Running head: ALPHA RESORT BUSINESS PLAN Alpha Resort Business Plan Student’s Name Ashford University: BUS 437 Professor’s Name August 08, 2016 1 ALPHA RESORT BUSINESS PLAN 2 Business Description Alpha resort will be a moderately affordable resort that will be dedicated to offering quality service and products that exceed customers’ expectations. The resort which will be located in Chennai will offer one of the best holiday destinations for families and other holiday makers. According to Mok, Sparks, and Kadampully (2013), the hospitality industry is and continues to be the fastest growing sector of the economy around the globe and there is need to carefully develop a clear strategic direction and plans to build a successful business empire. The choice of the location is ideal as Chennai is located in the Bay of Bengal the home of Fort St. George Museum built in1644 (Arabindoo, 2011). The museum is a major attraction showcasing the history of the city with artifacts of British military garrison during their reign in the city. Also in the city is Kapaleeshwaar Temple a renowned religious attraction with various arts and painting of gods. A 17th-century Anglican Church stands firm almost more than 500yrs since it was built. The city is also famous being one of the centers that have a rich history in promoting the economic and educational culture which makes this one of the most preferred holiday destinations. Mission Statement: We are an incredible brand that believes the holiday makers have a vast world within the resort. We endeavor to put the needs of our guests first in all that we do. Through openness, we encourage team work, creativity and guests' participation in creating wonderful memories. Vision Statement: ALPHA RESORT BUSINESS PLAN 3 To be the first and only choice for holiday destination for families, corporates and partners worldwide Goals Alpha Resort Goals are to: 1. Provide warm and world class service that exceeds guests’ expectations 2. Offer personalized service with unique touch to make the guests feel valued 3. Give our guests the best solutions to various challenges and offer alternatives that lead to guests’ satisfaction 4. The ultimate goal is to make our guests' life bearable when at our facility and leave indelible marks in their lives Objectives The primary objectives of Alpha resort are to: 1. Offer the best services and products of the highest standards of a friendly service 2. Be the leading resort in Chennai and around the Bay of Bengal region 3. Ensure that the resort operate within the minimum requirements while making great impacts to the community Alpha Resort Philosophy Alpha resort believes in making the brand unique by making creativity and innovation part of its culture. The resort will ensure that it offers world class services that will be driven by honesty work, dedication, and integrity. The resort will make cultural diversity and inclusion part of its philosophy. In a move to make its guests part of the Alpha family, the resort will encourage ALPHA RESORT BUSINESS PLAN 4 participation in various activities and request for guests feedback in order to improve on its services around the clock. The bottom line is to have the resort philosophy standing on the pillars of our guests, our people and our community. Legal Ownership The resort will be organized as a private limited owned company and will be registered in the State of California. By registering the business under this form of legal ownership, it will be much easier to maintain the firm in its operation as well as have limited liability protection for the owners. This form legal ownership is also flexible when it comes to filing of taxes and can always be tailored to the needs of the owners (Neubauer & Lank, 2016). Since it is not listed on stock exchange, it offers a flexible process of profit and loss sharing. ALPHA RESORT BUSINESS PLAN 5 References Arabindoo, P. (2011). ‘City of sand’: Stately Re‐ Imagination of Marina Beach in Chennai. International Journal of Urban and Regional Research, 35(2), 379-401. Mok, C., Sparks, B., & Kadampully, J. (2013). Service quality management in hospitality, tourism, and leisure. Routledge. Neubauer, F., & Lank, A. G. (2016). The family business: Its governance for sustainability. Springer. Running head: ALPHA RESORT FINANCIAL ANALYSIS AND FUNDING PLAN Financial Plan Student Name Ashford University: BUS 437 Professor Name September 04, 2017 1 ALPHA RESORT FINANCIAL ANALYSIS AND FUNDING PLAN 2 Financial Planning This section presents the financial analysis and funding plan for Alpha Resort detailing the operational viability, anticipated source of funding, budget, Pro