A business proposal can help lenders and investors assess your idea’s potential. If you present your hospitality business properly in a clear and well-written business proposal, this document can open many doors for you.
However, a business proposal has yet another use. It will provide you, and everyone involved with guidelines on how to put that plan in motion. With the whole team on the same page, you can bring your forces together and achieve your goals.
Writing a good hospitality business proposal is a necessary step toward turning your dream into reality. If this seems like an intimidating process, don’t worry. The following step will help you compose an impeccable business proposal.
Step 1: Write an Executive Summary
The executive summary needs to paint the big picture of your plan. Its purpose is to lead the reader into the story of your business before you get down to the details.
The summary can outline the following:
- The founder’s history – By sharing your story you assure the reader that you have experience.
- The mission and vision – Help the reader understand what drives you through a mission and vision statement.
- The unique value proposition – Explain what makes you different from the competition to validate your decision to open such a business.
Even though the executive summary is somewhat of an introduction, you can write it last. Since it summarizes your hospitality business, having the rest of the elements clarified can inspire you to write a better summary.
Step 2: Introduce Your Business
Provide the concept of your hospitality business by providing a clear and detailed description. You need to introduce your business to strangers, so you want to write down all the key elements that make up your restaurant, hotel, or spa.
Since every business is unique, there are no strict rules about how you should describe it. But to give you an idea, here are a few points you can tackle in the business description:
- The type of business (hotel, restaurant, food truck, spa, etc.)
- Location
- Services you offer
- Business’s history
- Your business partners
- Your past achievements
- The building design (for example, how many rooms you have, parking spots, etc.)
- Service hours
- Goals
Step 3: Present Market Analysis
To give your business idea credibility, you must explain that the demand exists. Who would want to invest in a business with no potential, right?
Outline how your business fits into the existing market. For example, you can be opening a restaurant next to a growing startup’s building. The employees’ lunch break can be your golden hour. Or, you are opening a vegan food truck in a neighborhood that has no such food service.
In addition to your unique offering, good location, or meeting a specific market need, you can mention industry trends and statistics. Give your business credibility by aligning your goals with proven industry stats. If there is a statistic that shows a growing demand for plant-based restaurants, for example, your plan to open such a restaurant will sound more favorable.
Step 4: Describe Your Target Customers
Customer analysis must outline what kind of people you plan to target. Every service has its specific customers. You need to share who those customers are for your business. The customers create demand, and you need to validate that demand will exist.
Focus on the following:
- Customers’ demographics
- Customers’ pain points
- Customers’ life habits
- Customers’ interests and preferences
It may be easier to embody the target customers’ key characteristics within one person – customer persona. If you are unfamiliar with the concept, use a template, hire OKDissertations writing service, or team up with a freelance writer.
Step 5: State Your Competitors
Your unique value proposition and demand for your services will be clearer once you introduce your competition. The section on competitors should primarily focus on two aspects:
- Direct and indirect competition
- Your competitive advantage
Make it known who your direct and indirect competitors are and what makes them your rivals. Then, clarify that despite competition there will be a need for your service. Do that by stating your competitive advantages.
Step 6: Share Your Marketing Plan
Your business’s success largely depends on your marketing abilities.
Marketing is essential for establishing and retaining customer relationships. So, if you show in the business plan that you know how to attract customers, your idea will become much more appealing.
Define your marketing plan by stating your promotional approaches. Will you use social media, posters, and web advertising? Will you keep ongoing customer communication through newsletters? Shed a light on your marketing strategy.
Also, if you have a pricing strategy explain it. For example, you can plan to give a 40% off to the first 50 customers who subscribe to your newsletter.
Step 7: Explain Organization and Management Structure
The people on your team make the business. Introduce who will stand by your side as you enter this business journey.
List the people within your management team along with their qualifications and experience. If you have professionals on your team, the investors and lenders can feel more certain of the proper execution of the plan.
The same goes for other key figures on your team such as people in administrative functions. You should also state the number of personnel you’ll need.
Step 8: Provide a Financial Plan
Lastly, you need to talk about numbers. You can separate this section into two segments (funding and financial projections). However, you can also wrap it all up in one section which is the financial plan.
The financial plan should state:
- The funds you need to open the business
- Use of funds (how the funds will be allocated)
- The revenue and cost drivers
- Financial projections (market trends, projected revenue growth, and how profitable the business will be)
If you can’t provide precise numbers, set a range.
The essential aspect of the financial plan is being realistic. Do research, read case studies, inform yourself about projected market trends, and you’ll be able to get a more realistic estimate.
Final Thoughts
Follow this road map, and you’ll get a hospitality business proposal that brings results. As long as you are detail-oriented, honest, and clear, these steps can help you achieve your dreams. With an impressionable and precise business plan on your hands, nothing can stand in your way.
Author’s bio
Jessica Fender is a copywriter and blogger at GetGoodGrade with a background in marketing and sales. She enjoys sharing her experience with like-minded professionals who aim to provide customers with high-quality services.
Related article: Choosing The Right Place To Start as a Hospitality Entrepreneur
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