Hearth Business Planning 101
-written by Hearth Member, Robin Miller
Earlier this semester, my final semester of graduate school, I was tasked with writing a business plan for a class in community development finance. One of the visions all along has been to turn the mission of Miranda’s Hearth–building community through creativity–into a physical reality through the first ever community art hotel. This class assignment was the perfect opportunity to explore what it would take to move Miranda’s Hearth from a focus on community events to a brick-and-mortar location.
Writing a business plan is hard work. It’s not as easy as guides on the Internet make it seem: first, you have an idea – then, you figure out the operations, management and marketing, and finally, you make some financial statements to make it business-y. In reality, each of these steps takes quite a bit of time and effort to think through.
Here are just a few of the challenges I faced:
- There is so much information out there. Despite the plethora of resources available on the Internet, at the library, and in countless databases on economic trends, financial projections, and marketing strategies, it is no easy feat to sift through this information in the formation of a coherent business plan.
- Financial planning requires a lot of detail. Deciding on assumptions, projecting revenue streams and expenses, and trying to figure out whether we could actually secure debt financing or equity investment are arduous, but necessary tasks.
- We have a rather dynamic community. Things are constantly changing and growing in the Hearth, and a plan seems like this static document with exact steps that need to be followed in order to achieve success.
The good thing about these challenges is that they can be spun around into great opportunities. There is no lack of information and data to help make the case for why the Miranda’s Hearth Community Art Hotel is an innovative endeavor worth pursuing. Getting into the details of financial planning is a good and needed step as we move beyond our monthly gatherings to a brick-and-mortar presence. And having a dynamic community is what makes this all possible! If it weren’t for the folks involved, none of this would be happening, and there wouldn’t even be need for a business plan.
While signing up for Advanced Community Development Finance during my final semester of graduate school may not have been the wisest decision, I came away with an updated business plan for the Miranda’s Hearth Community Art Hotel. I received meaningful feedback from my instructor who pointed out many wrinkles in the initial plan that will need to be ironed out as we move forward. I am excited at the conversations this plan will spark and the ability to build community through creativity – in our own space!