Free Bed and Breakfast Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
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templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- Loan Amortization and ROI Tools
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this free business plan is to raise $750,000 for the development of a bed and breakfast while showcasing the expected financials and operations over the next three years. The Bed and Breakfast, Inc. (“the Company”) is a New York based corporation that will provide nightly room lodgings and food/catering services to customers in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The Bed and Breakfast will be a unique facility that will feature a number of amenities for clients staying with the Company. This old styled facility will feature 6 to 7 bed and breakfast style rooms. Within the facility, guests will experience state-of-the-art technology coupled with a staff that provides food/beverage service, as well as spa services to patrons (outsourced). The business will also provide large parties with site rentals so that a number of guests can use the facility exclusively. This is an important revenue center for the business as it will provide a highly predictable stream of revenue, primarily from event and wedding planners that want to use an entire (but relatively smaller) facility. The third section of the business plan will further describe the services offered by the Bed and Breakfast.
1.2 The Financing
Mr. Doe is seeking to raise $750,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 30 year loan with a 7% fixed interest rate.
1.3 Mission Statement
The Bed and Breakfast’s mission is to become the recognized leader in its targeted market for quality lodging, food service, and catering services.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the hotel management industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals and travelers within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Bed and Breakfast, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Bed and Breakfast requires $750,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Bed and Breakfast, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Bed and Breakfast. Based on historical numbers, the business could fetch a sales premium of up to 8 times earnings.
3.0 Products and Services
Below is a description of the services offered by the Bed and Breakfast.
3.1 Hospitality Services
The facility itself will feature six to seven rooms that will have a number of modern amenities. Each room will have a flat screen TV and internet access so that customers can remain in touch with the world while they are on their vacation stay. Many travelers will only stay in places where internet access is available, and Management feels that is imperative that the Company maintain standards that are applicable to the rest of the bed and breakfast industry. Each room will feature a queen sized bed, a bathroom, desk, and two nightstands. The Company will also contract with local massage therapists, cosmetologists, and other service providers to provide a small variety of massage and spa services onsite in an outsourced capacity.
3.2 Catering Services and Food/Beverage Services
The Bed and Breakfast will make a full food and beverage service available to all of its customers. Management feels that by providing a number of food and drink amenities, clients will become loyal customers of the bed and breakfast, and as such, they will always return to the business when traveling in the area. The Company is also developing an additional catering service that will be used for events that are hosted at the Bed and Breakfast. Management feels that this business segment will make the Company extremely profitable as the sales of catering packages usually generate contribution margins in excess of 70%. Additionally, the catering services that are offered to= guests may be expanded so that local events can use the Company’s catering service as an outsourced vendor for the party and event planning needs.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the bed and breakfast industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period.
4.2 Industry Analysis
The industry research for the Bed and Breakfast Business Plan is included in the paid version of the business plan.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Bed and Breakfast intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Bed and Breakfast.
5.1 Marketing Objectives
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• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
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• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
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• Establish relationships with travel agents and online travel portals throughout the United States.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Bed and Breakfast to easily travelers and local residents within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Bed and Breakfast will also use an internet based strategy. This is very important as many people seeking lodgings, such as bed and breakfasts, now the Internet to conduct their preliminary searches. Mr. Doe will register the Bed and Breakfast with online portals so that potential customers can easily reach the business. The Company will also develop its own online website showcasing the Bed and Breakfast facility (with many pictures), its menu of onsite services, preliminary pricing information, directions, and contact information. The business will also register the location with major travel agencies and online portals such as Expedia, Travelocity.com, and Priceline.com so that the Company can gain nationwide exposure among people seeking to stay in Bed in Breakfasts within the Company’s local target market. In this section, you should expand on how you intend to implement your marketing. List publications, local newspapers, radio, and other outlets that you will use to promote your business. Discuss how much money you intend to spending on marketing.
5.3 Pricing
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
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• The Bed and Breakfast will have an annual revenue growth rate of 10% per year.
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• The Owner will acquire $750,000 of debt funds to develop the business.
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• The loan will have a 30 year term with a 7% interest rate.
7.2 Sensitivity Analysis
The Company’s revenues are somewhat sensitive to the overall condition of the economy. Since the bed and breakfast industry provides a leisure service, pullbacks in the general economic markets can effect the Bed and Breakfast’s ability to generate revenues. However, the Company will run its operations with a wide margin of safety, and the contribution margins generated from gross sales are large enough to allow the business to operate profitability even in times in economic recession.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
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7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis
