Sustainable Business Plan for Bed & Breakfast: Analysis of Customers, Competitors, Skills, Funding, and Profit & Loss

This report presents a sustainable business plan for a Bed & Breakfast, including analysis of customers, competitors, skills, funding, and profit & loss. The targeted customers are from the upper and middle class status, and the competitors are identified as the food industry. The required skills for the business include effective communication, analytical skill, and digital skills. The source of funding is debentures and self-funding. The organization structure is top to bottom, and the management information system is a decision support system. The vision of the business is to gain the lead position in the market in the next three years. The report also includes a two-year cash flow forecast and a breakdown of the start-up cost.

CW2 Sustainable Business
Plan

Executive summary- The report has presented the new business idea. The major attributes that
are needed to be taken in consideration for presenting new business idea have been analysed in
the report. Customers, competitors, skill analysation, source of funding and so on elements
related to business idea has been described. Also, projected profit & loss account and forecasting
cash-flow statement for two years has been shown in the report.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Proposed future business.............................................................................................................4
Customers....................................................................................................................................4
Competitors..................................................................................................................................4
Skill analysation...........................................................................................................................5
Projected two-years profit and loss account & proposed two-years cash flow forecast including
breakeven.....................................................................................................................................5
Source of funding........................................................................................................................7
Plans for obtaining resources.......................................................................................................8
Organization structure and management information system.....................................................8
Vision for business idea...............................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
APPENDIX....................................................................................................................................11

INTRODUCTION
Proposing new business idea refers to starting the new entrepreneurship. It refers to starting
the new business (Bocken, Boons and Baldassarre, 2019). The current report will discuss about
the concept of proposing new business idea. Major parameters related to new business idea such
as, customers, competitors, projected benefit profit and loss and cash flow statement, skill
analysation, management structure, source of funding will be discussed in the report. Lastly, the
company will highlight the vision of the business.
MAIN BODY
Proposed future business
The proposed business idea is associated with Bed & Breakfast business plan. It has been
referred as the small lodging establishment that will offer the accommodation. The major
motivation that is aligned with the Bed & Breakfast is that, food industry is increasing on a
higher note. Also, it provides several opportunities for the entrepreneur in terms of earning
higher profits. Therefore, the proposed future business is entitled with the Bed and Breakfast.
This will lead to attract large number of customers and enable in experiencing growth.
Customers
In context of staring new business and introducing it is mandatory that business must
specify its customers as it plays vital role in terms of attracting the specific customers and further
helps in increasing the profit for the business (Vella, 2021). Thus, the selected customers for the
bed & breakfast are- consumers from the upper and middle class status. Also, the segmentation
will be done on the basis of demographic, geographic, psychographic and behavioural
segmentation. The company will provide quality products and services to the targeted customers
and position itself top among the competitors in market.
Competitors
It is highly important to analyse the extent of competition in market as it helps in
implementing the strategies for the business that helps the business in terms facing the
competition in the market (Modisane, 2019). Therefore, it is important to analyse the competition
in the market. Thus, major competitors of bed & breakfast are entitled with the extent of
competition in food industry as the competition is high this may lead to act as threat for B&B.
However, the power of new entrants and supplier is low in this context as for supplier B&B ca

approach another suppliers and it is hard to enter in food industry for any new entrants. The
power of customers is high therefore, the satisfaction level of customer will be maintained from
initials stage.
Skill analysation
Skills refers to the possessed ability that is required to perform the job task. It is important
to determine skill for the business as it will help in performing the task of business in effective
and often assure the creativity in employees (Tiscini and et.al., 2020). The major skills that are
required in the business are entitled with the effective ability of performing work in team. As it is
important to perform the work in a team as at the end contribution of each employee in team
assures the effective results. The another skill is concerned with leadership and decision-making
skills these skills are for management team of the business. Effective leaders in the business
helps in guiding the employees and often takes that decision that leads to create benefit for the
business. Thus, these skills are required in context of the Bed & Breakfast.
The mandatory skills that must be possessed in the members of the business are, effective
communication skills, analytical skill and digital skills. These skills help in creating interaction
with the customers that assures benefits to the business. Thus, these skills must be possessed in
the members of the business (Hunter and et.al., 2020). Skill gape refers to the gape that acquires
among the person ability and the required ability to perform the job. Thus, this skill gape will be
managed in the business within providing training to the employees.
Projected two-years profit and loss account & proposed two-years cash flow forecast including
breakeven
Projected two-years profit and loss account and proposed two-years cash flow forecast for
the business stated that the business has effective planning in relation of increasing the sales and
services for the business. Thus, this clearly indicates that, the business has effective in planning
in context of increasing their performance. The breakeven point refers to that point in which the
business is equal to the cost of business. Thus, on the basis of assumption this point for the
business will be arrived after 1 year.
Projected profit and loss account
Particulars 1 year 2 year

To salaries
To rent
To advertising
To lease charges
To bank charges
To refreshment charges
To depreciation
Total expenditures
To accounting fee
To accounting consultancy fee
To grant from governments
Total revenue
Net Income for the year
100000
140000
50000
25000
14000
34000
11000
50000
21000
350000
475000
87000
321000
175000
150000
60000
25000
24000
54000
14000
62000
18000
622000
525000
1247000
521000
Cash flow for two years
1 year 2 year
Cash flows from operating activities
Net Income
Adjustments while operating activities-
Depreciation
Changes in current assets and liabilities-
341000
21000
525000
16000

