Successful business idea in hospitality or tourism report
Successful business Idea in Hospitality or Tourism
There are various successful business ideas in the hospitality and tourism sector. Investors need to transform the available hospitality ideas into successful businesses by implementing the ideas (Stephen, C. 2008, pp 56). A successful business idea in the hospitality industry should involve the provision of products or services required in that society. The idea has to fulfill dissimilar customer needs in order to succeed in the market. Before starting a business, the investor has to think about the type of business venture and its market. Understanding the market for a tourism business includes good knowledge of the customers,clients and the business environment. Moreover, it is also good to have a clear vision for the business in order to project its future outcome. The current business plan is the starting of A Oasis with tents and palm trees in the Australian desert. This is a new business idea in hospitality and tourism because there are currently no other retreat joints in or even near the Australian desert. This will help the business owner to establish a hospitality venture in a place with a high number of clients. The business owner will develop a support system with the people who share a similar vision for the business in order to enhance a successful implementation of the business plan (Stephen, C. 2008, pp 57). In this connection, a successful business idea in the hospitality industry has to consider all what will enhance the success of the business.
The mission of this Oasis is to provide a well furnished and affordable retreat area with high quality cuisine and tents where people can have a comfortable rest while making a tour in the Australian desert. The goal of this business venture will be to provide our clients with affordable resting place, dining and entertainment which will enable the people visiting the desert to have the best they need at the most affordable prices (David, E. 2011, pp 19). The oasis will be clean and accessible through good infrastructure. The organization will value those people who will work for it and ensure that they offer the best services in the tourism sector in order to attract and retain customers.
This business will provide dining, resting place, entertainment and drinks services to tourists who visit the Australian desert at different times. The objectives of the business are:-
1. Provide transport services to the clients Oasis to other areas
2. Provide light meals and snacks for people touring the Australian desert
3. Ensure that tourists who get to the desert have easily accessible place where they can have a rest and take means to make their tours more enjoyable
4. Maintain a good company reputation through the provision of good services to the clients
5. Serve customers of diverse backgrounds by providing different kinds of services
6. Provide event organization services to clients by lending the tents to the guests
7. Provide drinks to the clients
8. Provide entertainment by making sure that there is good music in the oasis for the tourists
1.3 Keys to success
This Oasis will be a well known retreat place in the Australian desert because currently there are no other similar investments located in the Australian desert and this means that it will be the first one of this kind (Eric, L. 2006, pp 38). It will also provide diverse services as resting places, provision of light meals and drinks, entertainment, meeting places and transport to diverse groups of people. Its products and services will be excellent through the employment of qualified staff. The other key to success of this business is that it will ensure good management in order to enhance success. Moreover, there will be less competition from other similar businesses because the business will be located in the desert where there are no or few similar investments where there are many people to buy its products and services. Its location in the desert will attract many clients especially tourists who would wish to have a good place to take a rest and enjoy their tours around the desert. In this connection, this oasis has many advantages which act as its key to success.
1.4 Business summary
This business idea involves the start of a hospitality business which will be a oasis located in the Australian desert. There will be palm trees around this oasis in order to ensure a serene environment for the guests. The business will be successful in offering comfortable resting place, light means and snacks, entertainment and transport services to clients from diverse backgrounds. Customers will be rewarded as per their expenditure in order to ensure that they continue purchasing the company’s goods and services (James, C. 2005, pp 45). In addition, this oasis will provide event management services to its clients at affordable costs. Moreover, it will organize for the transportation of its clients from the desert to other areas and back under special request by the willing clients. In this connection, this retreat area will ensure that it offers quality products and services in order to enhance good profits for its investment. The organization will operate independently and it will be privately owned in order to ensure good leadership and management. Qualified staff will also be hired for this company to guarantee quality goods and services.
1.5 Company ownership
The Oasis will be owned and operated by Paul Dickson who will act as its president. It will be established on 1st March 2012. Mary, Paul’s wife, will assist in managing the business under the help of other company employees.
