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Bed and Breakfast Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Hospitality, Travel & Tourism » Bread & Breakfast

Are you about starting a bed and breakfast business ? If YES, here is a complete sample bed and breakfast business plan template & feasibility report you can use for FREE .

If you have got the interest to invest in the hospitality industry but you lack the start – up capital to start your own hotel or motel, then you should consider starting a bed and breakfast business. Bed and Breakfast business is perhaps one of the easiest means of owning a business portfolio in the hospitality industry.

One of the good news is that it is a business that sure guarantees good returns on your investment. One thing is certain, it is easier to find several bed and breakfast businesses scattered in a neighborhood, which is why most bed and breakfast owners ensures that they put facilities in places that will not only guarantee the safety and relaxation for their guests, but also create an ambience that will give them room to socialize.

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In recent times, you can easily find facilities such as wireless internet access, free parking, spa services or nightly wine and cheese hours in the average bed and breakfasts. This line of business is indeed a profitable business because you can operate the business with your family members, thereby cutting operational cost to the barest minimum.

So also, the fact that you are making use of your apartment means that you won’t be spending huge amount acquiring or renting a property to be used for the business except you just want to expand the business beyond the house you are currently living.

A Sample Bed and Breakfast Business Plan Template

1. industry overview.

The hospitality industry has been in existence from time immemorial and it is still waxing strong simply because people can’t do away with the services they offer. When you talk about a bed and breakfast business, you are talking about a business that provides lodging for guest / travelers, tourist, visitors, and what have you, on a short-term basis with a fee.

When people lodge in a bed and breakfast accommodation setting, they have the options of subscribing to other services they offers; services like internet facility, drinks, laundry, fitness center, swimming pool, conference room and business room et al.

Simply put, a typical bed and breakfast is a small lodging accommodation that offers overnight accommodation and breakfast to guest that lodge there. Aside from breakfast, they usually does not offer other meals (whether dinner or launch). Normally, people that run bed and breakfasts make used of their private homes or their family homes. The average bed and breakfasts have 6 rooms, but generally, bed and breakfasts operate 4 to 11 rooms within a facility.

It is important to state that the bed and breakfast business is a niche segment of the Hospitality cum travel industry. As part of this industry, bed and breakfasts are categorized as a private residence that provides a room and a breakfast for travelers or guests.

Statistics has it that there are roughly seventeen thousand (17,000) registered beds and breakfast business in the United States and they can be found in all states, in major cities and remote rural areas in the U.S. There is no defined structure for Bed and Breakfasts, they are known to occupy everything ranging from modest cottages to luxurious mansions, and in restored structures from schools to wagons to churches.

The result from a survey and research conducted reveals that the average number of rooms for a bed and breakfast is 8.5, up from 8 rooms in 2000, 95 percent of respondents offer rooms with private baths, 93 – 94 percent of inns or bed and breakfasts are non-smoking, Responding inns employ 4.6 people, 42 percent of bed and breakfasts have meeting rooms

So also it was revealed that most bed and breakfasts are operated by a family and hence they have no employees; they are run in – house by family members. According to the US Census Bureau County Business Patterns, there were 3,042 bed and breakfast inns with paid employees – 721191. These bed and breakfasts employed 19,665 employees in 2001 in the united states. According to a survey conducted by the PAII there were some 20,000 licensed inns in the United States in 2004.

The report from a survey published in 2001 by CNNMoney online and conducted by B&B Getaways. The survey asked how guests find out about bed and breakfasts and reported the following results: 49% Internet, 18% Word of mouth, 6% Print advertising and travel guides.

The survey also found that one-third of bed and breakfasts charge more than $125 a night. Usually, bed and breakfasts were seen as the ideal place for the weekend-getaway; nevertheless, this only accounted in occupancy for three nights of the week. Business travelers accounts for 52 percent of the lodging industry.

