CREATORS|studio puts on a lot of emphases and the importance of developing the Hotel Business & Strategy Plan through the creation and refinement of a formal Business plan. It is important as It will be the owner’s formal guide to the long-term aim of the hotel business and shows short-term delivery and objectives mechanisms. A good business plan should be constantly monitored against actual performance, changing strategic goals and market realities, and refined accordingly.
It acts as a ‘signature’ for the business to a range of interested parties, demonstrating a structured commitment to delivering a set of goals and objectives, via formal strategic, financial and tactical planning. The primary purpose of a Business Plan is to create a written outline that evaluates all aspects of the economic viability of a business venture including a description and analysis of business prospects.
The purpose of the business plan is to outline how you intend your business to succeed. This will involve looking in detail at the current business and marketplace and identifying how the business can be improved.
A good business plan will evolve over time and needs to be reviewed on a regular basis.
The business plan will become your roadmap to chart the course of your business. But at the outset, you cannot predict all of the changing conditions that will surface. So after you have opened for business, it is important that you periodically review and update your plan.
Why Prepare A Business Plan?
The business plan is going to be useful in a number of ways:
- First and foremost, it will define and focus your objective using appropriate information and analysis.
- You can use it as a selling tool for dealing with important relationships including your lenders, investors and banks.
- Your business plan can uncover omissions and/or weaknesses in your planning process.
- You can use the plan to solicit opinions and advice from people, including those in your intended field of business, who will freely give you invaluable advice.
What to Avoid in Your Business Plan!
Place some reasonable limits on long-term, future projections [Long-term means over one year]. Better to stick with short-term objectives and modify the plan as your business progresses. Too often, long-range planning becomes meaningless because the reality of your business can be different from your initial concept.
Avoid optimism. In fact, to offset optimism, be extremely conservative in predicting capital requirements, timelines, sales and profits. Few business plans correctly anticipate how much money and time will be required.
Do not ignore spelling out what your strategies will be in the event of business adversities.
Use simple language in explaining the issues. Make it easy to read and understand.
Your Business Plan Format
It is important that the business plan is formatted clearly and that the content is coherent.
- A Vision Statement: This will be a concise outline of your business purpose and goals.
- The People: By far, the most important ingredient for your success will be yourself. Focus on how your prior experiences will be applicable to your new business. Prepare a résumé of yourself and one for each person who will be involved with you in starting the business. This part of your business plan will be read very carefully by those with whom you will be having relationships, including lenders, investors and vendors.
- Your Business Profile: Define and describe your intended business and exactly how you plan to go about it. Try to stay focused on the specialized market you intend to serve.
- Economic Assessment: Provide a complete assessment of the economic environment in which your business will become a part.
- Explain how your business will be appropriate for the regulatory agencies and demographics with which you will be dealing. If appropriate, provide demographic studies and traffic flow data normally available from local planning departments.
- Cash flow assessment: Include a one-year cash flow that will incorporate your capital requirements. Include your assessment of what could go wrong and how you would plan to handle problems.
- Include your marketing plan and expansion plans.
The Proposed Team
Hotel Development Team
CREATORS|studio put in a lot of emphases in creating and establishing experienced team together. The selection and pre-qualification process for suitable consultants is of extreme importance to the successful delivery of your project!
- Developer
- Architect & Master Planner
- Interior Designer
- Various Engineers (Structural, Civil, Mechanical, Electrical, Plumbing) General Contractor/Construction Manager
- Sub Contractors Quantity Surveyor Landscaping Architect Legal Advisor
- Project Manager
- Accountant
- Various Consultants (Food Service, Kitchen, Laundry, Lighting, Feasibility, FF&E etc.)
- Operator (Franchisor) Representative (if Franchising is considered) Purchase Coordinator
Outline The Development Plan of Action
Next comes the bidding process for construction and bids from construction companies are called for and the selection of the general contractor is done, which will lead to the actual Construction process and Project Management.
Once the construction process is through and the required Furniture, Fixtures and Equipment are installed and punch list is cleared, the project is transferred from the project team to the Operations team, which is the start of the hotel pre-opening stage.
The Owners then select the Management Team and the staff during the pre-opening process, which will ultimately lead to the actual opening of the Hotel.
To summarize the whole Development and Construction process briefly:
- Identify site
- Acquire Land
- Obtain third-party feasibility, environmental, geotechnical and Design Study.
- Develop an initial 5-year operations budget and construction budget
- Draft preliminary drawings
- Engage architect and engineers for complete plans and budget
- Arrange franchise license
- Conduct and complete interviewing and bidding process for contractor
- Establish scheduling of all building phases
- Commence construction
- Provide extensive construction project management services
- Begin pre-opening process
- “Punch out” final building and obtain a certificate of occupancy
- Open the Hotel for business
Conclusion And How We Can Help You!
We at CREATORS|studio have been involved in the development of numerous business plans, after all, we have experience in hotel & resort concept developments and with our know-how are familiar with all the steps that need to be outlined in the business plan. Talk to hotel experts like us who understand the challenges that we are faced in hotel developments!
To your success! Bert Bykes @contact