Business Proposal (Term Paper Sample)

Business Proposal
Student’s name
Institution
Executive Summary
The purpose of this business proposal is to raise $ 600,000 for the development and establishment of a bed and breakfast service business. The business proposal demonstrates the expected expenditure and operations from the first year to the third year of operation (Proposal planning & writing, 2014). The BnB, Inc. (The Company) is an Australian based company that will focus on providing nightly room lodging service as well as catering services to customers. BnB Company was founded in 2015 by Aust Ralian.
Products and Services
The BnB Inc. will be a unique facility that will feature several amenities for the customers using the service. The facility will also feature 4 to 5 bed and breakfast style rooms. The service will provide cutting-edge technology that will elevate the real experiences of the guests. The clients will also enjoy a family-like treatment from the well trained staff. The clients experience will also be made better through outsourced spa services. The facility will also provide large parties services where the site can be rented out for exclusive use by the customers. The business will undoubtedly get a predictable stream of revenue from the services offered at the facility. For instance, events such as weddings that may use part or entire facility will bring in more revenue. Lastly, the business proposal will further describe the services offered by BnB Inc.
Financing
Mr Aust Ralian seeks to raise $600,000 from sources such banks, and angel investors. If the banks provide a loan to Mr. Aust Ralian, the interest rate, and loan agreements will be discussed during loan negotiation (Proposal planning & writing, 2014). This business proposal assumes that BnB Inc. will receive a 20-year loan with a 10% fixed interest rate.
Mission Statement
The BnB Inc.’s mission is to become the prominent leader in Bed and Breakfast targeted market for quality night lodging, food and catering services.
The Management Team
The company was founded by Aust Ralian. Mr. Aust Ralian has a five years’ experience in the hotel industry. Through the experience, Mr Aust will have the capacity to bring the management operations of the business to profitability by the second year of operation.
Forecasted Sales
Mr. Aust Ralian anticipates a high rate of growth at the start of the operations. The table below illustrates the anticipated financials for the three years.
Proforma profit and loss (Yearly)

Year

1

2

3

Sales

$552, 000

$600,000

$650,000

Operating costs

$287,000

$295,000

$305,000

Taxes, Interests, and Depreciation

$67000

$74,000

$81,000

Net Profit

$82000

$90,000

$100,000

Expansion plan
The founder anticipates that the enterprise will gradually expand in the first three operation years. To achieve the objective, Mr. Aust plans to implement a marketing campaign effectively targeting the prospective customers such as travellers in the target market.
Company and Financing Summary
Registered Name and Organization Structure
BnB, Inc. the Company is registered as a Corporation in Australia.
Required Funds
Currently, the BnB, Inc. needs $600,000 of debt funds. The funds will be used as follows:
Projected Startup Costs

Initial Lease Payments and Deposits

$ 25,000

Working Capital

$ 65,000

Leasehold Improvements

$ 10,000

Security Deposits

$2,500

Opening Supplies

$10,000

Company Vehicle and Lease Deposits

$20,000

Marketing Budget

$10,000

Compensation plans

$150,000

Miscellaneous and Unforeseen Costs

$7,500

Total startup costs

$350,000

Investor Equity
Mr. Aust Ralian is not currently seeking third party investment.
Management Equity
Mr. Aust Ralian owns 100% of the BnB, Inc.
Exit strategy
companyMr. Aust Ralian may opt to sell the business if the company is very successful. Most likely, the Corporation may hire business broker expert to sell the company on behalf of Mr. Aust. It is probable that BnB, Inc. will attract sales premium of up to ten times the earnings.
Products and Services
Hospitality Services
Many clients in hospitality industry prefer a place that feels like a home away from home. For this reason, BnB facility will feature four to seven rooms fitted with various modern amenities to meet the client’s needs. Each room will be equipped with a flat screen television set and wifi to keep the customers engaged with the rest of the world. Each room will also be equipped with a queen size bed, desk, a nightstand and a bathroom. BnB, Inc. will also outsource a massage therapist and other spa service providers to be onsite all the time.
Food/Beverage services and Catering Services
The BnB Inc. will offer a full food and Beverage services to all its customers. By providing a variety of food and beverage amenities, the company hopes to create loyal clients that will always come back to the business when travelling in the company area. Catering services will be provided for events hosted at BnB facility. The catering service packages will be expanded to local events that use the service as an outsourced vendor for the events planning demands (Murthy, 2006). This is predicted to have the capacity to generate 80% in excess of contribution margins to the company.
Marketing Plan
The Bed and Breakfast plan to keep up a broad marketing Campaign that will guarantee maximum discernibility for the business in its targeted market. The following is a summary of the marketing techniques and targets of the Bed and Breakfast.
Marketing Objectives
* Develop online presence by creating a website and putting the Company's name and contact data with online directories (Miner et al., 2008).
* Implement a local marketing campaign with the Company's concentrated market using the utilization of flyers, neighborhood daily paper promotions, and verbal publicizing (Miner et al., 2008).
* Establish associations with travel specialists/agents and online travel gateways all through Australia (Miner et al., 2008).
Marketing Strategies
Mr. Aust plans on utilizing various marketing procedures/strategies that will permit the BnB to attract travelers and neighborhood residents inside of the objective market effectively. These plans incorporate customary print advertisements and ads put on web search engines on the Internet. The following is a depiction of how the business plans to showcase its services to the market. The BnB will likewise utilize a web-based strategy. This is essential the same number of individuals looking for lodgings, for example, informal accommodation, now the Internet to direct their preparatory hunts. Mr. Doe will enroll the Bed and Breakfast with online gateways so that potential clients can without much of a stretch achieve the business. The Company will likewise build up its online site showcasing the Bed and Breakfast office (with numerous photos), its menu of onsite services, preliminary pricing data, directions and contact data. The business will likewise enlist the area with significant travel organizations and online entries, for example, Expedia and Priceline.com so that the Company can increase nationwide publicity among individuals looking to stay in BnB within the Company's local target market. Marketing alone will require about $10,000. The company will also apply an array of other business promotion and marketing strategies such as job and gift cards for guests, listing in yellow pages and guide books, brochures and personal selling programs (Jay, 2001).
Competitive Analysis
There are a several components distinguishing the BnB from inns and other Bed and Breakfast hotels. The outstanding advantage of a Bed and Breakfast over lodging is its customized services, individualized decor, and conveyance of an "experience" instead of a space for the night (Frey, 2005). The Bed and Breakfast will engage the aesthetic tastes and desires o...