Forma income statement, cash flow statement and balance sheet. Additionally, the financial plan contains a number of assumptions that have been made when developing the business plan and when making sales outcomes. This analysis is developed in terms of cash flow and sales that are expected to be made based on the market survey and the initial capital injection that is expected to come from owners’ equity investment and part from borrowing. This plan proposes an initial investment of 500,000 an amount that is expected to be raised through equity and debt finance. The plans envisage getting a debt finance of 100,000 and getting the remaining 400,000 through equity finance. The plan proposes to raise a significant amount of this capital through venture investments. This will require the founders of the business engage various will venture investments capitalists to buy a sizeable amount of capital acquiring shares, therefore, becoming a financial partner. It’s a long-term investment and any possible returns could be realized at it later in the business. This will raise the amount required in good time and avoid borrowing from financial institutions. To start, the plan proposes approaching almost two capital investment capitalist to raise this amount. Venture investment capital is much better as it does not put a lot of pressure on the management if the business fails to pick as quickly as expected (Colombo & Grilli, 2010). It does not attract interest making it friendlier. Below is the breakdown of the amount and its allocation to different start-up costs: ALPHA RESORT FINANCIAL ANALYSIS AND FUNDING PLAN 3 Section 1: Estimated Monthly Expenses Item Director's Allowances Wages and Salaries Land Rates and Rent Marketing Mailing Business License Other Utilities Insurance Corporate tax Maintenance Legal Levies Miscellaneous Sub Total - Section 1: $1,500 $2,200 $900 $1,250 $150 $1,500 $132 $120 $140 $990 $245 $264 Number of Months 12 12 12 12 12 1 12 12 12 12 12 12 Part B: One -off startup costs Capital Costs Cash Required to Start Business $18,000 $26,400 $10,800 $15,000 $1,800 $1,500 $1,584 $1,440 $1,680 $11,880 $2,940 $3,168 $96,192 Cash Required Resort Fittings & Furniture Interior Fit-out Initial Inventory Other Costs Professional Fees Licenses and Permits Adverts Cash at hand Sub Total- Section 2: Total Estimates $140,000 $520 $200,000 $4,200 $2,200 $12,320 $32,000 $391,240 $487,432 Assumptions The first assumption is that this startup will be able to get willing venture investments capitalist to bring on the table at least 80% of the required start-up capital. The plan assumes that the industry gradual growth around the world remains the same over the three years. The ALPHA RESORT FINANCIAL ANALYSIS AND FUNDING PLAN 4 corporate tax, which has a lot of impact on the net profit generated, is expected to remain the same for the first three years. The other assumption is that the world will not experience any recession for the next three years. This will, therefore, ensure that the customer purchasing power remains constant over this period with corporate and families being able to spare enough money to go for holidays. It is also assumed that the leadership and legislative organs do not enact laws that in anyway affect the growth of the hospitality industry. In regard to gaining competitive advantage, the projection has assumed that other competitors in this industry will apply the same marketing and promotion strategies and if there are any changes that will be made by these competitors; such move won’t have any negative impacts Alpha Resort performance. Pro Forma Income Statement The plan is to attend to 100 guests per day with service per guest being $78. This translates to $234, 633.70 monthly making annual sales of 2,815,604.00. Below is the Pro Forma Income Statement for Alpha Resort for the first year. Income statement projections Particulars Sales Cost of Good Sales Gross Margin Year1 $ 2,815,604.00 92,000.00 2,723,604.00 Expenses Salaries 700,000.00 Marketing 252,000.00 Office Rent 250,000.00 Utility Bills 50,000.00 Rates & Rent 580,100.00 Legal & Professional fees 25,400.00 Insurance 47,800.00 ALPHA RESORT FINANCIAL ANALYSIS AND FUNDING PLAN 5 Overheads 320,100.00 Miscellaneous 150,000.00 Total Operating expenses 2,375,400.00 Profit before Interest and taxes 348,204.00 Tax incurred 20% 104,461.20 EBITDA 46,000.00 Net profit 197,742.80 Net Profit/Sales % 7% Pro Forma Balance Sheet The pro forma balance sheet also known as balance sheet forecast shows a summary of the projected transactions, assets that will be acquired at the start of the business or during the initial stage of operations. The