017) 2016-17 member sign up

aug

sept

oct

nov

dec

jan

feb

march

april

may

june

july

total

new memberships

2

5

2

2

2

10

2

2

2

2

10

2

43

$99 rate

2

4

2

2

2

7

2

2

2

2

7

2

36

$149 rate

-

1

-

-

-

2

-

-

-

-

2

-

5

$249 rate

-

-

-

-

-

1

-

-

-

-

1

-

2

Table 1. Member sign-up per month from August 2016-17. Figures are based on estimate that 70 percent of new members will sign up at the $99 per month rate, 20 percent at the $149 per month rate, and 10 percent at the $249 per month rate. Seven new members represent the beta launch local chapter goal for MAC in August. Estimated increase in spikes in membership coincide with marketing plans to reach 12k Army Wife Network listeners, and 84k social media followers, with a less than a tenth of a percent response rate to sign up. Two new members per month is a conservative average expected sign up rate on social media and word-of-mouth marketing for the first year.

2016-17 member revenue

aug

sept

oct

nov

dec

jan

feb

march

april

may

june

july

total

$99 rate

198

396

198

198

198

693

198

198

198

198

693

198

3,564

$149 rate

-

149

-

-

-

298

-

-

-

-

298

-

745

$249 rate

-

-

-

-

-

249

-

-

-

-

249

-

498

total earned income

198

545

198

198

198

1,240

198

198

198

198

1,240

198

4,807

Table 2. Membership revenue from August 2016-17. Figures are based on estimate that 70 percent of new members will sign up at the $99 per month rate, 20 percent at the $149 per month rate, and 10 percent at the $249 per month rate.

511

3.5% transaction fees

aug

sept

oct

nov

dec

jan

feb

march

april

may

june

july

total

avg $100 per month

7

14

28

35

42

67

74

81

88

95

119

126

774

avg $200 per month

-

7

7

7

7

21

21

21

21

21

35

35

203

avg $500 per month

-

-

-

-

-

18

18

18

18

18

35

35

158

total earned income

7

21

35

42

49

105

112

119

126

133

189

196

1,134

Table 3. Transaction fee revenue (3.5% of sales) for August 2016-17. Figures are based on estimate that 70 percent of members will average $100 per month in sales, 20 percent of members will average $200 per month in sales, 10 percent of members will average $500 per month in sales. This table takes in to account the new members added each month.

freshbooks referrals

aug

sept

oct

nov

dec

jan

feb

march

april

may

june

july

total

$5 per referral

10

25

10

10

10

45

10

10

10

10

45

10

205

$100 per referral

-

-

-

-

-

100

-

-

-

-

100

-

200

total earned income

10

25

10

10

10

145

10

10

10

10

145

10

405

Table 4. Freshbooks affiliate referral income for August 2016-17. Figures are based on estimate that 90 percent of members will use the 30-day free trial period without renewing the account, and 10 percent of members will sign up to continue using the accounting software to manage business finances.

bluehost referrals

aug

sept

oct

nov

dec

jan

feb

march

april

may

june

july

total

$65 per referral

2

5

2

2

2

10

2

2

2

2

10

2

43

total earned income

130

325

130

130

130

650

130

130

130

130

650

130

2,795

Table 5. Bluehost affiliate referral income for August 2016-17. Figures are based on number of new members per month. Each new member is automatically signed up for a Bluehost account to host their shop with this affiliate. Web hosting (and transfer of existing site) fees are included in membership cost.

52

ORGANIZATION BUDGET (fiscal year august 1, 2016-july 31, 2017) INCOME

aug

sept

oct

nov

dec

jan

feb

march

april

may

june

july

total

membership revenue

198

545

198

198

198

1,240

198

198

198

198

1,240

198

4,807

transaction fees

7

21

35

42

49

105

112

119

126

133

189

196

1,134

freshbooks referrals

10

25

10

10

10

145

10

10

10

10

145

10

405

bluehost referrals

130

325

130

130

130

650

130

130

130

130

650

130

2,795

special events

959

-

-

-

1,395

-

-

-

-

2,004

-

-

4,359

sponsorships (ad sales)

1,500

-

-

-

1,650

-

-

-

-

2,420

-

-

5,570

total earned income

2,804

916

373

380

3,432

2,140

450

457

464

4,895

2,224

534

19,070

founder investments

21,000

-

-

-

-

-

-

-

-

-

-

-

21,000

total contributed

21,000

-

-

-

-

-

-

-

-

-

-

-

21,000

TOTAL INCOME

23,804

916

373

380

3,432

2,140

450

457

464

4,895

2,224

534

40,070

contributed income

Table 6a. MAC organization budget (income) for fiscal year August 1, 2016 to July 31, 2017. Earned income figures based on tables 2-5 on pp. 36-37. In August, December and May there will be membership drives with special work shops and sales events. Contributed income and sponsoorship (ad sales) outlined in the financing plan beginning on p. 46.

