FOR237

Principles for Developing Your Ecotourism Business

Plan1
Tinelle D. Bustam and Taylor Stein2

Florida is host to a variety of natural settings, as tourism that promotes environmental conservation
which offer great potential to develop ecotourism and provides opportunities for communities to benefit
businesses throughout the state. Developing such a economically and non-economically (Weaver 2001).
business can provide countless benefits to individuals These types of businesses are comprised of various
and communities such as generating incomes, ownership models that offer a range of services or
providing jobs, developing new skills, and conserving products. In Florida, ecotourism business models
natural areas. As with any business, an ecotourism include private ownership, public agency ownership,
business requires strategic planning to ensure and public-private partnerships (Wyman and Stein
effective delivery and sustainability. In particular, 2007).
designing a strategic plan for business operations may
prove advantageous in reducing future challenges. Private ecotourism businesses are independent
Current ecotourism business owners have expressed entities that have the natural, physical, and human
their lack of expertise in tourism operations as a resources needed to provide ecotourism services or
challenge in managing their tourism businesses (Best products. For instance, individuals with private
and Stein 2007). This publication intends to provide ownership of ecotourism businesses own the land and
those wishing to begin an ecotourism business or natural attractions needed to put their ecotourism
modify an existing business with a detailed activities in operation as well as those resources
description of the diversity in ecotourism business needed to accommodate visitors and manage the
models and the components necessary to develop an business (e.g., transportation, accommodations, food
ecotourism business plan. service, and human resources). Examples of these
types of businesses in Florida include nature study
What is an Ecotourism Business? areas such as DP Nature Tours
(http://www.dpnaturetours.com/) and Florida
Ecotourism is diverse in the benefits provided, Eco-Safaris (http://www.floridaecosafaris.com/); day
business ownership types, and program delivery and overnight experiences on working farms such as
opportunities. Ecotourism is commonly understood Long and Scott Farms
(http://www.longandscottfarms.com/) and O'Toole's

1. This document is FOR237, one of a series of the School of Forest Resources and Conservation Department, Florida Cooperative Extension Service,
Institute of Food and Agricultural Sciences, University of Florida. Original publication date May 2010. Visit the EDIS Web Site at http://edis.ifas.ufl.edu.
2. Tinelle D. Bustam, PhD Candidate, Department of Tourism, Recreation, and Sport Management, University of Florida, Gainesville, FL 32611. Taylor V.
Stein, associate professor, School of Forest Resources and Conservation, University of Florida, Gainesville, FL 32611.

The Institute of Food and Agricultural Sciences (IFAS) is an Equal Opportunity Institution authorized to provide research, educational information and
other services only to individuals and institutions that function with non-discrimination with respect to race, creed, color, religion, age, disability, sex,
sexual orientation, marital status, national origin, political opinions or affiliations. U.S. Department of Agriculture, Cooperative Extension Service,
University of Florida, IFAS, Florida A. & M. University Cooperative Extension Program, and Boards of County Commissioners Cooperating. Millie Ferrer-
Chancy, Interim Dean
Principles for Developing Your Ecotourism Business Plan 2

