Bed and Breakfast Business Plan
The Magnolia Inn is a beautiful facility that sits atop a bluff overlooking the Pacific Ocean in scenic Half Moon Bay California. The Inn offers seven individually furnished rooms, each with its own antique theme.
We are a complete bed and breakfast Inn with a full complementary breakfast served each morning to our guests. Magnolia’s target market strategy is based on becoming a destination of choice for professional couples in the greater San Francisco Bay area who are looking for a place to relax and recharge.
We will also advertise to the newly married couple who is looking for that special get away. It will be important for us to be visible to those potential guests who are traveling on Highway 101 through Half Moon Bay.
The Magnolia will have an eye catching sign that will alert potential customers and drop-ins of our existence. We will use the Yellow Pages in the Bay area to market our Inn, as well as a Web page on the Internet which will focus on the features the Inn has to offer. Each room will be displayed with its unique decor, as well the outside of the Inn showing the beautiful gardens and views of the Pacific Ocean.
Attractions within 30 miles of the Inn will be displayed with information about our shuttle service, room rates and directions. The Magnolia is confident that it will not take long to build a following that will put us at full capacity within the next year.
The Inn would like to see steady growth with a average of over 90% capacity for Year 1, with profits also growing at a rate of 10%.
Jim and Nancy Anderson are the sole owners of the Magnolia and live at the Inn year around. The Andersons are hands-on owners who oversee every aspect of the Inn’s operations. A small staff consisting of a cook and a maid will work at the Inn.
The cook will work 20 hours per week and the maid will be on the payroll 40 hours per week as she will also help Nancy take reservations and watch the front desk when needed. Nancy will oversee the inside operations working with the maid and cook as well as taking reservations. Jim will oversee the maintenance of the Inn and grounds and drive the van to shuttle guests when the need arises. Both Jim and Nancy will promote the Inn and oversee the advertising.
The Magnolia Inn intends to provide a serene setting for our guests to enjoy the many splendors of the beautiful California coast. Each guest will be treated with the kind of attention that is reserved for family.
When our guests arrive we want them to leave their troubles at the door and step into a world of luxury and rest.
As owners we intend to see that attention to detail and service will be followed by a staff dedicated to each guest.
1.2 Keys to Success
The primary keys to success for the Inn will be based on the following factors:
- Provide a facility that is first class with attention to detail.
- Give each guest a sense that he or she is our top priority.
- Provide quality meals.
- Retain our guests to ensure repeat bookings and referrals.
- Generate a customer satisfaction rate above 90%.
- Generate an average of $26,000 of sales each month.
- Stay above 90% occupancy each month.
The Magnolia Inn is a beautiful facility that sits atop a bluff over looking the Pacific Ocean in scenic Half Moon Bay California. We are a new start-up enterprise that will offer seven wonderfully furnished rooms to guests who want to get away from the ordinary.
Each room is individually furnished with antiques and there is a large deck with a hot tub overlooking the ocean. The Magnolia will provide a full breakfast each morning to our guests with no expense spared. Our target market is the professional couple who lives in the San Francisco area, or people looking for a place to honeymoon.
2.1 Company Ownership
The Magnolia Inn is owned and operated solely by Jim and Nancy Anderson. Jim and Nancy have refurbished a beautiful victorian home to accommodate 14 guests at a time in seven rooms.
This is a start-up enterprise for the Andersons who are equal owners in the business. Jim and Nancy purchased the property a little over a year ago and have worked this past year preparing to open the Inn.
2.2 Start-up Summary
The start-up costs will come to $38,000 (including cash required at start-up) which will be primarily financed by Jim and Nancy Anderson. Joe Anderson, Jim’s father has contributed $15,000 into the enterprise.
The costs of improvements to the building totaled $30,000. Jim and Nancy purchased the property a year ago with the intent of renovating and opening the business.
The Magnolia Inn provides four-star lodging on the beautiful central California coast. We are a complete bed and breakfast Inn with a full complementary breakfast served each morning.
Seven impeccable rooms, each with its own theme are ready to embrace the individual who is looking for solitude, or the more adventurish person who likes to be active.
We offer van trips to various locations of interest if guests are interested.
Market Analysis Summary
The Magnolia Inn’s target market strategy is based on becoming a destination choice for people in the greater San Francisco Bay region who are looking for a place to relax and recharge.
The target markets that we are going to pursue are people looking for a vacation destination, Honeymooners, and drop-in customers.
We envision many professional married and single customers making the short drive to Half Moon Bay from the greater Bay area to relax and enjoy the beautiful California coast.
Our setting and facility is a natural for people looking for a place to spend their honeymoon. With an eye catching sign on highway 101 we will bring in drop-in business.
The Magnolia would like to see a 10% increase of potential customers on a yearly basis.
4.1 Market Segmentation
The profile of our customer consists of the following geographic and demographic information.
Our immediate geographic market is the San Francisco Bay area with a population of over one million people.
A 200-mile geographic area would want to use the kind of services we offer. The total target area population is estimated at two million people.
- Male and female.
- Married and single.
- Combined annual income in excess of $75,000.
- Age range of 25 to 65 years. with a median age of 40.
- Work in a professional business setting.
4.2 Target Market Segment Strategy
Our target market strategy is based on becoming a destination for people who are looking to get away for a few days, on the beautiful California coast. Our marketing strategy is based on superior performance in the following areas:
- Quality facilities.
- Beautiful location.
- Customer service.
The target markets are separated into three segments; “Vacationers,” “Honeymooners,” and “Drop-ins.” The primary marketing opportunity is selling to these accessible target market segments that focuses on vacation and recreational needs.
The most dominant segment of the three is comprised of the San Francisco Bay and surrounding area. Half Moon Bay is approximately a 45 minute drive for Bay area residents.
Half Moon Bay can seem like a different world and this is attractive for those people who have the need to get away but do not have the time to go far.
Because of the beauty and location of our Inn, we will be a very attractive choice for people looking for a honeymoon location.
When rooms are available we will welcome the drop-in customer who is looking for a place to stay for the night. Our sign can be seen from highway 101 and we expect to get quite a few drop-ins.
4.3 Service Business Analysis
The Magnolia Inn is a seven room facility that provides over night lodging and breakfast in a luxurious setting on the beautiful California Coast.
There are several other Inns in the area as well as motels. Most people who need lodging in the area make reservations in advance to assure room availability.
Two other Bed and Breakfast Inns, the Riptide Inn, and the Bayshore Inn are our main competitors.
4.3.1 Competition and Buying Patterns
Typically in this industry the consumer is someone who is not just looking for a room to sleep in, but a facility that provides a homespun touch. A place that is unique and offers more personalized customer service.
Because each Inn is offering something unique to the guest, customer service and quality of the facilities are at the forefront of importance.
Location is also important and those Inns with an ocean view have an advantage, but with the limited number of rooms at Inns in the area there are enough customers to match the supply.
The Magnolia will not be competing on price as the price of a room is on the high end of the scale. Guests at the Magnolia are paying for more than just a room, they are paying for a oasis away from their hectic world.