1.0 Executive Summary
The purpose of this business plan is to raise $1,000,000 for the development of a ski lodge while showcasing the expected financials and operations over the next three years. Ski Lodge, Inc. (“the Company”) is a New York based corporation that will provide lodging and skiing related services its targeted market. The Company was founded by John Doe.
1.1 Operations
The Company intends to develop a 20 room ski lodge facility that will feature a number of amenities including high speed internet access, phone usage, and a fully stocked vending machine. At this time, Mr. Doe is sourcing a number of potential general contractors and real estate agents to determine whether the facility should be purchased or built from scratch.
The Ski Lodge will employ a full time maid service to ensure that each room provides customers with comfortable lodgings for their nightly stays. The business will also generate revenues through the ongoing sale of ski lift tickets on a daily basis.
The third section of the business plan will further describe the services offered by the Ski Lodge.
1.2 The Financing
Mr. Doe is seeking to raise $1,000,000 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 9% fixed interest rate. The financing will be used for the following:
Development of the Company’s Ski Lodge location.
Financing for the first six months of operation.
Capital to purchase beds, furniture, and other equipment.
Mr. Doe will contribute $100,000 to the venture.
1.3 Mission Statement
The Ski Lodge’s mission is to provide customers with comfortable lodgings and many other amenities including high speed internet access, cable TV, and phone usage in addition to discounted ski lift tickets.
1.4 Management Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the ski lodge 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 skiing enthusiasts within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Ski Lodge, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Ski Lodge requires $1,000,000 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 Ski Lodge, 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 Ski Lodge. Based on historical numbers, the business could fetch a sales premium of up to 9 times earnings (plus the value of real estate).
3.0 Operations
The Company intends to offer a room on a nightly basis for skieres. The room will have many ammenities including:
A large sized room with a queen sized bed
Full cable television
Room Service
In room mini-bar
Daily housekeeping
As the Company expands, Management intends to offer more amenities and services so that we can consistently add value for the customers’ experience.
The business will also offer daily ski lift tickets with an associated ski slope company within the target market.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the lodging industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic climate is moderate. The economy is undergoing a transition period due to changes in global trade policy. At this time, interest rates have remained steady due to appropriate and measured policies by central banks. While there has been volatility, this is expected to subside as the economy adapts to these changes.
However, the high gross margins from skiing lodge services will ensure that the business is cash flow positive at all times. The business will principally cater to a wealthier clientele that is less swayed by negative economic climates.
4.2 Industry Analysis
The ski lodge and motel industry in the United States is an extremely fragmented industry that has a number of different operators working in many markets. There are a few large corporations that offer ski lodge style rooms on a national scale. Although these are large businesses, their portion of the overall ski lodge market is very limited
According to a US Economic Census report, there are over 43,000 individual motel facilities in the United States. It is a $74 billion dollar per year industry that employees approximately 1.7 million people.
The ski lodge industry is mature. The future growth rate of the industry is expected to remain in line with the growth of the general economy.
4.3 Customer Profile
The Ski Lodge average client will be a middle to upper middle class man or woman. Common traits among clients will include:
Annual household income exceeding $50,000
Will spend $100 per night to the Ski Lodge.
75% of guests will be skiers.
25% of guests will be local residents of people visiting on vacation
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own.
5.0 Marketing Plan
5.1 Marketing Objectives
Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
Place the Ski Lodge’s name within online travel sites such as Expedia, Travelocity, and Orbitz.
Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.
Establish relationships with travel agents within the targeted market.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Ski Lodge to easily target skiing enthusiasts and vacationing travelers 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 Ski Lodge will also use an internet based strategy. This is very important as many people seeking local services, such as a ski lodge, now the Internet to conduct their preliminary searches. Mr. Doe will register the Ski Lodge with online portals so that potential customers can easily reach the Motel business. The Company will also develop its own online website.
The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the ski style lodging that the Company is selling. The Company will also place advertisements within airports located within 50 miles of the Ski Lodge.
6.0 Financial Plan
6.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
The Ski Lodge will have an annual revenue growth rate of 16% per year.
The Owner will acquire $1,000,000 of debt funds to develop the business.
The loan will have a 30 year term with a 9% interest rate.
6.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. However, ski lodging services are continually demanded by skiers, and only a more severe economic recession would result in a decline in the Company’ revenues.
6.3 Source of Funds
6.4 General Assumptions
6.5 Profit and Loss Statement
6.6 Cash Flow Analysis
6.7 Balance Sheet
6.8 Breakeven Analysis
6.9 Business Ratios
