The feasibility study is the first step in starting a new museum
or expanding an existing museum, and should be prepared before the
business plan. Leisure Business Advisors LLC (LBA) specializes in
conducting this study, which is generally required by financing
institutions. The study provides market and financial analysis and
projections that will be used in the developer's business plan.
The study also provides critical physical planning recommendations
for the museum business plan. It is critical that design plans are
in line with market needs and expected cash flow. These planning
guidelines need to be in place before the construction and
building can start. Designers, planners, and managers can all
benefit from the guidance provided in the study.
As part of the feasibility study, LBA can work closely with you in
preparing the initial image package that would assist designers in
the planning stage of development that follows the feasibility
stage. We could provide a walk-through description and color
artist conceptual images of your new museum seen through the eyes
of a typical visitor. These would preliminarily suggest its
planned "look and feel" in business financing and marketing
presentations.
The following paragraphs outline the major tasks typically
involved in conducting feasibility studies.
An initial meeting would be held to discuss the project in more detail and to see the prospective site if one has been chosen.
The site and local area would be evaluated to determine its effect on potential usage. Factors include:
The museum concept would be described and industry trends discussed. Readers of the feasibility study may be unfamiliar with the concept and this section of the report provides an introduction before specific project-related issues are examined.
The market areas would be defined based on distance from the site. Demographic characteristics for the resident market would be analyzed to provide an indication of support. This would typically include:
The tourist market would be defined and analyzed. Based on available information, this analysis would likely examine:
Selected comparable museums would be examined. Available reported information would be provided on individual characteristics, including:
Potential annual usage for the proposed museum would be estimated for the first five years of operation based on a number of factors, including:
LBA would make physical planning recommendations needed to service expected market demand. The specific parameters vary from one leisure attraction to another. Physical planning parameters may include:
Initial conceptual efforts may also be provided. These could include:
The final report could also include a video presenting the results of the feasibility study with a "fly-through" or "walk through" computer animation of part of the new museum.
The financial analysis for the proposed museum would be based on the selected concept and potential usage. Financial estimates for the first five years of operations would include:
LBA would determine the warranted development cost or investment based on potential profitability. This is the recommended maximum amount that should be spent to effectively develop the museum and return a reasonable return-on-investment to equity investors. This warranted amount would be compared to the actual development costs for other comparable facilities. Relative size would be taken into consideration. This comparison would provide guidance as to whether the proposed museum could be developed for its warranted investment. If it can be, the project is considered financially feasible.
Selected past consulting projects are described below. All involved John Gerner, LBA's managing director:
Fort Monroe is a former military base in Virginia that contains the largest stone fort ever built in America and more than a 100 historic buildings. It is 231 hectares (570 acres) in size. LBA prepared the cultural business plan in 2010 that was part of the interpretive master plan for Fort Monroe's reuse when it closed as an active military base. Click here to download this plan.
The Cosmosphere is a science museum with many historic space exploration artifacts, including the Apollo 13 command module. In 2014, Leisure Business Advisors LLC (LBA) and Verner Johnson, Inc prepared a revitalization plan that emphasized STEM (science, technology, engineering, mathematics) education initiatives. This master plan included significant changes to the museum's mission, programming, exhibits and building layout.
Leisure Business Advisors LLC (LBA) and Verner Johnson, Inc prepared a comprehensive master plan for a new artisan center in the Shenandoah Valley during 2014. It would promote and support Virginia artisans through sales, exhibition, interpretation, education and special events. The goal is to inspire the next generation of artisans, strengthen communities, and provide an authentic cultural gateway to the region and state. Click here to download this comprehensive master plan.
The Arkansas Arts Center is an art museum and center for the visual and performing arts. It features live theater productions, art classes, lectures, films, family programs, shopping and dining. As a subcontractor to A Different View, Leisure Business Advisors LLC (LBA) evaluated the market and financial feasibility of expanding the museum school in 2006. This effort included an examination of the performance of comparable art schools in relation to the size and quality of the markets that these facilities serve.
The Clark Planetarium opened in 2003, replacing the historic Hansen Planetarium. It features a dome theater, IMAX theater, and 10,000 square feet (930 square meters) of exhibits. During its initial planning stage, Economics Research Associates was retained by the Hansen Planetarium to conduct the feasibility study for this new science center. As a subcontractor to ERA, Gerner Consulting (LBA's previous name) prepared the financial analysis and projections.
The Walt Disney Hometown Museum offers interpretive exhibits focusing on his life in Marceline. The museum was dedicated in 2001. As a subcontractor to International Theme Park Services, Gerner Consulting (LBA's previous name) evaluated the potential of this museum during its planning stage.
The Jones Archaeological Museum tells the story of one of the most significant Native American archaeological sites in the country through modern technology and historical artifacts. Originally built in 1939, the museum reopened in 2010 after a $5 million renovation and expansion. Working with Taft Design + Associates, Gerner Consulting (LBA's previous name) evaluated the market and financial potential of this expansion before construction began.
The Kennedy Space Center has been the launch site for every United States human space flight since 1968. As a subcontractor to Economics Research Associates, Gerner Consulting (LBA's previous name) evaluated future exhibit and theater needs at its visitor center as part of a long-term physical master plan effort. In 2012, LBA was retained by the visitor center's operator to review its maintenance appearance from the viewpoint of a typical guest to the attraction.
The USS New Jersey is a battleship that was decommissioned after service in World War II, the Korean War, the Vietnam War, the Lebanese Civil War, and service in the Persian Gulf. As a subcontractor to International Theme Park Services, Gerner Consulting (LBA's previous name) prepared a market assessment for this museum and memorial before it opened to the public.
The Nanshan Culture Tourism Zone is approximately 27 hectares (67 acres) in size, and contains several tourist attractions. These include the Hainan Culture Park, Felicity and Longevity Park, and Buddhist Culture Park. Its centerpiece is the Guanyin Statue of Hainan, which is currently the fourth tallest statue in the world. As a subcontractor to Economics Research Associates, John Gerner (LBA's managing director) evaluated the feasibility of developing this major tourism project.
The Country Music Hall of Fame and Museum identifies and preserves the evolving history and traditions of country music while educating its audiences. Economics Research Associates was retained by the museum to develop a visitor origin tracking system and analyze its initial results. John Gerner (LBA's managing director) was a consultant with ERA and served as project manager for this market analysis initiative.
Boston's Museum of Science features over 700 interactive exhibits, live presentations, and shows at its Charles Hayden Planetarium and the Mugar Omni Theater. Economics Research Associates was retained by the museum to evaluate the admissions system and make recommendations that would increase throughput and decrease waiting time. John Gerner (LBA's managing director) was a consultant with ERA and served as project manager for this operations analysis.
The National Air and Space Museum of the Smithsonian Institution holds the largest collection of historic aircraft and spacecraft in the world. Marriott Corporation operated its visitor food service in 1984 and considered opening a full-service restaurant within the museum. Economics Research Associates was retained by Marriott to evaluate visitation patterns at the museum. John Gerner (LBA's managing director) was a consultant with ERA and served as an analyst for this consulting project.
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