Entering Innkeeping,…….. the Business Plan

Businesses with plans have a higher success rate. As you have gathered information, you have already compiled much of the information needed for a written business plan. Writing your business plan will help you make your intentions clear to yourself, and your business compelling to others. Among its other uses:
Financing
Organization method
Communication tool
Reminder of your focus

There are a number of business plan formats, even software programs designed specifically for the purpose. Generally, business plans include:

Mission Statement
General business description
Pro-forma balanced operating statement
3(aggressive) and 5 (conservative) year plans to a balanced pro-forma statement
Cash flow projections for the same period demonstrating cash needs for both
Marketing Plan
Management's background
Loan request

Your business plan is going to outline the business you are proposing and demonstrate first to you, and then to others that it is a sound financial investment. You will establish a balanced pro-forma financial statement, generally for the third or fifth year. You will then demonstrate the progression of financial improvements that will provide that balanced statement. It will serve you well to do an aggressive approach that will take your to solid financial footing in only three years and to do a more conservative approach to reach the goal in five years.

A Marketing Plan will be the second most interesting element of your plan for at least two reasons. First, you along with potential investors will want to see a documented plan for producing guests (customers) who will buy your product, that will provide money to pay back their investment. Second, people are often fascinated by all sorts of hospitality ventures. Many people have dreamed of owning their own restaurant, club, small hotel, or bed and breakfast. General discussions or your venture and its market base are part of the fascination.
Marketing is a fluid activity based on a well thought out and clearly defined plan. It's important to develop concrete lists of marketing activities complete with a time line. You will be well served to include task assignments, and to establish deadlines for many of the activities. Among other activities it will be important for you to:
Define your customer. Be as clear in establishing this profile as possible. This definition is your target market.
Define your product. Be brutal with yourself. Develop a concise definition of your product, and it must be something that no else is...or why bother?
Outline your marketing methods. Web based, print, hand to hand, advertising, public relations, and word of mouth are all important elements of a marketing plan. Determine each of their values to you in your marketing plan.
Develop a marketing budget. Once you determine the values of different marketing opportunities, how much to you plan to spend on each of them.
Be prepared to measure the results of your efforts, refine your plan, and to react to opportunities that are new to you.

With each passing day there are new web based opportunities for businesses of every sort. Many of us use the internet to research our airline reservations, car rentals, hotel rooms, vacation activities. Today's marketing plans include a great deal of web based activity. While there are a number of free web site design services available, you will be well served to enlist the services of a professional website designer with experiences specific to this industry. It's relatively easy to make a website look nice and compatible with the vision of your property. However, if key words, search engine optimization, pay per clicks, on line availability, and real time reservations are phrases that mean little or nothing to you, a professional designer is in your future. And let’s not forget social media. How will you integrate social media opportunities into your marketing plan and your daily list of activities?

At some time you will have to select a name for your new venture. If you are buying an existing property, you may elect to keep the name. There is a tradition to the name and hopefully a good reputation of product and service. However, if you are in the market for a name, don't just pick a name, any name. Here a few considerations:
• Classic wins out over clever: first time guest are always skeptical of cute names.
• Leave your ego at the door: don't name the Inn after yourself.....you will eventually sell.
• Pick a name that is short, and memorable with a matching, available web domain name.
• Be sure the name identifies you as a lodging property and not a flower bed.
• Properties are often listed alphabetically in guides
• Don't include "The" in your name unless you want to be listed with the "T"s.

What can you do right now? Take the time to discover this new and exciting life. Innkeeping is a wonderful life for yourselves and your family. You will meet terrific guests, become a part of peoples lives on a level unattainable in any other profession, and will provide wonderful times together.

Next we’ll talk about an Action Plan.