Edit This Plan

Make it your own. Use Business Plan Pro to edit this plan or any of 500+ other sample plans.

Bed and Breakfast Business Plan

Coach House Bed and Breakfast

This business plan was created with Business Plan Pro software, the fastest way to prepare a complete business plan.

With Business Plan Pro, you can open this plan (or any of the 500 others included in the product) and quickly customise it to match your business. Or you can use the software's step-by-step wisard to easily create a custom business plan from scratch. Learn more »

Company Summary

2.0 Company Summary

Coach House Bed and Breakfast is an established B&B, and has been in operation for the last three years as Marsh Hen Bed and Breakfast. After possession and a brief period of becoming established, Coach House will diverse into other ventures to ensure a steady flow of patrons (tourists and locals) through its doors.

2.1 Company Ownership

The Coach House Bed and Breakfast will be a partnership, equally owned by John Maesch and Frank Williams. As of this writing, the decision to incorporate has not yet been made, but will be considered after the owners relocate to Georgia and establish local legal representation. Mr. Maesch will reside on the property, managing and maintaining the business and satisfying Tybee Island license requirements. Mr. Williams will remain in Indiana fulfiling his employment contract.

As the B&B becomes self-supporting, Mr. Williams will resign--transferring his retirement money to the capital reserve, relocating to Tybee, and assisting with the daily responsibilities of the B&B.

2.2 Company History

The Coach House Bed and Breakfast was originally built in 1920 and is believed to have been one of three train stations on Tybee Island, linking the island to Savannah. The station offered patrons a place to shower and change after a day at the beach before boarding for the return trip. The building has undergone a number of restorations and uses since the train service ceased operation. It currently functions as the Marsh Hen Bed and Breakfast, having begun in 1997 with two rental units and one living unit, following a period of extensive renovations and improvements to the property. While open, the current owner continued with improvements (a new roof and new construction for an efficiency apartment above the existing roof). Due to continual structural improvements during 1997, 1998 and 1999, the B&B has not yet gone through a season with full operational capacity. With construction completed, it now has the potential of four rental units with owner-occupancy in an unused room.

In addition to the limitations caused by construction, Inn operators and other business members on the island have reported that the current owner lacks some of the commitment, investment, and business sense to run at a higher capacity. The current owner will often leave the building to the care of an answering machine, and categorically deny accessibility to various classes of people. The general consensus is that it has operated as a hobby and not a business under the current ownership.

The table below outlines the B&B's performance over the last three years under the current ownership.

Past Performance

Past Performance
	1997	1998	1999
Sales	£10,000	£18,608	£28,320
Gross Margin	£1,429	£3,203	£13,565
Gross Margin %	14.29%	17.21%	47.90%
Operating Expenses	£8,571	£15,405	£14,755
Collection Period (days)	49	33	47
Stock Turnover	0.00	0.00	4000.00
Balance Sheet
Current Assets	1997	1998	1999
Cash	£5,000	£7,000	£12,000
Accounts Receivable	£1,000	£1,500	£4,000
Stock	£1,000	£1,500	£2,000
Other Current Assets	£500	£500	£1,000
Total Current Assets	£7,500	£10,500	£19,000
Fixed assets
Capital Assets	£200,000	£200,000	£200,000
Accumulated Depreciation	£10,000	£20,000	£30,000
Total Fixed assets	£190,000	£180,000	£170,000
Total Assets	£197,500	£190,500	£189,000
Capital and Liabilities
	1997	1998	1999
Accounts Payable	£10,000	£15,000	£20,000
Current Borrowing	£0	£0	£0
Other Current Liabilities	£0	£0	£0
Subtotal Current Liabilities	£10,000	£15,000	£20,000
Fixed liabilities	£100,000	£50,000	£0
Total Liabilities	£110,000	£65,000	£20,000
Paid-in Capital	£50,000	£50,000	£50,000
Retained Earnings	£37,500	£75,500	£119,000
Earnings	£0	£0	£0
Total Capital	£87,500	£125,500	£169,000
Total Capital and Liabilities	£197,500	£190,500	£189,000
Other Inputs	1997	1998	1999
Payment Days	30	30	30
Sales on Credit	£7,500	£13,956	£21,240
Receivables Turnover	7.50	9.30	5.31

Past Performance