New Venture Business Plan

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New Venture Business Plan

Name

Institution

Executive summary

Paradise King is soliciting to set up a 5-star hotel over a section of 300 acres of land at Momi Bay in Fiji. The location selected for the resort is just right as it has a beautiful ocean surroundings view and with Fiji Marriot Resort and Villas just a few minutes’ drive from the main highway. It will also attract tourists and visitors to the resort as Momi Bay also has Momi Gun site as an adventure place to visit.

Having a suitable area with wide extend of purge land without any speculations occurring and an extraordinary sea get landscape gives the finest motivation to present the new pursuit. The presentation of this new pursuit will likewise be favorable position to the legislature of Fiji as the administration is empowering on interests in the nation and Paradise King can likewise be viewed as an incredible open door. The resort Paradise King will not only bring an increase in the investment level but also will help increase the economic standard of Fiji and its GDP.

The reason for this strategy for success is to raise $1.5 million for the advancement of the 5-star resort “Paradise King” while at the same time displaying the normal financials and operations throughout the following three years. The resort, “Paradise King”, will be a Fiji based organization that will give, create and disperse movies delivered by the business to buyers in its objective market. The resort will give every universal administration and offices that will pull in individuals all around the globe. The resort “Paradise King” will be established later in this year by Kasanita, Shayal, Ashmita, Ashna and Anamika.

Business description

Paradise King is a 5 star hotel with an accommodation of 400 rooms. It will be built on 300 acres of freehold land and located at Momi, Fiji, with a 45 minutes’ drive from the main Nadi International Airport. Paradise King will have modern amenities/facilities which will consist of;

Paradise King Hotel is owned by Kasanita Baledrokadroka also a CEO of Paradise King, who is an experienced and successful entrepreneur in Fiji. She has several skills and experiences in the field of tourism industry and through her diverse knowledge and experiences, she will manage and motivate the staffs in delivering the best customer services and will continue to achieve higher each year. A major strength of Paradise King is the owner’s broad knowledge and experiences in the different fields and in different companies.

  • 3 swimming pools (Kids, Adults and Infinity Pool)
  • Free access to Wi-Fi
  • 4 Restaurants and 2 Bars
  • Conference room
  • Spa
  • Parking Area
  • Provide services such as free pickups of foreign guests from the Nadi International
  • It will cater the events such as weddings and private parties and many more
  • Sporting Activities such as snorkeling, kayaking and more
  • Entertainments such as fire dancing for dinner

These are the Corporate Executive of the Paradise King Hotel;

Paradise King will be unique from its major competitor, which is the Fiji Marriot Resort Momi Bay in terms of the room rates and many more facilities. The room rates will be very affordable to the overseas guest and also to the locals in Fiji. It will attract many people as it will have white sandy beaches since the Paradise King will be near to the seashore. Paradise King will have ‘No Cash Policy’ that is the guests will not have to pay to use the facilities or order foods etc. and upon the guest check out; the guests will pay for the facilities they used at the end, then checkout. This great feature will allow the guests to move freely around the hotel without having to carry large amounts of cash with them.

  • General Manager- Kasanita Baledrokadroka
  • Assistant General Manager – Shayal Kumar
  • Food and Beverages Manager – Ashna Kumar
  • House Keeping Manager –Anamika Arishma
  • Finance Manager – Ashmita Kumar

Statement of sustainability

Performance Measure

Supportability is a limit or farthest point of something to be set aside or to oversee. It is about taking what we need to be alive now, without risking the prospective for people afterward on to take in hand their matter. The ordinary resources should not be wasted and used as a piece of such a route, to the point that can be open for the future periods.

Market Analysis

  • Firstly, there will be no demolishing of the land because the resort will be built by the shape of the land. Those villas that will be on the ocean will be built on piles causing no harm to the marine animals and their habitats.
  • Secondly, those trees and plants near the shore will be cut down for the resort to build up but at the same time these trees and plants would be re-planted around the resort once it is developed for shady areas and plants to make the resort look more attractive.
  • The resort would be located in Fiji and Fiji has a high rate of unemployment thus in the development of the resort the founders would hire constructors and also those unemployed for a rapid rate for the development of the resort.