Recently, bed and breakfasts are now shifting their attention to weekday travelers and they have gone ahead to start making provision for amenities such as in-room data ports, high-speed Internet connections, DVD, and many other trappings sought by business travelers.

So also, the numbers of bed and breakfasts adding meeting room space to their facilities is on the increase. The use of these facilities is often complimentary as bed and breakfasts are becoming preferred locations for retreats. A recent survey conducted by PAII found 42% of 800 respondents had meeting room space in 2002, compared to 28% in 2000.

The bed and breakfasts industry is still growing despite the fact that there are many players in the industry. For instance, in 2014, the federal government of the United States spent a total of $161,007 on Bed-and-Breakfast Inns. It has awarded 34 contracts to 5 companies, with an average value of $32,201 per company. The idea is that once a start – up bed and breakfast is well positioned and offers additional services, then they just need to do little to stay in business.

If you are contemplating starting your own beds and breakfasts business in the United States, you should ensure that you carry out a thorough market survey and feasibility studies. If you get some key factors wrong before starting your own bed and breakfasts, then you are likely going to struggle to stay afloat.

2. Executive Summary

Joel & Jamel Homes – Bed and Breakfasts will be located in the heart of Cape May – New Jersey in a neatly renovated and secured housing facility; a family home that is specifically designed and equipped with the needed accommodation facilities / gadgets to give comfort and security to our clients.

Joel & Jamel Homes – Bed and Breakfasts is a family owned and managed business that 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 hospitability industry by establishing our own bed and breakfast business.

We are certain that our values will help us drive the business to enviable heights and also help us attract the numbers of clients that will make our accommodation fully booked all through the year. We are going to be a customer-centric bed and breakfast business 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 enables to consistently achieve our set business goals, increase our profitability and reinforce our positive long-term relationships with our clientele, partners (vendors), and all our employees as well.

Our accommodation 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. Joel & Jamel Homes – Bed and Breakfasts will provide a conducive lodging for our customers to take a break from their busy days to a place where they can find comfort and luxury.

Joel & Jamel Homes – Bed and Breakfasts will be equipped with a mini business center, as well as a Fitness room and self-service laundry which will be made available for all our 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 room free of charge, and there will be wireless access in all the public area within the lodging facility; 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. We are set to give our esteemed guests an unforgettable experience whenever they patronize our bed and breakfast lodge.

Joel & Jamel Homes – Bed and Breakfasts is a family business that is owned and managed by Anthony Jefferson and his family. The business will be run by all members of the family – Clara Jefferson (Wife), Joel Jefferson (Son) and Jamel Jefferson (Son). Anthony Jefferson has well over 15 years of experience in hotel management and He has a Master’s Degree in Hotel Management.

3. Our Products and Services

Joel & Jamel Homes – Bed and Breakfasts is set to operate a standard Bed and Breakfast service in Cape May, New Jersey. 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, and self-service laundry room and mini business center; for the purpose of business or leisure and more.

In all that we do, we will ensure that our guests leaves with an unforgettable experience that will make them want to come back as well as recommend our bed and breakfast lodge to their friends, family members and business partners. These are the services and amenities that will be made available to our guests;

Breakfast (Tea and Bread, Coffee, and Snacks et al)
Drinks (wines, beverages and non – alcoholic drinks)
Gym and Fitness
Self – service laundry room
Mini Business center

4. Our Mission and Vision Statement

Our vision is to establish a bed and breakfast lodging brand that will become the number one choice for both travelers in the whole of Cape May – New Jersey. Our vision reflects our values: integrity, service, safety, excellence and teamwork.
Our mission is to deliver reliable, genuine, caring and excellent service superior to what our competition can offer in any location where our bed and breakfast lodge will be situated and to ensure that our bed and breakfast lodge enjoys over 90 percent occupancy in most parts of the calendar year.

Our Business Structure

The success of any business is to a larger extent dependent on the business structure of the organization and the people who occupy the available role. Although Joel & Jamel Homes – Bed and Breakfasts is a family run business will still work with a business structure that will give room to the minimal employees (mostly part – time employees) to explore their creativity, feel belong and full integrate into the business philosophy.

We will work hard to ensure that we only recruit the right set of people with the right mindset to help us achieve our business goals and objectives in record time. We intend building Joel & Jamel Homes – Bed and Breakfasts on this structure;

Chief Executive Officer (Mr. Anthony Jefferson)
Manager (Mrs. Clara Jefferson)
Human Resources and Administrative Manager (Joel Jefferson)
Accountants / Cashiers (Jamel Jefferson)
Facility / Maintenance Manager (Part – Time Employee)
Marketing Officer (Contract Worker)
Cleaners / Washer men (Full – Time Employee)
Security Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

Responsible for providing direction for the business
Creating, communicating, and implementing 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 recruitment
Responsible for payment of salaries
Responsible for signing checks and documents on behalf of the business
Evaluates the success of the organization
Responsible for managing the daily activities of the business
Ensure that the facility is in tip top shape and conducive enough to welcome customers
Interfaces with vendors
Ensures that customers feel relaxed and at home
Handle customers enquiries
Assess customers’ needs and preferences and make recommendations
Attends to Customers complains and enquiries
Prepares budget and reports for the organization
Responsible for Training and Development in the organization
Provides recommendations and suggestions to guest for choosing Drinks, food and Snacks.
Serve customers in a friendly and helpful manner.
Provides guidance to guests on resort activities, dining options and general resort and Regional information.
Demonstrates a thorough knowledge of food and beverage products, menus and Promotions
Handles procurement

Human Resources and Administrative Manager

Responsible for overseeing the smooth running of HR and administrative tasks for the organization
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 business activities.

Marketing Officer

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.
Writes winning proposal documents, negotiate fees and rates in line with company policy
Responsible for handling business research, market surveys and feasibility studies for the business
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Develops, execute and evaluate new plans for expanding increase sales
Documents all customer contact and information
Represents the company in strategic meetings
Helps increase sales and growth for the company

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

Accountant / Cashier:

Collects payment for breakfast and drinks served and balance all receipts.
Prepares financial report at the end of every working week
Handles all financial transaction on behalf of the organization
Interfaces with our bankers
Responsible for payment of tax, levies and utility bills
Handles any other duty as assigned by the CEO / microbrewery manager

Cleaners / Washer man:

Handles and move objects, such as glasses, dish and bottles, using hands and arms.
Cleans up after customers and clean work area.
Clears ashtrays as and when required.
Washes glassware and utensils after each use.
Maintain a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
Ensures that toiletries and supplies don’t run out of stock
Responsible for handling laundry
Handles any other duty as assigned by the restaurant manager,

Security Officer:

Ensures that the facility is secured at all time
Controls traffic and organize parking
Gives security tips to staff members from time to time
Patrols around the building on a 24 hours basis
Submits security reports weekly
Any other duty as assigned by the bed and breakfast manager

6. SWOT Analysis

Joel & Jamel Homes – Bed and Breakfasts is fully aware that they are coming into an industry that can be highly competitive which is why they have decided to pay attention to the SWOT analysis for the organization.

We know that once we are able to identify our strength, our weakness, our threats and the opportunity that is available to us, we will be able to come up with good business strategies that will help us achieve all our business goals and objectives.

Here is a of the result we got from the SWOT analysis that was conducted on behalf of Joel & Jamel Homes – Bed and Breakfasts Cape May, New Jersey;

Our area of strength cannot be farfetched; the location of our bed and breakfast lodge is perfect for such business, our management team has robust experience in the hospitality industry, our customer’s services is second to none in the whole of Cape May – NJ and our facility is top notch

Our perceived weakness could be that we are a new business, and we may not have the financial muscle to sustain the kind of publicity we want to give our business.

Opportunities:

One thing is certain, our bed and breakfast facility is well – located in busy travel route; there are loads of travelers passing through Cape May hence there are loads of business opportunities for us. Besides we are the only bed and Breakfast within a 45 meters radius where ours is located.

