Perfect for a New England Vacation! Perfect for a New England - - PowerPoint PPT Presentation

Sarah Santiago Entrepreneurship-KC December 6, 2006

Perfect for a New England Vacation! Perfect for a New England Vacation!

Business Name

Perfect for a New England Vacation! Perfect for a New England Vacation!

What Is The Granite State Inn and Restaurant?

The Granite State Inn and Restaurant will be located in New England so that visitors may enjoy the best that New England can offer every season. The Inn will house 10 impeccably clean rooms:

• 7 Regular
• 2 Executive
• 1 Presidential

The Restaurant will be able to hold 40 people in it’s dining area.

Perfect for a New England vacation!

Business Idea

• The main idea is provide a friendly, clean environment for

guests and diners.

• Rooms and meals will be affordable.
• Staff will focus on providing a romantic and enjoyable

atmosphere to its guests and diners.

• Concierge will offer local maps and suggestions on where to

shop, dine, and site-see.

Perfect for a New England vacation!

What Types of Rooms Will Be Offered?

Regular Rooms

• Smaller sized
• Great for families or a

single person

• Queen size bed or two

double beds

• Desk
• TV
• Couch
• Closet
• Full Bathroom

Executive Rooms

• Medium sized
• Great for families or a couple
• King sized bed or queen

sized bed and pull out couch

• Desk
• TV
• Closet
• Couch
• Mini-refrigerator
• Full Bathroom

Presidential Room

• Largest room
• Perfect for a romantic weekend!
• California King bed
• Couch
• Coffee table
• Desk
• TV
• DVD player
• Closet
• Dining table
• Small kitchen complete with

microwave, sink, and refrigerator

• Full Bathroom with double

sinks, a Jacuzzi tub/ shower

ALL Rooms are Non-Smoking

Perfect for a New England vacation!

Amenities and Services

• Room Service
• Turndown Service
• Complimentary Pillow
• Chocolates
• Complimentary High-Speed Internet
• Reduced Meal Prices in The Granite State Restaurant
• Balcony
• Private Bathrooms
• In-room Coffee

Perfect for a New England vacation!

Location

The Granite State Inn & Restaurant will be located in Wilton, NH.

Perfect for a New England vacation!

How Is The Granite State Inn and Restaurant Different From the Many Other Inns?

• The Granite State Inn has an in house restaurant that can

provide food for guests and the general public.

• The Granite State Inn has choices for rooms instead of one

standard room.

• The Granite State Inn will provide a romantic environment with a

mix of décor to suite everyone’s tastes.

Perfect for a New England vacation!

Name of Company Product/ Service Price Quality

Stepping Stones Bed & Breakfast Wilton, NH Bed and Breakfast $65- $85 Full Breakfast included; Home baking Birchwood I nn Temple, NH I nn $85- $110 Breakfast included, Dining area / Tavern Bedford Village I nn Bedford, NH I nn $210- $350 Awarded for Hospitality and Dining Excellence Crowne Plaza Nashua, NH Hotel $130- $250 Lounge and Pool

Who Are Potential Competitors?

Perfect for a New England vacation!

What Is The Competitive Advantage?

• Many Room Options
• Dining area on the premises
• Convenient Dining Hours
• Great Tourism Location
• Close to Airport
• Access to city attractions and town attractions
• Many amenities

Perfect for a New England vacation!

What is the Business Organizational Structure?

The Granite State Inn and Restaurant will

• pen as a sole proprietorship.

After 5 years, if the business is not as successful as I wish, I will consider taking on a partner.

Perfect for a New England vacation!

Why should the Granite State Inn

• pen as a sole proprietorship?
• I want to be able to open the business

by making all of the decisions.

• A partnership means a friendship, and if

a partnership goes sour, so will the friendship.

• I have enough faith in myself that I can
• pen and run my business on my own.

Perfect for a New England vacation!

Why Is There A Possibility of A Partnership Later?

• If my business is unsuccessful, I will

consider taking on a partner to gain a larger spectrum of ideas.

• If the company needs financial support,

a partnership would disperse the financial burden.

Perfect for a New England vacation!

What does Sole Proprietorship for The Granite State Inn and Restaurant Mean?

Perfect for a New England vacation!