Marketing segment

    • The level of reasonability done by the resort “Paradise King” can be measured by the benefit it passes on. The resort will as have planned will also replant trees, utilize CFC things, and use the 3 R’s (reduce, reuse and recycle) system for exchange of refuse. In addition, the resort will use biodegradable things. This will be extraordinarily helpful to the earth as it will realize no naughtiness to nature. The foundation of the resort will likewise have no mischief to the marine lives too to their territories.

In promoting it is almost tricky to prevail by taking care of the significant number of buyers as a main “one size fits for all” mass. Advertise division perceives that individuals contrast from numerous points of view like in their needs, demeanours and ways of life. (Middleton et al. 2009: 97) Through market splitting up organizations separate their market into littler bit. The greater part of the fragments have particular needs and by isolating the market those requirements can be met all the more productively with objects and management that match their interesting needs. (Kotler 2004: 239). There are many approaches to fragment a market. Diverse separations factors are use, equally unaccompanied and jointly, keeping in mind the end objective to order customers into various sections. Kotler distinguish four remarkable factors that are generally used as a part of advertising, statistic, psychographic and behavioural factors.

Statistic splitting up contain of separating the market into gatherings in view of factors, such as, age, sex, estimate, salary, profession, training, and faith. Statistic components are good number famous bases for fragmenting consumer gatherings. This is halfway on the grounds that user needs are firmly connected to factors, such as, salary. In addition, for practical cause, there is often a enormous deal additional information easy to get to help with the statistic separation handle. (Kotler 2004: 240-241)

Research and analysis

By looking at the market studies it is easy to fix our targets in the market.

Behavioural separation partitions consumer into gatherings in view of their states of mind, use and response to an item. At the point when an association knows when and why consumers are buying their stuff, they can interface their promoting to that. some occasions such as Valentine’s Day or Christmas folks tend to acquire certain things acknowledged with the occasion (Kotler 2004: 244).

Target market

Competitive analysis

  • Tourists (Gender, Sex) – Fiji has a noteworthy sum of tourism with the well known district such as Nadi, Coral Coast and Denarau. Come for holiday/vacation which the hotel is able to cater for the desired rooms.
  • Family (with children) – main attractions is white sandy beaches, warm summer sun and tropical water surrounded therefore when the schools are closed and coming for holiday. Able to stay in our hotel with all the amenities needed.
  • Ordinary customers– Goes within the budget in times of getting bonuses or coming for relaxation.
  • Adventure tourist- are eager to know and want to explore more, will be sophisticated with the interior designs which is modern but hints of Fijian traditional art used.
  • Honeymooners– coming for honeymoon as romantic suites available.

Our hotel is going to better than these hotels because we ensure that:

  • InterContinental Fiji Golf Resort & Spa
  • The Warwick Fiji

Marketing plan

  • higher level with best quality of services is provided
  • More better promotional activities
  • Fair and reasonable price
  • Having better relationships with customers
  • Maintaining corporate social responsibilities
  • Easy assessable location

4.21 Pricing stagey

For the growth of the services we have to set a realistic value. Setting up the pricing objectives, as we have decided to have better position of the hotel in the market. Therefore, taking full advantage of market is one of our core purposes. Further knowing that superior sales volume will surely lower production cost and we are able to generate revenue for a long run.

4.22 Advertising Plan

  • Establishing demand
  • Estimation of Cost
  • Cost types and level of production

We will introduce Paradise King hotel by giving ads on TV, Internet and Newspaper. Media is our main source of advertising. In-house promotions by hotel staffs upon check-ins such as:

Estimated budget cost for advertising would vary in coming years.