Some of the threats that we are likely going to face as a bed and breakfast business operating in the United States are unfavorable government policies – the government may decide to place embargo on private residence not to engage in bed and breakfast business so as to enable people who want to rent accommodation get accommodations at a cheaper rate, the arrival of a competitor within our location of operations and global economic downturn which usually affects purchasing power.

There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

Market Trends

The trend in the hospitality industry is such that there are peak periods and off peak periods, bed and breakfast lodges and hoteliers know this and they have been able to make provision to properly handle the change in season. For example, during summers or during any major sporting events or business summit in a city, most bed and breakfast lodges, motels, inns and hotels in the city are always almost fully booked.

As a matter of fact, that is the period that most people in the hospitality industry make the money that will sustain the business for the rest of the year. Be that as it may, some bed and breakfast lodges, motels, inns and hotels are well positioned and they enjoy rich patronage all through the 12 calendar month of the year.

Another known trend in the industry is that it is common to see some of the leading bed and breakfasts brand in the United States in different cities in the U.S. This was achieved because some of the leading bed and breakfast decided to venture into selling their franchise and at the same time operating chains of bed and breakfasts.

You can hardly drive through a community located along a major road or a tourist destination without finding a handful of signpost indicating that there are bed and breakfasts facilities in the community. This goes to show that there are loads of players in the bed and breakfasts industry. The reason for this cannot be far – fetched; accommodation is a necessity for travelers or tourists.

In essence, 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 hotel .

Over and above, bed and breakfast lodges and hoteliers generally are quite aware that they in the industry not 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

It will be safe to say that the target market for bed and breakfast lodge cuts across adults of all class, race, religion, and culture that can travel from one location to another and can afford to lodge overnight. It is important to state, that the owner of a bed and breakfast can decide to welcome those who they consider safe for them to accommodate in their house (in cases where personal accommodation is used).

This is so because the owners of beds and breakfasts live under same roof they use in accommodating their guests that they most likely have never met before. So safety is always a source of concern for owners of beds and breakfasts.

Here are some of the group of people that we considered target market for our bed and breakfast lodge;

Working class
International and Local Tourists
Top Executives
Celebrities
Young Couples (Especially for Honeymoon)
Travelling Agencies
Event Managers
Religious Organizations

Our competitive advantage

The competitive edge of Joel & Jamel Homes – Bed and Breakfasts is the excellent and customized service that we offer to our entire guest irrespective of their status.

We can boldly say that the location of our bed and breakfast lodge is going to give us an edge over our competitors in Cape May – New Jersey. We are the only bed and breakfast lodge within our location. As a matter of fact, from the location of our bed and breakfast lodge, you can connect any part of the city with little or no stress.

Another significant competitive advantage that we are bringing to the industry is the robust experience of our management team. We have a team that has a combination of 25 years of experience in the hospitality industry in United States and Canada. They are considered core professionals in their own right.

9. SALES AND MARKETING STRATEGY

Sources of Income

Joel & Jamel Homes – Bed and Breakfasts is established with the aim of maximizing profits in the hospitality industry and we are going to go all the way to ensure that we do all it takes to attract guests on a regular basis and sign retainer – ship with most of our corporate clients.

Joel & Jamel Homes – Bed and Breakfasts will generate income by offering the following services for individuals and for corporate organizations;

10. Sales Forecast

We are well positioned to take on the available market in the U.S. and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the bed and breakfast market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Cape May – New Jersey.

Below is the sales projection for Joel & Jamel Homes – Bed and Breakfasts, it is based on the location of our business consulting firm and the wide range of consulting services that we will be offering;

First Year-: $100,000
Second Year-: $200,000
Third Year-: $450,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and any major competitor offering same additional 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.

Marketing Strategy and Sales Strategy

It is important to clearly state that in this dispensation, customers use the Internet to find bed and breakfasts, to read reviews, to view facility available and the location of the bed and breakfasts; loads of processes have gone digital.

