Business Plan: Bed & Breakfast in Provincetown, MA (USA)
I'm need an extensive business plan created for a Bed & Breakfast business in Provincetown, MA (USA).
Business plan will be pitched in front of investors and members of a national bank.
About Provincetown, MA: seasonal (summer) coast town on the outer reach of Cape Cod. Accessible via car from Boston (2 hours) or by ferry (seasonal - 3 hours).
About the business: I'm looking to buy a 10-room guest house in need to extensive renovation. Historic home located in downtown Provincetown. Each guest room will have an en-suite private bathroom, a queen bed, and television.
About me: I have a Master in Business Administration and am an active investor and serial entrepreneur, I've built and sold my own small tech company and have also worked as a federal government employee in the healthcare IT sector. I've recently been hosting guests at 5 AirBnB properties that I manage, here in Cambridge, MA. I frequently visit Provincetown, and would like to purchase a Bed and Breakfast where I would be owner and operator.
About the report: The report needs to include:
1. Average RevPAR
2. Average daily rates (Seasonal)
2. Price Per Room for hospitality businesses sold in the last four years.
3. Hospitality industry overview, specific to Provincetown
a. Number of Inns / rooms
b. Hotels / rooms
c. AirBnB rooms
d. Time Shares
e. Number of all year residences
f. Number of tourists
4. Start-up Costs:
a. Real estate purchase : $1.2 Million
b. Renovation (construction during off-season; fees include permitting, architect, general contractor fee, and prices of construction) $150,000.00
c. Furniture (beds, mattresses, side tables, television, air conditioner), $40,000.00
d. Linens (sheets, towels, etc.), $2,000.00
e. Website design, hosting: $1,500.00
f. Digital Marketing (Google AdWords + SEO): $2,500.00
g. Press releases: $900
h. Hotel Management Software:
i. Accountant: $600/ year
j. Real estate taxes, insurance, and mortgage payments (year 1): ______.
k. Hotel staff (cleaning; students interns during summer); $18,000.00
l. Utilities (internet, water, heat, electricity, sewer, trash)
5. Business Valuation
a. Realestate (land and building)
b. Brand / goodwill
a. $250,000.00 down payment (I'll be contributing $50,000, I'll have $100,000 in cash from pre-sales from friends and family, and $100,000 from selling equity in the company.
b. 15 year commercial real-estate mortgage at 4.5%; payments of
7. Financial forecast:
a. Year one
b. year two
c. Year three
d. Estimated break-even date.
e. Rate of Return for the first five years
8. Exit plan:
a. Sell home as a single family OR bed and breakfast OR retreat center (e.g. leadership retreat center)
b. Writing contest with $150 entry fee, minimum number roof entries required, to win the Bed & Breakfast