  • Discounts for corporate
  • Seasonal package deals
  • Gift Voucher
  • Family package deals

Operations segment

The location of Paradise King, a 5 star Hotel will be located in Momi, Nadi. For that particular location, it is required to get a license to start of a hotel business. Therefore, the location will be zoned as commercial, because hotel business needs commercial license permit to proceed. The operational hours for Paradise King will be 24/7, with our hotel staffs always ready to serve its customer needs.

The availability of labour to the location will be very easy because the nearby residents will be recruited for the jobs in the Paradise King. All the staffs will be employed from nearby areas for their ease to travel. The labors wage rate will be standard wage rate as $3.05 and with time the labors will be paid according to their skills, abilities and experiences in the similar work fields. Different department staffs wage rate will vary according to their experiences, education and positions. We are getting great support from the communities around the Momi area.

The access of transportation to the location is very easy because most of the materials such as bedding, equipment’s and machines will be imported from overseas countries and therefore, air freight and shipping will be the most common transportation. Nadi Airport is very near to Momi for air freight transportations and Lautoka Port is also 1 ½ hours from the location Momi.

Furthermore, some of the production needs in terms of amenities or facilities are as follows

Moreover, some of the equipment’s which will be needed are as follows;

  • Hotel Retail Shops
  • Office Rooms
  • Fitness facility
  • Storage
  • Hotel bars
  • In-Room Dining
  • Plant
  • Rooms sizes
  • Comfortable Beds
  • Pool Space

The proximity of the suppliers will be quite good because the roads conditions leading to Paradise King are great with tar sealed roads. In addition, incase if the suppliers somehow are late to deliver the materials then our hotel will have private vehicles/transport to pick the materials. However, all the supplies are near and will not have any problem in supplying the materials. The major suppliers are reliable and will deliver the right materials on time due to proximity of our Hotel.

  • Machinery
  • Cookware sets
  • Fire extinguisher
  • Fire Security Alarms
  • Communication equipment’s in all rooms
  • Lockers in each room
  • Furniture’s
  • Sprinkler System
  • Coffee makers in all rooms
  • Air Conditioning
    • Hair Dryers
    • Outdoor Balcony Umbrellas
    • Cleaning Equipment’s
    • Bedding materials
    • Spa Equipment’s and many more

The Estimated Operations Cost is as follows:

Sustainable Development Measures of Performance

Sustainable development is enhancement that addresses the subject of the present without trading off the aptitude of future period to address their particular concern (“Sustainable Development”, 2017). The hotel industry is likewise well situated to illustrate sustainable development inside the travel and tourism business. As a noteworthy player, the hotel business can reach numerous families and people through a decent correspondence plan. Travel and tourism represents one of the most vital sources of financial action on the planet, and its parts are particularly entwined. In this manner a solitary hotel can impact numerous industry partners.

Management segment

  • Employees– coming back to the implementation of the strategic plan, it was critical to incorporate all representatives in the process after managers and supervisors were informed. Everybody from top to bottom must be included over the span of activity. Additionally, because of worker turnover, it is urgent to guarantee that the technique is completely installed in the hotel’s culture. The most functional approach to include all workers is by exhibiting that the initial tasks were effective. In the long run the objective is that each and every one will bring his or her contribution to the methodology and will completely live sustainable development. The hotel is centered around paying the delegates legitimately to their sets of responsibilities and they won’t be manhandled by working for more hours for less measure of cash and every one of the agents will be used and treated modestly. The agents will likewise be respected or even progression if an authority performs capably and not because of one is related to one of the accomplices. Sensibility will be kept up in the work environment all a perfect chance to manage profitability and ampleness in the hotel.
  • Clients/customers– Visitors are an effective group of decision makers. Visitors are given general data about drive and highlight selected ventures. The visitors are given a chance to feel concerned with respect to sustainable development, and our expectation for the individuals who have not yet grasped this idea is that subsequent to having ‘tasted it’ at the hotel they consider it and incorporate it in their own life and work. A noteworthy undertaking will be to commit a hotel TeleVision channel to sustainable development (Houdré, 2008). This channel ought to be supported by organizations required in sustainable development. Customers are the base of the hotel as there would be no other clarification to continue with operation of the hotel.
  • Suppliers- hotels are additionally in a decent position to share the standards of sustainable development in their dealings with various providers. We urge all sellers to incorporate it in their procedure. Well ordered the hotel is requesting that its providers offer sustainable items, in this way obliging them to seek out and add these items to their lists which are then accessible to different customers (Houdré, 2008). Suppliers are particularly related to the smooth running of the business. The providers will be depended upon to give things as this will diminish the measure of carbon discharges by the hotel.

