A unit of Lasting Forests
Sustained forests; sustained profits
evolving since March 30, 1999

Project Pivotal-Rig

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Enterprise 2 The Dogwood Inns

There are specialized needs for housing for tourists and others in the region. Pivotal-Rig, Inc. can depend on others to provide these facilities or it can utilize its resources and capitalize on the advantages of unifying such an operation within its framework of providing for the advantages and opportunities within the region. The needs for its operations can best be met by dispersed inns of different quality and services throughout the region. Some of the existing problems within the region (the "down-town" problems that have been experienced widely) result from centralizing sales areas and from requiring potential customers to move to them for service at high costs and loss of time.

The Dogwood Inns component of the development strategy is like that found elsewhere within this business plan. Coordinated, centralized work can provide for dispersed, diversified economies. Owners and their families can live in their places; places can be maintained and renovated, and the inns can enhance the quality of living spaces within the county. Inns can reduce the travel time and costs to sites of interest.

We propose to offer advertising and marketing, Internet connections and services, and increase occupancy rates in healthful, comfortable, low cost facilities for visitors to the county and the services and resources of Pivotal-Rig, Inc. We can relate well to local restaurants.

We have a plan, a concept of managing "a widely dispersed motel" of 50 units, 1 to 3 rooms in each, or 100 beds, dispersed over the entire region. The units are linked by central booking, serviced by central crews, repaired, renovated, provided insurance, provided signage and facilities and equipment from a common pool, inspected regularly and assured of meeting high health and corporate standards … all to give the owners of fine homes within the region an opportunity to join and become one of the Dogwood Inns.

The inns provide new income potentials for an aging population. There are almost no proposed capital investment costs incurred by the county or town governments. The type services planned will not be competitive with major hotels but may augment and assist in their marketing. The inns provide a new vitality to the real estate tax base. Linkages will be made with local establishments to provide bakery, food, and beverage services. A variety of service activities is likely to develop. Crafts and related sales seem a likely associate of such facilities Centralized laundry services will reduce stresses on rural water and sewage systems.

Special programs of the Dogwood Inns will be developed for people to "get away" for extended periods, writing, reflecting, and recuperating from illnesses. A cooperative work-study and educational program will be arranged with students and faculty of hotel management at Virginia Tech and other programs.These spaces will be available for local functions of all types and so advertised, but their main year-around customer base will be the customers and clients of the increasingly active Pivotal-Rig, Inc.

This is a growth enterprise. In effect, we may recruit 10 owners to join and begin providing services. Our success will be in developing year-around activities in Pivotal-Rig, Inc. which will be needed to "fill beds." Having space is essential for Pivotal-Rig success. This is a chicken-egg problem but one that can be solved within the first year with charter-member incentives, dispersed marketing, and minimum risk-taking on all sides. There are likely to no gains in the first two years. A meeting place for shortcourses and business meetings will be needed. It seems likely that such space, perhaps with renovations, can be rented from one or more of the churches the county as part of a "stewardship of God's creation" premise. After that, 50% occupancy of 100 units for 200 days at a mere $40 per day (grossly half of the estimated per-day cost) produces an income for Pivotal-Rig of $400,000. Variations in units available, occupancy days, pricing, percentage of corporate income all together produce a wide range of possible financial outcomes.

Estimates

Development costs are for a 3-person staff and vehicle, and miscellaneous contact costs ($420,000)

• Low $ 50,000
• Mod, $400,000
• High $ 800,000

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Last revision June 8, 2002.