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Hotel Startup Guy

Part journal. Part guidebook. Part memoir. All adventure!

Business Plan

THE Plan

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Welcome to THE PLAN! I’m not sure if I can (or should) count the hours/months/years of brainstorming sessions that accumulated in order to bring us to this point, but no matter what, we are finally here and doing it! Below you will find the initial blueprint of our path to obtaining financing and actually bringing this dream to life.

As you see in entry “206”, the list below originally sounded cool by correlating the business plan framework to the human body, thus needing 206 ‘bones’ to get started, which sounded like a lot that first day!

Well… after four nights of typing the first 12 pages, we actually begin this journey with over 400 bones (questions) to initially answer, with at least that many more to be added along the way. My commitment is to chip away at these questions daily, and record all new questions/solutions while being readily available to review with interested parties.  This Business Plan page will be the home of the ‘black & white’ plan (minus any sensitive or proprietary details) while the Blog/Vlog page will add more background to the project.

**Note to interested Investors, Partners, Friends, Family, Colleagues and Strangers – If you have ANY interest in joining this dream, please don’t hesitate to contact me anytime: hotelstartupguy@gmail.com

Further updates to the actual plan will take place offline, but the additions will be summarized via this page. This first version is 12 pages, and it’s looking like 24 pages will round out the entire plan when complete, not including the financial projection charts and appendices.  As promised throughout this process, education and transparency is my commitment to both purposes of this whole crazy project, so please feel free to keep me in check if I’ve left too many important points out!

 

Executive Summary – One page – Clear overview of entire business plan for igniting Investor interest

  1. What is my elevator pitch?
  2. What makes a good elevator pitch? Link to sources I studied (Not an actual part of the plan)
  3. Why is this business special?
  4. State the problem (brief market analysis) and the cure (value proposition/atmosphere) – succinctly!
  5. Who will care about me solving this problem? Aka – brief target market description
  6. Why is Mark qualified? (to solve this problem)
  7. What is the return on investment?
  8. What is the final destination, short and long term? Describe vision of growth/scale at 2 and 5 years

Company Description – Who/Why/What/When/Where

  1. Who is Mark? – Brief bio
  2. Why is Mark qualified? Various roles in various industries
  3. Where has Mark worked? List actual places
  4. What did Mark accomplish at these places? List actual achievements
  5. How does all that experience relate to this venture?
  6. Why is Mark even doing all this? – 7 Reasons
  7. What is the concept of the business?
  8. What is the 1 thing….?

Who will help? List partners (with link to them), how I know them, estimated monthly costs and questions I have for them (which will be answered in other business plan sections) (Further referred to as “TPP” or “Third Party Professional”)

  1. Revenue Manager
  2. My partner to assist/oversee reservations from Airbnb and direct site bookings
  3. Will definitely be someone with personal Airbnb experience –  implement what to make reservations easier or more abundant?
  4. Construction Consultant/Electrician – Compensation?
  5. How much to design/install sound system?
  6. How much to design/install video systems? Entertainment and security
  7. Attorney – What is retainer? Is a Non-Disclosure needed for sharing this vision?
  8. What is the best legal structure? Considering there are multiple revenue streams in one
  9. Will one cover all revenue streams? Need several? Articles of incorporation?
  10. Trade name or trademark necessary? If so, why?
  11. Corporation commission? Filing? What is typical process for suggested legal structure?
  12. What licenses or permits are necessary?
  13. Operating agreement?
  14. Investment paperwork? Fully layout financial ROI plans
  15. Power of attorney?
  16. Which liquor attorney suggested?
  17. Liquor attorney – What is retainer?
  18. Series 6 or 12 needed? Or other? Link to AZ liquor commission site
  19. CPA – What is monthly cost? What determines this? Employee size? Revenue?
  20. What HR company suggested?
  21. Which payroll company suggested?
  22. Human Resources
  23. Hiring procedures?
  24. Background checks?
  25. Required labor posters/Minimum Wage/Unemployment/Right to Work
  26. Payroll – What is monthly cost? What determines this?
  27. Direct deposit
  28. All withholdings – Tax, FICA, others
  29. Weekly? Bi-weekly? Upside/downside to either
  30. Commercial Real Estate Agent
  31. Lender
  32. ‘Typical’ qualifications
  33. SBA
  34. Disclosures for Investors?
  35. Architect – What is cost? What determines this? Partner discount?
  36. Estimates for building costs
  37. Parking issues
  38. Setbacks/heights
  39. Zoning
  40. ADA
  41. What would partnership look like, ongoing?
  42. Think with ongoing architectural advertising in mind
  43. Landscape Architect – What is cost? What determines this? Partner discount?
  44. What would partnership look like, ongoing?
  45. Landscape maintenance? Water, trimming, etc
  46. Think with ongoing landscape advertising in mind
  47. Pool/Spa designer – What is cost to design?
  48. Construction costs to dig/build?
  49. Estimate of maintenance/cleaning costs? Service contract?
  50. Warranty?
  51. Social Media – Who will create/manage content/respond?
  52. Facebook/Facebook Business page
  53. Instagram
  54. Pinterest
  55. Twitter
  56. Youtube
  57. Public Relations – What is cost? What determines this?
  58. Launch parties
  59. Newscasts
  60. Press releases
  61. Magazines/bloggers/websites
  62. Website – What is cost? What determines this?
  63. Reservations/tie-in to Airbnb
  64. Content – Calendar – Specials – Links – Map – Photos
  65. Blog
  66. SEO
  67. Graphic Designer – Hourly rate? Flat fee per project?
  68. Logo for B&B
  69. Logo for Cafe
  70. Logo for DMC
  71. Logo for product line
  72. Advertisements (print)
  73. Cafe menus
  74. Interior Designer – What is cost? What determines this? Partner discount?
  75. What would partnership look like, ongoing? Advertise this person in-room?
  76. Think with ongoing design advertising in mind – seasonal room changes?
  77. Host events?
  78. General Contractor – What is cost? What determines this? Partner discount?
  79. Contract/scope
  80. Estimated costs per Architect plans
  81. Estimated timelines
  82. Warranties
  83. Subcontractors – See GC #86
  84. Fire Inspector
  85. Health Inspector
  86. Coincide from the onset with Architect/Kitchen/Studio drawings
  87. Checklist to abide in daily operations
  88. Ecolab – What are costs? What determines this? Only pest control? Dishwasher?
  89. Chef – Partner discount?
  90. Costs to create menu/recipes?
  91. Costs to onboard/train?
  92. Think with ongoing Chef advertising in mind – seasonal menus? Events?
  93. Banker – Suggested from CPA?
  94. How many/which types of accounts?
  95. Costs?
  96. Who has access to accounts?
  97. Deposit process? Armored service?
  98. Events MC
  99. Content for events?
  100. Entirely separate business plan?
  101. Insurance Agent
  102. Liquor
  103. Business
  104. Accident/Fire/Etc
  105. Health/Medical for team
  106. College Intern
  107. Role is to capture footage/piece together plan/finalize documentary
  108. Contact professor/school for credit parameters
  109. Insurance or compensation?
  110. Food Vendors
  111. Produce
  112. Meat/Seafood
  113. Soda
  114. Bakery
  115. Beverage Vendors
  116. Liquor
  117. Beer
  118. Wine
  119. Coffee/specialty
  120. Chemicals Vendor
  121. Laundry for rooms
  122. Rooms – Bathrooms/etc
  123. Cafe – Kitchen/sanitation
  124. Paper supplies vendor
  125. Rooms disposables – TP, Tissue, tampons, q-tips
  126. Cafe disposables – Napkins, cups, straws, lids
  127. Ansul/hood vent cleaning – Monthly costs or service contract?
  128. Security
  129. Third party (ADT)?
  130. Cameras at entries, cash registers, pool, other?
  131. Phones to 911 from rooms?
  132. IT
  133. Phones
  134. Internet/Secure Wifi
  135. PCI Compliance
  136. Mentors (Board members)
  137. Inspirers (There is a similar business that really sparked all of this)
  138. Waste Management Vendor – What is monthly cost? What determines this?
  139. Emergency Services – Police/Fire
  140. Printer
  141. Handyman/General Maintenance – Retainer/Contract? Cost per service call?

What

  1. Repeat from #7? What is the concept of the business?
  2. What is the current state of the business?
  3. What is company name?
  4. What makes it unique?
  5. What value is delivered?

