tourism business planning-

Information about tourism business planning-

Published on July 14, 2014

Author: meghaomshree

Source: authorstream.com

Content

online course in responsible tourism development session #05: online course in responsible tourism development session # 05 Gerardine Parisi Tourism business planning Agenda: Agenda From business idea to business plan What is a business plan How to write a business plan Create your own business plan A practical example From business idea to business plan : From business idea to business plan Create a successful business is a very difficult task. You have to be strong motivated and very oriented to planning and scheduling. Principal steps of an aware process: How to start up your own business From business idea to business plan : From business idea to business plan Your business idea can be based on a dream or an aspiration but you have to translate it in something of concrete The business idea From business idea to business plan : From business idea to business plan Planning and scheduling are key successful factors Most common reasons of failure: Lack or inadequacy of planning Lack of market research Overestimation of demand Poor quality in the management of the business Error in determining the selling price Little attention to costs and expenses Poor financial management Insufficient sales Startup capital deficient The importance of planning LACK OR POORNESS OF BUSINESS PLAN What is a business plan?: What is a business plan? Business plan allows to verify : Market feasibility  TO SELL Organizational and technical feasibility  TO MANAGE Financial and economic feasibility  TO EARN Business plan What is a business plan?: What is a business plan? Aim of business plan How to write a business plan: How to write a business plan Main questions Create your own business plan: Create your own business plan 1. Market feasibility Create your own business plan: Create your own business plan 2. Marketing mix Create your own business plan: Create your own business plan Most important point to evaluate: Special permissions to start up Investment necessary to start the business Most appropriate legal form to manage the business 3. Organizational and technical feasibility Create your own business plan: Create your own business plan 4. Financial and economic feasibility Investment cost Operating cost Year 1 Year 2 Operating cost Year 3 Year …… Operating cost Operating cost Create your own business plan: Create your own business plan Initial investment cost are all the expenses you will need to start up your business such as: Immaterial expenses to start up the business, such as permission; Material needs: location or office; special machine; basic equipment. 4.1 Initial i nvestment cost Create your own business plan: Create your own business plan How can I get the money I need to start up my own business? 4.1 Initial i nvestment cost Create your own business plan: Create your own business plan 4.2 Break even point NO PROFITS NO LOSES BREAK EVEN POINT Create your own business plan: Create your own business plan To calculate the break even point it is necessary to know which kind of costs are related to your business. Costs can be divided into four main categories: Fixed cost Variable cost Financial cost Taxes 4.3 Operating cost Create your own business plan: Create your own business plan Fixed costs are business expenses that are not dependent on the level of goods or services produced by the business. 4.3.1 Fixed cost $ UNIT OF PRODUCTION FIXED COST Create your own business plan: Create your own business plan Variable costs, instead, are volume-related. The sum of fixed cost and variable cost represent the total cost that is the total economic cost of production. 4.3.2 Variable cost $ UNIT OF PRODUCTION FIXED COST VARIABLE COST TOTAL COST Create your own business plan: Create your own business plan Financial cost consists in interests which the entrepreneur have to pay to banks for loans Taxes are calculated on the taxable income and differ from country to country 4.3.3 Financial cost and taxes Create your own business plan: Create your own business plan The other main point to calculate the break even is to define the price of product or service. Price is influenced by internal and external factors 4.4 Pricing strategy Create your own business plan: Create your own business plan There are some criteria used to define the price. The principal are: Cost plus pricing : the price is fixed calculating the cost of production and adding to it a percentage Competition-based pricing : the price is decided taking into account the price adopted by competitors Objective profit pricing : the price is set at a level that allows to gain a certain level of expected profit. 4.4 Pricing strategy Create your own business plan: Create your own business plan 4.4 Pricing strategy : 9 laws of price sensitivity & consumer psychology Create your own business plan: Create your own business plan 4.5 Turnover and net profit Gerardine bed and breakfast: Gerardine bed and breakfast A practical example Gerardine bed and breakfast: Gerardine bed and breakfast WHAT: Boutique, charming, eco bed and breakfast, 5 rooms, high level of standard. Special offer for people interested in enogastronomy , tradition and mountain. WHERE: Abandoned house of my grandmother in a rural area of Trentino , tourism not well developed WHO: I will be the enterpreneur , this will be a second work Business idea Gerardine bed and breakfast: Gerardine bed and breakfast Market feasibility Gerardine bed and breakfast: Gerardine bed and breakfast Marketing mix Gerardine bed and breakfast: Gerardine bed and breakfast INITIAL INVESTMENT COSTS MATERIAL EXPENSES Refurbishment of the house 100.000€ Purchasing furniture 50.000€ IMMATERIAL EXPENSES Permission and certification 3.000€ Marketing and communication (website, brochure…) 7.000€ TOTALE 160.000€ Gerardine bed and breakfast: Gerardine bed and breakfast How can I get the money I need to start up my own business? Gerardine bed and breakfast: Gerardine bed and breakfast Every year I have to sustain this cost: Fixed cost: 5.000€ Variable cost: 30.000 (40€ for every host  750 arrivals for year) Financial cost: 5.000€ Taxes: 6.000 (10% of 60.000€ that is the foreseen turnover) Gerardine bed and breakfast: Gerardine bed and breakfast Break even point : Cost /price = number of host  26.000€ / 80€ = 325 arrivals Provisional net profit: Turnover-costs = net profit  60.000€ - 46.000€ = 14.000€ Thank you very much!: Thank you very much! Gerardine Parisi mail : [email protected]

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