pro forma balance sheet also shows the projected liabilities that will be accrued during a specified duration of the operation. Alpha Resort Balance Sheet Date:26.08.2017 Assets Current Assets Cash Accounts receivable Closing Inventory Prepaid expenses Short-term investments Year 1 Total current assets Fixed Assets Fixed Assets Furniture & Fittings 289,020 153,400 (Less first-year depreciation) Total fixed assets Other Assets 120,000 12,000 82,000 20,000 49,500 283,500 (16,000) 426,420 ALPHA RESORT FINANCIAL ANALYSIS AND FUNDING PLAN Prepaid Loan Prepaid taxes Total Other Assets Total Assets Liabilities and Owner's Equity Current Liabilities Accounts payable Short-term loans Income taxes payable Accrued salaries and wages Current portion of long-term debt 23,999 1,023 25,022 734,942 14,200 23,000 Total current liabilities Long-Term Liabilities Long-term debt Deferred income tax Other 37,200 100,000 Total long-term liabilities Owner's Equity Owner's investment Retained earnings Other 100,000 400,000 197,742 Total owner's equity Total Liabilities 6 597,742 734,942 From the assets acquired by the start-up capital, the balance sheet at the end of the first trading period can be developed as below. The balance sheet includes the liabilities and ventures investments an amount that would be injected at the beginning of the year. From the Pro Forma Income statement, the net profit after tax 197,742 is retained and included in the balance sheet. Running head: ALPHA RESORT FINANCIAL ANALYSIS AND FUNDING PLAN 1 Cash flow Statement CASH FLOW OPENING BALANCE Cash incoming Sales Accounts Receivables Other income Total incoming Cash outgoing Average Purchases Legal and professional fees Marketing Interest on Long term Loan Utilities Bills Mailing Loan repayments Rent & rates Licensing Insurance Wages & Salaries Miscellaneo us July Aug Sept Oct Nov Dec Jan Feb March April May June $716,58 4 $65,144 $130,288 $195,432 $260,576 $325,720 $390,864 $456,008 $521,152 $586,296 $651,440 $281,560 $281,560 $281,560 $281,560 $281,560 $281,560 $281,560 $281,560 $281,560 $281,560 $281,560 $281,56 0 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $4,125 $285,805 $285,805 $285,805 $285,805 $285,805 $285,805 $285,805 $285,805 $285,805 $285,805 $285,805 $285,80 5 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,00 0 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $132 $132 $132 $132 $132 $132 $132 $132 $132 $132 $132 $132 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $245 $245 $245 $245 $245 $245 $245 $245 $245 $245 $245 $245 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $120 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $2,200 $264 $264 $264 $264 $264 $264 $264 $264 $264 $264 $264 $264 ALPHA RESORT FINANCIAL ANALYSIS AND FUNDING PLAN Total outgoing Monthly cash balance CLOSING BALANCE 8 $220,661 $220,661 $220,661 $220,661 $220,661 $220,661 $220,661 $220,661 $220,661 $220,661 $220,661 $220,66 1 $65,144 $65,144 $65,144 $65,144 $65,144 $65,144 $65,144 $65,144 $65,144 $65,144 $65,144 $65,144 $65,144 $130,288 $195,432 $260,576 $325,720 $390,864 $456,008 $521,152 $586,296 $651,440 $716,584 $781,72 8 Running head: ALPHA RESORT FINANCIAL ANALYSIS AND FUNDING PLAN 1 The cash flow statement is useful in showing the changes in the balance sheet and cash equivalents that are used in operation and investment activities (Kerzner, 2013). The cash flow shows the cash position at the beginning of the year and at the end of every month during the first and the second year. The statement will assist the management to determine its short-term business viability and ability to pay its short-term liabilities. Usually, the cash flow is done for one month cycle. The closing balance for one month is the opening balance for the next month. The opening cash flow balance is used to pay the bills and liabilities during the current month and acquire new stock. According to Cassar (2009), for any organization to meet its short-term debts and be in a better position to continue in its operation smoothly, it is necessary that the cash flow should have a positive balance to avoid accrued expenses which the firm cannot pay at that given time. ALPHA RESORT FINANCIAL ANALYSIS AND FUNDING PLAN 10 References Cassar, G. (2009). Financial statement and projection preparation in start-up ventures. The Accounting Review, 84(1), 27-51. Colombo, M. G., & Grilli, L. (2010). On growth drivers of high-tech start-ups: Exploring the role of founders' human capital and venture capital. Journal of business venturing, 25(6), 610626. Kerzner, H. (2013). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons. Running head: MARKETING PLAN 1 Marketing Plan Jeremy M. Miller Ashford University: BUS 437 Professor Cynthia Goussak August 14, 2016 MARKETING PLAN 2 Product or Service The Alpha resort is an epitome of good life. This is because the products and services that it deals in are essential in the lives of human beings. After a long year and long working hours, Alpha resort is the best place to be for a holiday. This resort has banked all its efforts in ensuring that the comfort of visitors and its customers is secured. This resort is essential since it provides the people in the neighborhood and from all over the world with a place to stay as well as comfort over the holidays. The customers of this resort will benefit in several ways including receiving the comfort that is requisite to start a new year or even other long hours of work. This is, therefore, a place to energize and rejuvenate oneself. The clients will also find a place to call home when they attend business meetings or holidays. Business corporations will also find a place to hold seminars and other business activities as the resort will provide good halls and other equipment’s needed for such activities along with superb catering services. This resort is in the service industry. The service industry is one of the fastest growing industries in the world (Mok, Sparks, & Kadampully, 2013). The rate at which this industry is growing is alarming given the fact that very many investors enter the industry every single day. This goes to show that there is so much opportunity in this industry and that the best organization carries the day. According to Alpha Resort business plan, there is no doubt that this organization is going to beat all odds to beat all other competing services companies in the locality as well as globally. This resort is also located near a tourist destination site and this is an added advantage since it ensures that tourists and other people can visit this resort whenever they visit other tourist attraction sites. MARKETING PLAN 3 Market Analysis The target market for the products and services that are offered by this company is quite large. This market ranges from tourists, people from the locality and everybody else who treasure high quality and affordable products and services. This means that the products and services provided by this company are essentially meant for everyone. Marketing of these products and services will be done in many local and international platforms. This will attract both local and international customers. The products and services provided by this resort are very affordable and this means that no one should be left out. General marketing will also be very critical in publicizing this resort (Mok, Sparks, & Kadampully, 2013). As stated earlier, the prices of the products and services provided in this resort are quite affordable. This makes the place accessible to people from all walks of life. This also ensures that the place is made more popular and that it grows in lips and bounds. The promotion of the products and services provided will also be done in various platforms and forums to ensure that people from all walks of life are sensitized on the same. The use of social media, billboards, and television ads among other platforms is among the most preferred platforms to carry out the promotional activities. These platforms will be used interchangeably from time to time and will be designed in a way that appeals to the target customers. The accounting department will also carry out a cost benefit analysis to measure out which of the methods yields the best results. Forecasting will be done every so-often based on previous and existing performance to ensure that improvements are made towards the success of this institution. The forecasting will also be based on customers’ feedback which will be a great way to build customer loyalty as regular customers will witness high improvements each time they visit the resort. Economic performances will also be evaluated periodically to make sure that the resort is able to tap major MARKETING PLAN economic opportunities. Such opportunities include major economic forums and economic growth of the target customers, which brings new business opportunities for the resort. 