Business Plan Report: Transforming Ideas into a Hotel Venture

This report presents a detailed business plan for Brown's Hotel, encompassing a comprehensive analysis of the hospitality industry, its current trends, and future developments. It includes a description of the business, its marketing strategies using the 7Ps of marketing, and a competitive analysis employing SWOT analysis. The report also covers operational and management plans, along with financial factors and alternative sources of business finance, emphasizing ethical practices. The introduction defines small businesses, their characteristics, and the specific context of Brown's Hotel. The analysis extends to Porter's five forces model, assessing threats and opportunities within the market. Overall, the report aims to transform business ideas into a well-supported venture, providing valuable insights into the hotel's operations and financial sustainability.

Business plan

Table of Contents
SUMMARY.....................................................................................................................................3
INTRODUCTION...........................................................................................................................4
A critical review on the relevant entrepreneurship and small business research literature with a
view to include a credible, ethical, and informed business proposal (transforming) ideas and
concepts into a well-argued and supported business venture. .......................................................4
Introduction of small business................................................................................................4
Description of business...........................................................................................................5
Marketing strategies of Brown's hotel....................................................................................6
Competitive analysis of Hospitality Industry by SWOT........................................................7
Operation and management plan of Brown's hotel................................................................9
Financial factors.....................................................................................................................9
critically evaluate the alternative sources of business finance and their relevance to the
contemporary business practice involving sound ethical practice.................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

SUMMARY
This report will cover the detailed description of business plan along with business
description such as industry, current and future trends and developments. Marketing strategies
will also going to conduct through applying 7p's of marketing. Apart from this, SWOT analysis
of industry will also going to conduct. Design and development of product will also going to
discuss along with requirement of money and their spending pattern. Physical location, facilities
and many more will be discussed which require to take product off the ground. Several financial
factors will also discuss such as current and historical financial information, funding request and
many more. Finally various sources of finance will be discuss through which business can raise
money from market.

INTRODUCTION
Business plan is all about planning, delivering and formulating the ways of achieving
business objectives. It mainly contains the goals and plan to be achieve in near future (Tipu,
2018). It generally outlines the company financial plan, financial projections, market research,
business purpose and many more. Business plan is mainly prepare for fulfilling these objectives-
It helps to summarize the organisation's strategy in order to attain it in long term, it also helps to
secure financing from investors and it also helps in forecasting business demands (Kailer and
Weiß, 2018). In this report, Brown's hotel is taking into consideration which was founded in
1837 having headquartered in London, United Kingdom. The owner of this hotel is James and
Sarah Brown. This report, will mainly include the detailed business plan for transforming ideas
and concepts to support a given business venture. Various sources of finance would also discuss
along with their relevancy in sound ethical practice (Hanák and Grežo, 2020).
Introduction of small business.
It is type of business which is operate in small scale. It is generally seen in the form of
sole proprietorship, corporation and partnership. There are different features of small businesses
are as follows:
 low revenue and profitability- This type of business has lower income and less
profitability as comparison to larger business. The main reason behind this is that they
operate in less area of market (Hopp and et.al 2018).
 Small team of employees- This kind of business generally have smaller team of human
resource. This type of business is run entirely by single team or individuals. It has been
seen that generally this kind of business have employees less than 50.
 Operate in fewer location- Small business are not very well flourished in most parts in
country. This kind of business do not have multiple outlets in different cities or countries.
Hence this is the reason they operate in fewer locations of different country.
Description of business
Brown's hotel is situated in most exclusive location within Central London. It is also
considered as London's finest experiences. The each and every room of hotel is very well
decorated with contemporary works of art which create an elegant and fresh air. This hotel is

