Free Motel Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $1,000,000 for the development of a motel while showcasing the expected financials and operations over the next three years. The Motel, Inc. (“the Company”) is a New York based corporation that will provide hair lodging and related services its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The Company intends to develop a 20 room motel facility that will feature a number of amenities including high speed internet access, phone usage, and a fully stocked vending machine. At this time, Mr. Doe is sourcing a number of potential general contractors and real estate agents to determine whether the facility should be purchased or built from scratch. The Motel will employ a full time maid service to ensure that each room provides customers with comfortable lodgings for their nightly stays. The third section of the business plan will further describe the services offered by the Motel.
1.2 The Financing
Mr. Doe is seeking to raise $1,000,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 30 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Motel’s mission is to provide customers with comfortable lodgings and many other amenities including high speed internet access, cable TV, and phone usage.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the hotel industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals and business travelers within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Motel, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Motel requires $1,000,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Motel, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Motel. Based on historical numbers, the business could fetch a sales premium of up to 9 times earnings.
3.0 Products and Services
Below is a description of the lodging services offered by the Motel.
3.1 Lodging Services
The Company intends to offer a motel room on a nightly basis for travelers. As the Company expands, Management intends to offer more amenities and services so that we can consistently add value for the customers’ experience.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the motel industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period. However, Motels in highly populated metropolitan areas operate with great economic stability as people will continue to require lodging despite deleterious changes in the general economy.
4.2 Industry Analysis
The motel industry in the United States is an extremely fragmented industry that has a number of different operators working in many markets. There are a few large corporations that offer motel rooms on a national scale. Although these are large businesses, their portion of the overall motel market is very limited According to a US Economic Census report, there are over 43,000 individual motel facilities in the United States. It is a $74 billion dollar per year industry that employees approximately 1.7 million people. The hotel/motel industry is mature. The future growth rate of the industry is expected to remain in line with the growth of the general economy.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Motel intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Motel.
5.1 Marketing Objectives
• Place the Motel’s name within online travel sites such as Expedia, Travelocity, and Orbitz.
• Establish relationships with travel agents within the targeted market.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Motel to easily target business and vacationing travelers within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Motel will also use an internet based strategy. This is very important as many people seeking local services, such as motels, now the Internet to conduct their preliminary searches. Mr. Doe will register the Motel with online portals so that potential customers can easily reach the Motel business. The Company will also develop its own online website. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the lodging that the Company is selling. The Company will also place advertisements within airports located within 50 miles of the Motel.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Motel will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $1,000,000 of debt funds to develop the business.
• The loan will have a 30 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. However, lodging services are continually demanded by business travelers, and only a severe economic recession would result in a decline in the Motel’s revenues.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis