Diary

October 2007
> Newsletter 1: Bogaletter!

Leiden, september 2006
Business plan brief for Bogata Schuma doo. Voijnic

The name Bogata Suma
Bogata suma is Croatian for the name of the doo. Doo is the judicial body that owns the land. Doo compares to ‘BV’ in Dutch law. The obligation to use a doo to buy terrain in Croata is a way of preventing every foreigner to buy terrain in Croatia. Peter Scheltus is at present the sole owner of the doo. Voijnic is the official address of the doo in Croatia.
Bogata Suma means ‘forest rich’.

About the content of this brief
The focus in this piece is on creating a first resort of a chain as a pilot. Mentioned sometimes of course is the interest to stimulate tourism in the area and wider as well. We will develop concrete plans for that as well. The doo has many purposes in it’s registration. It means we will be permitted to conduct many commercial activities without having to create another doo. in the beginning.
This piece primarily concerns itself with creating a resort.
Gerard Smeets is Dutchman most of the time living in Croatia and long time tourist professional. Due to his humanitarian role in the war he has an honorary citizenship of Opatija. He supports me in Croatia.

Vision; We create life in the countryside by starting tourism business and related activities. We do this by the following organisational values; cooperation, creativity, fun and dedication.

Resort focus
We create an eco-agricultural vacation resort in which we offer hospitality through dedication, creativity fun and cooperation. Business wise we will be active in hospitality, creativity and nature.

Explanation of parts of the vision. Essential is that our plan has a basis in a vision. And that the vision has distinct values. It makes it possible to work and cooperate in clarity about a vision. Some people don’t want to work inside this vision. So it’s clear. There will be no cooperation. Only if people are willing to operate within the vision one can choose to cooperate.

Eco;
Ecologically sustainable. The earth is of mine and thine childrens children. If you have a roof, you need beams. The beams come from the trees in the forest. You take a tree, you plant a tree. A tree that fits the need later. Maybe you will need to replace a beam in 50 years time. If you plant in time, there will be a new beam in time. No taking without thinking about tomorrow…..

Agricultural;
There will be a small ecologically operated farm on the terrain with animals and vegetables etc. So the food comes from close by. Out of nature with which we cooperate and local producers. Slow food is a good example. No products from the other side of the earth. Live with the season.

Hospitality;
Good kitchen, good beds, natural surroundings, good fire and warm houses. Compared to city life, simple but genuine living and yet comfortable. After a day of hard work or holiday making, being together in the good own restaurant is an option. The area offers a lot of what comes to table to eat. Good for everybody. So bourgundic eating, ‘wining and swining’ but good quality vegetarian own produce is also part of the kitchen. After dinner everybody goes to his or her own place. To slide into bed glowing of the day. To wake up fresh with a view on nature, ready for a new day full of inspiring cooperation or solo work. The atmosphere we create by being dedicated to that what we’ve chosen to do. And cooperating to upkeep our quality all time.

Nature;
We will tend gardens that provide the kitchen with products. We will organise nature oriented tourism. Obviously when one walks out the back or front or side door, one can walk for hours without meeting anyone.

Values; dedication, creativity, cooperation;
Dedication is relevant in the organisation towards clients, towards work and tasks, towards quality of work delivered, client communication, service quality etc. Virtually every aspect of organisation can be given a quality of being with the aspect that needs attention that moment. Not something far away, but the client in front of you, the reality at hand, the now. That special something by which you can make a difference with the mechanical treatment of them versus you in the organisation. The one who thinks at that moment: ‘Hey, here’s our client, the most important person in our life, because he or she makes it possible for me to work here’ makes a difference. It is the quality of attention that makes the difference. Consequence? Fun in work, high quality service. Dedication means the service person can be approached with ‘how to make things better’. Not being in defence, but being eager to make it better all the time. Something is not a problem, it’s an opportunity to learn anew. Maybe something you thought you knew, but apparently not because something wasn’t working.

Creativity; How to solve or make things as a state of mind.
Nature shows a lot of creativity. Creativity is approaching every situation in life with the attitude: ‘What’s possible here?’ The questionmark is essential here. This person is curious. A curious attitude leads to creativity.
Nature shows a lot of creativity. One has only to look around in nature to see diversity in forms and colours. It is boundless. Everything created in nature fits in nature. There is also the limit of what we can do with nature. Whatever we create, it has to fit in the natural cycle. What earth do I deliver to my children’s children. Whatever you create, think of tomorrow.
Creativity in the resort also means; We offer personal development vacations on a small scale. We also have workshops where there will be possibility to be active in crafts and arts.

Cooperating means working as a team. It also means there will be cooperation with the
people surrounding the resort. It means buying locally all or many selected goods and services for restaurant, camping and buildings. At the same time it’s possible for a selected group of younger people to grow in the organisation. On the one hand it can mean learning an attitude (their own way of being), practical knowledge and languages to be able to be sent out to other organisations where they can pursue their career. On the other hand it can mean that they return to start an enterprise of their own in or outside our organisation. They can also become fellow owners in our organisation. The training of people will be my business next to being active in restaurant or camping or building (putting one stone on top of the other).

About these values, they need to work for everyone. So what the working values are, one exchanges with each other. So everybody can work with his or her own values. In any case it is important that the organisational vision and goal is served. So maybe someone works with his or her own value. Important is the attitude towards the values and goals of the organisation. That the person cooperating can support with full heart the values and goals. This means the person can personally develop in the organisation until the end of time, if so chosen.

Trough the project we create a resort where different services and products can be obtained. In so doing we will create a network through which through cooperation with various agents, tourism will be stimulated in this area.

Research basis;
This beautiful idea world is supported with visits to relevant centres such as Findhorn in Scotland 2001, where I (besides doing trainings on group dynamics) I researched the organisation for a month. It was directed at organisational development trough the years. What issues emerge in a developing community. What do people leading the organisation do, what does it create in the organisation and what do people living there experience. To find out I was at strategy meetings of the community, I read their press books, spoke with all heads of organisation and spoke to and working with many people living in the community. Next to that I’ve been visiting relevant conferences on sustainable tourism with specialists from the whole of Europe, had contacts with sustainable tourism sector in Europe etc. In so doing I created a document for this project. Supported with literature and examples from many places in this world and many sources like articles in magazines and on internet.

Who am I inviting as partners?
Those that are open to choose to work within a vision. Based on experience in different organisations with a clear vision. Choice of partners in the beginning is also based on research about what kind of organisation succeeds in a big way. Choice is also based on my personal experience of being in such organisations supplemented with reading research on that topic. Finding best practices boiling down to creating initiatives by ‘first who, then what, then how’. Inspiration comes also from meeting the founder of Chaos Pilots, Essence trainings, being in Findhorn Scotland etc. Essential though is obviously searching seriously for a way to succeed. Never forget fun. It will be a very limited core group that is inspiring around them in an atmosphere that crackles energy.

I’m searching for people that start with each other in such a project from a clear point of view of what one is starting. They can come from various countries. And Croatia of course. Financial creators, miracle-doers-builders-restaurant lovers, bio farmers and architects of the future. People that without knowing what the result will be, will put in all of their energy to make it work and succeed together. Possible it is to attract young local people. In so demonstrating that there can be business created in the countryside. Working without worrying about tomorrow. But by doing and following the example of nature, taking care of tomorrow. Creating an example of how life in the countryside van be fulfilling. Against tide of those choosing city life.

Place and surrounding area;
Old forests, small streams, mountains, small village nearby for social contacts, school and buying things, and sea not too far away. So Croatia. Possible are also Italy, coast of France, Spain, and other mountainous areas in the world with rich forests around.

Business purpose; Starting one or more eco vacation centres and work on regional level to stimulate tourism.
In cooperation start, run and develop a vacation resort in the broad sense of the word. Meaning the farming is part of it. Personal development and crafts can be part of it. As other lines of small business and services.