operate in hospitality industry. There are several current trends of hospitality industry are as
follows:
 Going contactless- Nowadays after corona virus pandemic, several hotels are going
towards contactless services (Masciocchi, 2020). They are using technologies for check
in and check out for their customer. Several technologies such as mobile check-in and
check- out, contactless payments, voice control and biometrics are some of the example
which shows that, there are going contactless would be more secure and safe to welcome
guests and provide them healthy experience. The brown's hotel provide these services
which helps in engaging more customers and achieve their aims.
 Automation and technology- This technology is becoming very popular in hospitality
industry after corona virus pandemic. Several hotels in hospitality industry are using
management system to monitor and optimize revenues and customer relationship.
 Virtual and augmented reality- Several hotel are using virtual and augmented reality
technology in their operations to provide joyful experience to their customer (Xu, 2020)..
With the help of this technology several hotels provide their guest the ability to teleport
to the location and explore the hotels. This helps customer to gain good experience of
hotel industry and choose the best one within their budget and comfort. The customer
will likely to gain the best experience at brown's hotel which require much investment
and IT team.
Future developments of hospitality industry are as follows:
 Safety and hygiene tourism trends- With the rise in corona virus new variants,
hospitality industry will more focussing on providing safety and hygiene to their
customer. For this several steps would be taken by given industry such as increasing
cleaning, social distancing, providing hand sanitizer and many more (Yang,Henthorne,
and George, , 2020). The Brown's hotel need to be assure about this development in their
organisation. This will attract more customers and keep the operations under legal
provisions.
 Voice search and voice control- This kind of technological development is nowadays
taking development in hospitality industry. With the help of this technology,customers in
hotels can shortening their response time, streamlining booking process. It will also allow
customer to take room service without leaving their room or lift a finger.

 Robots and chatbot- Several hotels are planning to use robots in near future for handling
their reception work. Moreover chatbot will also come in hotel industry through which
customers would be able to book their travel and accommodation with the help of internet
chatbot.
Porter's five forces model: It helps in the business to gain the insights about the market,
trend, industry competition and customers power. There is need to analyse the industry
competition to look for the business plan idea and to look for the market awareness. In case of
brown's hotel, these market forces are described below:
Threat of new entrance: This force is all about the competition and threat by arrival of
new players in the market. In the hospitality industry, the threat for new entrance is quite high in
the market due to having many players (Salazar, 2018). The brown hotel market has also threat
of new players as this industry has finest business environment in which, people wants to have
their experience.
Bargaining power of buyers: as per this force, buyers has much power to exploit the
market. It shows that, hospitality industry has low threat of buyers bargaining power as this
industry has luxurious operations and different services. So the buyers are ready to pay a high
price for getting best facilities. The brown hotel also has advantage of this force as they have
different and unique selling points which keeps the bargaining power low.
Bargaining power of suppliers: mainly, the suppliers have high power in the hospitality
industry which impacts on the price and cost of the hotels organisations. The Brown's hotel has
low threat of this factor, as they keep suppliers from many parts of the world due to which they
could easily switch to others.
Threat of substitution: This force shows the availability of the product and service
substitute which makes one of similar kind of products. This gives a large choice to customer to
shift their demands. Hospitality industry has high threat of this factor and for Brown's Hotel as
well. The hotel is working on small operations so that customer may choose other alternative
which will fulfil their needs.
Competitive rivalry: As per this, the hospitality industry has high competition into
market. Due to having large business growth and market development, there are many hospitality
sectors are opened in the UK. Therefore, the Brown';s hotel has much competition into market
for which they need to ficus on innovation and expansion.

Marketing strategies of Brown's hotel
 Product- It refers to the physical commodities or services business provides to its
customer in market. In the terms of Brown's hotel, it provide several services to their
customer in the forms of bar, conferences, guest rooms, health and fitness and many
more. By which it attracts customer from market to rise in their sales (Katz, 2018).
 Price- It is considered as a monetary amount charge by business or companies from the
customer in the return of product or service whichever they provide to their customer. In
the terms of mentioned company, it charges very reasonable price from their customer in
lieu of services which they provide to them. Services are affordable and customer can
easily pay prices at brown's hotel. They are worth of money and value which gives
satisfaction. (Teixeira and Pereira, 2019).
 Place- This refers to the physical location where business or company present its
products to customer in order to sell them in market. Location plays a very important role
in overall sales of business. In the terms of Brown's hotel, It is located in Mayfair
location of London which is considered as the heart of the city. It is also surrounded by
lot of green parks which spread greenery every where. Also, the hotel provide online
facilities for customer convenience. This place plays crucial role as customer could easily
reach to the hotel through Airports.
 Promotion- It includes various marketing strategies use by companies to promote their
products or service among customers in market. It includes advertising, direct marketing,
social media marketing and many more. In the terms of mentioned company, it promote
its services in market by making its website, improving search engine optimization and
making several pages on social media platforms (Nicolò, 2018).
 People- It consists of all the human resource which include staff members, salespeople,
customer support team and many more together which helps to achieve organisational
aims and objectives. In the terms of respective organisation, it has a great pool of human
resource who are talented and highly experiences in their work. They have a good
experience of working in hotel industry and also knows how to great and handle customer
complaints.
 Process- It is denoted as a process involve in delivery products or service to customer in
market. In the terms of respective organisation, it try to understand their customer needs

