Santa Maria Bed and Breakfast Business Plan

BUSINESS PLAN

SANTA MARIA BED AND BREAKFAST
Apartado 1623-Zona Veraguas
Panama, 1 Republica Panama
507-268-2301

MIRIAM ROLON-HERNANDEZ

January 14, 2013

Description of My Business
The Santa Maria Bed & Breakfast will be a charming bed and breakfast (B & B) located overlooking Veraguas/Santiago in Panama on our beautiful Mountains. The area is well known for its beauty and history. The B & B will be set up as a LLC of Carcamo de Panama and will reside in the Panama home. Their home is the centerpiece for the entire B & B experience. There will be up to seven guest rooms to choose from. The facility has a wonderful centralized living room where the guests may socialize, a private garden patio, and the Buccaneer Culinary Centre on the property. There will be transportation provided from the airport and back for those arriving from out of town or country. Tours buses will be available for sightseeing tours around the area and many other outdoors activities.

Description of My Business Product

The facility is so wonderful in part because of the actual structure - which is a magical place to behold and stay at. The tiffany lamps inside, the original gas, solid-silver fixture lamps and antiques are all amazing - as are the historic stories of Executive Chef Tinajas foods, dishes and cooking from fine Panamanian typical recipes served in elegant china. Aside of the beauty surrounded, it is the coziest place in the area and the delicious food, just makes you feel at home. The main idea is for the travelers/guests to feel in heaven when they stay with us. The comfort and hospitality that will be provided will make them feel so special as tough they are in a Castle. The best dishes they will ever taste, from our very own tropical famous dishes to European dishes from our famous Chefs. Each room will have their very own special view of beauty all around from the inside to the outside. Our landscaping will bring out the beauty of nature from the tropical that Panama has to give. It will be a must see, to encourage our visitor to walk in the romantic evening and dining out in the spectacular patio view to watch the waterfall that catches the sunset in the evenings. It will be an evening to never forget and want to come back for more.

Description of My Business Market

Within the hospitality industry, the The Santa Maria Bed & Breakfast will be competing with hotels as there are no other B & Bs in the general area. The Santa Maria Bed & Breakfast facilities are far nicer than other hotels in the area. All of the hotels in the area are fairly standard chain hotels, nothing noteworthy. The Santa Maria Bed & Breakfast - on the other hand, is a beautiful, elegant home - on a quiet street, in a small town, near a beautiful mountain surrounded by a river.
The Santa Maria Bed & Breakfast has different target groups that it is going to successfully attract. The first are people from the region that just want to get away for the weekend. They may have activities planned for the weekend at the parks, local towns or just choose to relax in a comfortable elegant setting. The second groups are travelers who are vacationing through the area prefer to stay in B & Bs - instead of a hotel/motel, or on board nearby sightings. Others will just want to have the experience of service presented by an Executive Chef. While we will certainly get customers that fall outside of these groups, this classification should be fairly accurate. The climate is tropical year round so we should be busy throughout the year.

Ownership and Management

The Santa Maria B & B will be able to execute on its strong business model because of its management. Hernandez has earned her MBA providing the establishment with invaluable business skills. Hernandez also has unique experiences and talents that no other innkeeper has. As Hernandez's extended resumes for Chef, Marketing VP and B & B GM show -she has deep and successful experience in all three avenues needed.