531

EXPENSES

aug

sept

oct

nov

dec

jan

feb

march

may

june

july

total

other-discretionary

100

100

100

100

200

100

100

100

100

100

100

100

1,200

travel

500

200

-

-

250

250

-

-

-

400

400

-

2,000

contract services

7,200

-

-

-

-

400

-

-

-

400

-

-

8,000

contracted labor

160

-

-

-

240

-

-

-

-

240

-

-

640

marketing

841

275

112

114

1,030

642

135

137

139

1,469

667

160

5,721

advertising sales

150

-

-

-

165

-

-

-

-

242

-

-

557

payroll-staff

-

-

-

-

-

-

-

-

-

-

-

-

-

payroll tax

-

-

-

-

-

-

-

-

-

-

-

-

-

ks state sales tax

175

57

23

24

215

134

28

29

29

306

139

33

1,192

insurance

50

50

50

50

50

50

50

50

50

50

50

50

600

registration/filing

385

-

-

-

160

-

-

-

-

-

160

-

705

credit card fees

98

32

13

13

120

75

16

16

16

171

78

19

667

rent

200

-

-

-

200

-

-

-

-

200

-

-

600

utilities

20

20

20

20

20

20

20

20

20

20

20

20

240

operations

421

137

56

57

515

321

68

69

70

734

334

80

2,860

equipment

6,500

-

-

-

-

-

-

-

-

-

-

-

6,500

inventory

500

-

-

-

100

-

-

-

-

100

-

-

700

uncategorized

100

100

-

-

200

-

-

-

-

200

-

-

600

contingency fund

6,000

-

-

-

-

-

-

-

-

-

-

-

6,000

TOTAL EXPENSES

23,400

972

374

378

3,364

1,992

416

420

424

4,632

1,948

462

38,783

surplus/deficit

404

(55)

(1)

2

68

148

34

37

40

263

276

72

1,287

Table 6b. MAC organization budget (expenses) for fiscal year August 1, 2016 to July 31, 2017.

54

april

EXPENSES other-discretionary travel

Items as needed for travel, sales, events or promotions Travel expenses for founding partners to attend beta launch and special events; mileage for regional community manager

contract services

Build website and incremental updates when membership/sales increases

contracted labor

Part-time help for special events

30 percent of earned income the first year and 10 percent every year after advertising sales 10 percent of sponsorship trades or sales for advertising marketing

payroll-staff payroll tax ks state sales tax

Founding partners will split profits the first five years; PT regional community manager will be hired fifth year (2021) 7.65 percent of staff salary(ies) Based on sales at Fort Leavenworth at a rate of 6.25 percent; taxed on earned income

Liability and cyber security from theft; unemployment and worker’s compensation when staff hired registration/filing Registration with the state of Kansas and federal trademark; estimated future state filing expenses; other state taxes insurance

credit card fees rent utilities operations

3.5 percent of earned income (all transactions) Founding partners will work from home; rent is for special events Founding partners will work from home; estimated utilities used for home office Cost of web hosting services (changes in bandwidth), production costs for workshops/events on ground and streaming

equipment

Computer, video camera and tripod, tablets for point of sale transactions at events

inventory

Branded swag for brand ambassadors (totes) and new members (notebooks); workshop materials

uncategorized contingency fund

Miscellaneous office supplies or postage For unexpected expenses

Table 6c. Explanation of MAC organization budget (expenses) for fiscal year August 1, 2016 to July 31, 2017.

551

FIVE-YEAR PRO FORMA BUDGET (fiscal years 2017–2021) INCOME

fy 2017

fy 2018

fy 2019

fy 2020

fy 2021

total

membership revenue

4,807

6,249

8,749

13,123

19,685

52,613

transaction fees

1,134

1,474

2,064

3,096

4,644

12,412

freshbooks referrals

405

527

737

1,106

1,658

4,433

bluehost referrals

2,795

3,634

5,087

7,630

11,446

30,591

special events

4,359

5,666

7,933

11,900

17,894

47,707

sponsorships (ad sales)

5,570

7,241

10,137

13,179

17,132

53,259

total earned income

19,070

24,791

34,707

50,033

72,414

201,015

founder investments

21,000

-

-

-

-

21,000

total contributed

21,000

-

-

-

-

21,000

TOTAL INCOME

40,070

24,791

34,707

50,033

72,414

222,015

contributed income

Table 7a. MAC organization pro forma budget (income) for fiscal years 2017-2021.