Increase in receivables
Decrease in prepaid expenses
Net cash provided by operating activities
Cash flows from investing activities
Capital expenditures
Proceeds from sale of equipment’s
Net cash used for investing activities
Cash flows from financing activities
Proceeds from the issuing debt
Dividends paid
Net cash provided by the financing activities
Net increase in cash during the year
Cash at the beginning of the year
Cash at the end of the year
5000
11000
383000
-24000
-24000
-
-
-
341000
132000
3000
20000
548000
-24000
-24000
140000
-24000
125000
525000
500000
Source of funding
This refers to the sources from where the fund is being allocated for the business. As it is
initial level for the business therefore, depending over the equity has not been determined as
effective source of funding for the business. Therefore, the bed & breakfast will use debentures
and self-funding. The fund will be allocated within using these source as this will enable
organization in terms of taking debt at initial level from the debentures and when the
organization become effective enough at that time the debt can be paid easily. Self-funding will
lead to have the right over the business in effective manner.

Plans for obtaining resources
Tangible resources that involves cash, machinery, building, land and so on elements are
required for the business (Geissdoerfer, 2019). At initial level, business will make purchase for
some resources and some resources will be taken as second hand as it will help in saving the cost
of the business. In context of intangible resources that are concerned with the patient and
goodwill the firm will focus within creating the effective image for the business. After the period
of one year these intangible resources will be automatically allocated by firm.
Breakdown of the start-up cost which is £ 100000.
Cost of the furniture = £ 7500.
Advertisement cost = £ 5000
Cost of setting – up = £ 5000
Saved for future purposes = £ 3500
Office Rent = £ 15000
Licensing = £ 15000
Kitchen Equipment’s = £ 20000
Marketing = £ 12000
Staff = £ 10000
Raw Material = £ 9000
Total Costs = £ 110000
Organization structure and management information system
Organization structure refers helps in deciding the structure of the organization.
(Maravilhas, Melo and Oliveira, 2018). The selected organization structure for the business is
concerned with top to bottom. In this, the information has been flow from top level managers to
lower level managers and then to employees. It helps in implementing effective communication.
MIS that will be adopted by the company is aligned with the decision support system. This helps
managers in terms of making decision that will be proven beneficial for the organization. Thus,
in this manner decision will be taken within making discussion that helps in taking out potential
decisions.

Vision for business idea
The vision of the business refers to the objective and goal that has been decided in order to
achieve. Thus, the vision of the Bed & Breakfast is aligned within gaining the lead position
under the market in the next three years. Along with this business is focusing over increasing the
extent of services that helps in attracting the customers for the business. Hence, the business is
aligned with these visions.
CONCLUSION
From the above report it has been concluded that in order to start new business it is
important to focus over various attributes and factors. Effective understanding of the all
attributes helps in assuring the success in the business. The report has highlighted the new
business idea. Targeted customers of the business has been identified along with this the
competitors of the business have also been identified. Furthermore, skills that are required in
employees to run the business has been explained. Moreover, 2-years profit and loss account of
the company has been shown along with forecasting two-years cash-flow within including
breakeven point. Sources of funding, management structure and the vision of the business has
been highlighted in the report.

REFERENCES
Books and Journals
Bocken, N., Boons, F. and Baldassarre, B., 2019. Sustainable business model experimentation by
understanding ecologies of business models. Journal of Cleaner Production, 208,
pp.1498-1512.
Geissdoerfer, M., 2019. Sustainable business model innovation: Process, challenges and
implementation (Doctoral dissertation, University of Cambridge).
Hunter and et.al., 2020. IntelliClean: A teaching case designed to integrate data cleaning and
spreadsheet skills into the audit curriculum. Journal of Emerging Technologies in
Accounting Teaching Notes, 17(2), pp.1-7.
Maravilhas, S., Melo, P. and Oliveira, S.R.G., 2018. Entrepreneurship and Innovation: The
Search for the Business Idea. In Handbook of Research on Strategic Innovation
Management for Improved Competitive Advantage (pp. 40-54). IGI Global.
Modisane, T.C., 2019. Establishing a competency framework for the integration of workplace
information technology knowledge and skills within an internal audit education
programme and training (Doctoral dissertation, North-West University (South Africa).
Vanderbijlpark Campus).
Tiscini and et.al., 2020. The blockchain as a sustainable business model innovation. Management
Decision.
Vella, I.P., 2021. The CAEs’ skills and responsibilities and their views on the internal audit
charter (Master's thesis, University of Malta).

APPENDIX
Projected profit and loss account
Particulars 1 year 2 year
To salaries
To rent
To advertising
To lease charges
To bank charges
To refreshment charges
To depreciation
Total expenditures
To accounting fee
To accounting consultancy fee
To grant from governments
Total revenue
Net Income for the year
100000
140000
50000
25000
14000
34000
11000
50000
21000
350000
475000
87000
321000
175000
150000
60000
25000
24000
54000
14000
62000
18000
622000
525000
1247000
521000
Cash flow for two years
1 year 2 year
Cash flows from operating activities

Net Income
Adjustments while operating activities-
Depreciation
Changes in current assets and liabilities-
Increase in receivables
Decrease in prepaid expenses
Net cash provided by operating activities
Cash flows from investing activities
Capital expenditures
Proceeds from sale of equipment’s
Net cash used for investing activities
Cash flows from financing activities
Proceeds from the issuing debt
Dividends paid
Net cash provided by the financing activities
Net increase in cash during the year
Cash at the beginning of the year
Cash at the end of the year
341000
21000
5000
11000
383000
-24000
-24000
-
-
-
341000
132000
525000
16000
3000
20000
548000
-24000
-24000
140000
-24000
125000
525000
500000
Breakeven point