Herb Farm (http://www.otoolesherbfarm.com/); and business plan also identifies potential alternatives.
water-based recreation attractions such as For instance, a business plan may consider strategies
Ichetucknee Family Canoe and Cabins to secure funding, manage personnel, and market the
(http://www.ichetuckneecanoeandcabins.net/) and business. A business plan also serves as a tool that
Ginnie Springs Outdoors, LLC guides the actions of your business to ensure
(http://www.ginniespringsoutdoors.com/). competitiveness and sustainability (Goeldner and
Ritchie 2009). Such a plan would prove useful to
Public agencies also participate in ecotourism ecotourism operators who are planning to develop or
businesses by providing visitor services within alter an ecotourism business. In particular, a business
protected and conserved natural areas. For example, plan provides:
public agencies offer fee- and non-fee-based
education and interpretation programs to visitors such 1. a strategy to ensure streamlined efforts for
as guided recreation trips (e.g., backpacking, effectiveness in tourism service or product
canoeing) and Junior Ranger programs. In addition, delivery;
public agencies operate ecotourism businesses under
public-private partnerships. Such arrangements are 2. a strategy to develop a service or product meets
often sought by public agencies lacking financial or the demands of a variety of consumers including
physical resources to offer visitor experiences as tourists, local residents, and visiting friends and
directed in public agency legislation. Public-private relatives;
partnerships often result in profit sharing between the
3. the opportunity to communicate business
private business owner and public land agency. These
objectives, chart the tourism service or product
forms of partnership, as well as public-agency-driven
sales goals, and pursue evaluation through
ecotourism businesses, are common in the United
research and development; and
States and Florida. Like private ecotourism
businesses, public agency and partnership models 4. descriptions of job positions to eliminate
offer a great range in tourism offerings. For example, duplication of efforts and ensure clear
businesses that have partnered with public agencies communications between personnel.
include Kayak Amelia (www.kayakamelia.com),
Blue Moon Outdoor Center Components of an Effective
(www.bluemoonmiami.com), and Dragonfly Ecotourism Business Plan
Watersports (www.dragonflywatersports.net). These
privately owned and operated ecotourism businesses A typical business plan includes descriptions of
are the official service providers for Big and Little the business, marketing strategy, financial structure,
Talbot Island, Oleta River, and Rainbow Springs and management (U.S. Small Business
State Parks (www.floridastateparks.org), Administration 2009). Within each of these
respectively. Variety in ecotourism business components are particular topics or plans that must be
ownership and tourism offerings makes strategic considered by ecotourism business owners in
planning for business development or adjustment a developing a business plan (see Table 1). The
necessity. remainder of this publication provides a detailed
discussion on each plan topic, written for ecotourism
What is a Business Plan? business owners intending to begin or change an
ecotourism business.
A business plan is a strategic planning tool to
provide communication, management, and planning Business Description
(Cothran, Wysocki, and Mulkey 2005; Evans, 2008;
U.S. Small Business Administration 2009). An In offering ecotourism services or products, you
effective business plan communicates to lenders, are providing people with unique experiences they
employees, and owners the potential problems and cannot achieve in urban environments; however,
challenges associated with operating a business. A careful consideration must be used in clarifying your
Principles for Developing Your Ecotourism Business Plan 3

Table 1. Business plan topics and questions for consideration

Business Plan Topic Questions for consideration

Business Business Description Where do I want my ecotourism business to go?
Description Internal Resources What resources do I have at my destination that can assist with my
ecotourism business development?
External Resources What resources are available to develop my ecotourism business?
Marketing Market Analysis To whom will I cater my service or product?
Description Competition Will I be offering an ecotourism service or product similar to those
other ecotourism operators are offering in my area?
Service or Product What ecotourism service or product will I offer and how can I
Development Plan diversify them?
Marketing Plan How can I market my ecotourism business?
Who are my customers and what do they want?
Financial Capital Costs What costs will I sustain to start or modify my business?
Description Revenue/Expense How much revenue and expense will my ecotourism business
Projections incur each year?
Financing Will I require additional funding to start or modify my ecotourism
business?
Management Operating Procedures How will I implement my ecotourism business?
Description Sales Plan What are my sales goals and how will I reach these?
Management Plan What will my organization structure look like?
Personnel Plan Who will assist me in my ecotourism business?

business mission (i.e., the purpose of your business) These may include personnel skills, existing finances
and vision (i.e., description of how your business will to fund ecotourism development (e.g., marketing and
achieve the mission). In most cases, ecotourism initial gear costs), existing infrastructure (e.g.,
businesses are small operations on a landowner's passenger van for transportation, adequate space for
property that complement other land management lodging and food service), and natural resources to
activities of nearby protected areas (Best and Stein which there is direct access. A complete inventory of
2007), but it is ultimately up to you to decide how all such resources would be presented in this section
large to make your ecotourism business. This section of the plan.
allows you to specifically define the size and
composition of your business. External resources. Similar to internal
resources, external resources are public agencies and
Business description. A business plan should other private tourism operators that are available to
include the structure of the ecotourism business (e.g., assist in ecotourism development. On a public level,
private, public-private partnership). In addition, this these may include local convention and visitor
section would include identification of personal bureaus, county Extension offices, tourism industry
values, creation of a mission and vision statement, associations, and local parks departments for access
and development of goals and objectives (Goeldner to natural resources (e.g., municipal, county, state,
and Ritchie 2009). For ecotourism businesses, this federal lands).
component of the plan is particularly important since
ecotourism operations are often not totally driven by Marketing Description
profit maximization. Ecotourism business goals often
Clearly defined marketing strategies are essential
include environmental protection and improved
to the success of your ecotourism business. The
quality of life in addition to economic profit.
marketing description of your business plan allows
Internal resources. Internal resources include you to identify your intended customers, focus on
human, financial, and physical resources available to their ecotourism demands (e.g., activities offered)
assist in developing an ecotourism service or product. and demographic needs (e.g., family-friendliness,
Principles for Developing Your Ecotourism Business Plan 4

cost-effectiveness, accessibility), as well as develop a establishing a cave diving trail) might provide for
plan to cater to this market group through service or greater tourist opportunity, synergy of local business
product development and marketing techniques. owners, and greater profits.