Timeframes vacation centre
2006 Preparing the land; Is being done. Clean-up has mostly been done now. Clean-up being: Removing junk that has been left over the years. Preparing: Making free the fruit trees and preparing them for production next year. Regular upkeep will start as soon as building starts on the terrain.

2006 Rest of 2006 Design buildings. Concept ready for sending of to local government now. dd. 16 09 2006 Final design probable October. Request for direction based on first building design concept will be sent week of 18th of september. Final permit’s requests end of 2006.

2007 Start season. Original plan. This moment it is still the deadline. Depends on speedy permits.

2008
Start building training space. Able to contain 20 people under one roof. One training area and one sleeping area.

Training; Personal development trainings. Meaning a person comes and in a week gets an idea how to develop and plan his or her life’s goals. The person goes home with a frame and how to develop new goals and plans in life according to the reality of the day and his or her personal choice.

LT 2009 – 2011
Buy second terrain. Coastal location.
Start copy same organisation. Under same marketing system.

2012 and further? Croatia 3. Mountains.

2015 New country, new project.

Personel and organisation Croatia 1
Start cooperation with carefully chosen partners. As business-processes grow, they can be used as material to learn on for people who are interested. Partners should have drive, vision and openness.
Drive means to me they are creative, and take initiative. Vision means that they think on a certain level about why they exist. Vision is what gives them direction. Vision determines long time the direction you take an organisation. It’s working in an environment that gives concrete tasks. But the point of direction is beyond the horizon. One should be able to keep on working without knowing what we’ll exactly need to do in the future. Without knowing what the future holds in store. Trusting therefore is important.

The organisation as a judicial personality.
1 The organisation in her judicial form will get the particular form needed according to possibilities of law in Croatia. 2 The ownership of terrain must be in hands of those having initiative on the terrain. 3 The division of ownership and initiative creates problems over the whole world. One has to prevent that. 4 By sharing ownership for example. 5 Then also if one wants out, he or she gets compensated for inflation and loss of a reasonable amount of rent. 6 Not the value added above adding buildings etc. and creating enterprise on the terrain. It makes it immediately to an object of speculation. The point is I want to create something that manageable longtime. 7 It might occur to present owners to sell the whole place to create a new resort after lessons learnt, that’s an exception to 5. Might then be the whole as a running concern gets sold. That’s a different position. And it’s worth market value of that moment.

It could be a foundation or an association of owners.
The financing of the terrain can be created by the owners without the foundation or association. Later the foundation can buy the terrain from the owners. The organisation pays back the amounts to the persons financing also compensating for inflation and a reasonable amount of rent and costs incurred. That could be done in about 3 years from the buying moment.
That can be the moment we as an organisation have become known as true to our word that we want to live close to nature and want to give others a chance too. Same goes for putting people of Croat origin on the payroll. For employing and paying people there should be a separate organisation. That is to protect the rest of the organisation from unexpected claims and developments via the European union. If one organisation can’t make it, it need not mean that the rest of the organisation should suffer. One has to look ahead to prevent risks.

Products and sevices; Hospitality is the core of all activities. A small camping B&B and small restaurant could be the starting point. Around that other facilities can grow later.
Courses can be offered like cooking, crafts, working at the farm, art, dance, personal development, outdoor activities and nature tours, etc. We can create initiatives that can be a test case for this corner of future rural EC. So we become interesting as an example for the rest of Europe. (For example Findhorn Schotland).
We could recreate ways of building, create special products as merchandising around the organisation. For example a small box containing perfume created on the farm and sold to a guest. To take home as present for people at home. So the people at home get to know the organisation by it’s goods. All needs to be done to let visits lead to visits and to create new customers.

