Strategic plan for the Charmed Bed and Breakfast startup

Strategic Plan B&B

Strategic Plan for a New Bed and Breakfast

The long-term mission of the Charmed Bed and Breakfast is to become the best bed and breakfast choice in the Santa Cruz County area directly south of the San Francisco Bay area for temporary lodgings by developing a different experience that capitalizes upon personal service, the historical nature of the Charmed building, and its unique location in one of the most attractive parts of the Central California wine country near historic San Francisco.

Vision

It is extremely important for any organization to have a perfect understanding of the marketing mix regarding price. This determining factor is so seemingly obvious, yet so basic to the operation of the bed and breakfast. What is the highest price that a customer will pay for a room? Setting the incorrect price is often the beginning of the end. It must not be too high or too low. When any organization is starting out, it is important to focus price levels on breaking-even to avoid a loss. At this critical point, one is trying to sell the customer and establish brand loyalty that will keep the guests coming back. An organization needs to have an in depth understanding about what it is they are marketing.

Obviously, a great untapped and underserved market is that of gay couples. While the state of California's status on gay marriage is in limbo, the formula of "double income no kids" is definitely one which can not be ignored in the financial formula. While all of the nuptials might not be celebrated in California (for instance, the actual exchange of vows may happen in another state), we could certainly aim for some of the business for family members who can not leave the Bay Area or for the Charmed B. And B. To be a honeymoon destination. In the likely event that gay marriage is reinstituted, then the gay wedding market would be a source of tourism, like it is in Vermont (Hirschfeld, 2011). This plus the demise of the ban of gays in the military should have an impact in California with its 27 military installations (Military-hotels.us, 2011). This is an upscale market that can afford the best services, such as concierge. This marketing strategy is aimed specifically answering the weakness identified in Charmed's SWOT for constrained resources and creatively turning it into an opportunity.

Value Statement

The operations of the Charmed Bed and Breakfast revolve around the customer. The customer is the reason for the bed and breakfast's existence and is the key to its continued operations. The amazement of the customer with personalized service is the way to capture brand name loyalty from clients. If the customers are treated like family, they and their loved ones will come back time and again in the future.

Ownership Structure and Analysis

Detailed Exit Strategy (With Reasoning)

Since the bed and breakfast is usual a sole proprietorship, a good exit strategy is critical, especially if the proprietor is close to retirement. Now that the industry is mature and the market has grown more saturated, it behooves the owner to have such a strategy to limit losses if the unthinkable happens and they have to close the business. A quick and smooth sale will be contingent upon this exit strategy (Cassingham, 2005).

This will especially be the case regarding the documents. For instance, tax documents need to be available and include the last three years of returns. Potential buyers will want these documents available to look through and go over with their accountant. Also, any potential buyers will need to see the last three years of general business documents for the same purpose (such as income and expense books). Also, the documents should include occupancy reports because some potential buyers want to know what the room rental rate was in order to gauge the value of the potential investment that the property represents (ibid.).

Many potential owners will want to have adequate separate quarters for themselves. While it may have been considered sufficient in the early days of the bed and breakfast industry for the owners to simply live in the basement or the attic, the mature industry standard is to have a separate apartment on or off site to serve as the owner residence. Needless to say, the property must be kept up (paint, repairs, etc.). Serious investors will want to see old marketing and expansion plans. These will show that the business was competently run. Other miscellaneous documents might include maintenance records, a list of improvements, a list of vendors, operations manuals, copies of your permits and licences, and the guest database (in order to gauge a continued following). With proper planning, the exit can be smooth and the owner can move onto their next business opportunity (ibid.).