• Personal Liability: Fully covered personal liability insurance to protect all
• f my personal assets
• Sharing the profits: I have complete ownership and control of The Granite

State Inn and Restaurant. I make the final decision on all business

• pportunities and keep all of the profits
• Taxes on the Income: Personal Tax Rate (Lowest Tax Rate)
• Sharing of Ideas: I will be the sole contributor of all ideas of the business. I

will take classes in marketing, finance, management, and accounting.

• Dissolution of the business: After 5 years if my business is not successful,

I will consider taking on a partner. If something happens to me, I would give the business to my husband.

• Raising Capital for future expansion: After running my business for about

10 years successfully, I will consider taking some of my profits and invest them back into the business for expansions, additions, upgrades, and refurbishments.

• Ownership: Sarah Santiago

What Type of Business Is The Granite State Inn and Restaurant? Service Retail Business.

Perfect for a New England vacation!

Who Is The Target Customer?

• Couples looking for a romantic weekend.
• Potential customers can be of any social

status; however, due to room rates, the customer will probably be middle class to upper middle class.

• The Granite State Inn is surrounded by a

romantic atmosphere it is aiming to bring in adults of both genders

Perfect for a New England vacation!

What Needs or Wants Will The Granite State Inn Fulfill?

• The Granite State Inn will be able to
• ffer rooms to anyone who may be

visiting the area and needs a room.

• The Granite State Inn will be able to

provide a friendly, romantic, and clean environment to any guest who may want it.

Perfect for a New England vacation!

What Needs or Wants Will The Granite State Restaurant Fulfill?

• The Granite State Restaurant will be

able to offer meals to anyone who is staying in the Inn or anyone from the general public.

• The Granite State Restaurant will be

able to provide an array of tasty meals to any diner.

Perfect for a New England vacation!

Market Research Results

• Potential guests wanted prices ranging from $150- $250.
• Potential Guest would rather stay at a B&B instead of an inn,

hotel, or motel.

• Most potential guests would not travel during the holidays.
• Most potential guests would like an antique décor paired with a

romantic atmosphere.

• Potential diners would like to dine in a casual atmosphere inside
• f the establishment they are staying at.
• Potential diners would be most likely to pay $15- $20 per

person.

• When searching for vacation ideas, most people look on travel

websites over the internet.

Perfect for a New England vacation!

Reasons for Travel

Vacation Family Top Travel Spots Northwest Mountain Region Western Pacific Region Southwest Region Southern Region Centeral Region Great Lakes Region Eastern Region New England Region

Survey Results

Perfect for a New England vacation!

Where to stay?

Hotel Motel Inn B&B

Prices

$50-$100 $100-$150 $150-$200 $200-$250

Survey Results

Perfect for a New England vacation!

Looking for Holiday Deals?

Yes No

Holiday Travel

Yes No

Survey Results

Perfect for a New England vacation!

Atmosphere Family Friendly Romantic Business No Answer

Decor

Antique/ Victorian Modern Lodge Style No preferance No Answer

Survey Results

Perfect for a New England vacation!

Where to dine?

Outside Inside Both

Dining Cost

$5-$10 $10-$15 $15-$20 $20-$25+

Food Preference

Home-Style Elegant Casual No answer

Survey Results

Perfect for a New England vacation!

Travel Resources Search Engines Travel Websites Travel Agency AAA Books Friends Research Advertisement Methods

Newspaper ad Magazine Article Flier Internet

Survey Results

Perfect for a New England vacation!

Influence of Market Research

• n Prior Business Plan
• The Granite State Inn will offer guests a

romantic environment with antique décor.

• Rooms will be priced from $150-$300.
• The Granite State Inn will offer holiday

and lengthy stay deals.

• Diners will have many food options

priced around $15 per person.

Perfect for a New England vacation!

Sales Presentation

Looking for a place to stay for a romantic weekend? Do you look for friendly service, cozy rooms, and great meals? Would you like to stay in a place that offers the best of every season? The Granite State Inn and Restaurant is the perfect place to go for a New England vacation!

Perfect for a New England vacation!

Business Card

Sarah Santiago

90 Hearth Stone Lane Wilton, NH 01562 Phone: (603) 654-6091 Fax: (603) 654-6092

GraniteStInn@tds.net Perfect for a New England vacation!

