Backpackers Business Plan Essay
Therefore, limited reproduction of this work for the purposes of private duty, research, criticism, review and news reporting is likely to be in accordance with the law, particularly if cited appropriately. Approval Name: Degree: Master of Business Administration Title of Project: Backpacker’s Paradise: A Business Plan Supervisory Committee: Dry. Andrew von Northerly Senior Supervisor Assistant Professor Faculty of Business Administration Dry.
Michael Parent Second Reader Associate Professor Date Approved: Abstract This business plan outlines the concept, process, operations, marketing, risk factors, and financial forecasts for a Hostel located on the Sunshine Coast, Just past Select in Half-Moon Bay. Not including salary for the owner, a $1 55,000 investment should net returns of $18,000, $47,000, $55,000, $65,000, and $75,000 years one, two, three, four and five respectively. Using a discount rate of 10%, these returns have a net present value of $97,000.
Executive Summary This business plan is for a hostel on the Sunshine Coast, and it is not a typical business plan. This plan is for someone who is looking for a change of pace and a different life. This is not a million dollar venture, but an opportunity to live on the Sunshine Coast. There is a livable income, a place
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This plan can be considered an early retirement plan for someone who loves company, working for themselves, and the type of life the Sunshine Coast offers. In the first year, this business can expect to make a net income of $21 , 148. The salary would be drawn on net income as a dividend. Net Income should rise to at least $77,000 in year five as word-of-mouth, advertising, and increased tourism draw more people to the hostel.
In recent decades, however, anyone who has en to a hostel will instantly realize this is not the case. The busiest and best hostels offer high value to the varied traveler of all age groups and backgrounds who appreciate the low cost approach of the hostel operator. Styles of hostels range from student-like private dorm rooms, to larger multi-bed dorms, with and without breakfast, with and without a bar, in one building or a group of several buildings. People from all walks of life that are trying to see as much of the world as possible or travel for extended periods of time are using hostel-style accommodations. A hostel is an inexpensive lodging which offers minimal service.
Beds are sold as singles in a multi-bed dorm room or as private rooms with a small number of beds and shared kitchen and washroom facilities. The beds may be a part of or detached from a main room, which provides necessary functional space such as check-in area, office area, showers, toilets, and communal areas. Breakfast is sometimes an option and is typically 1 continental self-serve style. Additional services may or may not be sold at a hostel but nearby attractions and activities are well advertised. Hostels, like bed and breakfasts, provide a unique setting which allows people from around the world to ingle and share stories. The communal nature of the hostel is an experience in itself.
The Bed and Breakfast’s class of accommodation usually only allows guests to meet Ana mingle around ten Dreariest room. Hostels, on ten toner nana, nave more common areas for the purpose of meeting other guests and enjoying time with them. Tight rooms with minimal furniture in hostels discourage people from mingling, so they are forced to head for the communal areas. Hostels seem to be most prevalent in countries like Canada, where staying at a hotel for any length of time can be hard on a budget-minded traveler. British Columbia has its small share of hostels, however there are areas which are highly frequented, easily accessed, and yet do not meet the demand of this demographic.
One of these areas is the Sunshine Coast. The Sunshine Coast is an ideal location for a hostel because of the laid back small-town feel, and its natural beauty. Besides abundant sun and a highly marketable name, the Sunshine Coast also has mountains, oceans, rivers, and the infrastructure to support a strong tourist economy. It is easily accessed from Vancouver Airport and by the city, and appeals to national, international and even local Greater Vancouver sapsucker. For Functionaries, it is a relatively affordable place to travel to and get away from the city for a couple of days, and it also attracts the international crowd with its rich, natural beauty.
This business plan will describe the opportunity for opening a hostel on the Sunshine Coast, including a demand estimation based on available market data, an advertising campaign, an operations plan, and the expected costs and revenues based on all the aforementioned information with the best 2 and worst case scenarios spelled out. It will also look towards the future with exit ND growth strategies. 3 The Sunshine Coast is an ideal location for the operation. This community already has the easy-going backpacker feel to it. Hostels and other accommodations are booked solid for the summer well in advance, and sometimes for the shoulder season as well.
There is a close proximity to Vancouver compared with the other islands that require more than one ferry and/or a two-hour ferry ride. Even the interior requires a long drive which can take two hours Just to reach Chiliad’s. Land values on the Sunshine Coast are halloo a third of the price of the Greater Vancouver area, most of Vancouver Island, and the other Gulf Islands. There are cheaper places to buy land in BC, however there are none that are also reasonably accessible and have the infrastructure to attract backpackers seeking nature while enjoying the comforts of civilization. The Sunshine Coast is located approximately 16 km northwest of Vancouver as the crow flies.