1.6 Total Cost of the Business Idea Start up
The start of the business will require various expenses which need to be catered for. The company will require assets, premise, transport vehicles, employees and goods in order to commence. The Resort will assume total start up expense of 700,000 Australian dollars which will help to acquire everything that will be required to start the business. In order to raise enough capital for the business, the owner will have to get a loan and use personal savings to have enough capital for the business.
The following are the necessary start up equipment and facilities:
1. Few dining utensils
6. A switchboard for effective and easy communication
1.7 Start up expenses Cost in Australian dollars
Premise construction $200,000
Staff salaries $50,000
Other expenses $50,000
Total expenses $ 700,000
Owner savings $300,000
Bank loan $400,000
The cost of starting this business plan will be $700, 000 whereby the owner will get $300,000 from his personal savings and get a loan of $400,000 from the bank. The company should therefore operate well in order to earn good profits and cater for its running costs (Laiz, M. 2008, pp 59).
The Oasis will offer various services and products to its clients. The most common services provided in this business will be resting places, light meals and snacks. Clients will also be allowed to book the tents for meetings and pay a small charge for the service. Drinks such as soda and juice will also be sold in the oasis to allow people to take refreshments as they rest and have a good view of the desert. It will also be a good place for entertainment because there will a soft music played for the guests. The oasis will also provide event organization services which will be provided in this hospitality business. Moreover, guests will have a chance to arrange for special transport services with the business’ vehicles at an affordable cost. This hospitality business will therefore offer various services to the clients which will help it to attract and retain customers (Ronald, E. 2011, pp 45).
1.9 Market analysis and market segmentation
Market analysis for this Oasis shows that the retreat will be located in an area where there will be little competition. Its clients will include the diverse groups of people who visit the desert and would want to get a good place to have a rest, entertainment, hold meetings and take light meals and drinks as well as hiring transport services. Due to the lack of similar hospitality businesses that offer those services near the public beach, there is need start this business at this location in order to ensure that it has sufficient clients (Ronald, E. 2011, pp 18). Its marketing plan involves the provision of hospitality services to different clients. In this connection its customers will include:
1. People visiting the Australian desert
2. Local neighborhoods
3. Local and international tourists
4. Companies holding conferences
5. People with events such as company parties
6. Families friends going out for leisure
Market segmentation for this company shows that there are mainly three groups of customers for the company’s goods and services. This retreat point will serve customers segments in families, non-families and groups. Most of its clients will be customers in families who will be visiting the Australian desert for their leisure. There will also be non-family clients who will be both local and foreign tourists. Lastly, group customers make the other segment of the market for the goods and services of this retreat area because groups such as companies will visit the joint for the company conferences and parties (Rhoda, A. 2010, pp 113).
2.0 Return on investment (in 3 years)
Sales year 1 year 2 year 3
Food and beverages $160,000 $170,000 $175,000
Tent rent $200,000 $205,000 $230,000
Entertainment $40,000 $50,000 $55,000
Transport services $100,000 $150,000 $200,000
Others $120,000 $125,000 $130,000
The returns on capital by the end of the third year will be $790,000 and this reflects that the company will be operating well.
2.1 Financial Plan
The financial plan for this business is that after the start of the business, it will be easy to run the business. This will help to avoid unnecessary expenses which had not been predicted. Business growth will be moderate with sales increasing at a steady rate every year. It is also predicted that the cost of running the business will increase at a lower rate than the increase in profits (David, 2004, pp 19). The returns on capital will be invested in financial markets but not for company expansion. In addition, the company will ensure the maintenance of its equipment to ensure good operation. During this business operation, it will be assumed that the company runs without any sort of interference in order to ensure good performance
2. 2Exit Strategy/Alternatives
Sometimes, a business does not work as it was planned. In these cases, a business operator should set aside the alternatives which will help him/her to prevent unnecessary loss. In this Oasis business, failure of its operation will not result to a total loss of the capital. This is because, the business owner will have the assets which can be sold or lend to other people for use in the business and this will help to generate money for the investor. The other business alternative will include using the premise for other business investments such as running a tour guide business where tourists can seek to be guided through the desert at a certain cost. In this connection, the failure of this business plan will not result to a total loss to the investor.
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