Bed & Breakfast / Boutique Inn

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Maple Hill Inn is a bed and breakfast in a historic small town, with five guest rooms, a hot breakfast and a warm welcome. We host travelers, couples, families and small groups who want something more personal than a hotel. Many travelers want a place with character, local knowledge and a friendly host, and are tired of anonymous chain hotels. Our area has few small inns, and the ones that exist are often fully booked. We will win guests by being welcoming, spotless and thoughtful, and by helping guests discover what makes our town special. Here is what our numbers show. We expect sales of about $161,700 in Year 1, growing to about $646,900 by Year 5 as we fill more nights, add experiences and events, and add housekeeping and breakfast staff. We expect a loss of about $43,000 in Year 1 while we build our customer base, then a profit from Year 2 (about $33,300), growing to about $209,200 by Year 5. We need $173,500 in total. That covers $137,500 in startup costs (furnishings for five rooms, a breakfast kitchen, laundry, safety systems, opening supplies, permits, insurance and a website) and a cash cushion of about three months of bills. I am putting in $40,000 of my own money, and I am asking for $133,500. This plan assumes I already own the house we will use as the inn. The purchase of the building and any mortgage are not included. I am Sandra Coleman, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Maple Hill Inn will be a limited liability company (LLC) in New Mexico, owned by Sandra Coleman. We will work from my house, with five guest rooms, a breakfast kitchen and a common room. What we believe. Welcome guests like friends, keep every room spotless, serve a great breakfast and share what we love about our town. What we offer:
- Five comfortable guest rooms with private baths. - A hot, homemade breakfast each morning. - Local tips, maps and recommendations. - Add-on experiences: tours, dinners, romantic packages and small events. - Space for small weddings, retreats and gatherings. Licenses and insurance. Bed and breakfasts are regulated by local zoning, fire and health rules. Before buying or opening, we confirm that zoning allows lodging at the address, and we obtain a lodging license, a health permit for serving food, a fire inspection and any other permits our city and county require. Our zoning allows an inn of up to six rooms with a conditional use permit, and we need a lodging license and a health permit. We collect and pay lodging taxes, carry property and liability insurance, meet accessibility rules and follow the local rules for alcohol if we ever serve it. Where things stand today. I own a large house near the town center, I have worked in a hotel for six years and I have listed one room online for a year.

Problem & Opportunity

Travelers near us want a personal place to stay, and there are few choices. 1. Few small inns. Many towns have only chain hotels. 2. Hard to find. Small inns often have limited online presence. 3. Uneven quality. Some lodgings are not clean or not well run. 4. Short stays. Many visitors do not know what to do in the area. How we know people want this. My one listed room has been booked 60% of nights, and guests asked for more rooms and a breakfast.

Products & Services

What we sell. 1. Room bookings. Overnight stays with breakfast. Our plan assumes an average of about $165 per night in Year 1, rising to about $185 by Year 5. Breakfast, laundry, supplies and direct costs run about $35 per night. We expect about 900 room nights in Year 1, growing to about 3,109 a year by Year 5. 2. Add-on experiences and events. Tours, dinners, romance packages and small gatherings. Our plan assumes an average of about $220 per experience in Year 1, rising to about $244. Direct costs run about $70 per experience. We expect about 60 experiences in Year 1, growing to about 294. Our prices. Standard room $150 a night. Deluxe room $185. Romance package $260. Breakfast included. How it works for the customer:
1. An easy booking online or by phone, with clear policies. 2. A warm welcome, a room tour and local recommendations. 3. A comfortable stay and a hot breakfast. 4. A friendly goodbye, and an invitation to return and review. Gross margin, explained. "Gross margin" is the share of each sale left after paying for materials and direct job costs. Our plan shows about 78% in Year 1. That money pays the owner and crew, vehicle costs, insurance and other bills.

Market Analysis

Who will hire us:
- Couples on getaways and anniversary trips. - Families visiting relatives or the area. - Wedding guests and small event groups. - Business travelers who prefer a quieter place. Where we will work. Guests from our region and beyond, who come to visit the historic downtown, the river trail and the lake, within 10 minutes of the inn. Season. Business is busiest in summer, fall and on holiday weekends, and slower in winter. We plan special packages, midweek offers and small events for the quieter months. Our plan is careful on purpose. About 900 room nights in Year 1 is about two or three rooms filled on average each night, which one innkeeper and part-time help can handle well.

Competitive Landscape

Other choices customers have:
1. Hotels and motels. Riverside Hotel (a made-up name) charges about $140 a night; known for location, but impersonal. 2. Other bed and breakfasts and inns. We study their rates and offer something distinct. 3. Short-term rentals. Convenient, but without breakfast and a host. How we will win customers: a warm welcome, spotless rooms, a great breakfast, local knowledge and good reviews.

Marketing & Sales Strategy

How people will find us. - A strong website with photos and direct booking. - Listings on online booking sites, which add commissions but bring guests. - Reviews on travel sites, which we ask every guest to leave. - Partnerships with local attractions, wedding venues and tourism offices. - An email list for returning guests with special offers. Marketing budget. About $14,000 a year in online booking commissions and marketing. The sign, logo, website and photography are paid for from startup costs.