Perfect for a New England vacation!

90 Hearth Stone Lane Wilton, NH 01562

Phone: (603) 654-6091

With friendly service, cozy rooms, and great meals, The Granite State Inn and Restaurant is the perfect place to go for a New England vacation!

Rooms range from $150- $350

Advertisement

Perfect for a New England vacation!

The Granite State Inn and Restaurant Slogan:

Perfect for a New England Vacation!

Perfect for a New England vacation!

How Will The Granite State Inn and Restaurant Reach Its Potential Customers?

• Newspaper ads.
• Magazine Articles.
• Search Engines.
• Travel Websites

Perfect for a New England vacation!

Financial Statements Economics of Presidential Room

Selling price per unit- $350.00 Cost of goods sold per unit- Laundry: $ 10.00 Cleaning: $ 10.00 Soaps: $ 5.00 Stationary: $ 2.00 Total: $ 27.00 25% overhead: $ 6.75 Total: $ 33.75 Gross Profit per Unit: $316.25

Perfect for a New England vacation!

Financial Statements Economics of Executive Rooms

Selling price per unit- $250.00 Cost of goods sold per unit- Laundry: $ 10.00 Cleaning: $ 10.00 Soaps: $ 5.00 Stationary: $ 2.00 Total: $ 27.00 25% overhead: $ 6.75 Total: $ 33.75 Gross Profit per Unit: $216.25

Perfect for a New England vacation!

Financial Statements Economics of Regular Rooms

Selling price per unit- $150.00 Cost of goods sold per unit- Laundry: $ 10.00 Cleaning: $ 10.00 Soaps: $ 5.00 Stationary: $ 2.00 Total: $ 27.00 25% overhead: $ 6.75 Total: $ 33.75 Gross Profit per Unit: $116.25

Perfect for a New England vacation!

Financial Statements Economics of The Granite State Restaurant

Lunch Selling price per unit- $ 30.00 Cost of goods sold per unit- $ 10.00 25% overhead: $ 2.50 Total: $ 12.50 Gross Profit per Unit: $ 17.50 Breakfast Selling price per unit- $ 15.00 Cost of goods sold per unit- $ 5.00 25% overhead: $ 1.25 Total: $ 6.25 Gross Profit per Unit: $ 8.75 Dinner Selling price per unit- $ 35.00 Cost of goods sold per unit- $ 15.00 25% overhead: $ 3.75 Total: $ 18.75 Gross Profit per Unit: $16.25 Perfect for a New England vacation!

Start-up Costs

Start-up Expenses Estimated costs Where will I buy these? + info Items Advertising $1,000 call paper and magzines to see if they will write an article+ yellow pages Yellow Pages and News Papers Starting Inventory $1,000 Food from local vendors Food for Resaurant Building construction $750,000 use family help and family discounts Lumber, electric, plubing, etc. Cash $500 Bank Decorating $30,000

• Misc. Places including antique stores, pottery

barn, dept. stores, etc. Lowes, Home Depot Linens, Pictures, rugs, furniture, etc. Deposits $850 Misc. Electric, Phone, Water, Etc. Fixtures and equipment $30,000 Walmart, lighting places, sears, etc. Kitchen supplies, smoke detectors, sprinklers lights, etc. Insurance $20,000 The Hartford Licenses, permits, and fees $1,000 Misc. Computers $3,000 Dell 1 or 2 computers Services $300 Misc. Lawyer, accountant, trash, etc. Signs $1,000 Barlo Signs Entrance signs Supplies $2,500 Staples, wholesalers Paper, cleaning, office supplies Unanticipated expenses $25,000 Total Start-up Costs $866,150 Start- Up Capital Requirements

Perfect for a New England vacation!

Sources of Financing

Personal savings $50,000 Loan $800,000 Relatives $5,000 Friends $5,000 Grant $10,000 Total: $870,000 Maximum Interest Rate: 10%

Perfect for a New England vacation!

Yearly Income Statement

Perfect for a New England vacation!

