Unit 8-Business Planning
Introduction
My business venture is based on a bed and breakfast located in Belfast. In intend to offer a quality service for local and international tourists and business travellers. The target market for my business will be tourists looking for short stays and accommodation, not only at holiday time but for the increasing silver surfers, who avail of free travel, cheaper deals etc at off peak times.

The name of my Bed and Breakfast is BEDFAST. I got this name from combining bed and breakfast. I also chose this name because it sounds like the location it is set in and would create an instant impact with the potential customer. The purpose of my B&B is to provide me with an opportunity to earn extra income by meeting growing customer demand for my affordable overnight accommodation in a relaxed and friendly setting.

There are many features of my B&B such as en-suite guest rooms with king size beds. My bed and breakfast has two dining rooms which gives the guests a bit more privacy and space if they want to eat alone. I have hired professional staff to clean the house and make sure that all guests are settled in well. I have also hired chefs to cook the guests their breakfast of whatever they choose. By doing this I will ensure that the guests of my B&B will have a great stay and be happy to return.

My objectives are to make sure that I have provided the best level of customer service for tourists both local and international. I will make sure that they are treated well in the B&B and make sure they have a comfortable overnight stay. Infact my USP will be quality in all aspect of the business and service.

Aims of BEDFAST

The aim of my bed and breakfast within the first year is to:

• Breakeven within the market • Gain a good reputation • Provide a good service • Gain a good market share • Provide excellent customer service

Ownership

BEDFAST will be a partnership, there will be one main proprietor who will manage the B&B. The other partner will be a sleeping partner who invests within the business and receives a percentage of the profit without taking part in the running of the business. Both partners will invest £20,000 into the business as well as using a number of my own facilities within my home. For example I will be using the furniture of my home but I will invest capital into making my home look more like a B&B. I will be getting an extension built on to my home to make a separate dining area for the guests that stay. I will also decorate the guest rooms and make the guests feel comfortable and at home. Part of the investment will also be used to pay wages to two members of staff that I will employ.

Key Personnel

Including the owner manager, my B&B will require two staff during hours of operating the business. One of these staff will be employed as a chamber maid and their job will be to clean the B&B, change the bedding and make sure the dining area and the rest of the house is ready for the next guest staying. The second member of staff will be employed as a chef and their job will be to cook breakfast of the guest’s choice. The manager (who will be the owner) will be making sure that the house is warm and welcoming as well as making sure that the two members of staff are doing their job to the best of their ability. The manager must also make sure that guests are greeted in a friendly and welcoming manner and shown to their room. They will also be required to answer any queries that the guest may have.

All staff that will be employed within my B&B will have training in the role that they are applying for in order to fulfil their job roles. The chef within my business will have NVQ certificate in hospitality customer service as well as a food safety, first aid, and basic hygiene qualifications and experience.

Recruitment costs

I will not advertise the vacancies in local news papers or job sites as I would rather keep my costs low by investing this money short-term in day to day expenditure. Instead I will use a private recruitment agency such as Apple, or Grafton to appeal to more skilled and well presented candidates. Those expressing an interest will be given an application form and if they have the skills and experience that the job requires and if I feel they are a suitable candidate I will invite them for a formal interview. They will be asked to

• The following is a flow chart which highlights the process of starting up. • Creating a website that is a critical marketing tool which will appeal to customers over the internet quickly and efficiently • House conversion which will include personal space and a communal room of adequate size to accommodate all the guests when the B&B is full. The lounge will be large allowing guests to socialise with others if they want to. • Setting guest rates- this will be based on breakeven pricing and because its right for my return- I can spy on other bed and breakfast as a means of primary research which will indicate what competitors are offering, allowing me to choose what’s right for my setting. • Employing and training happy staff – I will ask them about similar work and what they are looking for example is it just a bit of extra cash? Or are they after a career progression? I will be looking for good references and checking they are genuine • It is a lot easier to keep staff if they feel valued so I intend to give them a gift such as a bottle of wine or monetary rewards such as bonus. • Important to have a good image • Customers come first

Market Research
Throughout this section of the marketing plan I will look at the hospitality market as a whole and briefly outline what the market is like and whether or not customers find this market effective. I have also compiled a competitive analysis that highlights all the key information about my local competitors such as hotels within Belfast City Centre. I have made up a questionnaire asking customers questions about BEDFAST and Bed and Breakfasts in general. I have asked 100 members of the public to take part in filling out the questionnaire. I have asked a wide range of people including men, women, tourists and people local.