through various forms, surveys and many more. Moreover they also provide extra pillows
and towel in the rooms of their customer to increase their service among customer in
market.
 Physical evidence- It include all those things which customer see while interacting with
business or company. In the terms of given organisation, it has a well designed modern
British luxury stones and marbles. The reception area is also very well designed which
attract customers towards hotel very well (Kiesel and Harkiolakis, 2021).
Competitive analysis of Hospitality Industry by SWOT.
Strength
 Provide safe accommodation-
Hospitality industry provide safe
accommodation or place of living to
their customer. In the terms of
mentioned hotel, it also provide safe
accommodation to their customer. It
has multiple amount of huge rooms
which provide so many facilities to
customer through which customer can
easily live in given hotel.
 Huge profit margin- Hospitality
industry require a huge amount of
capital outlay and but is still considered
a worthy investment because the cost of
labour is low and profit margins are
high (Rutti, Garcia, and Helms, 2021)
. In the terms of Brown's hotel, it offers
multiple variety of rooms to their
customers such as luxury rooms, casino
and many more. All these facilities rise
the cost of given hotel but due to all
these facilities customers attract to
Weakness
 Numerous tax rates- Hospitality
industry charge huge amount of tax
rates for the service they provide to
their customer. Similarly Brown's hotel
also charge several taxes from the
customer in lieu of the service to
provide to their customer, which rises
the costs of rooms and make it more
expensive for customers. Therefore due
to this several times customer do not
prefer to book their room in hotel which
negatively affect the overall
profitability of hospitality industry.
 Seasonality- Mostly people go to
another city during vacation and
holidays therefore it is the main time
when there is boom in this industry
(Rao, 2018). In the terms of given
company, sales and profitability seen in
business generally at the time of
vacation or holidays season. Therefore
it is considered as a main weakness of

hotel which increase helps to increase
their business and rise in profitability.
hospitality industry which mainly affect
their profitability in negative manner.
Opportunities
 Huge scope for technology- In
hospitality industry there is a huge and
wide scope of technology in the form of
Artificial intelligence, robotics and
many more. By adopting these
technologies in give company,
management of Brown's hotel can
transform their way of service which
they provide to customer in market,
which would help to rise in sales and
profitability of company (Rose, 2021).
Threat
 Rise in pandemics- There are different
variants of corona virus are rising due
which hospitality industry would be in
major loss. In the terms of given
company, It will also negatively affect
its sales and profitability (Lämmle,
2020).
Design and Development of product or service.
The product which given company will going to launch in market are robots. By which
Brown's hotel will provide tremendous experience to their customer in the form of their services.
Moreover, cases of corona virus is also increasing so by using robots in their operational working
given company will reduce spreading of corona virus upto some extent. Below are the ways
which shows that how management of hotel in going to invest or spend their money while
implementing this technology.
Expenditure Cost
Import charges of robots from another country $5000 per robot (20*5000) $1,00,000
Testing cost $2000 per robot (20*2000) $ 40,000
Salary of Technical staff for their maintenance
and up gradation.
$800 per person (20*800) $16,000
Total cost or investment require for using
above product in business.
$1,56,000