Revenue Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Totals Room Rate $2,250 $3,150 $6,000 $7,200 $12,750 $18,000 $18,000 $12,750 $12,750 $9,000 $6,750 $6,750 $115,350 Breakfast $7,905 $7,905 $8,835 $8,835 $9,300 $9,300 $9,300 $9,300 $9,300 $8,835 $7,905 $7,905 $104,625 Lunch $13,950 $13,950 $14,880 $14,880 $16,740 $16,740 $16,740 $16,740 $14,880 $13,950 $13,950 $13,950 $181,350 Dinner $32,550 $32,550 $32,550 $32,550 $32,550 $32,550 $32,550 $32,550 $32,550 $32,550 $32,550 $32,550 $390,600 Total Monthly Revenue $56,655 $57,555 $62,265 $63,465 $71,340 $76,590 $76,590 $71,340 $69,480 $64,335 $61,155 $61,155 $791,925 Cost of Goods Sold Room Rate $75 $105 $200 $240 $450 $675 $675 $450 $450 $300 $225 $225 $4,070 Breakfast $2,635 $2,635 $2,945 $2,945 $3,100 $3,100 $3,100 $3,100 $3,100 $2,945 $2,635 $2,635 $34,875 Lunch $4,650 $4,650 $4,960 $4,960 $5,580 $5,580 $5,580 $5,580 $4,960 $4,650 $4,650 $4,650 $60,450 Dinner $13,950 $13,950 $13,950 $13,950 $13,950 $13,950 $13,950 $13,950 $13,950 $13,950 $13,950 $13,950 $167,400 Total Monthly Costs $21,310 $21,340 $22,055 $22,095 $23,080 $23,305 $23,305 $23,080 $22,460 $21,845 $21,460 $21,460 $266,795 Gross Profits $35,345 $36,215 $40,210 $41,370 $48,260 $53,285 $53,285 $48,260 $47,020 $42,490 $39,695 $39,695 $525,130 Operating Costs Fixed: Salaries $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $60,000 Insurance $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $30,000 Interest & Payment on Loan $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $240,000 Total Fixed Costs $27,500 $27,500 $27,500 $27,500 $27,500 $27,500 $27,500 $27,500 $27,500 $27,500 $27,500 $27,500 $330,000 Variable: Utilities $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $30,000 Advertising $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $6,000 Total Variable Costs $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $36,000 Total Monthly USAIR $30,500 $30,500 $30,500 $30,500 $30,500 $30,500 $30,500 $30,500 $30,500 $30,500 $30,500 $30,500 $366,000 Profit Before Taxes $4,845 $5,715 $9,710 $10,870 $17,760 $22,785 $22,785 $17,760 $16,520 $11,990 $9,195 $9,195 $159,130 Taxes $1,211 $1,429 $2,428 $2,718 $4,440 $5,696 $5,696 $4,440 $4,130 $2,998 $2,299 $2,299 $39,783 Net Profit $3,634 $4,286 $7,283 $8,153 $13,320 $17,089 $17,089 $13,320 $12,390 $8,993 $6,896 $6,896 $119,348

For The First Year of Business Formula: ROI= $119,348 - $866,150 (100) $866,150 ROI= -86%

Return On Investment

Perfect for a New England vacation!

Computer, Telephone, Fax Gateway Computer: To Keep Good Records Telephone: To receive and cancel reservations Homepage Hosted By Yahoo: A form of advertisement; so guests can view rooms and options for their trip. The home page will also allow guests to make reservations Accounting Software Quickbooks Pro 2005: Great for keeping financial records. E-mail TDSmail: To inform guests of confirmations, deals, cancellations, local weather, etc.

Technology

Perfect for a New England vacation!

Future Additions

• More rooms
• More dining area
• Pool
• Event planning services
• Conference Room

Perfect for a New England vacation!

How to Keep The Granite State Inn and Restaurant’s Success:

• Maintain Cleanliness
• Keep staff friendly and happy
• Keep guests happy
• Offer deals
• Continuously present something

new and exciting to keep customers interested

Perfect for a New England vacation!

How to Tell If The Granite State Inn and Restaurant Are Successful:

• Returning Customers
• Good Reviews from Critics
• Smiling Customers!

Perfect for a New England vacation!

Perfect for a New England vacation! Perfect for a New England vacation!

Thank you for your time. If you have any questions please feel free to call 1- 603- 654- GSIR.