Executive Summary | Bed and breakfast business plan
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Extravagant Luxury Bed and Breakfast was registered as a Close Corporation in 2009. The business currently specializes in the provision of accommodation services. This exciting business venture is located at 13 AA Street, Krugersdorp, Gauteng province. The entity has two members, Doug Auret and Heather Auret (husband and wife). Doug and Heather are passionate and enthusiastic entrepreneurs. They have been running many businesses within the hospitality arena for years. These include; a restaurant and bar, tourist boutique and general retail outlets (to mention a few principle ones).
Through the provision of hospitality related services, Extravagant Luxury Bed and Breakfast has captured a considerable market from government departments, corporate entities and individual customers. At present, these customers make use of the accommodation services offered at Extravagant Luxury Bed and Breakfast on a regular basis. While breakfast is served in the morning, customers take up catering services elsewhere during lunch and supper – this greatly inconveniences some clients. There are also scenarios where the business is unable to meet the capacity requirements of corporate and government clients. This has prompted the management of Extravagant Luxury Bed and Breakfast to come up with a solution to address this situation. The business intends to achieve this by expanding in terms of capacity and offer complimentary services. The new services/ facilities shall include a restaurant, catering unit, conference facilities and additional rooms for the provision of accommodation services.
The expanded business will be managed by the owners as well as additional staff. Additional staff will be required to meet the needs of the expanded and improved business. A number of renovations will be required for the business to meet the standards stipulated by the Local Tourism Authority. The business will also keep the needs and preferences of its customers in mind while rendering the proposed expansions. The renovations will include additional bedrooms, toilets, and showers. A conference hall, restaurant and expanded kitchen for catering shall be erected.
THE BUSINESS OPPORTUNITY
Doug was previously a Bar Manager and is enthusiastic about the hospitality industry. His desire is to continue operating in the same line of business. His wife, Heather is an entrepreneur – she is currently involved in running a boutique and managing the Bed and Breakfast. Through the Bed and Breakfast business, they have established a large customer base from the government/ municipalities, private entities and individual clients. Doug and Heather enjoy interacting with their clients. Through their regular interactions, they have come to realize that clients from government institutions are usually in need of conference and accommodation services. The same applies to private/ individual clients. This prompted the entrepreneurs to respond to this developing need by clients.
In addition to the above, the high capital requirements and compliance needs has seen many Bed & Breakfast entities offering less than 500 (people) capacity conference facilities and below 50 (rooms) capacity accommodation. This inconveniences many clients thus supporting the need for an entity to fill this gap in the market. Extravagant Luxury Bed and Breakfast will fill the gap in the market by creating a one stop “Bed & Breakfast, Conference and Restaurant setup”. The business intends to provide conference facilities that are able to host at least 1,000 people per event. In terms of accommodation, they intend to offer 100 rooms that will be availed to both local and International customers.
The market for the business is broad. It can be segmented into various categories of consumers. The categories or market segments encompass: Government departments/ municipalities, business travelers and leisure travelers, brand conscious travelers, sophisticated and conservative customers, domestic tourists, foreign tourists from abroad, foreign tourists from the SADC region, users that require both room and conference facilities (business users), frequent and occasional accommodation users.