Operations Plan

How the business runs day to day. Guests and rooms. The innkeeper welcomes guests, cooks breakfast and manages the house. In Year 1 the innkeeper works with one housekeeping and breakfast helper, and we grow to three by Year 5. Each day has a housekeeping and breakfast schedule, with rooms inspected before arrival. Equipment. About $120,000 to start: beds, mattresses, linens and furniture for five guest rooms; breakfast kitchen equipment; laundry equipment; fire safety and security systems; common room furniture and decor; outdoor furniture and landscaping equipment; booking software, Wi-Fi and point-of-sale; housekeeping equipment; accessibility upgrades: ramp and grab bars. We set aside about $8,000 to $10,000 a year for repairs and replacements. Upkeep. Rooms cleaned and inspected daily, linens washed and replaced, the building and grounds maintained on schedule and the kitchen kept to health rules. Safety. Smoke and carbon monoxide detectors in every room, clear exits, a fire plan, safe food handling and secure guest information. We follow fire and accessibility rules. Running costs in Year 1: property maintenance and utilities about $22,000, online booking commissions and marketing about $14,000, housekeeping and breakfast service about $16,000. Scheduling and billing. Booking software that handles reservations, payments and guest messages, with daily housekeeping schedules.

Management & Organization

Who runs the business. Sandra Coleman, owner. As owner and innkeeper I will welcome guests, cook, manage bookings and housekeeping, market the inn and handle the money side of the business. I plan to pay myself $48,000 a year in salary in Year 1. Crew. Housekeeping and breakfast staff at about $28,000 a year each (or part-time pay): one in Year 1, one in Year 2, two in Year 3, three in Year 4 and three in Year 5. People who will help us: a bookkeeper or tax preparer, an insurance agent, and a free mentor from SCORE or the Small Business Development Center (SBDC). Kevin Howard serves as a key volunteer advisor.

Milestones Narrative

Our goals and when we plan to reach them. - Before starting: confirm zoning, get the licenses, permits and insurance, furnish the rooms and kitchen, build the website and open for bookings. Target start: May 2027, before summer. - First year: host about 900 room nights and 60 add-on experiences, for about $161,700 in sales. - Year 2: keep one housekeeping and breakfast helper and fill more nights, about $275,100 in sales, and a profit of about $33,300. - Years 3 to 5: grow to three housekeeping and breakfast staff and about $646,900 in sales by Year 5. Growth depends on hiring good people and winning the work, so treat the later years as goals, not promises. What we check every week: rooms booked, occupancy, reviews, housekeeping and food costs, and cash in the bank.

Funding Request

How much we need and how we will use it. Total needed: $173,500. This number comes from the Funding Need Calculator in this plan. It adds up: - Startup costs of $137,500, listed item by item in the Startup Costs section (about $120,000 for furnishings, the kitchen, laundry, safety systems, common rooms and accessibility upgrades, $3,000 for opening linens, toiletries and food, $2,000 for the lodging license, health permit and fire inspection, $5,000 for the first insurance payments, $2,500 for entity formation, a zoning review and bookkeeping, and $5,000 for the sign, logo, website and photography). - A cash cushion of about $36,000: the deepest cash dip in the early months plus about three months of bills, so slow weeks do not put the business at risk. Lenders call this "working capital." - Together that comes to about $173,500 (rounded up to the nearest $500), which is the total we are planning for. Where the money comes from: - My own money: $40,000. - Amount requested: $133,500. Kind of funding we are looking for: an SBA 7(a) loan through a local bank or community lender. How we will pay it back. We expect a loss of about $43,000 in Year 1 while we build our customer base, then a profit from Year 2 (about $33,300), growing to about $209,200 by Year 5. With this funding, the business has money in the bank every year of the plan. The loan is planned at 12.75% interest over 10 years, the most the SBA allows for a loan this size, so payments of about $1,974 a month are already included in our cash flow. What we are offering the lender: the property and my personal guarantee A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan: - Phase 1: start by renting one or two rooms in your own home where local rules allow, with simple breakfasts, while keeping your current job. Startup can be under $5,000. - Phase 2: once you have regular guests and good reviews, expand to five rooms, add a breakfast kitchen and follow this plan. To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match. The plan assumes the owner already owns the house, but lodging and short-term rental rules, including zoning approval, vary by town. Local rules and costs vary by town. All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or certificates. - A personal financial statement (a list of what you own and what you owe; lenders usually provide a form). - Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov). - Proof of insurance, or a quote. - Proof of ownership or a lease for the building, and a zoning approval letter. - Your lodging license, health permit and fire inspection, or the steps to get them. - Photos of the property and a sample rate sheet. If you don't have any of this yet, no worries - let's continue. The assumptions behind our numbers (change them in the Financials section to match your own):
- Room Bookings (per night): about $165 per night in Year 1, rising to $185; about $35 per night in direct costs; about 900 nights in Year 1, growing to 3,109. - Add-On Experiences & Events: about $220 per experience in Year 1, rising to $244; about $70 per experience in direct costs; about 60 experiences in Year 1, growing to 294. - Owner salary: $48,000 a year. Crew: $28,000 a year each, from one in Year 1 to three in Year 5. - Other yearly costs in Year 1: property maintenance and utilities about $22,000, online booking commissions and marketing about $14,000, housekeeping and breakfast service about $16,000. - Tax rate: 21%. - Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs