Are you about starting a boutique hotel business? If YES, here’s a complete sample boutique hotel business plan template & feasibility report you can use for FREE.Okay, so we have considered all the requirements for starting a boutique hotel business.
We also took it further by analyzing and drafting a sample boutique hotel marketing plan template backed up by actionable guerrilla marketing ideas for boutique hotels. So let’s proceed to the business planning section. Starting a hotel business is capital intensive and it is considered a long term investment because it will take a while for the owners to break even and start making profit.
It takes a big-time investor to consider starting his or her own hotel business, which is why loads of hotels are owned by groups of investors. One good thing about hotel business is that the business can grow so big that it will not only have active presence in key cities in the country where it started from, but in major cities in all the continents of the world.
It is important to state that hotel operations vary in size, function and cost which is why hotels are classified into different grades (two – star hotel, five – star hotel, seven – star hotel, boutique hotel et al). No doubt you will need a business plan to kick start your boutique hotel business. Writing a business plan to many might come as a herculean task.
This is because of the many technical areas that may likely appear gray. It is for this reason that business plan templates can be drawn from the internet and even from business books, so that you can have an idea of what it is like to draw up a business plan for yourself.
You too can write your own business plan by fixing in the appropriate details of your business after you have gone through the sample boutique hotel business plan template below.
A Sample Boutique Hotel Business Plan Template
1. Industry Overview
The Boutique Hotels industry comprises of intimate, luxurious and fashionable hotel environments that feature unique architecture and design. They are also known as lifestyle hotels, villas and wellness hotels. Boutique hotels might offer food and beverage services as well as having restaurants, spas and salons in the premises.
It is important to state that the Boutique Hotels industry does not include chain hotels; nonetheless it does include boutique brands owned by larger hotel groups.
In recent time, the Boutique Hotels industry has experienced steady growth as several consumer trends supported demand for the services offered by boutique hotels. For instance, consumer confidence and spending have both experienced steady increase over the period, allowing rates of both domestic and international travel to increase.
Another consumer trend has been the gravitation toward unique lodging and experience, which establishments in the Boutique Hotels industry offer. Going forward, the Boutique Hotels industry will continue experiencing this robust growth as domestic and non-US resident trips increase.
The Boutique Hotels industry is a thriving sector of the economy of the United States, United Kingdom, France, Italy, and Canada and in most countries of the world. Statistics has it that in the united states of America, the Boutique Hotels industry generates well over $7 billion annually from more than 1,997 registered and licensed boutique hotels scattered all around the United States of America.
The industry is responsible for the employment of well over 60,106 people. Experts project the Boutique Hotels industry to grow at a 5.0 percent annual rate. InterContinental Hotels and Starwood are leaders in this industry; they have the lion share of the available market.
A recent report research conducted by IBISWorld shows that the Boutique Hotels industry has a low-level concentration, with the top four players expected to account for about 33.0 percent of the available market share in 2015. However, albeit lower than chain hotel start-up and operating costs, start-up costs can be prohibitively high.
The report further stated that the Boutique hotels benefit from being able to convert buildings not normally suitable for hotel use, smaller spaces, while using low-cost luxurious materials (e.g. slate instead of imported marble).
Furthermore, independent boutique hotels do not have franchise fees, and some boutique hotels brands offer limited partnerships with investors. On the other hand, capital expenditure remains high. Labor costs are lower for boutique hotels because of their smaller size in relation to chain hotels.
Lastly, the boutique hotel business will continue to blossom because people will always have need to lodge for various reasons especially when they are out of their base. There are rooms for any entrepreneur who is interested in running a boutique hotel business in the United States of America to start in any capacity and still maximize profit in the business.
2. Executive Summary
Safe Havens® Boutique Hotel will be located in a safe and secured environment in the heart of Las Vegas – Nevada, less than 20 – minutes’ drive from McCarran International Airport in Las Vegas – Nevada, and a few minutes’ drive from Mandalay Bay Event Center. We are conveniently located in the worlds headquarter of casinos and games.
Safe Havens® Boutique Hotel believes in the passionate pursuit of excellence and financial success with uncompromising services and integrity which is why we have decided to venture into the hospitality industry by establishing our own boutique hotel.
We are certain that our values will help us drive the business to enviable heights and also help us attract the number of clients that will make our boutique hotel fully booked all through the year.
We are going to be a customer-centric boutique hotel with a service culture that will be deeply rooted in the fabric of our organizational structure and indeed at all levels of the organization. With that, we know that we will be able to consistently achieve our set business goals, increase our profitability and reinforce our positive long-term relationships with our clientele, partners, and all our employees as well.
Our boutique hotel facility will be decorated in an exquisite and elegant facade, so much so that it will be a conspicuous edifice in the city where it is located. Safe Havens® Boutique Hotel will provide a conducive environment for our customers to take a break from their busy days, and a place where they can find comfort and luxury.
Safe Havens® Boutique Hotel will be equipped with a business center and a VIP lounge, a Fitness room and a self-service laundry which will be made available for resident guests at no extra cost.
We will also install a free Wi-Fi that will enable our guests surf the internet with their laptop in the boutique hotel room free of charge, and there will be wireless access in all the public areas in the hotel; we will also provide mobile phones for loan to business travelers for their convenience so as to enable them stay in – touch with their family members, friends and business partners.
No doubt our business class guest rooms will provide our customers with a warm and comfortable home away from home, large banquet venue as well as Chinese and Intercontinental cuisine. We are set to give our esteemed guests an unforgettable experience whenever they patronize our hotel.
Safe Havens® Boutique Hotel will at all times demonstrate her commitment to sustainability, both individually and as a firm by actively participating in our community and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Safe Havens® Boutique Hotel is owned by Paula Willmott, Harley Willmott and other investors whose names can’t be mentioned in this business plan for obvious reasons. The owners and board members of Safe Havens® Boutique Hotel are big time investors in the hospitality industry.
Paula Willmott has well over 20 years of experience in hotel management and she has a Master’s Degree in Hotel Management. She will be bringing her wealth of experience to the table to make Safe Havens® Boutique Hotel the number one choice in Las Vegas – Nevada.
3. Our Products and Services
Safe Havens® Boutique Hotel is in the Boutique Hotels industry to make profits and we will ensure we go all the way to make available a wide variety of services to our clients.
Safe Havens® Boutique Hotel is set to operate a standard boutique hotel service in Las Vegas, Nevada. The fact that we want to become a force to reckon with in the hospitality industry means that we will provide our guests with fitness room, social room, self-service laundry room and business center; for the purpose of business or leisure and more.
In all that we do, we will ensure that our guests leave with an unforgettable experience that will make them want to come back as well as recommend our boutique hotel to their friends, family members and business partners. We are well prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals, aim and ambition. Our product and service offerings are listed below;
- Lodging
- Spa, salon and wellness services
- Meals (Local Delicacies, Chinese cuisines and intercontinental cuisines et al)
- Drinks (wines, beers, distilled spirits, martinis, beverages and non – alcoholic drinks)
- Self – service laundry room
- Business center
- Mini mart
- Conference room
- Banquet venue
- Childcare
- Shuttle service
4. Our Mission and Vision Statement
- Our vision is to become one of the leading boutique hotels – brands in Las Vegas – Nevada and all over the United States of America.
- Our mission is to deliver reliable, genuine, caring and excellent services superior to what our competitors can offer in any location where our boutique hotel will be situated and to ensure that our boutique hotel enjoys over 90 percent occupancy in most parts of the calendar year.
Our Business Structure
The success of any business is to a large extent dependent on the business structure of the organization and the people who occupy the available role. Safe Havens® Boutique Hotel will work with a business structure that will give room for employees to explore their creativity, have a sense of belonging and grow through the corporate ladder of the organization.
We will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Hotel Manager
- Human Resources and Admin Manager
- Facility Manager
- Professional Caterers (Cooks and Bakers)
- Sales and Marketing Manager
- Accountants/Cashiers
- Baristas/Bartenders / Waiters/Waitress
- Cleaners
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner)
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations
- Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities
Hotel Manager:
- Responsible for managing the daily activities in the boutique hotel (kitchen inclusive)
- Ensures that the boutique hotel facility is in tip top shape and conducive enough to welcome customers
- Ensures that the kitchen facility is in tip top shape and conducive enough to prepare meals for different classes of people
- Interfaces with third – party providers (vendors)
- Reports to the Chief Executive Officer
- Attends to Customers complaints and inquiries
- Prepares budget and reports for the organization
- Handles any other duty as assigned by the CEO
Facility/Maintenance Manager
- Responsible for planning and overseeing building work/renovation
- Responsible for allocating and managing space within buildings
- Responsible for managing building maintenance activities
- Responsible for coordinating cleaning, catering and parking services
- Responsible for organizing security and general administrative services
- Ensures that facilities meet government regulations and environmental, health and security standards
- Advises on energy efficiency and cost-effectiveness
- Supervises multi-disciplinary teams of staff including maintenance, grounds and custodial workers
Professional Caterers (Cooks and Bakers)
- Prepares all the foods and desserts that are listed in the menu as supervised by the kitchen supervisor
- Responsible for carrying out all casual or unskilled jobs in the kitchen
- Responsible for serving foods
- Handles any other duty as assigned by the manager
Sales and Marketing Manager
- Manages external research and coordinates all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyzes the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Accountant/Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions
- Responsible for financial forecasting and risks analysis
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Baristas/Bartenders/Waiters/Waitresses
- Interact with customers; take orders for drinks, food and snacks
- Plan and present bar menu
- Check identification of the guests to make sure they meet age requirements for purchase of alcohol and tobacco products
- Mix ingredients to prepare cocktails and other drinks
- Mix drinks, cocktails and other bar beverages as ordered and in compliance with hotel standard drink recipes
- Assist in the movement of cooking utensils, plates, spoons and other relevant wares
- Promptly attends to customers in a friendly and professional manner
- Ensure that customers order is properly taken and delivered
- Project the image of the organization
- Handle any other duty as assigned by the Chief Operating officer / hotel manager
Cleaners:
- Responsible for cleaning the rooms, kitchen facility and all around the hotels at all times
- Responsible for washing cooking utensils, plates, spoons and other relevant wares
- Ensure that toiletries and supplies don’t run out of stock
- Clean both the interior and exterior of the boutique hotel facility
- Handle any other duty as assigned by the hotel manager
6. SWOT Analysis
Our plan of opening our boutique hotel in Las Vegas – Nevada is to test run the business for a period of 3 to 5 years to know if we will invest more money, expand the business and then spread our tentacles all over Nevada and key cities in the United States.
We are quite aware that there are several boutique hotels, hotels and motels all over Las Vegas – Nevada and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.
We know that if proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well equipped to confront our threats.
Safe Havens® Boutique Hotel employed the services of an expert HR and Business Analyst with bias in the hospitality industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Safe Havens® Boutique Hotel;
- Strength:
Our location, the business model we will be operating, comfortable and safe accommodations, variety of payment options, wide varieties of foods, drinks and desserts and our excellent customer service culture will definitely count as a strong strength for Safe Havens® Boutique Hotel. So also, we have a management team that has what it takes to grow a new business to profitability within record time.
- Weakness:
A major weakness that may count against us is the fact that we are a new boutique hotel – business and we don’t have the financial capacity to compete with multi – million dollars’ boutique hotels, hotels and motels et al operating all across the United States of America.
- Opportunities:
We are open to loads of opportunities; we are in one of the cities in the world that never goes to bed, plus the fact that Las Vegas is regarded as the world’s headquarter as far as casino business is concerned.
It means that loads of tourists, business executives and travelers would want to visit Las Vegas and we are well positioned to welcome them because our boutique hotel facility is just about 20-minute drive from McCarran International Airport in Las Vegas, and few minutes’ drive from Mandalay Bay Event Center.
- Threat:
Just like any other business, one of the major threats that we are likely to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new boutique hotel and even chains of hotels in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
The trend in the hospitality industry is such that there are peak periods and off peak periods, hoteliers know this and they have been able to make provision to properly handle the change in season.
For example, during summer or during any major sporting events or business summit, most hotels in Las Vegas are almost fully booked. As a matter of fact, that is the period that some hotel make the money that will sustain the business for the rest of the year.
Be that as it may, some boutique hotels are well positioned and they enjoy reach patronage all through the 12-calendar months of the year. Another trending feature in the hotel industry is that it is profitable to build your brand and then venture into the sale of franchise if you know you don’t have the capacity to manage various branches of your boutique hotel.
Over and above, hoteliers are quite aware that they not in the industry for quick returns on their investments, but to steadily build a brand that can become a global brand while growing their profits year in year out.
8. Our Target Market
There is hardly any organization who intends sending their staff members on official assignment or individuals or families going on vacation who would not need a place to lodge. Most people that go on vacations or official assignments outside their locations look forward to the hospitality they will get when they lodge in boutique hotels cum hotels.
In view of that, we are in business to offer our boutique hotel services and amenities to the following groups of people and businesses;
- Corporate Executives
- Business People
- Sports Men and Women
- Government Officials
- College Students
- Tourists
- Travelers
- Travelling Agencies
- Event Managers
- Religious Organizations
Our competitive advantage
A close study of the hospitality industry cum boutique hotel industry reveals that the market has become much more intensely competitive over the last decade.
As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are well prepared to compete favorably with other boutique hotels, chains of hotels and motels in and around Las Vegas – Nevada.
Safe Havens® Boutique Hotel is launching a standard boutique hotel that will indeed become the preferred choice of individuals, families and corporate organizations in Las Vegas – Nevada.
Our boutique hotel is located in a safe and secured environment in the heart of Las Vegas – Nevada less than 20 – minute drive from McCarran International Airport in Las Vegas – Nevada, and a few minutes’ drive from Mandalay Bay Event Center.
One thing is certain, we will ensure that we offer comfortable and safe accommodations; variety of payment options, wide varieties of food, drinks and desserts and our excellent customer service culture will definitely count as a strong strength for Safe Havens® Boutique Hotel. So also, we have a management team that has what it takes to grow a new business to profitability within record time.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups boutique hotels) in the Boutique Hotels industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Safe Havens® Boutique Hotel is in the boutique hotel business to service individuals, families and corporate organizations that visit Las Vegas – Nevada. We are in the Boutique Hotels industry to maximize profits and we are going all out to ensure that we achieve or business goals and objectives. In essence, our source of income will be in offering the following services and amenities;
- Lodging
- Spa, salon and wellness services
- Meals (Local Delicacies, Chinese cuisines, intercontinental cuisines et al)
- Drinks (wines, beers, distilled spirits, martinis, beverages and non – alcoholic drinks)
- Self – service laundry room
- Business center
- Mini mart
- Conference room
- Banquet venue
- Childcare
- Shuttle service
10. Sales Forecast
One thing is certain when it comes to boutique hotel services, if your boutique hotel is centrally positioned, you will always attract customers and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Las Vegas – Nevada and we are quite optimistic that we will meet our set target of generating enough income/profit from the first six months of operation and grow the business and our clientele base.
We have been able to critically examine the Boutique Hotels industry; we have analyzed our chances in the industry and have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Las Vegas – Nevada.
Below are the sales projections for Safe Havens® Boutique Hotel, it is based on the location of our boutique hotel and other factors as it relates to boutique hotel startups in the United States;
- First Fiscal Year-: $450,000
- Second Fiscal Year-: $750,000
- Third Fiscal Year-: $1 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same amenities and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
Before choosing a location to open Safe Havens® Boutique Hotel, we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice for residents, visitors and corporate organizations all across Las Vegas – Nevada.
We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time. We hired experts who have good understanding of the Boutique Hotels industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Las Vegas – Nevada.
In other to continue to be in business and grow, we must continue to have clients book all our rooms which is why we will go all out to empower or sales and marketing team to deliver. In summary, Safe Havens® Boutique Hotel will adopt the following sales and marketing approach to win customers over;
- Open our boutique hotel in grand style with a party for all
- Introduce our boutique hotel by sending introductory letters alongside our brochure to traveling agencies, corporate organizations, schools, event planners, wedding planners, households and key stakeholders in Las Vegas – Nevada
- Make use of attractive hand bills to create awareness and also to give direction to our boutique hotel facility
- Create different packages for different category of clients in order to work with their budgets and still deliver quality accommodation and services
- Print out fliers and business cards and strategically drop them in sport centers, stadiums, offices, libraries, public facilities and train stations et al.
- Deliver great customer experience to all our clients; making our first impression count positively to those lodging in our boutique hotel for the first time
- Adopt direct mailing coupon marketing approach
- Encourage and reward referral marketing
- Position our signage/flexi banners at strategic places around Las Vegas – Nevada
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage in roadshows within our neighborhood to create awareness for our boutique hotel
- Join local chambers of commerce and industry with the aim of networking and marketing our boutique hotel
11. Publicity and Advertising Strategy
Safe Havens® Boutique Hotel has a long term plan of spreading our tentacles all around key cities in the United States which is why we will deliberately build our brand to be well accepted in Las Vegas before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Safe Havens® Boutique Hotel;
- Place adverts on community based newspapers, travel and tour magazines, radio and TV stations
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote our boutique hotel
- Ensure that our we position our banners and billboards in strategic positions all around Las Vegas – Nevada
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Contact corporate organizations, travel and tour agencies, households, religious centers, schools and event planners et al by calling them up and informing them of Safe Havens® Boutique Hotel and the amenities and services we offer
- Advertise Safe Havens® Boutique Hotel business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and delivery vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals
12. Our Pricing Strategy
Launching a new business is not an easy task especially if you launching a business/idea that is not entirely new from what is obtainable in the location you intend launching it. So, part of our strategy for entering the market is to leverage on pricing in gaining a good percentage of the available market.
Of course, we will attract clients by offering quality lodging and services at rock – bottom prices. A price that probably will be the lowest in the industry.
Although prices for our lodging, foods, drinks and other related services will be lower than what is obtainable in the industry, but it won’t be so for a long time. As a matter of fact, we intend jacking up the prices gradually until it falls at par with what is obtainable in the industry.
We intend achieving this within a year of launching the business. We are aware that there are contracts for long – term lodging by government, corporate organizations or big religious organization; we will ensure that we abide by the bidding pricing template when we bid for such contracts.
- Payment Options
The payment policy adopted by Safe Havens® Boutique Hotel is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Safe Havens® Boutique Hotel will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for amenities and services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for booking our boutique hotel.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The furniture, tools and equipment for furnishing the facility are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a boutique hotel; it might differ in other countries due to the value of their money. These are the key areas where we will spend our start-up capital;
- The total fee for registering the business in the United States of America – $750
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300
- Marketing promotion expenses for the grand opening of Safe Havens® Boutique Hotel in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580
- The cost for hiring Business Consultant – $2,500
- The cost for insurance (general liability, workers’ compensation and property casualty) at a total premium – $2,400
- The cost for acquiring a standard facility and renovating the facility – $250,000
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500)
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for start-up inventory (beds, mattresses, pillows, furniture, toiletries, beverages, gas cookers, cooking utensils, services wares, food ingredients, raw materials and packaging materials et al) – $80,000
- Storage hardware (bins, rack, shelves, food case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000
- The cost of launching a website – $600
- The cost for our opening party – $10,000
- Miscellaneous – $10,000
We would need an estimate of $500,000 to successfully set up our boutique hotel in the United States of America. Please note that this amount includes the salaries of all the staff for the first month of operation and the amount could be more or less.
Generating Funds/Startup Capital for Safe Havens® Boutique Hotel
Safe Havens® Boutique Hotel is a business that is owned and financed by Paula Willmott, Harley Willmott and other investors. They do not intend to welcome more business partners which is why they have decided to restrict the sourcing of the start-up capital to 3 major sources. These are the areas we intend to generate our start – up capital from;
- Generate part of the start-up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business would close shop.
One of our major goals of starting Safe Havens® Boutique Hotel is to build a business that will survive off its own cash flow without need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our services and amenities a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Safe Havens® Boutique Hotel will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the Boutique Hotels industry; and they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the boutique hotel facility: In Progress
- Conducting feasibility studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging, Marketing/Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed kitchen and serving wares, furniture, beddings, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Compilation of our list of rooms and (menu) that will be available in our boutique hotel: Completed
- Establishing business relationship with vendors – suppliers of flours/breads, meat, cooking ingredients, coffees and soft drinks, corporate organizations and travel and tour agencies – In Progress