Marketing planning
Customers
BEDFAST target customers are mostly tourists or business travellers. My B&B would also target people within Belfast who would like a break or an overnight stay. I know that customers will be interested in staying at my B&B because I have carried out market research, I have based my room prices on what customers want and can afford which shows that there are potential customers for BEDFAST.
Competitors

|Premises |Quality of service offered |USP |
|EUROPA HOTEL |5 star accommodation in Belfast suitable |Right at the heart of the City Centre |
| |for business and private customers. |with easy access to shopping facilities |
| |Higher income grouped customers | |
|HOLIDAY INN |Basic accommodation suitable for short |Cheap and affordable for most |
| |and overnight stays, cheaper prices and | |
| |deals offered | |
|IBIS HOTEL |Much the same service as Holiday Inn, |None – outskirts of town |
| |with adequate accommodation and cheaper | |
| |prices | |
|TARA LODGE |B&B based in Belfast South, beautifully |Views of the Lough and marine areas which|
| |suited and located overlooking sea views.|attracts those looking for peaceful calm |
| |Quite expensive and appeals to silver |and relaxing surroundings |
| |surfer customers and those looking for | |
| |short stays | |
|HILTON HOTEL |A 4 star hotel located in the city |Evening entertainment and local cuisine |
| |centre. Offers customers sports |and chefs |
| |facilities and fine dining. Expensive | |
| |but deals are frequent | |
|PEARL COURT GUEST HOUSE |This is my main competitor based on the |Personal touches specific to guests pre |
| |outskirts of Belfast offering premium |ordered requirements |
| |accommodation and personal touches to the| |
| |guests stay | |
|SPRINGFIELD B&B |Newly opened, modern fittings and yet to |Modern and freshly designed |
| |build up clientele. Location is not | |
| |suitable for passer by trade | |
|JURYS INN |Located in Belfast offering mid-range |City Centre location a main competitor. |
| |prices, great value and a friendly | |
| |service. Ideally located for sight | |
| |seeing, shopping and business, and the | |
| |inns have spacious comfortable bedrooms | |
| |to relax in. This is good for the savvy | |
| |customer who wants a reasonably priced | |
| |but pleasant stay. | |

Marketing map

High quality

Low Price High Price

Europa hotel Hilton hotel Holiday Inn Ibis hotel

Jurys Inn Springfield B&B Pearl court Guest house

Tara Lodge

Finance
Statement of capital for BEDFAST
Capital Required: £40,000
Bank Loan: £15,000
Contributions from family: £5,000
Personal Savings: £20,000

Costing of supplies and equipment
The following looks at the assets and daily supplies BEDFAST needs to survive:
|ITEM |QTY |COST PER ITEM |SUPPLIER |
|BEDROOM FURNITURE |1 Bed per room one wardrobe and |Bed - £165 each |IKEA |
| |chest of drawers per room |Wardrobe - £60 each | |
| | |Chest of drawers – 60 each | |
|LAMPS |1 per room |£25 |IKEA |
|TOLITRIES FOR ENSUITE |Toilet roll in each bathroom -32|Toilet roll - £13.49 |MACRO |
| |rolls |Bins - £11 each |IKEA |
| |Bins in each bathroom -4 |Hand wash - £4.99 |MACRO |
| |Hand wash in each bath room -3 |Travel shampoo and shower gel - | |
| |Travel shower gel and shampoo |£15.00 |B&BSUPPLIES.COM |
| |-24 | | |
|TOWELS |2 for each night per guest |£4.49 each |MACRO |
|BED LINEN |Sheets - 1 for each guest |Sheets - £20 for pack of 5 |B&BSUPPLIES.COM |
| |Quilt – 1 per bed |Quilt - £20 each | |
| |Quilt cover – 1 per each guest |Quilt covers - £30 for pack of 4 | |
| |Pillows- 2 per bed |Pillows - £10 each | |
| |Pillow covers – 2 per guests |Pillow covers - £20 for pack of 5 | |
|PLATES |10 dinner plates 5 smaller |£20 for dinner set |IKEA |
| |plates and 5 saucers | | |
|CUPS |20 |£25 for set of 20 |IKEA |
|CUTLERY |20 |£10 for set of 20 |IKEA |
|DINING TABLE |1 |£2.49 |ARGOS |
|SOFA |1 in each room |£500 each |ARGOS |
|COFFEE TABLE |1 in each room |£100 each |ARGOS |
|CLEANING EQUIPTMENT |Hoover |Hoover - £100 |B&BSUPPLIES.COM |
| |Brush |Brush- £20 | |
| |Mop and bucket |Mop and bucket- £20 | |

Floor Plan
It is essential for any business to have a good appearance. In order for my business to be represented in an attractive light I must ensure that I think about the layout.
Below is a layout of the setting of my B&B and where the bedrooms etc are:

My business is subject to substantial regulation, including health and safety laws, consumer legislation and food safety regulations. I will also need planning permission for my B&B which is in the approval stages in the Planning Office. My first concern was that I develop an environmental policy for the service I am providing so I am seen as a reputable business concern. The following is the outline of my environmental statement for BEDFAST: -

A duty of care
We believe that we all have a duty of care to the environment and to seek ways to conserve natural resources. We are conscious of environmental issues and we believe that the pursuit of growth of BEDFAST can be linked to ecological protection, which we hold dear to our hearts. In pursuit of our business goals, we will seek to minimise the wastage of raw materials and energy, and to minimise harmful emissions resulting from our activities. We will comply with all relevant legislation concerning the environment and will actively co-operate with the authorities on environmental protection matters. We will also set our own standards of environmental performance. To this end we will conduct internal l reviews and assess our progress towards set targets to continually improve our performance. We will inform our suppliers of our Environmental Policies and will monitor their performance to ensure that the goods and services they provide meet our environmental objectives.
Our customers and guests will be made aware of our initiatives and we will encourage them to help us achieve our environmental goals with simple measures such as switching off lights and running water.