4 MARKETING PLAN 5 References Mok, C., Sparks, B., & Kadampully, J. (2013). Service quality management in hospitality, tourism, and leisure. Routledge. Running head: STRATEGY, IMPLEMENTATION AND MANAGEMENT 1 Company Competitive Strengths The company has several competitive advantages. The first being that the choice of location is ideal as Chennai is located in the Bay of Bengal the home of Fort St. George Museum built in 1644. The museum is a major attraction showcasing the history of the city with artefacts of British military garrison during their reign in the city. Also in the city is Kapaleeshwaar Temple a renowned religious attraction with various arts and paintings of gods. A 17th-century Anglican Church stands firm almost more than 500 years since it was built. The city is also famous for being one of the centres that have a rich history in promoting the economic and educational culture which makes this one of the most preferred holiday destinations. This is a competitive advantage because the resort can attract the many tourists who come to visit the attractive sites in its vicinity. This means automatic marketing and an increase in the number of customers. Competencies include the fact that the resort seeks to offer world class services that exceed the customers’ expectations at an affordable price. It is also to ensure inclusivity by making cultural diversity part of its philosophy. Customer suggestions are also going to be put into consideration and improvements made. With these measures in place, the resort will have loyal customers; it will also get referrals as a result of achieving competency through ensuring customer satisfaction (Peteraf, Gamble, & Thompson, 2014). The process of making a reservation in the resort is a very simple and straightforward one. All the customer has to do is fill out a reservation form from our website and send it to us. The hotel website will send an email to the hotel administrator and he or she will make the required arrangements and callback the customer to confirm their reservations or to tell them that the resort is fully booked. Below is a diagram that illustrates this. 2 STRATEGY, IMPLEMENTATION AND MANAGEMENT An email is consequently sent to the hotel administrator to notify them of the reservation request The hotel administrator makes required arrangements with regards to this reservation. The hotel's computer system receives this request . A customer fills out a form for the pupose of making a reservation The hotel administrator calls the customer to notify them that their reservation request has been recived and approved or denied. Management Team My family owns a hotel business. In this way, I have been able to work in several departments like the accounting office, at the front-desk, in the kitchen, in the housekeeping and the managing department. This way I have been able to gain experience. It has enabled me to know how best to go about matters that might arise. I have also had several encounters with customers and resolved their issues. This has helped me to refine my customer care skills and listening skills. I also know some of the customer concerns and therefore we can seek to address such issues before hand. Other members of the team will be my two business partners. One of them has been a general manager for a while. This means that he has been able to hold several positions like a clerk and front desk manager before being promoted to a general manager. He has a degree STRATEGY, IMPLEMENTATION AND MANAGEMENT 3 in Hospitality and through his experience over the years, he is able to coordinate cleaning staff and reservations made, he can employ and train employees, he can also make budgets and oversee the actions of the employees. My other business partner is a marketer. She has been working in this sector for two years. She is very knowledgeable when it comes to how to market and promote a product or entity. Her marketing skills are outstanding and her interpersonal skills too since she deals with people most of the time. Marketing increases awareness of a business and ultimately attracts customers (Armstrong, Kotler, Harker, & Brennan, 2015).With these two partners with different skills and strengths, the resort business has high chances of being successful. I also intend to seek outside help in form of having a board of directors. This should consist of an economist, who will advise on research and analysis of economic data and help to come up with predictions of importance to the resort. There will also be an accountant who will give advice on keeping track of finances, making budgets and coming up with important reports annually. There should also be other hotel managers from whom we can seek a second opinion on how to improve the resort generally. STRATEGY, IMPLEMENTATION AND MANAGEMENT 4 References Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education. Peteraf, M., Gamble, J., & Thompson Jr, A. (2014). Essentials of strategic management: The quest for competitive advantage. McGraw-Hill Education. 
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