“AESF for the FUTURE” BUSINESS PLAN - DRAFT ONLY
BACKGROUND. The American Electroplaters and Surface Finishers Society (AESF) is a non profit corporation established in 1909. The Society is composed of approximately 3,000 members in 78 branches located domestically and internationally. Its purpose is to advance the science and technology of the surface finishing of materials.
The Society has a history of operating profitably based upon income from membership dues, sale of education-related products, and production of shows related to surface finishing equipment, chemicals and technical presentations by experts in the field. Principal revenue-producing annual show is known as Sur/Fin.
FINANCIAL STATUS. In 2004, a cash crisis was created due to investment losses in the stock market, unfulfilled contracts with hotels booked for Sur/Fin, and pledges to other trade associations for Government Relations (GR). GR principally functions as a lobby to eliminate, or reduce the stringency, of environmentally-related regulations. The potential insolvency was eliminated by the sale of the Society-owned and occupied property in Florida. During the imminent insolvency, the Society’s Board of Directors entered into a consolidation effort with two other trade associations, National Association of Metal Finishers (NAMF) and the Metal Finishers Suppliers Association (MFSA).
CONSOLIDATION. The AESF Board initiated a consolidation effort with NAMF, a job shop membership association and MFSA, the suppliers association of companies. In essence, they traded the revenues from Sur/Fin for financial assistance from the other two organizations. The initial consolidation effort produced the Surface Finishing Industry council and subsequently, the proposed National Assn. of Surface Finishers (NASF). Claimed purpose of the consolidation effort was to reduce expenses and finance GR through combined administrative efforts and financing.
CURRENT FINANCIAL STATUS. Recent financial statements from AESF, un-audited and incomplete show average losses of $40,000 per month, an amount which, it is estimated, will cause insolvency of AESF within 1 year if the losses continue.
ORGANIZATIONAL STATUS. The AESF Board has not obtained approval of their consolidation efforts from the members, or their representatives, The Council of Delegates representing the branches. A large number of members of AESF have proclaimed their dissatisfaction with the efforts of the Board. One group, known as the
“AESF for the Future” has prepared this business plan to eliminate the consolidation plans of the Board and return the Society to a positive financial footing.
“AESF for the FUTURE” PLANS. This business plan, prepared for a group of loyal and long term members, proposes to not only restore AESF to a firm financial footing, but improve it beyond its past internationally recognized stature and financially sound structure.
The plan recommends increasing revenue and reducing costs by 1) reclaiming the operation of Sur/Fin, 2) restructuring the management, 3) embarking on an aggressive marketing plan, and 4) eliminating firm commitments to GR. Financial statements and projections are presented which detail the financial steps needed reduce the operating losses and return to profitability and growth. Consolidation, as presented thus far, should be eliminated.
1.0 TABLE OF CONTENTS
- Names and Legal Description
- Organization History and Objectives
2.2.1 Past Performance
- Service Description
- Alternative and Supplemental Associations
- Staff Functions
- Financial Improvements to Prevent Insolvency
- Analysis of Jan. 31, 2006 Report
- “AESF for the FUTURE” Group Forecast
- Management and Administration
- Profit Center Analysis
- Miscellaneous Income
- Solvency Test
- Preventing Insolvency
- Sales and Marketing
- Increase membership
- Sell Large Companies on Contributing Sponsorship
- Create Alliances with Allied Industries
- Increase Promotion of Educational Programs
- Reclaim Sur/Fin Administration
- Offer Group Benefit Programs
- Return to Core Values
- Joint Ventures
- Sur/Fin and Associated Meetings
- Government Relations
- Staff Reorganization
- Executive Director
- Branch Services Manager
- Educational Director
- Clerical Staff