Figures are based on estimated membership increase by 50 percent each year.

Sponsorship ad sales are estimated to only increase by 10 percent year over year.

56

fy 2017

fy 2018

fy 2019

fy 2020

fy 2021

other-discretionary

1,200

1,230

1,261

1,292

1,325

6,308

travel

2,000

750

788

827

868

5,233

contract services

8,000

800

840

882

926

11,448

contracted labor

640

672

706

741

778

3,536

marketing

5,721

2,479

3,124

4,003

5,069

20,395

advertising sales

557

724

912

1,054

1,199

4,447

payroll-staff

-

-

-

-

24,000

24,000

payroll tax

-

-

-

-

1,836

1,836

ks state sales tax

1,192

1,549

2,169

3,127

4,526

12,563

insurance

600

660

726

799

2,978

5,763

registration/filing

705

723

741

759

778

3,706

credit card fees

667

868

1,215

1,751

2,534

7,036

rent

600

630

662

695

729

3,315

utilities

240

252

265

278

292

1,326

operations

2,860

3,004

3,184

3,407

3,577

16,031

equipment

6,500

-

-

5,850

-

12,350

inventory

700

718

735

754

773

3,679

uncategorized

600

615

630

646

662

3,154

contingency fund

6,000

6,300

6,615

6,946

7,293

33,154

TOTAL EXPENSES

36,783

21,973

24,571

33,810

60,144

179,281

surplus/deficit

1,287

2,818

10,136

16,224

12,270

42,735

EXPENSES

total

Table 7b. MAC organization pro forma budget (expenses) for fiscal years 2017-2021.

Estimated increases for other discretionary, inventory and uncategorized is 2.5 percent; travel 5 percent; contract services 5 percent beginning FY 2019; fundraising, payroll and operations 10 percent; marketing in proportion to income; and taxes increase in proportion to income times the current rate.

571

APPENDIX

58

CITATIONS 2014 Marketing to Military Consumers [PDF]. (2014, January 13). Coraopolis, PA: Victory Media. Retrieved January 23, 2016, from http://victorymedia.com/wp-content/ uploads/2013/11/2014_Consumer_MK_011314_NoRates1.pdf Army Wife Network. (n.d.). AWN on Facebook. Retrieved January 19, 2016, from https:// www.facebook.com/ArmyWifeNetwork/ Army Wife Network. (n.d.). AWN logo [Digital image]. Retrieved January 19, 2016, from http://www.armywifenetwork.com/ Army Wife Network. (2015). AWN Sponsorship Rates. 1-3. Retrieved January 19, 2016, from http://www.armywifenetwork.com/wp-content/uploads/2015/01/2015Sponsorship-Rates1.pdf ArtsKC regional arts council. (n.d.). [ArtsKC logo]. Retrieved March 8, 2016, from https://artskc.org/repository/2014/11/artskc-logo-web-padded.png Blue Star Families. (2014, February). Blue Star Spouse Employment Toolkit. Retrieved January 25, 2016, from https://bluestarfam.org/resources/blue-star-spouseemployment-toolkit Bluehost.com. (n.d.). Bluehost logo [Digital image]. Retrieved March 14, 2016, from https://bluehost-cdn.com/media/user/general/_bh/logo.png Bushatz, A. (2015, July 10). Military Towns Among Worst and Best Cities for Families.

Retrieved January 23, 2016, from http://spousebuzz.com/blog/2015/07/military-townsamong-worst-and-best-cities-for-families.html Constant Contact. (n.d.). Constant Contact logo [Digital image]. Retrieved March 14, 2016, from http://news.constantcontact.com/sites/constantcontact.newshq. businesswire.com/files/logo/image/constantcontact_tagline_600.png

Dribbble. (n.d.). Sign Up. Retrieved January 25, 2016, from https://dribbble.com/signup Dribbble. (n.d.). What are you working on? Dribbble is show and tell for designers. Learn more Sign up. Retrieved January 25, 2016, from https://dribbble.com/ Fabbri, A., Myers, A., & Jacobsen, J. (2009). Unison: Brand and Digital Innovation: Military Audiences And The Psychographics Of Branding. Retrieved January 25, 2016, from http://unison.net/military-audiences-and-the-psychographics-of-branding/ Flaticon.com. (1999, February 2). Married couple with two children icon [Digital image].

