Mission of Eagle Guest House Ltd - Essay Example

?Go confidently in the direction of your dreams. Live the life you have imagined. ~ Henry David Thoreau Eagle Guest House Ltd. Business Plan _______ Business Plan Copy Number 1 December 2012 [Owner/Founder] Founder and CEO [Address] [City], [State] [Zip Code] [Telephone] [Fax] [Mobile] This is only a business plan. It does not imply an offering of Securities Table of Contents Table of Contents 2 Executive Summary 4 Company’s Mission 4 Industry and Competitor Analysis 4 Target Customers 5 Company Description 5 Product/Service Plan 5 Marketing Plan 5 Operations and Development Plan 6 Management Team 6 Critical Risks 6 Offering 7 Exit Strategy 7 Financial Plan 7 Executive Summary Eagle Guest House Ltd. Provides guest house facilities in the area of Manhattan in the big apple, which is New York. The company realizes the important role played by the service industry in providing services to travelers around the world by meeting their lodging needs. In line with this, the service industry has been one of the most growing industries especially in the Manhattan borough following an influx of travelers in this area. Hence, the company realizes the need to fill the gap by providing lodging facilities aimed at travelers from South Korea. The founder and CEO [Insert your name here] currently holds the company’s stock. For many years, South Koreans have been coming to New York, more so to the borough of Manhattan and they have faced numerous problems regarding their lodging needs. As a result, they have been forced to spend a lot of money on boarding or resulted to finding illegal boarding and lodging facilities that did not have operation licenses. In effect, they have experienced instances of insecurity and Eagle Guest House Ltd wants to change the current state of affairs by providing affordable lodging facilities to this group. Company’s Mission The mission of Eagle Guest House Ltd is to provide affordable lodging facilities to South Koreans who visited the city of New York, which will be through the provision of boarding facilities to those who visited the borough of Manhattan. The company wants to align itself with this clientele by building a long-term relationship with the clients in order to ensure that the company met its long-term goals and objectives as the leading boarding and lodging facility in the area of Manhattan. The company also aims at steadily growing and becoming profitable in the second year of its operation. Industry and Competitor Analysis The service industry in New York has many international and local hostels that meet the needs of different travelers. In the borough of Manhattan, many hotels offer services to clients although most hotels offered discriminative prices on their services. In this case, the hotels were expensive for an ordinary South Korea. On the other hand, various illegal Korean guesthouses faced the prospects of closure due to their illegal operations. Hence, there is a need to fill this gap. Target Customers The company targets customers from South Korea who travel to the United States, and especially to the borough of Manhattan. Due to the elimination of visa requirements for South Koreans to travel to the United States two years ago, there has been an influx in the number of travelers to the country. Hence, this is the clientele that the company targets with forecasts indicating that more South Koreans are traveling to New York, and especially to the borough of Manhattan. Company Description Eagle Guest House Ltd is a startup. Hence, the company will be starting its operations once it outlines the plans necessary for any startup. However, the specific objective of the company is to meet the demand for affordable boarding and lodging needs for South Koreans who traveled to the United States, and especially to the borough of Manhattan. In line with this, the company’s other objectives are to enhance profitability during the second year of business, which implies that the first year of business will be to establish the company and create a foundation for profit making. Overall, the long-term objective is to become the market leader in provision of guesthouses facilities in Manhattan. Product/Service Plan The company relies on the uniqueness of the product to capture the target customers. In this case, the direct focus on travelers from South Korea implies that the company will offer services that applied to the South Korean culture and way of life. In this case, the company will meet the objective of capturing the South Koreans who were observant of their culture and valued conducting business with companies that recognized their culture. Marketing Plan The service industry is the fastest growing industry over the world. In effect, only companies that offered differentiated products and used the novel ideas in marketing achieved their objectives and enhanced their growth. The company identifies that the marketing nature of the service industry entails the use of modern social communication tools. In addition, the company notes that travelers used the internet while arranging for their travel and accommodation. Hence, the company will advertise on the internet and first advertise on www.naver.com/, which is South Korea’s equivalent of Google. In addition, the company will use South Korean community forums that were web-based such as www.heykorean.com in order to put a strong case for their products. Furthermore, the company will open a Facebook page and use other blogging sites such as Twitter. In the short-term, the company will launch its own website that will offer its products to potential travelers. Our advertising and promotions will pivot around three key strategies. The first strategy will be on the aspect of public relations. Secondly, an Internet Web site will enhance the company’s prospects for new customers. Furthermore, strong customer relations will form the foundation for advertising and promotions. Operations and Development Plan The company plans to rent property in Manhattan and start its operations. The company will identify property that was located at the heart of Manhattan in order to offer its clients the pleasant life that borough had offered to its visitors. Importantly, the company will find the supplies of products such as beds, beddings, and other important items that were important for running a guesthouse. Management Team [Your Name] will be president and CEO of the company. Prior to this, the CEO was the manager in charge of operations at New Vision Guest Lodges based at Manhattan for five years. The CEO has a degree in Hospitality Management and wide experience in managing guesthouses. The CEO will oversee the day-to-day running of the guesthouse with the assistance of deputy CEO, who will be in charge of operations, a position that will be advertised soon. The roles of the CEO will include overseeing the initial running of the company, and managing the finance in the company. On the other hand, the deputy will manage the human resource and run the company’s communication department. Critical Risks First, the company realizes that the first year of business will be challenging as the company sought to make profits. In this case, the number of illegal guesthouses in Manhattan posed a risk at the company’s profits despite the company offering affordable services to its clients. Secondly, the cost of renting property in Manhattan posed a risk at the profit margins of the company. In this regard, the company cannot achieve maximum profits since the cost of renting property was high, which posed a risk at the company’s profits. Offering The company’s bases its financial projections on the assumption that a capital investment of $20,000 will generate an increase in profit of 25% within the first two years of business. In this case, the company will ensure it operated within the budget scope to ensure an annual increase in its profits. The company seeks to reduce operational costs in the second year of business by 20% of the operational cost in the first year of operation. With a general inflation rate of 4%p.a., we expect to a significant increase in our profits margin after the end of a trading period. Exit Strategy The market for the company’s products is clearly improving as the industry is improving in leaps and bounds each year, which gives a good opportunity to buy our space and build a guesthouse facility instead of leasing property in the long-term. The consistency shown by the increasing number of guests coming to the US from South Korea implies that break-even in the company’s profits will be within the first year. These improved profits will help the company buy property or land to construct its own premise for operation. Financial Plan The company plans to source half of the $20,000 initial capital as loans from friends and family using this plan. In this case, the founder has already saved $10,000 as start-up capital and will use the money together with the additional half to start the business operations. In addition, a break-even analysis indicates that the company will reach the break-even point after six months of operation. In this regard, the company projects revenues of $30,000 in six months. Read More