Perfect for a New England Vacation! Sarah Santiago Entrepreneurship-KC December 6, 2006
Business Name 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.
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.
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 ALL Rooms are Non-Smoking 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
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
Location The Granite State Inn & Restaurant will be located in Wilton, NH.
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.
Who Are Potential Competitors? Name of Company Product/Service Price Quality Stepping Stones Bed & Breakfast Wilton, NH Bed and Breakfast $65- $85 Full Breakfast included; Home baking Birchwood Inn Temple, NH Inn $85- $110 Breakfast included, Dining area / Tavern Bedford Village Inn Bedford, NH Inn $210- $350 Awarded for Hospitality and Dining Excellence Crowne Plaza Nashua, NH Hotel $130- $250 Lounge and Pool
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
What is the Business Organizational Structure? The Granite State Inn and Restaurant will open as a sole proprietorship. After 5 years, if the business is not as successful as I wish, I will consider taking on a partner.
Why should the Granite State Inn open 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 open and run my business on my own.
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.
What does Sole Proprietorship for The Granite State Inn and Restaurant Mean? Personal Liability: Fully covered personal liability insurance to protect all of 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 opportunities 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.
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
What Needs or Wants Will The Granite State Inn Fulfill? The Granite State Inn will be able to offer 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.
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.
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 of 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.
Survey Results Top Travel Spots Reasons for Travel Northwest Mountain Region Southwest Region Centeral Region Eastern Region Western Pacific Region Southern Region Great Lakes Region New England Region Vacation Family
Survey Results Prices Where to stay? $50-$100 $100-$150 $150-$200 $200-$250 Hotel Motel Inn B&B
Survey Results Holiday Travel Looking for Holiday Deals? Yes No Yes No
Survey Results Decor Atmosphere Antique/ Victorian Lodge Style No Answer Modern No preferance Family Friendly Romantic Business No Answer
Survey Results Where to dine? Food Preference Dining Cost Outside Inside Both Home-Style Casual Elegant No answer $5-$10 $10-$15 $15-$20 $20-$25+
Survey Results Advertisement Methods Travel Resources Newspaper ad Flier Magazine Article Internet Search Engines Travel Websites Travel Agency AAA Books Friends Research
Influence of Market Research on 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.
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!
Business Card Sarah Santiago 90 Hearth Stone Lane Wilton, NH 01562 Phone: (603) 654-6091 Fax: (603) 654-6092 GraniteStInn@tds.net
Advertisement 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 90 Hearth Stone Lane Wilton, NH 01562 Phone: (603) 654-6091
The Granite State Inn and Restaurant Slogan: 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
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
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
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
Financial Statements Economics of The Granite State Restaurant 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 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 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
Start-up Costs Start- Up Capital Requirements 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 Linens, Pictures, rugs, furniture, barn, dept. stores, etc. Lowes, Home Depot 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
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%
Yearly Income Statement 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
Return On Investment For The First Year of Business Formula: ROI= $119,348 - $866,150 (100) $866,150 ROI= -86%
Technology Computer, Telephone, Fax Homepage Accounting Software E-mail Gateway Computer: To Keep Good Records Telephone: To receive and cancel reservations 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 Quickbooks Pro 2005: Great for keeping financial records. TDSmail: To inform guests of confirmations, deals, cancellations, local weather, etc.
Future Additions More rooms More dining area Pool Event planning services Conference Room
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
How to Tell If The Granite State Inn and Restaurant Are Successful: Returning Customers Good Reviews from Critics Smiling Customers!
Thank you for your time. If you have any questions please feel free to call 1-603- 654- GSIR.