Retrieved March 8, 2016, from http://www.flaticon.com/free-icon/married-couple-withtwo-kids_103767#term=family&page=2&position=49 Fort Leavenworth Garrison Public Affairs Office. (2015). Fort Leavenworth Statistics, 1-5. Retrieved January 30, 2016, from http://garrison.leavenworth.army.mil/Garrison/ media/Garrison-Media-Library/PAO-FTLVN-FY15-Statistics.pdf Fort Leavenworth FMWR [Logo]. (n.d.). Retrieved March 08, 2016, from http:// fortleavenworthfmwr.com/ Freepik.com. (2015, February 13). Silhouettes of man and woman [Digital image].

Retrieved January 25, 2016, from http://www.freepik.com/free-vector/silhouettes-ofman-and-woman_766045.htm#term=man and woman silhouette&page=1&position=1 Freepik.com. (2015, December 30). Super Woman multitasking illustration [Digital image]. Retrieved January 25, 2016, from http://www.freepik.com/ free-vector/super-woman-multitasking-illustration_832526.htm#term=female employment&page=1&position=3

Department of Defense. (2009). 2nd Quadrennial Quality of Life Review Report to Congress. 1-156. doi:10.1080/1356788051115

Freshbooks.com. (n.d.). Freshbooks logo [Digital image]. Retrieved March 14, 2016, from https://www.freshbooks.com/ Klein, T. (2015, January 15). What are your biggest volunteer program challenges? [Web log post]. Retrieved February 02, 2016, from http://verifiedvolunteers.com/Resources/ OurBlog/2015/January/What-are-your-biggest-volunteer-program-challenges.aspx

Deviantart. (n.d.). Help & FAQ. Retrieved January 25, 2016, from http://help.deviantart. com/337/

The Lamp. (n.d.). [The Lamp masthead]. Retrieved March 8, 2016, from http://garrison. leavenworth.army.mil/Public-Affairs.aspx

DeviantArt. (n.d.). Experience All DeviantArt has to Offer.

Retrieved January 25, 2016, from https://www.deviantart.com/ checkout/?mx=premium&subpref=22870_0&point=footer

Leavenworth Times. (n.d.). [Leavenworth Times masthead]. Retrieved March 8, 2016, from http://www.leavenworthtimes.com/

591

CITATIONS Military One Source. (n.d.). Spouse Education and Career Opportunities. Retrieved January 25, 2016, from http://www.militaryonesource.mil/seco Military Spouse Employment Partnership. (n.d.). Career Portal. Retrieved January 25, 2016, from https://msepjobs.militaryonesource.mil/msep Military Spouse Foundation. (n.d.). Mission and History. Retrieved January 25, 2016, from http://www.militaryspousefoundation.org/mission-and-history The MilSpo Project. (n.d.). Welcome | A Military Spouse Entrepreneur Resource.

Retrieved January 25, 2016, from http://www.themilspoproject.com/#mission Office of the Deputy Assistant Secretary of Defense (Military Community and Family Policy), under contract with ICF International. (2015, October 30). 2014 Demographics: Profile of the Military Community (Rep.). Retrieved January 23, 2016, from MilitaryOneSource.mil website: http://download.militaryonesource.mil/12038/MOS/ Reports/2014-Demographics-Report.pdf Office of the Deputy Under Secretary of Defense (Installations and Environment). (n.d.).

Overview: Military Housing. Retrieved January 23, 2016, from http://www.acq.osd.mil/ housing/housing101.htm Pixels. (n.d.). Sell Art Online. Retrieved January 25, 2016, from http://pixels.com/sellart-online.html Pixels. (n.d.). Design Your Own Print Products. Retrieved January 25, 2016, from http:// pixels.com/custom/create-print-on-demand-products.html Pixels. (n.d.). How do I set the prices of my prints? Retrieved January 25, 2016, from http://pixels.com/faqlinks.html?id=91 Society6. (n.d.). Selling On Society6. Retrieved January 25, 2016, from https://society6. com/help/selling SoloSEO. (n.d.). SoloSEO logo [Digital image]. Retrieved March 14, 2016, from https:// www.soloseo.com/

60

Sweeney, H. (2012, November 11). Military Wife Quote: One Word Isn’t Enough.