Promotion and marketing;
Target groups; Nature lovers, people that want to experience the rough country. Families in the high season, elderly and others in the off season. When they get home they still smell the smell of fire in their clothes. Defining these groups might be not necessary. If we use our networks well, our friends should spread the word.
Media; Internet, networking, free publicity, small ads in specific magazines, links with comparable organisations in the Netherlands and elsewhere. I think free publicity should be an important source of the positioning. I will be a new initiative. Before people will decide to choose us, somehow they have to know about us.
Word of mouth. Made active by asking guests who they think would be interested in visiting us. Targeted pre, high and late season approach. By which we also get the people interested in vacation between seasons.
Quality price level; Should not be low to start up the business in the beginning. That way we attract customers we don’t want to repeat their visit later on. Best is to communicate quality from the beginning. So the good customer comes from the beginning. Otherwise one has to start a new with one’s marketing.

Financial; First fase; Personal financing first. Then come friend and business partners. If a Croatian business partner enters, maybe Croatian banks can become interested. Subsidy will be sought too. Is in research this moment.

Possible turnover in the beginning based on a season of 120 days. Roughly 4 months.
It is concentrated on a summer season. If early season and late season and winter season becomes exploitable, figures should change for the better. Costs will also rise.

Camping;
20 places 3 people per place; 1800 places month; 7200 places in season at 100% capacity. At a price of € 13,= per person average. At 100% capacity; € 46.800,=
2007 € 12.000,= 2008 € 24.000,=

B&B
12 places; 3 people per room; For easy calculating roughly 4000 bed’s at 100% capacity. At €20,= per bed a night.

At a fourth of capacity;
2007 € 20.000,= 2008 € 40.000,=

Restaurant
24 Places; Average consumption; € 25,=; 2880 meals etc. At 100% Roughly € 75.000,= At a 25% Capacity;
2007 € 19000,= 2008 € 40.000,=

Summing up
If one spends € 100.000,= creating B&B, Restaurant, Camping with swimming pool, it should be possible even at a fraction of the capacity to earn a living. It remainsto be found out if this challenge of keeping building and decorating costs as low as mentioned. Costs of craftsmen are extra ordinary low at the moment. (€3 – 6 hr)
It means at least that if a fraction of the quarter of capacity is met, the investment would be earned back in 3 years or less. Having left out costs of buying ingredients for meals changes the financial picture a bit. There will be considerable production from the garden. Assuming there are volunteers, some Croatian personnel, and beginning partners, it should be possible to create a viable base. One assumption is that the hospitality need not be commercial. There should be no need of creating a profit as a purpose of the organisation. Fiscally that determines the management of the whole enterprise far into the future. It should be enough so one can upkeep and develop the organisation to be. Enough can mean a whole lot in terms of gains. It supposes the gains are p back into the organisation to develop it. So one can fiscally claim the gains are low to non existing for along time. As long as one keeps on developing the enterprise.

Concluding I would suggest we start small-scale camping and a small cosy restaurant combined with some good beds in characteristic buildings. We ourselves have to eat too. We are of long time learning also good cooks. Obviously in time we will not continue to do everything ourselves. We will start cooperating with various people in time. And we’ll see how the place grows. What is needed will appear naturally in the course of time. I would base prices on what is usual in Croatia and what we need for living as fellows in the organisation.

My point of view towards this document
It is merely a discussion starter. It’s not the complete project document. The document will never be complete. It will develop as time goes by and we adapt our plans to reality. The plan is never more important than reality. There is a list of documents, conferences and articles supporting my project document. That is not completely up to date either. New articles get added every so now and then. The exploration into various areas of developing business as well as types of construction is finished. There is a time to research and a time to start things. Which is now.
The vision nor values will change. How they are applied is flexible to a certain extent. Needs to be flexible to be able to contain everybody’s values. So everybody can bring in his or her identity and connect with the vision. So this is a discussion starter. A frame with which we can move towards collective goals together. In growing fellowship. The aim in the future is for everybody to develop their own business and initiatives. Local, small, individual initiatives in cooperation a network as it were.

Remember always, we’re flying around the sun at a clip of 33 km a second. And never a cup of tea trembles in our cupboard. Yet I feel safe on this earth. The rumbling is made by people. The speed of the earth I cannot influence. The rumbling I can to a certain extent. So let’s rumble!

Peter