Bed and Breakfast for sale - Sample Business
Plan
Intro : This is a "5-minute" overview of
your project.
Title page
Table of contents
Summary or overview
Description of business – keep short, succinct and to the
point. Use a bulleted list if necessary.
Completed after bed and breakfast is identified:
Type of Inn
Auxiliary services offered
Description of physical structure
Location
Legal structure
Financial history of business, P&L (if an existing Inn)
Marketing (Partially Property-Specific)
Determine Sales Potential
Target customers
Competition
Visitor statistics and occupancy rates
What will make your inn competitive?
How will you attract guests?
Ambience
Initial and outgoing marketing (NUMBERS!!!!)
Pricing structure
Policies and procedures
Personnel
Your resume and business history
Why so important? - 92% of all business failures are a direct result
of poor management (US SBA)
Qualifications
Experience
Training
Names and resumes of any investors, partners and consultants
How will work be arranged?
Owner responsibility or staff
Simple chart of responsibility (roles and structure)
Consultants and Outside resources
Architects, attorneys, contractors, insurance agents, decorators
Consultants, innkeepers, contractors, other professionals consulted
Commitments
Contracts on land, building, furniture, existing clients
Financial Information
Summary of Financial Needs
Personal Financial Statement
Personal Benefit Income
------------------------------------------Property Specific
Building Acquisition Costs
Equipment List
Balance Sheet
Breakeven Analysis
Income projections (P&L)
3 year summary with explanations and notes
Historical Financial Reports
Balance sheets (3 years)
Income statements (3 years)
Tax returns (3 years)
Renovating and Furnishing
Start-up Working Capital
Budget
Research (Property Specific)
Economic Profile of the area (tourism, attractions, business, etc.)
Major travel arteries (highways, airports)
County occupancy averages
Number and type of competition
Local policies, codes, taxation and zoning
Recreation and attractions (seasonal or year-round)
Research Resources
PAII
Local library
Local Government agencies; zoning, travel agents, Chamber of Commerce
Brochures from local hospitality businesses
Local newspaper
Local Innkeepers
Specific Location Questions
Nature of overnight guests in the area - age, economic status,
purpose, interests
Occupancy level of non-conference hotels, motels and inns,
Seasonal occupancy
Local business support (Chamber of Commerce, Local tourism board)
Drawing features for clientele (tourism and business clients)
Failed Inns or B&B's in past 3 years
Competition
Government support of tourism
Restaurants
Parking
Expansion
Living area (indoor and outdoor)
Business advice and resources
Bank Accountant
Legal Advise Business "partner"
Insurance Marketing consultants
City and County Requirements
Business Name - Corporation DBA
Public Works or Trustees (parking, traffic)
Fire Dept (exits, fire accessibility, sprinklers, detection)
Planning (zoning, permits, modifications, variance)
Health Dept. (Kitchen, spas, swimming pools, food service)
Assessor's (Taxes)
Evaluating the Property's Income
Projecting Income
Occupancy Rate (%) = # of rooms rented annually / (# rooms available
x 365 (or seasonal days))
Projecting Expenses
PAII survey – expense /per room /per year
% of income expenses
Cash Flow Analysis
Evaluation of individual properties
Balance Sheet
Assets and Liabilities
Financing
Character - trustworthiness,
Capacity - financial strength, experience
Capital - ability to repay, investor strength, % of owner
investment?
Collateral - primary source of funds to repay
Conditions - economic factors
Next >> Aspiring Innkeeper
Seminars |