Retrieved January 24, 2016, from http://spousebuzz.com/blog/2012/11/military-wifequote-one-word-isnt-enough.html TrueMitra - FreeVectors.com. (2013, June 25). Download Free USA Map Vector Illustration [Digital image]. Retrieved January 25, 2016, from http://www.freevectors. com/usa-map-2/ U.S. Army Garrison Fort Leavenworth. (n.d.). Army Community Service [Digital image].

Retrieved January 19, 2016, from http://garrison.leavenworth.army.mil/Services/ Services-Directory/Army-Community-Service-(ACS).aspx U.S. Army Garrison Fort Leavenworth. (n.d.). [USAG Fort Leavenworth banner].

Retrieved March 8, 2016, from http://garrison.leavenworth.army.mil/Public-Affairs. aspx Vazquez, J. C. (2015). Dog Best Friends [Painting found in Fort Sill, Oklahoma].

Retrieved January 19, 2016, from http://fineartamerica.com/profiles/jennifer-clarkvazquez.html. Used with permission from the artist.

Vazquez, J. C. (2015). Modern Longhorn [Painting found in Fort Sill, Oklahoma].

Retrieved January 19, 2016, from http://fineartamerica.com/profiles/jennifer-clarkvazquez.html. Used with permission from the artist.

Very Unique Cakes, & De Groot, V. (n.d.). Anchors Aweigh [Digital image]. Retrieved January 19, 2016, from http://www.veryuniquecakes.com/cake/anchors-aweigh. Image used with permission from the artist.

Warren, M. M. (2015, December 20). [Warren Christmas Card].

Retrieved January 19, 2016, from https://www.instagram.com/p/_ hb3mGIv0nDkrD9MmZZG3M3AKLSaxB4LLcLak0/. Image used with permission from the artist.

Take charge of your

art & design

career

coming to fort leavenworth, ks, & online this fall 2016. sign up for email updates at

MilSpoArts.com The MilSpo Arts Collective (MAC) is for “milspo� (military spouse) artists who dream of making and selling art. MAC will guide milspos in their pursuit towards a portable career, and will do this by offering milspos membership to an exclusive online community with storefronts for consumers.

© 2015 MICHELE MOROS WARREN

Paper maché, jewelry and paintings by Michele Moros Warren

coming to fort leavenworth, ks, & online this fall 2016. sign up for email updates at

MilSpoArts.com The MilSpo Arts Collective (MAC) is for “milspo” (military spouse) artists who dream of making and selling art. Milspos are invited to join an exclusive online community, and the community is invited to shop their storefronts online.

business tool kit: personal sales guide Who do you know? List family, friends, neighbors, teachers, coaches, caregivers, and other people you come into regular contact with. Include their full names and contact info (email, phone number, social media connection to you).

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coming to fort leavenworth, ks, & online this fall 2016

The MilSpo Arts Collective (MAC) is for “milspo� (military spouse) artists who dream of making and selling art. Milspos are invited to join an exclusive online community, and the community is invited to shop their storefronts online.

Fort Leavenworth Statistics As of 30 September 2015

1. Post Population Military (includes Command and General Staff Officer Course students) Family Members (On-post) Dept. of the Army/Dept. of Defense Civilians (DA/DOD) Non-appropriated Fund Employees (NAF) Army/Air Force Exchange Service (AAFES) Defense Commissary Agency Employees (DeCA) Contractors (On-post592/Off-post 831) Post Population Total

3,597 5,963 2,532 373 148 61 1,423 14,097

2. Inmates United States Disciplinary Barracks (USDB) Joint Regional Correctional Facility (JRCF) Inmates Total

445 238 683

3. Student Population 1,307

Command and General Staff Officers Course (CGSOC) Aug 2015 - Jun 2016

Army Active Duty Reserve Components (Army Reserve 98, National Guard 50) US Air Force Sea Service (US Navy 45, US Marine 28, Coast Guard 2) Civilian (Inter-Agency) International Military Students

879 148

87 75 9 109

School of Advanced Military Studies (SAMS)

149

School for Command Preparation (SCP) BDE PCC 2-week course/10 per year BN PCC 2-week course /10 per year CTS Spouses 1-week course/10 per year TCDP 2-week course/8 per year BDE CSMC 1-week course /10 per year BN CSMC 1-week course /10 per year BCTCDP 2-week course /4 per year DCG 1-week course/4 per year

514 990 494 276 149 330 47 24

Page 1 of 5

Fort Leavenworth Statistics As of 30 September 2015

University of Foreign Military and Cultural Studies (Red Team University)

