Whether your business is a rustic retreat or a high-end bed and breakfast, this Business Plan Outline for Bed and Breakfasts, Inns, and other lodging businesses will help you write a business plan that will start you on the road to business success.
- Cover Letter: State the concept/objectives/conclusions of feasibility study/proposed plan of action. This is the request for review of the business plan and financing of the project.
- Market Analysis: Where will the project be located? Collect area economic data, past/present/future. What is the health of the market/destination?
- Business Description: Proposed or existing lodging property? How will the inn be differentiated from other lodgings in the area? Answer the question “Why would anyone stay with me?”
- Site/size Analysis: Describe the attributes of the location. Determine the size that fits your economic and lifestyle goals.
- Competitive Analysis: Refine #3 to focus on your competitors/determine the number of competitive rooms/rates/occupancies/contribution of market segments.
- Supply & Demand Analysis: Calculate area wide occupancy & average daily rate (ADR). Determine market segments & your objectives. Forecast future room requirements/market effect of adding new rooms. Estimate your inn’s occupancy & ADR by month for the 1st, 2nd, and 3rd years of operation.
- Pro-forma Operating Statement: Produce sample for stable 3rd year of operation.
- 1-5 Year Pro-forma: Show conservative, intermediate, and optimistic projections of your inn’s revenue and expenses.
- Pro-forma Cash Flow: Calculate the initial 24 months of operations (or until the inn breaks even) by month to reflect cash flow requirements.
- Marketing Plan: Develop marketing positioning, strategy, and tactics for pre-opening and start-up years. Determine a budget and include in cash flow requirements.
- Management Background: Include principals’ curriculum vitae.
- Loan Request: Single page/define project needs/total project cost/terms desired.
