The Enchanted Vineyard Bed & Breakfast is a charming B&B located in the Lorane Valley, outside of Eugene, OR. The valley is well known for its beauty and concentration of vineyards. The B&B will be set up as a sole proprietorship of Missy Stewart and will reside in The Stewart’s newly renovated home. Each of the five rooms have their own private bath. The facility has a centralized living room for guest socialization, a private garden patio, and an on-site winery on the Stewart’s 10 acres of land. Every room has 65% of their walls as windows offering guests a view of the valley.
The Market
Within the hospitality industry, The Enchanted Vineyard will be competing with hotels and other B&Bs. Although The Enchanted Vineyard competes with hotels, their direct competitors are other B&Bs. Enchanted’s facilities are nicer than other B&Bs for its size. All of the smaller B&Bs are standard houses converted into a B&B. Enchanted Vineyard, on the other hand, is a newly renovated house and vineyard in a picturesque setting.
The Enchanted Vineyard will be targeting three groups: weekend getaway travelers, out-of-town travelers, and University of Oregon travelers. The first group consists of people from Eugene looking to escape for the weekend. This customer group is growing at 11% a year with 12,000 potential customers. The second group is growing at 10% with 18,000 potential customers. The last group is growing at 17% with 12,000 potential customers.
Competitive Edge
The Enchanted Vineyard has two distinct competitive edges. The first is the attention to detail and customer service. The Stewarts recognize that their mission is to ensure that their customers have the finest stay. Their second competitive edge is the unique facility. It is a wonderful place to stay and is unique because of the location, overlooking the Lorane Valley.
Management Team
The Enchanted Vineyard will be able to execute its business model because of its management. Missy has earned her MBA, providing her with invaluable business skills. While pursuing her MBA, she was on a team that opened their own service business. Missy also has years of experience in the B&B industry.
The Enchanted Vineyard will be able to leverage its facility and turn it into a beautiful B&B serving the Eugene community. This will be done by the passion and experience of Missy Stewart. The B&B will become profitable by year two and will earn over $77,000 in revenue by the end of year three.
Contents
1.1 Mission
The Mission of The Enchanted Vineyard Bed & Breakfast is to provide the finest B&B experience. We exist to attract and maintain customers. Our services will exceed the expectations of our customers.
1.2 Objectives
The objectives of The Enchanted Vineyard Bed & Breakfast for the first three years of operation include:
- To create a B&B whose primary goal is to exceed customer’s expectations.
- The usage of The Enchanted Vineyard Bed & Breakfast by visitors every week throughout the year.
- To increase our number of clients by 20% per year through superior service.
- To develop a sustainable business, surviving off its own cash flow.
Company Summary
The Enchanted Vineyard Bed & Breakfast, located in the Lorane Valley, will offer a luxurious, quaint B&B with four individual rooms with private baths, a central living room/socializing area, a garden patio, and an adjoining vineyard for its guests.
2.1 Company Ownership
The Enchanted Vineyard Bed & Breakfast is a sole proprietorship of Missy Stewart. The B&B uses John and Missy’s home as the Inn.
2.2 Start-up Summary
The Enchanted Vineyard Bed & Breakfast start-up expenses include:
- Home office equipment including: computer, copier, fax machine, extra telephone line, desk and filing cabinet.
- Extra computer for the living room with Internet access via a DSL line.
- Website creation.
- Advertising/association dues for the local B&B association.
- Remodeling of the house to add two individual bedrooms with baths, a patio and to enlarge the common areas.
Please note that the cost of the remodeling will be depreciated using the straight line method over a 30-year schedule. Although the Inn will have to finish their research into tax law, it does appear that the Inn will be allowed to depreciate the remodeling as the additions will be used only for business.
The Enchanted Vineyard Bed & Breakfast is a small B&B that offers travelers a secluded setting for a weekend getaway, sports or cultural events, family occasions, and U of O events. The B&B has a central gathering room for socializing and provides guests with personal attention. They also offer a wonderful breakfast feast that can accommodate any dietary restrictions. The B&B is located 15 minutes from downtown Eugene in the Lorane Valley wine country and has its own vineyard. The target groups for The Enchanted Vineyard Bed & Breakfast are weekend getaway customers, travelers passing through Eugene, and University of Oregon travelers.
Weekend-Getaway Customers: 11% growth
Year 1: 12,000
Year 2: 13,320
Year 3: 14,785
Year 4: 16,411
Year 5: 18,216
CAGR: 11.00%
Travelers: 10% growth
Year 1: 18,000
Year 2: 19,800
Year 3: 21,780
Year 4: 23,958
Year 5: 26,354
CAGR: 10.00%
University of Oregon Travelers: 17% growth
Year 1: 12,000
Year 2: 14,040
Year 3: 16,427
Year 4: 19,220
Year 5: 22,487
CAGR: 17.00%
Total: 12.41% growth
Year 1: 42,000
Year 2: 47,160
Year 3: 52,992
Year 4: 59,589
Year 5: 67,057
CAGR: 12.41%
4.2 Target Market Segment Strategy
The Enchanted Vineyard Bed & Breakfast will target three customer groups who make up the largest population of B&B users. We have a three pronged strategy for all three groups:
1. Association membership and advertising: Visitors look to regional B&B associations for information and our goal is to be included in their guides. Membership also offers visibility on association websites. Additionally, we will join the Chamber of Commerce to reach vacation planners.
2. Website: Our website will allow visitors to view our B&B, read about our offerings, find regional activities, and make reservations. The internet has become an essential tool for distant vacation planning.