Which is why most bed and breakfasts are increasingly adopting technology and the internet for marketing and advertising their business and we are not going to be left out. These are some of the marketing ideas and strategies that are going to adopt for our bed and breakfasts business;

Open our bed and breakfast lodge in a grand style with a party for all.
Advertise our bed and breakfast lodge in travel and tours magazines, national dailies, Satellite TV stations and Radio station
Promote our business online via our official website and all available social media platform
Continuously Improving the performance of our brands
Hire the services of experts to make our brands the first choice for guests
Delivering consistent customer experiences to all our guest; making our first impression count positively
Continuously Improving the efficiency of our bed and breakfast lodge and operating processes
Ensure that we put our market scale and knowledge to good use
Building strong partnerships within our industry and with our stakeholders across the United States
Make use of attractive hand bills to create awareness and also to give direction to our bed and breakfast lodge
Position our signage / flexi banners at strategic places
Create a loyalty plan that will enable us reward our regular customers
Engage on road shows within our neighborhood to create awareness for our bed and breakfast lodge.

11. Publicity and Advertising Strategy

Joel & Jamel Homes – Bed and Breakfasts is in the hospitality business to make profit and we can only make profit if we steadily increase our customer base. No doubt, in order to remain relevant in the hospitality industry as a bed and breakfast lodge in Cape May – New Jersey, we will continue to create hype around our business brand.

We will ensure that we leverage on all conventional and non – conventional publicity and advertising technique to promote our bed and breakfast brand. Here are the platforms we intend leveraging on to promote and advertise Joel & Jamel Homes – Bed and Breakfasts;

Encourage our loyal customers to help us use Word of Mouth (referrals)
Promote our business online via our official website
Sponsor relevant community programs
Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
Install our Bill Boards on strategic locations
Engage in road show from time to time
Distribute our fliers and handbills in target areas

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than our competitors are offering in the United States of America.

Be that as it may, we have put plans in place to discount our products and services once in a while and also to reward our loyal customers.

Payment Options

Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our bed and breakfast lodge;

Payment by cash
Payment via Point of Sale (POS) Machine
Payment via online bank transfer (online payment portal)
Payment via Mobile money

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any difficulty.

13. Startup Expenditure (Budget)

When it comes to starting a bed and breakfasts business, loads of factors influences the amount that will be required to successful launch the business. Factors like the location you intend starting the business, the size of bed and breakfast business you want to start i.e. the number of rooms et al, and of course the state of the economy as at when you intend start the business.

Here are the key areas where we intend spending our start – up capital;

The Fee for registering the business in the United States -$725.
The budget for legal fees, insurance, permits and license – $5,000
The amount needed to renovate our Facility (electrical, furnishings, plumbing, painting and landscaping) – $10,000.
The Cost for the purchase of room furniture, kitchen equipment and gadgets (mattresses, bed sheets, blankets, pillows, beds, fridges, smoke detector, TVs, microwave oven, Sound System, tables and chairs et al) – $10,000.
The Cost for supply of breakfast ingredients for a month – $1,000.
The Cost of Launching a Website – $600
The cost opening party – $5,000 (optional)
Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $5,000

Going by the report from our research and feasibility studies, we will need an average of $70,000 to start a small scale but standard bed and breakfasts business in the United States of America. Please note that this amount is excluding the cost of renting a facility because we are going to be making use of free rooms in our apartment.

Generating Funding / Startup Capital for Joel & Jamel Homes – Bed and Breakfast

Joel & Jamel Homes – Bed and Breakfasts is a family business that will be owned by Mr. Anthony Jefferson and his family. They are the sole financial of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas we intend generating our start – up capital;

Generate part of the start – up capital from personal savings and sale of his stocks
Generate part of the start – up capital from friends and other extended family members
Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $20,000 (Personal savings $15,000 and soft loan from family members $5,000) and we are at the final stages of obtaining a loan facility of $50,000 from our bank. All the papers and document has been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

It is easier for businesses to survive when they have steady flow of business deals / customers patronizing their products and services. We are aware of this which is why we have decided to do all we can to continue to attract guest to our bed and breakfast lodge on a regular basis.