Market analysis. The market analysis identifies Service or product development plan. A
the target consumer market. To conduct an effective service or product line development plan identifies
market analysis, you must measure the potential ecotourism services or products to be offered to
demand for the service or product you offer, identify customers, describes how this supply will meet the
the intended audience for the marketing plan, and identified demand, and offers guidelines for
analyze the segmentation of the target audience in diversifying the service or product to meet changing
order to effectively market program offerings to demands. Consider contemporary economic, social,
diverse subsets. For example, nature study is the political, and technological dynamics (e.g., the
fastest growing outdoor recreation activity in the economic recession, aging population with retiring
United States (Cordell 2009); this demand should be baby-boomers, climate change and fuel consumption,
considered in the market analysis of an emerging and on-line social networking) that may influence
ecotourism business. In addition, consideration for purchasing of ecotourism services or products.
the diverse demographic characteristics that support Efforts to conduct research and development would
this activity and segmentation of the market into also be identified in this section of the business plan.
subsets for greater effectiveness of tourism delivery
might also become part of the market analysis for this Marketing plan. A marketing plan is devoted to
tourism offering. identifying an effective marketing mix that unites
customers with ecotourism services or products for
Competition. Identifying other ecotourism the greatest profit, while providing environmental
operators in the surrounding area is critical for protection and quality of life opportunities. The
development of an effective business plan. This marketing plan would identify the product, place,
section identifies competition, similarity of service or promotion, price, programming, people involved, and
product, as well as comparative advantages (e.g., potential partnerships (Mill and Morrison, 2002;
resources) and competitive advantages (e.g., Perreault and McCarthy 2002). This would include
effectiveness in using resources) (Goeldner and the services or products being marketed, distribution
Ritchie 2009). Private ecotourism business owners channels through which the service or product will be
should consider other private business owners as well marketed (e.g., travel agents), how the service or
as publicly owned natural attractions (e.g., state product will be promoted (e.g., newspaper, internet,
parks, county parks, and national forests) when television, radio), considerations for price (e.g.,
identifying competition. Often entry to public determination of user fees), activity programming
nature-based recreation areas is either inexpensive or (e.g., diversifying tourism offerings in an effort to
free, so you must determine the unique experiences expand services or products offered), steps to ensure
you will offer if you are to compete with public customer satisfaction (e.g., quality control), and level
entities. Through this type of analysis, you might of collaboration (if any) through partnerships with
discover working with your competition to be more other agencies.
beneficial. For instance, you might find that forming
a partnership with a public entity is more attractive Financial Description
than beginning an independent business. You might
When starting or modifying an ecotourism
also find that packaging your service or product with
business, paying close attention to the financial
those of a competitor might provide greater business.
organization of your intended business will prove
For example, cave diving in north central Florida is a
profitable in achieving a successful business
major local tourist industry because of the many operation. For instance, ecotourism may often be
springs and caves in the area with multitudes of dive
considered a low expense option for landowners
operators providing such services. Packaging your
since it seemingly does not require much
tourism offerings with those of a competitor (e.g.,
infrastructure or development; however, potential
Principles for Developing Your Ecotourism Business Plan 5

