Bed And Breakfast Business Plan
We have tourists who come to visit and explore Tybee Island. Some people believe that travelers just need a place to rest and store their belongings. However, travelers need a home away from home, a place where they can fully recharge from their worries and travels.
Solution
The Coach House will ensure that each guest’s needs are met to ensure their comfort. For special occasions, we can provide catered meals, chilled wine, and more for an additional fee. On weekends, guests will find cheese, fruit, and wine for snacking before bed.
Market
B&Bs, along with other short-term lodgings on Tybee Island, play a significant role in island tourism. There are ten inns, 19 long-term lease facilities, and only four B&Bs on the island, including the Coach House. Hotels/motels make up the majority of rental properties in terms of units.
Interestingly, the rise of Airbnb and similar platforms has actually increased the demand for B&Bs on Tybee Island. People have become more aware of non-hotel lodging options. We also participate in this new trend by having a profile and presence on Airbnb.
We project a 30% increase in unit rentals per year. Our competitors have seen rental increases of over 30% in the past three years, and the Georgianne Inn is forecasting 50% increases for the next two years. This projection is based on the average increase in tourism and does not include any significant increase in marketing.
Our two main customer segments are tourists from the north who prefer the cozy environment of B&Bs, and local patrons who require accommodations for events. Subscriptions to various web services will provide international exposure for a nominal annual fee.
Competition
We have a unique advantage with Airbnb. B&Bs offer a unique lodging experience that caters to a growing group of travelers. Guests become temporary members of a larger family, and the B&B becomes a home away from home. Guests can choose to socialize with other travelers and innkeepers or enjoy privacy in their rooms.
Our B&B offers a variety of settings for different activities and moods. Guests can read, watch TV, and play board games in different areas of the B&B. We provide the perfect balance of membership and privacy.
Why Us?
We have a critical competitive edge with the convenience and luxury we offer at the Coach House. We have traveled extensively and stayed in many B&Bs, so we know what guests are looking for. We hold up well against Airbnb competition.
Expectations
Forecast
We estimate monthly fixed costs to be approximately $8,000, including expenses and interest payments. On-season revenues will offset off-season losses in the first year. As we establish ourselves among local patrons, off-season revenues will be enough to break even.
Our profitability projection is unrealistically high, as we expect other expenses to arise. We will revise our forecasts as needed.
Financial Highlights by Year
Opportunity
Problem & Solution
Problem Worth Solving
We have tourists who come to visit and explore Tybee Island. Some people believe that travelers just need a place to rest and store their belongings. However, travelers need a home away from home, a place where they can fully recharge from their worries and travels.
Our Solution
Tybee Island is a year-round paradise that attracts many tourists. We plan to collaborate with tour agencies and businesses in the area to offer packages and special rates. Our mission is to become the best choice in Tybee for temporary lodging and create an environment of luxury.
Market Size & Segments
Target Market Segment Strategy
Tybee Island is an underexposed winter vacation destination. We plan to aggressively pursue guests from the north and introduce Tybee Island to this market. We also plan to open our B&B for local patrons by hosting catered parties and receptions.
Subscriptions to web services will provide international exposure. By committing to book reservations in the building and opening to diverse groups of people, we can increase bookings.
Customers who choose B&Bs seek relaxation, fun, and stress management while on vacation. They prefer comfortable accommodations in a cozy, family environment. Our B&B has all the necessary facilities to attract such customers.
Competition
Current Alternatives
B&Bs, along with other short-term lodgings on Tybee Island, are a significant part of island tourism. However, B&B patrons are typically not interested in hotels or motels. Airbnb has not significantly impacted the competitive landscape, but has added more demand.
Keys to Success
In order to succeed, we will strive to achieve the following goals:
– Position ourselves well with Airbnb.
– Position Coach House B&B as the best B&B on Tybee Island.
– Build a strong market position among local patrons.
– Maintain sound financial management of the venture.
Execution
Marketing & Sales
We are well-positioned to take advantage of new lodging trends like home exchange and Airbnb. Tybee Island is underexposed as a winter vacation destination, and we plan to pursue guests from the north and introduce them to Tybee Island. We also plan to open our B&B for local patrons by hosting catered parties and receptions.
Subscriptions to web services will provide international exposure. By committing to book reservations in the building and opening to diverse groups of people, we can increase bookings.
Sales Plan
We will sell our rooms directly to repeat customers, as well as through travel agents and online platforms. All reservations will be handled by Mr. Maesch. Repeat customers will have priority reservations during the high season. We will also list Coach House on websites like worldres.com for international exposure.
Operations
Locations & Facilities
As our B&B becomes established, we plan to expand our services to residents of Tybee and Savannah during the off-season. We have additional facilities and outdoor areas that can be used for various events and gatherings. We also plan to collaborate with tour agencies and businesses in the area to offer packages and special rates.
We offer amenities that go beyond the typical B&B experience, such as pralines on pillows, a complimentary music CD for each room, an extensive video and audio library, and more. We also provide links to other businesses and services on the island.
Milestones & Metrics
Milestones Table
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Our key metrics are:
– Number of Airbnb reviews and star ratings.
– Number of Facebook page views and star ratings.
– Number of Google reviews and star ratings.
– Number of local residents staying at our B&B.
– Number of overall reviews.
– Number of occupied rooms.
– Number of unoccupied rooms over the month.
Company
Overview
Ownership & Structure
Coach House Bed and Breakfast is an established B&B that has been operating as Marsh Hen Bed and Breakfast for the past three years. It will be a partnership owned equally by John Maesch and Frank Williams. The decision to incorporate will be considered in the future.
Company History
The Coach House was originally built in 1920 as a train station on Tybee Island. It has undergone several restorations and improvements over the years. The current owner has not fully utilized the potential of the property due to construction limitations and a lack of commitment. We plan to change that and operate the B&B at full capacity.
Team
Management Team
The Coach House will be an owner-occupied business. Mr. Maesch will reside on the property and handle the daily operations. Mr. Williams will continue his employment in Indiana but will assist with the B&B’s responsibilities when needed.
Personnel Table
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Forecast
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Statements
Projected Profit & Loss
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Projected Balance Sheet
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Projected Cash Flow Statement
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Business Plan Outline
- Executive Summary
- Opportunity
- Execution
- Company
- Financial Plan
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