the green house b&b business plan
DESCRIPTION
A complete business plan made for a New Enterprises Management class. This organization is hypothetical.TRANSCRIPT
Olivia BoussardAnnie Le
Dane McCarthyMike Segal
Marixcela Victoria
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
Agenda
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
Vision Statement
The Green House will offer personalized service, a homey and comfortable night’s rest and an all-around sustainable experience, to appeal to multiple segments in the accommodation industry.
Venture Description
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
Montreal’s Old Port
Venture Description
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
Room Design #1London Bridge
Venture Description
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
Room Design #2Paris Love City
Venture Description
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
Industry Analysis
Venture Description
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
Target Market
Marketing Strategy
Primary Target Market Domestic and
International Consumers
Couples over the ages of 25
Secondary Target Market Growth of Green
Movement and Ecotourism
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
The Green Trend
Increase in Green Conscious Consumers
Most likely Daily Green Efforts
Consumers between the ages of 25-64 years old
Green Advertising = Top 5 Marketing Trends in 2007
Marketing Strategy
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
Price
Hybrid Pricing StrategyMix of Cost-Driven and Premium Pricing
IDEAL: Cost of 175$ per night for 2 occupants
Completely GREEN - Luxurious, homey and comfortable nights rest with delicious home cooked breakfast.
Reflect Perceived Value and Meets Pricing Objectives
Marketing Strategy
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
Green Integrated Marketing Campaign
(IMC) Website
Online booking List festivals and local events on website
Travel magazine advertisements Emphasize the sustainability core competency
Contact travel agents Invite them for discounted visits
Referral program for guests Listing on online hotel websites
i.e. Expedia.ca and B&B Websites
Marketing Strategy
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
Initial Costs
Deposit for 2 months rent $11,250
Remodelling $91,000
Furniture and Fixtures $13,500
Office & Misc. $10,560
First year costs $6,000
Total $132,310
Financial Analysis
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
Financing
Each partner invests $30,000 from personal savings:
Total cash available = $150,000
We negotiate a credit line with the bank, matching our investment.
Prime rate (TD): 3% for monthly payments
Financial Analysis
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
Revenue Growth
Financial Analysis
1 2 3 4 5 6 7 8$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
OptimisticPessimistic
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
Cash Flow Summary – Year 1
Financial Analysis
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
Cash Flow Summary –
Year 1 to 3
Financial Analysis
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
Competitors
Three certified “Green” B&B’s in Quebec
One in Montreal -- Au Gît'Ann B&B
Old Montreal
26 accommodation businesses
Other Competitors
Hotels in Montreal downtown Additional amenities and services
Risk Mitigation
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
Potential Risk
Risk Mitigation
Mitigation
Low initial sales Increase Cash ReservesPackaged Deals
Low Client Retention Comment CardsReferral Program
Competitor Reaction Increase AdvertisementFocus on Core Competencies
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
In Closing…
This is a unique venture which focuses on a growing international trend
Our financial outlook is positive over the course of the next three years – profits will be generated in year 2
Our risk mitigation will effectively create sustainable growth in the first year of operation
Closing Remarks
Venture Description
Marketing Strategy
Financial Analysis
Risk Mitigation
Closing Remarks
QUESTIONS…