perfect for a new england vacation! - govhs.orggranite+state+inn+and... · restaurant mean? perfect...

Sarah SantiagoEntrepreneurship-KC

December 6, 2006

Perfect for a New England Vacation!

Business Name


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.

Perfect for a New England vacation!

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

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

ALL Rooms are Non-Smoking


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 amix of décor to suite everyone’s tastes.


Name of Company Product/Service Price Quality

Stepping Stones Bed & Breakfast

Wilton, NHBed and Breakfast $65-

$85

Full Breakfast included;

Home baking

Birchwood Inn

Temple, NHInn $85-

$110

Breakfast included,

Dining area / Tavern

Bedford Village InnBedford, NH

Inn $210-$350

Awarded for Hospitality and Dining Excellence

Crowne Plaza

Nashua, NHHotel

$130-$250 Lounge and

Pool

Who Are Potential Competitors?


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.


Reasons for Travel

Vacation Family

Top Travel Spots

Northwest Mountain Region Western Pacific RegionSouthwest Region Southern RegionCenteral Region Great Lakes RegionEastern Region New England Region

Survey Results


Where to stay?

Hotel Motel Inn B&B

Prices

$50-$100 $100-$150$150-$200 $200-$250

Survey Results


Looking for Holiday Deals?

Yes No

Holiday Travel

Yes No

Survey Results


Atmosphere

Family Friendly Romantic Business No Answer

Decor

Antique/ Victorian ModernLodge Style No preferanceNo Answer

Survey Results


Where to dine?

Outside Inside Both

Dining Cost

$5-$10 $10-$15 $15-$20 $20-$25+

Food Preference

Home-Style ElegantCasual No answer

Survey Results


Travel Resources

Search Engines Travel Websites Travel AgencyAAA Books Friends Research

Advertisement Methods

Newspaper ad Magazine ArticleFlier Internet

Survey Results


Influence of Market Researchon 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 Santiago90 Hearth Stone Lane

Wilton, NH 01562 Phone: (603) 654-6091

Fax: (603) 654-6092

[email protected]



90 Hearth Stone Lane Wilton, NH

01562Phone: (603) 654-6091

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

Advertisement


The Granite State Inn and Restaurant Slogan:



How Will The Granite State Inn and Restaurant Reach Its Potential

Customers?

• Newspaper ads.• Magazine Articles.• Search Engines.• Travel Websites


Financial StatementsEconomics of Presidential Room

Selling price per unit- $350.00Cost of goods sold per unit-

Laundry: $ 10.00Cleaning: $ 10.00Soaps: $ 5.00Stationary: $ 2.00 Total: $ 27.0025% overhead: $ 6.75Total: $ 33.75

Gross Profit per Unit: $316.25


Financial StatementsEconomics of Executive Rooms





Financial StatementsEconomics of Regular Rooms





Financial StatementsEconomics of The Granite State

RestaurantLunchSelling price per unit- $ 30.00Cost of goods sold per unit- $ 10.00

25% overhead: $ 2.50Total: $ 12.50

Gross Profit per Unit: $ 17.50

BreakfastSelling price per unit- $ 15.00Cost of goods sold per unit- $ 5.00

25% overhead: $ 1.25Total: $ 6.25

Gross Profit per Unit: $ 8.75

DinnerSelling price per unit- $ 35.00Cost of goods sold per unit- $ 15.00

25% overhead: $ 3.75Total: $ 18.75

Gross Profit per Unit: $16.25Perfect for a New England vacation!

Start-up Costs

Start-up ExpensesEstimated

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 ResaurantBuilding 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 barn, dept. stores, etc. Lowes, Home Depot

Linens, Pictures, rugs, furniture, 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 HartfordLicenses, permits, and fees $1,000 Misc.

Computers $3,000 Dell 1 or 2 computersServices $300 Misc. Lawyer, accountant, trash, etc.

Signs $1,000 Barlo Signs Entrance signsSupplies $2,500 Staples, wholesalers Paper, cleaning, office supplies

Unanticipated expenses $25,000Total Start-up Costs $866,150

Start- Up Capital Requirements


Sources of Financing

Personal savings

$50,000

Loan $800,000Relatives $5,000Friends $5,000Grant $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 TotalsRoom 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 $115,350Breakfast $7,905 $7,905 $8,835 $8,835 $9,300 $9,300 $9,300 $9,300 $9,300 $8,835 $7,905 $7,905 $104,625Lunch $13,950 $13,950 $14,880 $14,880 $16,740 $16,740 $16,740 $16,740 $14,880 $13,950 $13,950 $13,950 $181,350Dinner $32,550 $32,550 $32,550 $32,550 $32,550 $32,550 $32,550 $32,550 $32,550 $32,550 $32,550 $32,550 $390,600Total 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 SoldRoom Rate $75 $105 $200 $240 $450 $675 $675 $450 $450 $300 $225 $225 $4,070Breakfast $2,635 $2,635 $2,945 $2,945 $3,100 $3,100 $3,100 $3,100 $3,100 $2,945 $2,635 $2,635 $34,875Lunch $4,650 $4,650 $4,960 $4,960 $5,580 $5,580 $5,580 $5,580 $4,960 $4,650 $4,650 $4,650 $60,450Dinner $13,950 $13,950 $13,950 $13,950 $13,950 $13,950 $13,950 $13,950 $13,950 $13,950 $13,950 $13,950 $167,400Total 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 CostsFixed: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 $60,000Insurance $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $30,000Interest & 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 $240,000Total 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 $30,000Advertising $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $6,000Total 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

For The First Year of Business

Formula: ROI= $119,348 - $866,150

(100) $866,150

ROI= -86%

Return On Investment


Computer, Telephone, FaxGateway Computer: To Keep Good RecordsTelephone: To receive and cancel reservations

Homepage

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

Accounting Software Quickbooks Pro 2005: Great for keeping financial records.

E-mail TDSmail: To inform guests of confirmations, deals, cancellations, local weather, etc.

Technology


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.

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