Hence the above tabular representation of data shows that how management of company going to
spend their investment.
Operation and management plan of Brown's hotel.
 Physical location- This factor play a very important role in business. For using robots in
their operational functionality Brown's hotel require a huge place for storing them after.
Location needs to be very big and so that twenty robots can store in that place together.
 Facilities- Robots run by battery which is placed inside them. Therefore in order to
properly charge their batteries there is need of electrical socket facility at every place. So
that no or less time get waste in search of electric socket whenever Robots battery would
get down (Tanev, Rasmussen, and Hansen, 2020).
 Equipment- For proper functioning of robots there is need of all sort of equipments
require in Brown's hotel are as follows:
1. Hardware- It is consider as a outer metal body of robot. Therefore respective hotel must
require sufficient quantity of hardware components in their physical location in case if
somehow outer body got damage then they can replace it with another one.
2. Software- Robots run on the basis of software install in them. Therefore Brown's hotel
must use advanced technology such as machine learning and artificial intelligence to
make use that robots learns everything themselves in case if circumstances change.
 Human resource- Handling or controlling of robots require technical staff therefore
mentioned hotel must employ highly qualified staff to control or operate robots in given
hotel. Staff of a given organisation must know how to operate technical glitches in robot
so that no time get if somehow robots get some technical faults.
Financial factors
Current or historical financial information

Projections
On the basis of above financial data following assumptions made are as follows:
 The business of Brown's hotel will increase in future as given business is starting making
uses of robots which will help to rise in sales as well as profitability of business.
 In graph it has been seen that after 2021, graph is starting getting fallen down due to the
reason of new variant of corona virus is increasing in economy. Therefore management
of hotel need to take some relevant measure to prevent spread of corona virus (Fernandes,
2020).
Break- even point.
It is considered as a situation in business in which the revenue of business is equal to
expenses of business. In other words it is considered as a situation of no profit no loss.
There are two ways by which business calculate break even point in their business
1. in Units
2. In amount
In Units- Break-even point= Fixed cost/(Revenue per unit- Variable cost per unit)
In Amount- Break even point= Fixed costs/(sales price per unit* BEP in units)
In above formula, fixed cost are the cost that are independent of the sales volume such as rent.
Whereas variable cost are those cost which are dependent of the sales volume such as materials
needed for production or manufacturing.
Therefore in the terms of given business, the break even point would be $10,000 because it is the
cost which is needed to cover the cost of business. Hence it is sales price of business in which
given hotel will only cover there cost. Therefore in order to attain a situation in business in which
it will only cover its cost it is necessary to do sales of only $10,000.
Current and historical financial information.
(Source: Browns Beach Hotels PLC)

Expenses
The following are the expenses of given business are as follows:
Expenses Cost
Administration expenses $500 per month
Receptionist salary $700 per month
House keeping salary $400 per month
Advertising and marketing expenses $1000 per month
Total $2600
Funding request
For increasing the operations and launching of new product in market. Given company is
approaching to so many investors to raise their money. For the development of new plan of
launching robots given company require an investment of $1,56,00.
critically evaluate the alternative sources of business finance and their relevance to the
contemporary business practice involving sound ethical practice.
Traditional source of finance- These are considered as a source of finance which various
financial institution provide to their customer. These are generally considered as more affordable
and easiest source of finance which business can raise. Several examples of traditional source of
finance are:
 Overdraft- It is kind of loan facility in which customer are allow to raise fund from the
bank beyond their current balance available in bank. Generally bank give overdraft
facilities to businesses to meet out their several short term of goals.
 Bank loans- It is kind of financial service in which banks lend money to their customer
for certain or fixed period of time. There are different types of bank loans such as
personal loan, business loan, vehicle loan and many more.
 Credit cards- It is a type of financial instrument which is issued by banks with a pre-set
credit limit. It allows user to do cashless transactions. This card is issued to user with
certain credit limit. User of the card have to spend money on the basis of their card limit.
Alternative source of finance.

 Crow funding- It is new and latest way of raising capital from market by collaborative
efforts of large number of individual investor. This type of funding is done online via
several social media and websites. There are several types of crow funding such as:
1. Equity based crow funding- It is type of crow funding in which contributors are allowed
to become part owners of business by trading capital of company in equity shares.
2. Reward based crow funding- It involves all those individuals who are contributing to
business in exchange of the rewards mainly in the form of product or service (Gassner,
2021).
3. Donation based crow funding- It is considered as a source of funding in which large
number of contributors contribute their money individually without expecting anything in
return. Common purpose for this type of funding is of natural calamities, disaster relief
and many more.
 Angel investor- These are considered as an individuals who offer promise to star up up
companies for funding in return for the share in business usually in the form of equities
and royalties.
Advantage of angel investors is as follow:
 No obligations to pay return- Generally angel investors go on with equity dealings
therefore if somehow business do not perform well business owner do not have
obligation to pay them there share.
Disadvantage of angel investor is as follow:
 Less control- Companies those who hire angel investors for investing generally give
large amount of share to them as a equity. Therefore it left companies with less control
over there funds.
On the basis of above description of funds management of Brown's hotel should go with equity
based crow funding because under this type of funding company will allow their investors to
become part owner of business. Moreover by this form of funding, management of company
have less pressure because there will be no dilution of power within a company and also it will
increase number of shares of company in market.

