Business Plan for Start-up Hotel

INTRODUCTION1

OVERVIEW OF THE BUSINESS1

Staffing Plan2

Form of Business4

CHART OF ACCOUNTS5

Expected Resources5

Expected Sources of Finance7

Sources of Revenue and Expenditure9

Applicable Accounting Principle11

FINANCIAL PLAN11

Pro-Forma Balance Sheet12

Pro-Forma Income Statement13

Pro-Forma Statement of Cash Flows14

INTERNAL CONTROL MECHANISM15

Impact of Regulatory Requirements15

CONCLUSION16

REFERENCES17

APPENDIX19

Appendix A - Tables19

Appendix B - Support Calculations29

Business Plan for Start-up Hotel

Introduction

The research paper aims at preparing a business plan for a newly started business. In the light of provided instructions, the paper provides overview of the start-up business by providing brief overview of the company products and services. The paper develops a staffing plan based on the expected personnel and staff requirement for this entrepreneurial activity. In addition to this, the paper identifies selected form of business and its associated benefits for the new business. The paper develops a comprehensive chart of accounts by highlighting expected resources, sources of revenue, expenditure and finance.

On the basis of selected form of business, the paper identifies applicable accounting principle and its possible impact on the business performance. Subsequent to this, the paper creates a detailed financial plan for the new business including all three projected financial statements. Moreover, the paper highlights internal control mechanisms to meet possible changes in the internal and external business environment.

Overview of the Business

Highland Hotel and Resorts is a new hotel business started by a group of young entrepreneurs in the beautiful city of Las Vegas, United States. The hotel will provide luxurious accommodation and hospitality services to target consumers including travelers, businessmen, tourists, local residents and foreigners. Highland Hotel and Resort will offer 3 start hotel services to target consumers. Business operations will be expanded across food and beverage operations, catering, hospitality and other services. The hotel will provide world-class quality of hospitality services to target consumers in order to meet the expected revenue turnover.

Rationale behind hotel business as an entrepreneurial activity is the ever-increasing graph of hotel industry. The recent market research identifies hotel business as one of the most suitable entrepreneurial activities in the US (Select USA, 2013). Additionally, Las Vegas provides one of the strategic locations to best serve the interest and demand for hospitality services. Las Vegas is one of the most beautiful locations of US with enormous potential for hospitality services.

Staffing Plan

In accord with sales forecast and growing demand for hospitality services (see Appendix A), an appropriate staffing and personnel plan is designed in order to achieved business objectives. Table 1 illustrated staff planning with estimated costs. Staffing plan is composed of external hiring for four major categories including personnel for sales and marketing, R&D, administration and production processes. Number of staff for each function will vary in accord with the each category needs. Cost estimates are made on the basis of current employment cost and income trends of the US.

Highland Hotel and Resorts

Staffing Plan

Year 1

Year 2

Year 3

 

Net Revenues

2,000,000 3,540,000 5,730,000

 

Sales & Marketing

 

Sales Manager

60,000 60,000 65,000

Marketing Manager

50,000 50,000 55,000

Finance Manager

62,000 62,000 67,000

IT Manager

40,000 40,000 45,000

 

 

 

 

Total Salary

212,000 212,000

232,000

Benefits

 

Percent (%)

8%

8%

10%

Total benefit costs

16,960

...