We know that if we continue to deliver excellent services, there will be steady flow of income for the organization. Part of the grand plan of sustaining Sean and Sharon hotel is to ensure that we provide the best of trainings for our employees, put a succession plan in place, and we will not relent in marketing and promoting our hotel brand.

From our findings, another factor that kills new business is financial leakages. In order to plug financial leakages, the management of Joel & Jamel Homes – Bed and Breakfasts will adopt the use of payment machine and accounting software to run the business.

In the bid to building a successfully business, we will ensure that all our employees are comfortable and we will provide them with the best of facilities and welfare package that will help them achieve peak performance in all their duties and in turn help the organization achieve its goals and business objectives.

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
Remodeling our 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 furniture, mattress, bed sheets, pillows, duvets, electronic appliances, office appliances and kitchen utensils: In progress
Creating Official Website for the Company: Completed
Creating Awareness for the business both online and in the neighborhood: In Progress
Health and Safety and Fire Safety Arrangement (License): Secured
Opening party / launching party planning: In Progress
Establishing business relationship with vendors – suppliers of all our needed food ingredient for breakfast and toiletries: In Progress

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Bed And Breakfast Business Plan

Start your own bed and breakfast business plan

Coach House Bed and Breakfast

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

We have tourists that like coming to visit and explore Tybee Island. Some people think travelers just need a place to rest their head and put their stuff. Travelers need to create a home away from home. A place where they can fully recharge from their worries and travels

The Coach House guest will have every need met to ensure his/her comfort. For special occasions, catered meals, chilled wine, etc. can be provided for an additional stipend. During the weekends, guests will return to the B&B in the evening and find cheese, fruit, and wine for snacking before turning in.

B&Bs, along with other short-term lodging on Tybee Island, have long been a substantial part of the island tourism. Of the short-term lodgings on Tybee, ten are categorized as inns, 19 as long-term lease facilities (rentals, condos, and houses) and only four as B&Bs, including the Coach House. Hotels/motels constitute the largest percentage of rental properties on the island in terms of units.

Ironically, at least on Tybee Island, the rise of Airbnb and its competitors have increased the demand for B&Bs rather than hurt us with more competition. People are more aware of the possibility of non-hotel lodging. And of course we participate in this new channel with our profile and standing on Airbnb.

A modest projection for increased unit rental is 30% per year. Competitors on the island have averaged 30% + rental increases over the past three years, and the Georgianne Inn is forecasting 50% increases for the next two years before hitting full capacity. This projection is without any significant increase in advertising or exposure, but is based on the general average increase in tourism.

Our two major customer segments are tourists from the north who traditionally prefer the cozy environment of B&Bs, and local patrons who need the facilities for various events. Subscriptions to various Web services will provide international exposure to potential customers for nominal annual fees.

Competition

We are uniquely positioned with Airbnb. The bed and breakfast industry offers a unique lodging environment, which caters to an ever-increasing group of travelers. B&Bs create a climate of home, where guests become temporary members of a larger family. The B&B home opens itself to guests, allowing them to participate and share in the richness of a community, while still allowing whatever degree of privacy is preferred. Meals can be shared with the innkeepers and other travelers allowing new relationships to be created and old ones enriched. Or, meals can be taken in the privacy of the guest’s room.

A variety of settings available in the B&B are situated to enable individuals or small groups to locate the perfect setting for whatever mood or activity one is pursuing (reading, watching television, playing board games, etc.). In the B&B, a guest is a guest in one’s home, not a customer. It becomes a place to return to: at the end of a day, or during the next vacation (like going home).