customers expect a certain level of comfort to aid attraction they are coming to see and clearly
them in experiencing the opportunities you provide. communicate these practices to your front-line staff.
Such demands often dictate unexpected costs and This section of your business plan lays out the
expenses. For example, some private ecotourism activities you will need to account for in managing
operators who have opened to visitors their personal your ecotourism business.
homes for use of restroom facilities have found this
use to incur a cost to their privacy beyond what they Operating procedures. This section explains the
expected. The financial description of the business steps taken to operate the ecotourism business. For
plan allows you to take into consideration the capital instance, this would include a detailed description of
costs associated with starting or altering your how the service or product will be offered to
ecotourism business as well as the opportunity to customers through practices that support ecotourism
project anticipated revenues/expenses and principles. Special considerations for ecotourism
contemplate financing options. operators include regulatory policies that could
influence your operation (e.g., permits, taxes, zoning,
Capital costs. An effective ecotourism business educating visitor code of conduct), service or product
plan must consider all costs associated with launching evaluation, and protection from risk and liability. For
a new or altered business. This section of the more information on: permits for public land use, see
financial description is where you would identify your public land agency representative; business
your cash needs to put your ecotourism business into permits/licenses and taxes, see U.S. Small Business
operation. Start-up cost estimations should be based Administration (www.sba.gov); zoning, see your
on operation expenses for at least the first several county office; visitor code of conduct, see The
months of business implementation. These expenses International Ecotourism Society
might include one-time costs prior to business (www.ecotourism.org); and risk/liability, see U.S.
implementation (e.g., land purchase and business Small Business Administration.
incorporation fees) as well as ongoing fixed (e.g.,
utilities and insurance) and variable expenses (e.g., Sales plan. A sales plan includes a strategy for
equipment purchasing and personnel for guiding the sales team and sales activities (U.S. Small
tours) (U.S. Small Business Administration 2009). Business Administration 2009). The plan will define
who will comprise the sales team, specify whether
Revenue/expense projections. A business plan these individuals are internal or contracted agents,
must include clearly identified, itemized financials, list any extra compensation provided, and identify all
including break-even analysis and projected cash sales activities (e.g., teacher workshops to generate
flows. These projections include profit and loss school group attendance, open house opportunities
statements based on a three-year projection with a for community stakeholders to participate in
current balance sheet. ecotourism offerings, and membership with local
travel associations). The plan will establish sales
Financing. If you require additional funding to goals and a strategy to reach those goals.
start or alter your ecotourism business, you will need
to seek and compare various options for financing the Management plan. An effective management
venture. Here is where you identify your financing plan clearly identifies the organizational structure of
preferences, including options for equity and debt the ecotourism business, profiles the management
financing as well as any applications to secure team, and provides a description of ownership (U.S.
additional funding. Small Business Administration 2009). The
organizational chart should reflect the structure of the
Management Description management team and personnel requirements and
define roles of responsibility for each position. This
Managing an ecotourism business requires
will ensure every function within the ecotourism
familiarity with ecological and social concepts and
operation is covered and avoid duplicated activities.
challenges. You must understand how to bring people
This section would also include a profile of the
into contact with nature without damaging the very
Principles for Developing Your Ecotourism Business Plan 6

management staff, including a description of their Evans, E. A. 2008. Primer for Developing a Farm
backgrounds and skill sets. The management plan Business Plan. University of Florida, IFAS Extension
also must describe the ownership of the ecotourism Service Publication FE 720.
business, such as incorporation, partnership, or http://edis.ifas.ufl.edu/document_fe720 (accessed
independent proprietorship. More information on May 12, 2009).
business ownership models can be obtained from
U.S. Small Business Administration (www.sba.gov). Goeldner, C. R., and J. R. B. Ritchie. 2009.
Tourism: Principles, Practices, Philosophies 11th
Personnel plan. The personnel plan describes Edition. Hoboken, NJ: John Wiley & Sons.
the employee component of the business, including
hiring, training, compensation/benefits, and volunteer Mill, R. C., and A. M. Morrison. 2002. The
program considerations. For an ecotourism business, tourism system, 4th Edition. Dubuque, IA:
some considerations might include specialized Kendall/Hunt.
training and certifications needed by guide staff and
Perreault, W. D., and E. J. McCarthy. 2002. Basic
business operations training for management staff.
marketing, 14th Edition. Boston: McGraw-Hill.
Clearly defined responsibilities can keep business
owners from duplicating skill sets of employees and U.S. Small Business Administration, 2009.
ensuring role responsibilities are clear. Small Business Planner. www.sba.gov (accessed
April 17, 2009).
Conclusion
Weaver, D. 2001. Ecotourism. Milton, Qld: John
Natural resources available for ecotourism Wiley & Sons.
abound in Florida. However, before embarking on an
ecotourism business venture, establish a business Wyman, M.S. and T. V. Stein. 2007. Introducing
plan. A good business plan will provide a streamlined, Ecotourism to Florida's Counties and Landowners:
profitable strategy for success. Developing a business An Ecotourism/Nature Based Tourism Fact Sheet.
plan that clarifies business, marketing, financial, and University of Florida, IFAS Extension Service
management considerations is integral to effective Publication FR163. http://edis.ifas.ufl.edu/FR163
and sustainable ecotourism operations. (accessed July 6, 2009).

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