Management Team

The management team and all the employees in our hotel Paradise King are highly qualified in their fields with experience in customer service and in tourism industry. With the involvement of the owner itself, the hotel will have a managerial structure that helps achieve the hotels aims.

Key Personnel:

Chief Executive Officer and General Manager- Kasanita Baledrokadroka

Paradise King Hotel has a motivated, successful and experienced entrepreneur interested in local business development, enterprise promotion and management. The tasks of the CEO include the strategic and organizational planning of the hotel, supports motivation of employees in customer service. A major advantage of Paradise King Hotel having the owner as the CEO is the broad knowledge and experiences which the CEO has in the tourism industry.

Assistant General Manager – Shayal Kumar

They are responsible for all aspects of operations taking place in the hotel and also to provide support to the general manager in day to day happenings. The assistant GM directs hotel operations to acquire optimum productivity and maximize full potential with a balanced focus on hotels missions. They also evaluate guest feedbacks on Trip advisor and provide training to employees and other department heads.

Food and Beverages Manager – Ashna Kumar

A Food and Beverage Manager is one responsible for managing the overall operations of the restaurants at the Hotel, they are also called the leader of the kitchen. They also hire staff, purchase food and stock, train staff on proper food preparation and presentation, appropriate alcoholic services and safety in the kitchen. The F&B Managers also ensure that the hotel is represented correctly and standards are upheld.

House Keeping Manger – Anamika Arishma

The Housekeeping Manager is responsible for managing the general operation of the housekeeping department with proper standards and instructions assuring the quality of guest care are sustained always. Their responsibilities include daily monitoring of department staffs and housekeeping inventory, train housekeeping employees and uphold the greatest standards of cleanliness and safety.

Finance Manager – Ashmita Kumar

They produce financial reports and avoid the hotel from any financial losses or crisis. They also raise funds and allocate them correctly; they also develop strategies and plans for the long term operations. Also responsible for complying with Fiji’s labour laws.

Legal Structure

Paradise King Hotel is a Fiji Island registered limited liability Company owned by a successful local entrepreneur.

Board of Directors

Our Hotel Paradise King has on- island Board Members with experience in tourism industry, customer services and food and beverages sectors.

Financial segment

Table 1.1 General Assumptions

General Assumptions 2018 2019 2020

Short-term interest rate % 10.00% 10.00% 10.00%

Long-term interest rate % 10.00% 10.00% 10.00%

Tax Rate % 30.00% 30.00% 30.00%

Expenses in Cash % 10.00% 10.00% 10.00%

Personal Burden % 15.00% 15.00% 15.00%

The use of fund is to procure funding for the establishment of the new hotel Paradise King. As this hotel will be five stars so the profit initiated from the business will be invested to the business by facilitating more amenities to cater more needs and wants of the customers. There would be creation of jobs for the locals and thus improvement on economic growth.

Table 1.2 Profit and Loss

Pro Forma Profit and Loss 2018 2019 2020

Sales $1,109,731 $1,276,191 $1,467,619

Direct Cost of Sales $130,276 $149,817 $172,290

Other Production Expenses – – –

Total Cost of Sales $130,276 $149,817 $172,290

Gross Margin $979,455 $1126, 374$1,295,330

Gross Margin Percentage 88.26% 88.26% 88.26%

Operating Expenses:

Advertising/promotion $68,250 $78,488 $90,261

Miscellaneous – – –

Payroll Expense $296,960 $384,370 $422,807

Payroll Burden $44,544 $ 57,656 $63,421

Depreciation – – –

Leased Equipment – – –

Utilities $74,750 $82,225 $90,448

Insurance $384,000 $384,000 $384,000

Total Operating Expenses $868,504 $986,738 $1050, 936

Profit Before Interest and Taxes $110,951 $139,636 $244,394

Interest Expense Short-term $50,000 $50,000 $50,000

Interest Expense Long-Term – – –

Taxes incurred $18,285 $26,891 $58,318

Extraordinary Items – – –

Net Profit $42,666 $62,745 $136,075

Net Profit /Sales 3.84% 4.92% 9.27%

Table 1.3 Pro Forma Balance Sheets

AssetsShort Term Assets 2018 2019 2020
Cash $160,785 $226,945 $368,522Other short term assets – – -Total Short term Assets $160,785 $226,945 $368,522Long-Term Assets
Long Term Assets- – -Accumulated Depreciation – – -Total Long –term Assets- – –
Total Assets $160,785 $226,945 $368,522Liabilities and Capital
Accounts Payable $54,019 $57,434 $62,935Current Borrowing $500,000 $500,000 $500,000Other short-term Liabilities – – -Subtotal Short-term Liabilities $554,019 $557,434 $562,935Long- term Liabilities – – –
Total Liabilities $554,019 $557,434 $562,935Paid-in Capital – – -Retained Earnings ($435,900) ($393,234) ($330,489)Earnings $42,666 $62,745 $ 136,075)
Total Capital ($393,234) (330,489) (194,414)Total Liabilities and Capital $160,785 $226,945 $368,522Net Worth ($393,234) ($330,489) (194,414)

Critical risks

Potential Problems

Obstacles and Risks

  • Budget can be a potential risk our hotel can face. That is during the construction of Paradise King Hotel there are chances of over expenses in establishment of the hotel due to the increase in cost of materials and labour cost. Thus to overcome this problem our Hotel will promote contracting local construction companies and use of local materials (Fijian Made Products).
  • Climate Change leads to unpredicted events (natural disasters) that can damage the hotel properties. The nation expects natural disasters, flooring’s during the months of November to April. Thus flooding is a major risk for the hotel as it is located near the shores which can be really harmful to the premises and the facilities.
  • The currency value of the country (Fiji Dollar) can be considered as a likely threat given that the countries dollar values is a lesser amount measure up to developed nation in particular United States and Australia which causes the purchase of products to be costly such as purchase from international markets. This currency is favorable for countries with strong currency value.
  • Management risk is also possible because employees to some degree may be involved in fraud and theft which brings about less productivity and trust issues at the workplace.

Environmental Risks

  • Distribution risk might be an obstacle because our competitors have strong influence and it might be a risk when providing for certain services or facilities. As they have similar services and facilities as our hotel.
  • Pricing strategy this is another obstacle because we also have to consider the prices and quality of services and facilities which are provided at Fiji Marriot Resort Momi Bay our major competitor. Despite our costs we have to set prices which will attract more customers to our hotel.

Alternative Courses of Action

  • Pollution is a major contributor towards the environmental risks thus environmental changes has major influence on developing countries such the Fiji Islands and in order to overcome some of this risks waste disposals should be managed lawfully.
  • Use of raw materials in the production for final gods also causes hazardous impacts on the environment and the atmosphere. It also at times leads to over exploitation of the environment.

Harvest strategy

  • Creating promotions this attracts more customers to their facilities and also makes the hotel be in demand
  • Choosing proper locations for the business for instance our hotel Paradise King is located near the shore line thus there will be seaside view with awesome sunset experience to witness and other water activities
  • Having a proper plan as to how the business will be established and how will it operate which also leads to the hiring of skilled employees.

Transfer of asset

The assets of Paradise King Hotel will at present have a place with the five assistants. These incorporates both modifies and current assets which will be enlisted under the association name and each assistant will have an equal offer. If a period comes in future where the hotel must be sold or does not do well and ought to be shut down then the points will be represented. The estimation of the favorable will be charged to the new proprietor or to the individual acquiring the advantages in concurrence circled among the five accomplices. This capital can be kept as assets or utilized for future speculation depending upon what the new proprietor or accomplices need for.

