Bed and Breakfast Inn Business Plan

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Magnolia Inn

Company Summary

The Magnolia Inn is a beautiful facility that sits atop a bluff over looking the Pacific Ocean in scenic Half Moon Bay California. We are a new start-up enterprise that will offer seven wonderfully furnished rooms to guests who want to get away from the ordinary. Each room is individually furnished with antiques and there is a large deck with a hot tub overlooking the ocean. The Magnolia will provide a full breakfast each morning to our guests with no expense spared. Our target market is the professional couple who lives in the San Francisco area, or people looking for a place to honeymoon.

2.1 Company Ownership

The Magnolia Inn is owned and operated solely by Jim and Nancy Anderson. Jim and Nancy have refurbished a beautiful victorian home to accommodate 14 guests at a time in seven rooms. This is a start-up enterprise for the Andersons who are equal owners in the business. Jim and Nancy purchased the property a little over a year ago and have worked this past year preparing to open the Inn.

2.2 Start-up Summary

The start-up costs will come to $38,000 (including cash required at start-up) which will be primarily financed by Jim and Nancy Anderson. Joe Anderson, Jim’s father has contributed $15,000 into the enterprise. The costs of improvements to the building totaled $30,000. Jim and Nancy purchased the property a year ago with the intent of renovating and opening the business.

Bed and breakfast inn business plan, company summary chart image

Start-up
Requirements
Start-up Expenses
Legal $500
Stationery etc. $500
Insurance $500
Improvements to Inn $30,000
Flowers $500
Total Start-up Expenses $32,000
Start-up Assets
Cash Required $6,000
Other Current Assets $10,000
Long-term Assets $370,000
Total Assets $386,000
Total Requirements $418,000
Start-up Funding
Start-up Expenses to Fund $32,000
Start-up Assets to Fund $386,000
Total Funding Required $418,000
Assets
Non-cash Assets from Start-up $380,000
Cash Requirements from Start-up $6,000
Additional Cash Raised $0
Cash Balance on Starting Date $6,000
Total Assets $386,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $353,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $353,000
Capital
Planned Investment
Jim & Nancy Anderson $50,000
Joe Anderson $15,000
Additional Investment Requirement $0
Total Planned Investment $65,000
Loss at Start-up (Start-up Expenses) ($32,000)
Total Capital $33,000
Total Capital and Liabilities $386,000
Total Funding $418,000

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