Detailed Business Proposal: YBDG Accommodation Services in Malta

This business proposal outlines the establishment of YBDG Accommodation in Malta, aiming to provide short-term and long-term rental options. The proposal includes a detailed analysis of the business concept, market feasibility, and financial projections. The report covers the rationale for the business, its vision, mission, and objectives, along with the design and structure of the report. It utilizes relevant models like Porter's Five Forces and incorporates primary and secondary research. The business concept focuses on providing a unique experience with various facilities and services tailored to the target market, including tourists and long-term residents. The feasibility research encompasses product, industry, competitor, organizational, market, and financial analyses. The business model and plan detail the core strategy, mission, product scope, project planning, marketing strategies, risk management, and operating processes. The financial plan includes setup capital, projected cash flow, and profit and loss statements. The proposal emphasizes critical success factors and references relevant sources.

BUSINESS DEVELOPMENT
PROPOSAL

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Background.................................................................................................................................1
Rationale ....................................................................................................................................1
Vision .........................................................................................................................................1
Mission........................................................................................................................................1
Aims and Objectives...................................................................................................................2
Design and structure....................................................................................................................2
Relevant models and information sources used..........................................................................2
Actionable assumptions .............................................................................................................3
Timescale....................................................................................................................................3
BUSINESS CONCEPT...................................................................................................................3
The product and service .............................................................................................................4
Facilities and services ................................................................................................................8
Target market .............................................................................................................................8
Value added ................................................................................................................................9
Specific features .........................................................................................................................9
Management ...............................................................................................................................9
Window of opportunity............................................................................................................10
FEASIBILITY RESEARCH ........................................................................................................10
Feasibility research plan............................................................................................................10
Research methodology..............................................................................................................11
Key areas of feasibility research are as follows : .....................................................................12
Product/ service feasibility........................................................................................................12
Industry feasibility....................................................................................................................13
Growth and scope of industry In Malta....................................................................................15
Competitor analysis ..................................................................................................................15
Organisational analysis ............................................................................................................16
Market analysis.........................................................................................................................17

Financials feasibility.................................................................................................................18
Ambition VS Ability.................................................................................................................20
BUSINESS MODEL.....................................................................................................................21
Core strategy ...........................................................................................................................21
The business mission................................................................................................................23
Product and market scope ........................................................................................................23
BUSINESS PLAN.........................................................................................................................26
Accommodation service business in Malta...............................................................................26
Project planning and development stages.................................................................................26
Structure of business along with its interior design..................................................................27
Marketing plan..........................................................................................................................29
Collaborative marketing strategies............................................................................................29
Online marketing.......................................................................................................................30
Risk management......................................................................................................................39
Operating process.....................................................................................................................41
FINANCIAL PLAN ......................................................................................................................42
Set up capital.............................................................................................................................42
Projected Cash flow for 1st year ..............................................................................................42
Projected profit and loss statement profit .................................................................................45
Critical success factor ..............................................................................................................47
REFERENCES..............................................................................................................................49

INTRODUCTION
Background
Accommodation services provided to the tourist and people visiting to the place to
provide them place for their stay during their holidays. The aim of YBDG accommodation is to
provide the clients with the short term and long term let options while their stay. The short term
rent options are available for the tourists that are visiting Malta in the summer and the long term
let options will be based on 9 month contract basis in the other season. Malta is experiencing
strong economic growth that has lead to opening of many foreign companies in that place which
has increased the demand for accommodation. Moreover, increase in the property prices in Malta
have increase the demand of the accommodation services which will be beneficial for the YBDG
accommodation. This business proposal is for Malta which is the most tourist attraction place
and opening up the accommodation that will provide the short term and long term let option will
be a profitable business at this place.
Rationale
The opening of the YBDG accommodation and and property company which will
provide the short term and long term letting option to the tourist and the people staying Malta it
is a new concept because the short term let options are available everywhere but the long term let
options are not available which will attract more customers towards this business. This business
idea will provide unique experience to the clients. It will require proper planning based on
market research surveys as well as formulation of strategies which will assist in increasing the
gains of the business.
Vision
The Aim is to establishment of accommodation and property company to provide short
term and long term let option to the clients staying in Malta and increasing the sales by 10 %
each month.
Mission
 To provide clients with unique experience by providing both short term and long term let
options.
 To enhance the profitability of the business by attracting more customers.
 To provide clean, hygienic and convenient accommodation to the clients
 To provide the clients with services as per their requirement.
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Aims and Objectives
Aim : To establish the new business start-up to provide short and long term letting option in
Malta
Objectives :
 To increase the brand image of the company by providing both short term and long term
let option.
 To increase the sales by 10% in every month by providing long term let option
 To outline the challenges faced by YBDG accommodation in the new market
 To attract customer by providing other services with accommodation facility
Design and structure
This report will consist of four topics which are as follows :
 The concept of business : It will define the concept of the business and the target market
associated with the business with the facilities and services provided by the
accommodation business.
 Feasibility research : It provide understanding about the feasibility of the business ideas
by identifying the perspective of market, organizational resources, services and financial
resources.
 Business model development : It is related to identifying the business model which is
related to the business idea for implementing as business strategy for achieving the
objectives of the business.
 Business plan : It consist of the stages which are required for implementing the business
model.
Relevant models and information sources used
The report will include the porter five forces model for identifying the industry and
market. It will be used for the implication of industry and market feasibility research (Russo and
Alturas, 2017). The information will be gathered through the help of two sources which will
comprises of the following :
 Primary sources : It is the method through which the information is gathered first hand
through the help of various methods, the primary sources include the use of information
which is gathered trough survey or interview.
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 Secondary sources : It is the information which is gathered through the use of published
sources. It consist of books and journals and internet sources. This information is
collected by some other person which is used for the reference.
Actionable assumptions
To determine the gain value of the projects there are various assumptions are formed for
YBDG accommodation. They consist of :
The revenue for the business will deviate due to seasonal fluctuations and not on the basis
of financial years. Moreover, the aim of the business is to attain the increase in sales by 10%
each moth by providing long term letting option in the accommodation.
Timescale
For the establishment of the new business it is required to gather the information about
the market with the help of market research. It is required to understand the market and
accommodation industry to identify the risk associated with the business and the level of
competitiveness (Zehrt, 2015). It is required to identify the reason which will lead to business
success and failure that will assist in gaining strength and overcome weakness. Moreover, it will
include the details regarding the time required for identifying the location and funding for the
operation of the various activities relating to the business. Also, it will include the license
required for operating the business. Also, it will include the equipment for cooking to the
clients to provide them extra facilities with the accommodation facility. The recruitment of staff
and training will be provided and at last the opening of the YBDG accommodation will be held.
BUSINESS CONCEPT
The YBDG accommodation company will provide the short terms as well and long term
letting option to the clients which are staying at Malta. The short term renting will be provided
during the summer season to the tourist and the long term letting option will be available to the
people staying at Malta on the 9 month contract basis to provide the facilities in the other
seasons. This company will provide homely feeling to the tourist staying at the place by letting
the home on rent which will assist in enhancing their experience with the business (Marcoz and
et.al., 2016. ). The YBDG will provide various facilities along with accommodation as linen for
each guest bed, toilet paper, soap etc. which are basic thing that the guest required while their
stay. The YBDG accommodation will be located at the Malta which is the tourist attraction place
and it will attract more customers towards the business. The YBDG will charge affordable cost
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to the guest ton attract them towards the business and will provide the high quality services with
the basic amenities required.
The product and service
The YBDG accommodation will provide both short term and long term letting facilities
to the customers.
The short term letting
It is related to providing the guest with the option to stay at the apartment for the short
period during their vacation. It will provide short term let accommodation in the summer season
for the tourist that want to stay in Malta for the holiday. the short term let assist in provding the
tourist to spend the quality time.
The long term let
It is related to providing the guest with the facility of staying in the apartment for the
long term. The YBDG accommodation will provide the guest with the facility to stay in
apartment for the long term on the 9 month contract basis.
The services at accommodation will include
Linen for the bed
The linen will be used in YBDG accommodation to provide comfort to the guest with the
linen beds. It is the sheet of the bed which is made up of linen to provide comfort to the guest.
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 Bathroom : The YBDG will provide the unique bathroom to the guest to improve their
experience it will have the unique bathroom designs which will provide fresh feeling to
the guest while their stay at the apartment (Yoon and Lee, 2017).
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Illustration 1: Linen for bed
( Source : Accommodation linen, 2018)