At the Coach House B&B, guests will have the right mix of membership and privacy. Being dutiful without being intrusive is a delicate balance and one that owners have mastered in their various walks of life

We start with a critical competitive edge: there is no competitor we know of that can offer the convenience and luxury one will find at the Coach House. We have traveled the country and stayed in many B&Bs. We know how to create the climate that others seek when shopping for B&B lodging. We hold up very well against Airbnb competition.

Expectations

We estimate average monthly fixed costs to be approximately $8,000 for expenses plus interest payments. Peak and off-season will have significant impact on the monthly earnings. For the first year, on-season revenues will offset off-season losses. As Coach House B&B builds its market position among the local patrons, we anticipate that off-season revenues will be enough to break even during that season.

Our far-out profitability is unrealistically high. We leave it that way knowing that other expenses will come up. We expect to revise upwards as needed.

Financial Highlights by Year

Problem & solution, problem worth solving.

Our Solution

The riches of Chatham County have always drawn a significant number of tourists to the Savannah/Tybee Island area. In addition to providing information about such locations, we plan to collaborate with tour agencies and businesses throughout the area by offering packages and special rates.

The mission of Coach House is to become the best choice in Tybee for temporary lodging by expanding our exposure via the new web competition (with multiple networks and links), and introducing the island to areas that have not yet discovered this year-round paradise. We plan to be more than a great bed and breakfast. We plan to create an environment of pampered luxury that surpasses the standard fare for Tybee.

Target Market

Market size & segments.

Target Market Segment Strategy

The Marsh Hen’s history demonstrates that money can be made in this area simply by existing. We continue to see that Tybee Island, in general, is under exposed as a winter vacation destination. We plan to aggressively pursue guests from the north while introducing Tybee Island to this under-tapped market population. We also plan to use the B&B for local patrons by opening it for catered parties, receptions, etc.

Subscriptions to various Web services will provide international exposure for nominal annual fees. Committing to staying in the building to book reservations and opening the B&B to diverse groups of people will also increase bookings.

Market Needs

Similar to tourists who choose to stay in traditional hotels, customers who patronize B&Bs seek relaxation, fun and stress management while on vacation. However, this type of customer also prefers comfortable accommodations in a cozy, family environment. These patrons are more social, they love meeting new people while at the same time require enough privacy to enjoy their vacation. Coach House has all the necessary facilities to attract such customers.

Current Alternatives

Airbnb has not made significant changes in the competitive landscape. If anything, it has added demand. There are a few offerings on Airbnb that are legitimately private homes, competing with real business lodging.

Keys to Success

In order to succeed, the new management will strive to achieve the following goals:

Position us well with Airbnb.
Position Coach House B&B as the best B&B on Tybee Island among the numerous tourists.
Build strong market position among the local patrons.
Maintain sound financial management of the venture.

Marketing & Sales

Marketing plan.

We are positioned to take advantage of the new push for new kinds of lodging with home exchange and airbnb and the like. The Marsh Hen’s history demonstrates that money can be made in this area simply by existing. We continue to see that Tybee Island, in general, is under exposed as a winter vacation destination. We plan to aggressively pursue guests from the north while introducing Tybee Island to this under-tapped market population. We also plan to use the B&B for local patrons by opening it for catered parties, receptions, etc.

Subscriptions to the booming web services platforms will provide international exposure for nominal annual fees. Committing to staying in the building to book reservations and opening the B&B to diverse groups of people will also increase bookings.

Coach House will sell its rooms directly to repeat customers, as well as via traditional travel agents and through the Internet. All reservations will be handled by Mr. Maesch. Repeat customers will have the privilege of priority reservations during the high season. As mentioned above, the new owners will also list Coach House on www.worldres.com, which will make it available to millions of international tourists.