Continuity of business strategy

Business continuity administration is intricate and for the most part industry and even site particular. The purpose behind this business continuity plan is to prepare Paradise King Hotel in case of broadened administration blackout brought on by element outside our ability to control and to re-establish administration to the vastest degree conceivable in a base time period. In the hotel industry, the general mission and capacity of a hotel as well as hotel organisation is for the most part steady. It accommodates benefit lodging facilities and related administrations. While there is a noteworthy range of hotel ventures and administration from extravagance top end to spending plan conscious customer showcase, the general mission continues as before. As far as business continuity, independent of hotel range, alike or not, every particular hotel setting will have its own particular one of a kind business continuity administration program, whose programs goal and results are created by a business continuity evaluation and relating Business Impact Analysis, adequate senior management support and program resource portion, proficient business continuity plan advancement, usage and continuous administration. A business continuity plan records continuity and recuperation techniques to be executed amid and following troublesome situation (Glasser, 2017). The hotel’s business continuity plan concentrate on particular continuity and recuperation methods activities bolstered by proper preparing, training, plan testing and changing the business continuity program and plan in light of lessons learned.

10.3 Identify successor

Workers say organisation authority is a key supporter of job satisfaction, commitment, responsibility and goal to remain particularly valid for top talent. Succession planning is a intentional and orderly attempt by an association to guarantee administration continuity in key positions, hold and create logical and learning assets for the future, and empower singular headway (Beauchamp-Apperson, 2013). Succession planning guarantees that representatives are enlisted as well as created to fill each key role. It may be utilized for administrative positions or one of a kind or hard to fill roles.

Milestone schedule segment

The milestone schedule segment make available shareholder with a timetable for the variety of actions to be accomplished. It is vital to demonstrate that sensible timeframes have been designed and that the interrelationship of procedures within these time boundaries is understood. Milestone scheduling is a little by little approach to demonstrate happenings in a bit by bit manner (Frederick, O’Connor, & Kuratko, 2012, p 580). Business milestones look like checkpoints for company visionaries, flagging that a industry venture is prosperous and increasing.

Timing and objectives

Keeping the timetable is the greatest need. The hotel would take around two years to wrap up. All materials will be accessible on time so there should be no issue. The guideline target is to get the hotel prepared by end of 2017 and from first of January 2020 hotel should be totally operational. Once the hotel is ninety percent completed, the people will start looking for financial specialist or investors, providers and suppliers who can supply for hotel business on time and with best cost. Headways will generally be displayed in the social networking with the goal that it associates different nations so they can pick Paradise King Hotel.

Deadlines and milestone

As communicated, the hotel should be done by 2018 and it will be totally operational from first January 2020, which infers the hotel will have its first course of action of purchasers. Paradise King Hotel will start recovering the capital spent on the advancement of the hotel all through the earlier years of improvement. As stated the fundamental year of the business will be focused on abroad and nearby hotels. Coordinating with office and confided association in 2021, after three years of its operations, the hotel is to become wide. Using clean essentialness which will be to a great degree fantastic achievement for the hotel provoking supportable change. A fundamental game plan will be completed for seven years term for the hotel to have bits of the general business.

11.3 Relationships of events

The relationship for customer service Paradise King Hotel greets guest when they come to the hotel. Paradise King Hotel should identify loyalty guest checking into hotels and checking social media profile to identify guest interest. The hotel should understand and offer exactly what the guest need and care about. This is how the hotel will make its marketing and sales done.

Bibliography

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Frederick, H., O’Connor, A. and Kuratko, D. (2012). Entrepreneurship. 3rd ed. South Melbourne, Vic.: Cengage Learning, p 580.

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Houdré, H. (2008). Sustainable development in the hotel industry. Cornell Hospitality Industry Perspectives, 1(2), pp. 6-20.

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