3. Strategic relationship with the University of Oregon: We will partner with the University to provide rooms for guests and advertise in school-related publications. This will establish trust and comfort with prospective student referrals.
4.3 Competition and Buying Patterns
Competition comes in various forms:
1. Other B&Bs: These establishments differentiate themselves through unique features, personalized service, and elaborate breakfasts. Guests seek the whole experience of staying in a lovely setting and being pampered.
2. Hotels/motels: These facilities offer more standard rooms, without the personalized service or communal atmosphere of B&Bs. Breakfasts are typically minimal. Guests primarily seek a place to stay at night.
Strategy and Implementation Summary
The Enchanted Vineyard Bed & Breakfast will use advertising, association membership, and their website to attract customers. Missy will personally convert leads into customers through thorough phone conversations.
5.1 Competitive Edge
Our competitive advantages are:
1. Attention to personalized service: We will offer personal concern to our guests, going beyond what larger B&Bs can provide. Every interaction will be with Missy or John, ensuring a sense of personal attention.
2. Uniqueness and beauty of the facility: Our B&B is housed in our own renovated farmhouse. We offer breathtaking views, enlarged common areas, private baths, a vineyard, and an outdoor patio.
5.2 Sales Strategy
Our sales strategy consists of:
1. Personal attention in regard to calls of inquiry: Missy will spend ample time on the phone with prospective clients, building relationships and converting inquiries into bookings.
2. Very detailed website: With most clients using the internet to plan vacations, our website will provide comprehensive information, including virtual tours, pricing, reservations, and a resource page showcasing local activities.
5.2.1 Sales Forecast
The first three months will be used for renovations, with no sales activity. By month four, the B&B will be ready to go. Sales will steadily grow, and in month five, Missy will hire a full-time employee for housecleaning and outdoor maintenance, allowing her to focus on clients.
| Sales Forecast | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | |||
| Weekend-Getaway Customers | $11,396 | $42,000 | $54,000 |
| Travelers | $13,089 | $60,000 | $62,000 |
| University of Oregon Travelers | $11,265 | $46,000 | $49,000 |
| Total Sales | $35,750 | $148,000 | $165,000 |
| Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
| Weekend-Getaway Customers | $6,117 | $22,260 | $28,620 |
| Travelers | $7,031 | $31,800 | $32,860 |
| University of Oregon Travelers | $6,044 | $24,380 | $25,970 |
| Subtotal Direct Cost of Sales | $19,193 | $78,440 | $87,450 |
5.3 Milestones
The Enchanted Vineyard Bed & Breakfast will have several milestones early on:
- Business plan completion. This will be done as a road map for the organization. While we do not need a business plan to raise capital, it will be an indispensable tool for the ongoing performance and improvement of the company.
- Joining the different associations. This is, in effect, the coming out party for announcing to the world that you are a real B&B, ready for business.
- Completion of the facility renovations.
- Our 100th client.
| Milestones | |||||
| Milestone | Start Date | End Date | Budget | Manager | Department |
| Business Plan Completion | 1/1/2001 | 1/1/2001 | $0 | ABC | Department |
| Join Different Associations | 2/1/2001 | 2/1/2001 | $600 | ABC | Department |
| Completion of Facility Renovations | 1/1/2001 | 4/1/2001 | $200,000 | ABC | Department |
| 100th Client | 7/1/2001 | 7/1/2001 | $0 | ABC | Department |
| Name me | 1/1/2003 | 1/15/2003 | $0 | ABC | Department |
| Name me | 1/1/2003 | 1/15/2003 | $0 | ABC | Department |
| Name me | 1/1/2003 | 1/15/2003 | $0 | ABC | Department |
| Name me | 1/1/2003 | 1/15/2003 | $0 | ABC | Department |
| Name me | 1/1/2003 | 1/15/2003 | $0 | ABC | Department |
| Name me | 1/1/2003 | 1/15/2003 | $0 | ABC | Department |
| Totals | $200,600 | ||||
Management Summary
The Enchanted Vineyard Bed & Breakfast is owned and operated by Missy Stewart. It will be a sole proprietorship. Missy has a degree in philosophy from Ponoma College and an MBA from University of Oregon. While Missy was pursuing her undergraduate degree, she worked in a B&B and had a wide range of responsibilities. This is the experience where she was first bit by the B&B bug. She dreamed of someday having a B&B run from her house, with the excitement of taking care of travelers.
Missy’s concentration in school was in general management with the intent of someday opening her own business. Missy participated in the PACE, a group project where teams of five students worked together for two entire semesters creating their own company and then eventually selling it at the end of the year. Missy’s group formed a service-based company which was an invaluable experience for the needs she would face in opening up her own B&B.
Missy’s education coupled with her practical experiences has given her the ideal skill-set required for operating a B&B. The only other thing that is truly required is passion, and Missy recognized her passion over seven years ago while working at a B&B. Missy has everything needed to succeed and will fulfill her destiny.
6.1 Personnel Plan
Missy will be the sole employee from months one to five. At month five things will be getting busier and the need will develop for an additional person. This new employee will be used for house cleaning and outside maintenance. This will free up Missy’s time so she can spend more time with the customers. John will be helping when possible, but John’s contribution to the company will be primarily emotional and financial support of Missy’s dream. John will be covering their living expenses while Missy is building the business. At some point within the first year the revenue from the B&B will exceed the mortgage payments for the remodel and at some point will cover the entire mortgage for the home.
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Missy | $3,000 | $6,000 | $12,000 |
| Housekeeping/Outdoor Maintenance | $12,000 | $18,000 | $18,000 |
| Total People | 2 | 2 | 2 |
| Total Payroll | $15,000 | $24,000 | $30,000 |
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