Locations & Facilities

As the B&B becomes established through the peak season, we plan to expand our services to the residents of Tybee and Savannah in time for the off-season. The adjoining rooms open creating a large area, ideal for formal or informal gatherings (i.e. wedding receptions, office parties, Christmas parties, etc.). The outdoors, with its access to the beach, a beautiful, tropical front yard, and a private deck, opens several additional opportunities. A gazebo in the front yard would make the perfect location for a wedding, as would the sand and surf for those that prefer a beach wedding. With the capability for a catered reception inside, Coach House will make the event smooth and easy for the guests. Immediate family or selected members of the wedding party would be able to stay at the B&B ,while other party members will be referred to neighboring Inns. This collaborative practice is not new to Tybee, but Coach House will be a new member in the exchange.

Tourists will want to explore the riches of Chatham County (Bonaventure Cemetery, River Street, Worms Low, Savannah’s historic district, market square, dolphin tours, the marinas, and Fort Pulaski to name a few). In addition to providing information about such locations, we plan to collaborate with tour agencies and businesses throughout the area by offering packages and special rates with in-kind incentives for the cooperating merchants, including tours originating from the Coach House.

Amenities that go beyond the typical B&B will include:

Pralines on pillows.
A complimentary music CD for each room that the guest may keep (copy included in packet).
An extensive video and audio library for guest use.
CD stereo systems and VCRs in each room.
Starbucks coffee.
A variety of herbal teas.
Daily fresh-baked muffins and fresh fruit.
Links to other businesses and services on the island and the mainland.

Milestones & Metrics

Milestones table, key metrics.

Our key metrics are:

# of airbnb reviews. Star ratings.
# of facebook page views, and star ratings.
# of Google reviews, and star ratings.
# of local residents who are staying here
# of reviews
# of rooms that are occupied
# of rooms that stay unoccupied over the month

Ownership & Structure

Coach House Bed and Breakfast is an established B&B, and has been in operation for the last three years as Marsh Hen Bed and Breakfast. After possession and a brief period of becoming established, Coach House will diverse into other ventures to ensure a steady flow of patrons (tourists and locals) through its doors.

The Coach House Bed and Breakfast will be a partnership, equally owned by John Maesch and Frank Williams. As of this writing, the decision to incorporate has not yet been made, but will be considered after the owners relocate to Georgia and establish local legal representation. Mr. Maesch will reside on the property, managing and maintaining the business and satisfying Tybee Island license requirements. Mr. Williams will remain in Indiana fulfilling his employment contract.

As the B&B becomes self-supporting, Mr. Williams will resign–transferring his retirement money to the capital reserve, relocating to Tybee, and assisting with the daily responsibilities of the B&B.

Company History

The Coach House Bed and Breakfast was originally built in 1920 and is believed to have been one of three train stations on Tybee Island, linking the island to Savannah. The station offered patrons a place to shower and change after a day at the beach before boarding for the return trip. The building has undergone a number of restorations and uses since the train service ceased operation. It currently functions as the Marsh Hen Bed and Breakfast, having begun with two rental units and one living unit, following a period of extensive renovations and improvements to the property. While open, the current owner continued with improvements (a new roof and new construction for an efficiency apartment above the existing roof). Due to continual structural improvements during the past three years, the B&B has not yet gone through a season with full operational capacity. With construction completed, it now has the potential of four rental units with owner-occupancy in an unused room.

In addition to the limitations caused by construction, Inn operators and other business members on the island have reported that the current owner lacks some of the commitment, investment, and business sense to run at a higher capacity. The current owner will often leave the building to the care of an answering machine, and categorically deny accessibility to various classes of people. The general consensus is that it has operated as a hobby and not a business under the current ownership.

The table below outlines the B&B’s performance over the last three years under the current ownership.

Management Team

The Coach House will operate as an owner-occupied business. Salary for the first year of operation is indicated on the Personnel table. This salary, though low, is reasonable considering that major living expenses (mortgage, utilities, etc.) will be covered by the business.

Personnel Table

Financial plan investor-ready personnel plan .">, revenue by month, expenses by month, net profit (or loss) by year, projected profit & loss, projected balance sheet, projected cash flow statement.