Red Team Leader Course 18-week/2 per year 14 Stop-Gap Red Team Leader Course 9-week/4 per year 25 Red Team Member Course 6-week/4 per year 105 Critical Thinking for Red Team Practitioner 2-week/2 per year 28 Army Management Staff College (AMSC) Basic Course 2-week /15 per year Intermediate Course 3-week/12 per year Advanced Course 4-week/6 per year Continuing Education for Senior Leaders 1-week/4 per year SHARP Academy (Sexual Harassment/Assault Response and Prevention) 10 Baseline Courses & 2 Trainer Courses Student Population Total

4. Population Residing Off Post Family members(estimated) Military DA Civilians (Does not include Contractors, AAFES or DeCA).

Leavenworth, KS Lansing, KS Kansas City, KS Atchison, KS Basehor, KS Easton, KS Lawrence, KS Johnson County (KS) Kansas City, MO Platte City, MO Other

DA Civilians 1135 385 68 35 51 61 32 116 186 146 271 2,486

914 1428 1089 227

347 8,457

4,238 1,695 2,486 Military 628 231 55 6 22 10 10 40 189 203 301 1,695

Retirees (All Services in 37 county service area) Population Residing Off Post Total

20,807 29,226

Page 2 of 5

Fort Leavenworth Statistics As of 30 September 2015

5. Housing Single Soldier Quarters (216 occupied) Family Quarters (Managed by Frontier Heritage Communities) Holiday Inn Express

369 1,686 316

6. Payrolls (gross) Military

$301,179,673

DA/DOD Civilians MISSION/IMCOM/AFH/OSD MEDDAC/DENTAC

Non-Appropriated Fund

$180,100,907 $21,022,340 $11,814,735

(FMWR 10,732,245) (USDB 1,082,490)

AAFES Employees DeCA Employees Payroll Total

$12,908,730 $2,962,992 $529,989,377

7. Expenditures (Does not include civilian payroll or travel) IMCOM/AFH/OSD/MISSION MEDDAC/DENTAC Expenditures Total

$248,599,147 $15,998,246 $264,597,393

8. Travel Expenditures MISSION/IMCOM/AFH/OSD MEDDAC/DENTAC Travel Expenditures Total

$27,457,719 $278,060 $27,735,779

9. Major Construction Restoration and Modernization MEDDAC construction contracts Major Construction Total

10. Post Schools (USD 207) Annual Budget Wages and Benefits Operating Expenses, Purchases Capital Outlay Food Service

$22.2 million $1.3 million $23.5 million $35,611,921

$9,234,721 $6,636,465 $19,025,966 $714,769 Page 3 of 5

Fort Leavenworth Statistics As of 30 September 2015

11. On-Post Dependent Schools

4 School Year Enrollment 2014-2015 1,965 Size of Post: 5,634 acres/8.8 square miles K-6 (3), 7-9 (1)

Number of visitors (estimated)

71,113

Additional Information: United States Army Garrison Fort Leavenworth - http://garrison.leavenworth.army.mil/ United States Army Combined Arms Center (CAC) – http://usacac.army.mil ) Fort Leavenworth FMWR - http://www.fortleavenworthfmwr.com/ Command and General Staff College - http://www.cgsc.edu/ USD 207 Fort Leavenworth School District - http://www.ftlvn.com/ Facebook – www.facebook.com/ftlvn Twitter - @FortLeavenworth

Page 4 of 5

Fort Leavenworth Statistics As of 30 September 2015 AAFES - Army & Air Force Exchange Service AFH - Army Family Housing AWS - American Water Systems BCTCDP - Brigade Command Tactical Commanders Development Program BDE – Brigade BN – Battalion CSMC - Command Sergeants Major Course CSMDP - Command Sergeants Major Development Program CTS - Command Team Spouses CTSDP - Command Team Spouse Development Program DA – Department of the Army DeCA – Defense Commissary Agency DENTAC – Dental Activity DOD – Department of Defense ESPC - Energy Savings Performance Contract FMWR – Family and Morale, Welfare & Recreation IMCOM - Installation Management Command JRCF – Joint Regional Correctional Facility LJEC - Leavenworth Jefferson Electric Corporation MEDDAC - Medical Department Activity NAF – Non-Appropriated Fund OSD - Office of the Secretary of Defense USD - Unified School District USDB- United States Disciplinary Barracks PCC – Pre-Command Course TCDP - Tactical Commanders Development Program Prepared by Fort

Leavenworth Garrison Public Affairs Office

Page 5 of 5