CONCLUSION
On the basis of above report it has been concluded that proper business plan plays a very
essential for overall functionality of business. It gives direction to business that where it should
go in future. In this report, it has been discussed marketing strategies in the form of 7 p's of
marketing. Moreover competitive analysis have also been conducted by SWOT analysis. Next to
it design and development of product has been given along with description of various factors
such as location, facilities, equipment and many more. Next to it several financial factors have
been covered along with various form finance.

REFERENCES
Books and journals
Tipu, S.A.A., 2018. Business plan competitions in developed and emerging economies: What do
we still need to know?. Journal of entrepreneurship in emerging economies.
Kailer, N. and Weiß, G., 2018. Gründungsmanagement kompakt: von der Idee zum
Businessplan. Linde Verlag GmbH.
Hanák, R. and Grežo, M., 2020. The effect of entrepreneurial experience on the quality of a
business plan proposal in applying for angel investment. International Journal of
Entrepreneurial Venturing, 12(6), pp.617-647.
Hopp, C., Greene, F.J., Honig, B., Karlsson, T. and Samuelsson, M., 2018. Revisiting the
influence of institutional forces on the written business plan: a replication
study. Management Review Quarterly, 68(4), pp.361-398.
Masciocchi, B., 2020. How to make a business plan. In Studies in Surface Science and
Catalysis (Vol. 179, pp. 465-484). Elsevier.
Xu, X., 2020. Compose the Business Plan. In Introduction to Entrepreneurship (pp. 139-163).
Springer, Singapore.
Katz, J.A., 2018. The business plan: reports of its death have been greatly exaggerated. In Annals
of Entrepreneurship Education and Pedagogy–2018. Edward Elgar Publishing.
Teixeira, A.A. and Pereira, I., 2019. The perceived usefulness of the business plan in formal
entrepreneurship education: the perspective of alumni entrepreneurs. Entrepreneurship
Education, 2(3), pp.91-133.
Nicolò, D., 2018. Carenze informative e vulnerabilità delle imprese giovani: il ruolo del business
plan. Management Control.
Kiesel, S. and Harkiolakis, N., 2021. Findings from 20 years of business plan competitions in
North-Bavaria. International Journal of Teaching and Case Studies, 12(1), pp.42-62.
Lämmle, A., 2020. Business Plan Handbook: Practical guide to create a business plan. BoD–
Books on Demand.
Rose, M.E., 2021. Writing A Business Plan For A Small Business.
Tanev, S., Rasmussen, E.S. and Hansen, K.R., 2020. Business plan basics for engineers and new
technology firms. In Start-Up Creation (pp. 19-40). Woodhead Publishing.
Fernandes, M.D.P.B., 2020. Mgtricity business plan-market analysis (Doctoral dissertation).
Gassner, N.A., 2021. Business plan of" travelsolut" with its brand" Einreiseservice
Kapverden" (Doctoral dissertation).

Yang, L., Henthorne, T.L. and George, B., 2020. Artificial intelligence and robotics technology
in the hospitality industry: Current applications and future trends. Digital transformation
in business and society, pp.211-228.
Salazar, A., 2018. Hospitality trends: opportunities and challenges. Worldwide Hospitality and
Tourism Themes.
Rutti, R.M., Garcia, F. and Helms, M.M., 2021. Entrepreneurship in Peru: a SWOT
analysis. International Journal of Entrepreneurship and Small Business, 42(3), pp.369-
396.
Rao, Y.S., 2018. Scholarly Communication Cycle: SWOT Analysis. AIJR Abstracts, p.9.
Online
Browns Beach Hotels PLC, 2021. [Online]. Available at:
<https://www.wsj.com/market-data/quotes/LK/XCOL/BBHN0000/company-people>