+1 862 207 3288 44-7976-00S-B
ASSIGNMENT 2 : BUSINESS FEASIBILITY REPORT
KELHAM ISLAND MUSEUM
BRIEFING DOCUMENT
1. Assignment Task
Working individually, you are required to prepare an outline feasibility study for setting up a small tourism, hospitality or related
business operation. The business idea should tap into a clearly unmet market opportunity among visitor markets, but it may also serve
local residents as a supplementary market.
It may be a service that appeals to a general visitor market (eg day trippers, sightseers) or to specific groups (eg overseas students
studying nearby, school groups) or to specific interests (eg a type of activity or event service). However, it will need to contribute
to the income of the museum and should aim to be financially self-sustaining (ie not a venture that will result in a drain on the
Museum’s financial resources).
Produce a report of your findings following the conventions of an outline feasibility report that would be required by anypotential
external investor in the business.It is expected that some field-based research should be undertaken as part of your study.
2. The Site / location
Your business proposal is to be located at Kelham Island Museum, Alma Street, Sheffield, S3 8RY. The Museum is located in one of the
city’s oldest industrial districts and stands on a man-made island over 900 years old. This is slightly outside the City centre but in
the recently and continuing to be redeveloped Kelham Island / Shalesmoor area. http://www.simt.co.uk/find-us
The area has a reputation for being home to some of the best Real Ale pubs in the City and is also developing as an “eating out” area
with a range of restaurants in the locality.
3. Kelham Island Museum
Kelham Island Museum is one of the museums that are part of Sheffield Industrial Museums Trust (SIMT).
The Museum was opened in 1982 to house the objects, pictures and archive material representing Sheffield’s industrial story. In 1994 it
transferred from the local authority to become an independent organisation (SIMT) albeit still predominantly funded by the local
authority (Sheffield City Council). The Museum has developed and grown over the last 21 years and is now attracts over 50,000 visitors
a year.
The main building was originally a power station. It is now surrounded by residential accommodation, student flats and a soon to be
finished mixed housing estate, in addition to the afore mentioned leisure businesses.
Over the last four years, in order to compensate for funding cuts and to ensure its future, the Museum has created a number of
commercial income streams. This is predominantly using the Museum building itself as a wedding and corporate hospitality venue
(www.simt.co.uk/hire).
All recent developments at the Museum have had commercial opportunities designed into them even though their main purpose is as part of
the Museum,for example the brewing exhibition designed as a pub.
4. Area / Site Available for Entrepreneurial Development
The area at the end of the island remains an under-utilised asset. There is a large tarmacked area, some rough ground, a number of
museum items which are too large to store inside and a small hexagonal shaped building known as the Douglas Centre, with a central
staircase.
It is this area and building, either independently or together that the Museum is now seeking to develop entrepreneurially.
Any ideas will need to allow the Museum flexibility to use the area for other functions as well.For example at the annual Christmas
Market the building is transformed into Santa’s grotto and the outside covered with a marquee to accommodate additional market stalls.
Exhibit 1 : The outside area, from the museum
Exhibit 2: The outside area, Douglas centre and a locomotive
Exhibit 3 : Inside the Douglas Centre
Exhibit 4 : Exterior view of the Douglas Centre
Exhibit 5 :External views from the weir and looking down the River Don
5. Challenges and Research
Starting a business within Kelham Island Museum will not be without its challenges!As a nascent entrepreneur, you will clearly
need to undertake both secondary (desk) and primary research to help you determine the potential for success.
You will need to consider the physical environment of the site (eg access, restrictions), the constraints of the premises, the
Museum’s visitor market and the city’s wider tourism and leisure economy.
You will need to ensure your idea ‘fits’ with the wider social and community ‘ethos’ of the museum: clearly, not all ideas will
be suitable for the location.
As previously stated, the idea should aim to be financially sustainable. However, if, after yourvarious analyses you come to
the conclusion that your business idea wouldnot be profitable, it is OK to reach that decision as long as you clearly explain why you
reached that decision.
Your feasibility report is an individual piece of work. However, to help you in the task of collecting data, you will be able
to work in small groups and share findings.
There will be an opportunity to pay a return visit(s) to the Museum, at the discretion of the museum’s Business Services Manager.