When

  1. When is deadline for?
  2. Finishing business plan
  3. Reaching 100 Youtube followers
  4. Purchasing property
  5. Breaking ground
  6. Soft opening
  7. Grand opening
  8. When is first real profit dollar?

Where

  1. Where – In Phoenix specifically
  2. Why this location? Target market? Distance/ease to airport
  3. Ingress/egress

How

  1. How is this business different from competitors?
  2. Lodging Tangible
  3. Lodging Intangible

Target Market with Industry Analysis –  Who is coming to the area, and of them, who will choose us?  

  1. Who is primary clientele for this B&B?
  2. Stats of Airbnb
  3. Stats of VRBO
  4. Stats of Homeaway
  5. Who and how many are coming to Phoenix? – Overall Tourism analysis (# hotels?) – Obtain from CVB
  6. Tourists – What is average nightly rate?
  7. Group Business – What is average nightly rate? – 5 Largest feeder markets?
  8. Wedding business
  9. Where to find this info?
  10. How many per year?
  11. How much $ per year overall?
  12. If not local, where from?
  13. Ancillary industries
  14. Sports – Total number of games/events/room nights
  15. Cardinals
  16. Suns
  17. Dbacks
  18. Spring Training
  19. WM Open
  20. Nascar
  21. ASU
  22. Relocations – How many people move in to Phoenix each year?
  23. Real estate offices – how many?
  24. How many transactions within 3 miles of my location?
  25. Snowbirds – Research where to find economic impact?

Products & Services – What we offer sets us apart and fills multiple niches, year round

  1. An intimate urban retreat – the ‘new’ Airbnb user – seeking more than a bedroom somewhere
  2. Room styles
  3. Amenities
  4. Long term
  5. *Deleted*
  6. Amenities cont.
  7. Neighborhood Cafe
  8. Niche menu
  9. Healthy/Coffee Barista by day, lounge by night – Entrees niche
  10. Specific guest interaction points
  11. Media/decoration
  12. Meal period concepts
  13. *Deleted/combo 12*
  14. Event & Conference Center
  15. Business use
  16. Physical use
  17. Community use
  18. Special use
  19. Corporate Travel Agent – Will require secondary business plan
  20. Out of state partners
  21. Distribution Center – Products related to business’ theme/purpose
  22. Secondary business plan
  23. Kitchen use
  24. Secondary kitchen use – will require secondary business plan

Competitive Analysis – Which of these most mirrors us, and how to succeed with & against them?

  1. Nearby Airbnbs
  2. List top ten nearest and brief description (may overlap 3)
  3. Nearby VRBO’s
  4. List top ten nearest and brief description (may overlap 1)
  5. Nearby Homeaways
  6. List top ten nearest and brief description (may overlap 1 & 3)
  7. Nearby hotels
  8. List top ten nearest and brief description
  9. Wednesdays – Competition review
  10. SWOT of lodging
  11. Strengths
  12. Weaknesses
  13. Opportunities
  14. Threats
  15. Nearby cafes
  16. List top ten nearest and brief description
  17. SWOT of cafe
  18. Strengths
  19. Weaknesses
  20. Opportunities
  21. Threats

Marketing Plan – How will we attract customers? 4P’s: Product/Price/Place/Promotion

  1. Estimate overall cost of customer acquisition
  2. Website – What other aspects are important? Calendar? Links to AZ activities? Concierge?
  3. Name?
  4. Hosting and costs? With email blast calendar
  5. Conversion rates from home site
  6. Airbnb
  7. VRBO
  8. Homeaway
  9. Craigslist
  10. Others
  11. Bridal/Wedding Industry
  12. Expos
  13. Sales packets
  14. Sales person – commission
  15. CVB Participation
  16. Advertising
  17. Volunteering/Networking
  18. Charity Participation
  19. Yelp
  20. Trip Advisor
  21. Open Table
  22. Commission sales people
  23. Weddings/Events
  24. Cafe profit share
  25. Transportation partnership
  26. Real estate
  27. Booking apps
  28. Social Media
  29. Primary goal
  30. Public Relations
  31. Writers/bloggers
  32. News/TV
  33. Reverse Shark Tank