Objectives and Goals
The objectives of the Santa Maria Bed & Breakfast for the first three years of operation include: * To create a B & B whose primary goal is to exceed customer's expectations along the lines learned of, "unprecedented hospitality and service standards," learned by the world renowned Chef. * The Santa Maria Bed & Breakfast will increase visitors every week throughout the year. * To increase our number of clients by 10% per year through superior service to 50% occupancy in Year 5 and 20% of our booking via online site such as Expedia, Travelocity, etc. * To develop a sustainable business, surviving off its own cash flow, exceeding set data. Customer Comment Cards should score 92 or above on average. * To develop a sustainable Buccaneer Culinary Centre which survives off of its own cash flow, changes exhibits and contributes to the Bed and Breakfast operation by increased demographic draw. Customer Comment Cards should score 85 or above on average. * To operate as green an operation as possible spanning water, power and emissions. Thusly becoming a lighthouse in the region for others. * Provide airport shuttles for customers-free of charge. * To contribute to the community in a loving and giving manner which will allows us to preserve our community. This will be measured by awards received.
In order to succeed, the Santa Maria Bed & Breakfast will strive to achieve the following goals: * Position the Santa Maria inn as the best B & B in the region among tourists and travelers. * Build strong market position among the local patrons within a 120 mile radius. * Maintain sound financial management of the venture. * Link into the strongest referral engines and B & B Association engines for room bookings. * Automate our full digital calendar and room night booking system onto our website, Expedia and other online-travel agencies. * Provide safety, cleanliness and elegant settings thorough out the rooms and hotel. * Offer unique experiences and service to our guests. * Reservations and viewing of rooms will be available through website travel agencies.
Santa Maria Bed & Breakfast Market Segmentation:
Our customers can be broadly divided into two groups:
Local weekenders: The Santa Maria Bed & Breakfast area is quickly becoming one of the best relaxing resorts in Panama. The resort is located 56 miles from Tocumen International Airport and is easily accessible.
Summer Visitors. During the summer months, the Santa Maria Resort area is a beautiful retreat with over 10 hiking trails and other outdoor recreational activities.

Market Analysis Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Weender 15% 90,000 103,500 119,025 136,879 157,411 15.00%
Summer Visitors 15% 60,000 69,000 79,350 91,253 104,941 15.00%
Total 15.00% 150,000 172,500 198,375 228,132 262,352 15.00%

Financial analysis
The Santa Maria Bed & Breakfast start-up expenses include: * Home office equipment including: computer, copier, fax machine, extra telephone line, and filing cabinet. * Wireless Internet network access for guests. * Website creation. * Advertising/association dues for the several B & B associations. * Furnishings and linens for individual guest rooms. * Pest Control Program set up. * Tableware (China, Silverware, and glassware). * Signage. * Safety Programs (Fire) (Anti-slip).
We have budgeted $32,000.00 for initial, functional yet tasteful furnishings.
Our Bed and Room Linen Expenses Breakdown. * Comforters - $700 * Sheets - $420 * Blankets - $350 * Pillows - $300 * Towels - $1,200 * Dust Ruffles - $140 * Robes - $1,680 * Total - $4,790
Equipment and Furnishings Expenses Breakdown. * Computers - $2,800 * Computer Accessories - $300 * Computer Printers - $513 * Poster Printer - $800 * Router - $148 * Networking Cables - $156 * Furniture - $13,453 * Lamps - $150 * Artwork/Decorations - $1,843 * Accessories - $1,273 * Buccaneer Culinary Collection - $1,821 * Kitchen Equipment - $1,400 * Telephone Upgrade - $180 * Total - $24,840
Santa Maria will directly invest $25,000 in starting up the B & B. We plan on acquiring additional direct funding via a bank and backed by the SBA under Panama Economic Development loan package.
The Santa Maria Bed & Breakfast is owned and operated by Miriam Hernandez. It will be a LLC. * Hernandez has a degree in Culinary Arts and an MBA in Restaurant Management. * Hernandez recently earned her Master Certified Food Executive (MCFE) designation at SUNY New York State Morrisville College by the International Food Service Executives Association. * She earned certification as a licensed hotel manager for a world-wide hotel chain. * She has 10 years food service experience in various military venues. * She worked with Expedia as Hotel Marketing Manager for 12 years. * She was general manager of a highly successful Bed & Breakfast in downtown Tacoma, and prior to that assistant manager for a 1500-room resort in Florida.
She has dreamed of someday having a B & B run from her house, with the excitement of taking care of travelers and never-ending visitors. She is ready to share the fun and stories of her years of experience, as well as display are collection of historical artifacts and information from the Caribbean's Buccaneering Age of Sail.
Hernandez's education coupled with her practical experiences has given her the ideal skill-set required for operating a B & B. The only other thing that is truly required is passion, and Hernandez recognized her passion in serving which she has displayed in many positions and tasks. Hernandez has everything needed to succeed and will fulfill her destiny.
Hernandez will be assisted by her husband Hector who is a professional in the Accounting Management field who also has accounting and payroll experience, and who is a qualified banquet chef. He is able to help her in any task needed, administrative, cooking, and cleaning and/or guest services.