The Regulatory Reform (fire safety)
FINISH THIS

Below is a table which will examine closely Branding, logo choice and name choice as well as taking the opportunity to prepare a SWOT analysis for this type of business: -

|Strengths and Weaknesses |This is the internal environment - the |A strong for example, factors relating to |
| |situation inside BEDFAST |products, pricing, costs, profitability, |
| | |performance, quality, people, skills, |
| | |adaptability, brands, services, reputation, |
| | |processes, infrastructure, have many years of |
| | |experience in this industry, location, |
| | |facilities, brand. |
|Opportunities and Threats |the external environment - the situation |for example, factors relating to markets, sectors,|
| |outside BEDFAST |audience, fashion, seasonality, trends, |
| | |competition, economics, politics, society, |
| | |culture, technology, environmental, media, law, |
| | |partners not agreeing. |

BRAND, LOGO CHOICE AND NAMEEEE

Pricing
The following sets out the charge for guests of BEDFAST for week nights, weekend nights and short stays : -

|Stay |Weekday |Weekends |Short stay |Short stay (couples) |
| | | |(Business rate) | |
| |Mon-Thurs |Fri-Sun |(2-3 days) |(2-3 days) |
|Charge |£75 per night |£105 per night or sat |£180 |£120 |
| | |and sun £180 | | |

The price reflects the quality of the service and accommodation where guests stay. The prices may appear high but research indicates that guests are willing to pay for the comfort but not hotel prices. I am cautious enough to know that it will be essential to review prices at different times of the year with regard to seasonal fluctuations and possible new entrants to this industry.

A break down of this cost plus pricing includes: • Labour (cleaning costs and housekeeper duties and preparation of food/beverages) • Insurance • Rates • Use of wifi and landline phone • Food and beverages supplies

The average costing of this totals £50 with added potential profit of £25 per person for each night’s accommodation.

The marketing plan

The primary market research that I carried out from my questionnaire helped me tailor a marketing mix to suit my customers’ needs. The marketing mix is a combination of activities that are under control of a business which are altered to meeting the marketing aims and objectives for by B&B. Below includes the marketing mix in terms of the 4 Ps.

Product
The product for my business is the service that I am providing which is a bed and breakfast. My main product is the type of people I am aiming my service at which is couples, business owners and people who are interested in short stays. I will find that my B&B will be busier at peak times of the year such as the summer months but I am still going to keep BEDFAST open all year round as business people and couples still use the B&B for stays during the year. My product also includes achieving my aims and objectives and making as much sales as possible in order to survive in the future.

Price
In order to decide on a final price to charge guests staying at my B&B I will need to consider the 3 Cs which are costs, competitors and customers. For example, I am targeting business people and therefore I will need to take this into consideration when deciding how much to charge them because they will be staying regularly at the B&B. I will need to carry out market research in order to find out how much my customers are willing to pay for my service before I decide on a price. I will have to see how much competitors are charging for their service and decide on a reasonable price to gain more market share. Finally I will have to take my costs into account when deciding on my price because I will need to charge customers a price which will help me pay for costs in the business and if I have not got a lot of costs I will be able to charge customers a cheaper price. I will need to think about paying things like bills, staff etc before I decide on a price.

Place
I will need to consider the place where my business is based in terms of competition and customers. For example I based my B&B in Belfast City Centre because it will attract more customers as this would be a busy place and having my B&B here will be convenient for people in Belfast shopping or business people who work near. I have decided to locate my B&B in the centre of Belfast. This is easy for members of the public to use and also would make it appropriate for business owners and people who want to come to Belfast for a short stay.

Breakeven is

Breakeven for BEDFAST

Fixed Costs £22000
Selling price (based on 1 nights stay) £105
Variable Costs £65

Therefore breakeven -

22000/40 = 550 nights and revenue of £57750

Contingency plan

Due to the many scenarios that could affect the financial plan of BEDFAST, I will need to be prepared in order to make sure that my business stays viable and does not occur any financial problems.
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The first question on my questionnaire asks customers how often they use B&B’s. The results were close together, however more customers said that they would stay in a B&B monthly. None of the customers said that they stay in a B&B daily.

The next question on my questionnaire asks customers what factors are most important to them. Most of the customers said that hygiene and customer service were most important to them and therefore I will make sure that my B&B is hygienic and clean. I will also make sure that they level of customer service is exceptional. Although the image and market knowledge were least important to customers, I will still make sure that my B&B has a good image and that myself and my members of staff have knowledge of the market they are working in.

The next question on my questionnaire asked customers what they thought was most effective in terms of promotion for my B&B. the majority of customers said that high quality furniture and comfort were most effective. Customers thought that advertising and meal deals for breakfast were less effective.