Operations – The actual hourly/daily/weekly/monthly steps for meeting the goals of this business

Briefly describe a ‘day in the life of’ the operation – Create SOP’s for all steps – ‘Surgical’

  1. Reservation booking/Revenue management
  2. Check in/out
  3. Cleaning – Room/Grounds/Cafe
  4. Maintenance
  5. Inventory
  6. Accounting/banking
  7. FOH Cafe
  8. Side work / Deep Clean Calendar
  9. Sequence of service
  10. Transactions
  11. Grooming Standards
  12. Drink prep/recipes
  13. Kitchen
  14. Same as 7
  15. Food prep/recipes
  16. Health Inspector
  17. Amenities
  18. Independent Contractors
  19. Contracts
  20. Sales – See Marketing Plan
  21. Management Training
  22. Curriculum
  23. DMC – See separate business plan
  24. Distribution Center – See separate business plan
  25. Kitchen uses – See separate business plan

Management Structure – Who will actively operate the business daily

This team will actively operate the business daily with calendared participation from TPP’s

  1. Mark – Owner/Operator/Resident Manager
  2. Oversee daily schedule of check ins/outs – cleaning schedules
  3. Set and perform all sales appointments
  4. He is qualified for this because:
  5. Partner – Owner/Operator/Booking specialist
  6. Oversee continual reservation system – Airbnb bookings – Revenue strategy
  7. They are qualified for this because:
  8. MC of Events
  9. Conduct events – separate business plan
  10. He is qualified for this because:
  11. Cafe supervisor – Oversee managerial aspects of Cafe
  12. Staffing/scheduling, inventory, Lead service, daily accounting close out
  13. Head Cook – Oversee managerial aspects of Cafe
  14. Food preparation, inventory, sanitation, culinary training
  15. All TPP’s – Calendared appointments with Mark
  16. Advisory board – At least four mentors/advisors
  17. Building Industry
  18. Hospitality Industry
  19. Finance Industry
  20. Politician

Startup Expenses

  1. Land/Building
  2. Existing building vs. new build
  3. Land cost
  4. Lending qualifications
  5. Electric
  6. Water
  7. Gas
  8. Data
  9. Insurance
  10. Design/Renovation/Construction
  11. Architect/Landscape Architect
  12. Permits
  13. Parking
  14. ADA
  15. Lighting (Security)
  16. Storage
  17. Soft water
  18. Waste Management
  19. Ansul system
  20. Fire safety
  21. Green/LEED
  22. Build with exit in mind
  23. FFE (Furniture/Fixtures/Equipment)
  24. Room furniture – Beds, dressers, TV’s, Mini-fridge, lamps, curtains, sofa, closet, desk/chair
  25. Partner with wholesalers
  26. Cafe furniture – Tables, chairs, shelving, design elements
  27. FOH Equipment – Coffee/espresso machines, China/Glass/Silver, Blenders, Decoration
  28. BOH Equipment – Grill, Stove, Salamander, Coolers, Dishwasher, Prep sinks, Pots/Pans
  29. Deposits
  30. Utilities
  31. Bank accounts
  32. Reserves
  33. Payroll
  34. Mortgage
  35. Rooms – Towels, rags, bed sheets, soap, shampoo, conditioner, lotion, tissue, q-tips, waste baskets, stationary, toilet paper
  36. Laundry
  37. Large machine for bedding/towels
  38. Small machine for guest use
  39. Amenity equipment
  40. Signage
  41. Design/build
  42. Approvals/permits
  43. Liquor License
  44. Series 12

Financial Plan/Projections/Viability

  1. Monthly hotel projections with P&L
  2. Monthly cafe projections with P&L
  3. Monthly amenity projections with P&L
  4. Three year projections of each above
  5. Cash flow Statement
  6. Balance sheets for Hotel and Cafe separate
  7. Break even projections and actual expected and stretch goals
  8. Exit strategy
  9. Funding sources – SBA? VC? Personal investment? One for building, some for business?
  10. Debt vs. equity partners

Appendices

  1. Resume
  2. Letters from TPP’s
  3. Design sketches
  4. Estimates/proposals in writing from TPP’s
  5. Patents or Trademarks pending

Hotel Startup Progress