Wardrobe : It is the place provided for keeping the clothes at the accommodation. The
YBDG will have the exclusive wardrobe design for the guest to provide them space for keeping
their clothes properly to improve their experience while staying at the place.
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Illustration 2: Bathroom
( Source : Bathroom , 2016)

The long term let accommodation is related to providing the apartment on rents to the
people which want to stay for the long period. It Will include apartment that will provide the
room with all the facilities such as refrigerator and cooking equipment, dining table , room etc.
To those that want to stay for the long term in the house.
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Illustration 3: Wardrobe
( Source : Wardrobe, 2017)

Facilities and services
The YBDG accommodation will provide various facilities and services to the customers
to attract them towards the accommodation facilities which will be provide by the business. The
company will provide air conditioner in the rooms and also their will be facility of the valet
parking. The clients will be welcomed in the respectful manner (Lanya and et.al., 2017 ). The
services will include the free access to Wi-Fi for the guest staying at the place. The
accommodation will provide the basic amenities such as bathroom towel, pillow, soap, toilet
paper etc. Also, it will provide the guest with the cooking equipment s and refrigerator to cook
food for themselves which will enhance their experience.
Target market
Customer segmentation : It is the process of segmenting the customers on the basis of
similar characteristic posses by them. It consist of segmenting the customers on the basis of
geographic, behavioural, psycho graphic and demographic.
 Demographically : The customers segmented on the demographic consist of the Maltese
national of different ages which require accommodation on the long term basis because
the property prices are high (Suryawardani and et.al., 2016.).
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Illustration 4: Room with facilities
( Source : Room in accommodation, 2016 )

 Geographically : It will focus on the tourist and the foreign workers that stay in Malta
for working in the foreign companies which are being established in the Malta.
 Behaviourally : The YBDG accommodation will provide the short term and long term
let option to the clients at the affordable prices than the market prices which means it will
focus on the middle income level and price sensitive clients that require accommodation
that provide high quality services at the affordable prices.
Value added
YBDG will provide the customers with the short and long term let options which will be
provided ton them at the low provides than the market price which will create value for the client
and will attract more customers towards the business (Dragicevic and et.al., 2015). Moreover, the
accommodation company will provide the customer with discounts and coupon on their next stay
to those customers which are regular. The accommodation services will provide the guest with
best experience by having the exclusive interior and the room with the basic amenities required
by the guest during their stay.
Specific features
The most attractive feature of this accommodation company is it will provide the long
term let accommodation facility to the client on the contact basis which will attract more
customer towards this business which is beneficial for increasing the profitability and sales of the
business. The interior of the accommodation place will be innovative and will provide the great
customer experience which will enhance the brand image of the YBDG accommodation
company (Jenčková, 2017). The specific feature of the accommodation include the emergency
exit door if their is any emergency at the place of stay. IT will provide the guest with better
experience and services by providing them different services along with the accommodation
facility such as it will provide the guest with the cab facility for their visit to different
destination.
Management
Manager
Accountant
Cleaning
room service provider
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