VACATION RENTAL BUSINESS PLAN SAMPLE
In starting a vacation business, you need to think about having your strategies all structured. This is the lifeline of any business. A large part of this begins with having a sound business plan.
Not only do you need a good plan for your vacation business, but you’ll also need to follow through with it.
In other words, full implementation will be necessary to succeed. This sample gives you an idea of how to begin.
Here is a sample business plan for starting a vacation rental service company.
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Executive Summary
Blue Caribbean is a luxury apartment service that targets the booming tourism industry in the United States. A lot of our services are targeted at the growing middle class in America and across the world. With a steady rise in this class of tourists comes to an increasing amount of disposable income.
We are a licensed tourist-focused business located in Cape May, New Jersey. This is a tourist haven which has grown in reputation over the years. The increased visits by both local and international tourists to this destination makes it perfectly suited for our business. Hence our decision to offer exceptional services to tourists who deserve more.
Our workforce has been carefully chosen from the industry’s best. These are the people who will aggressively drive our growth campaign. The experience and expertise gained from their impressive years of service make our workforce adequately suited to meeting customer expectations.
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Products and Services
This is where we pride ourselves as an innovative and customer-focused business. We have developed a range of exciting services and products. These are aimed at maximizing our profit potentials. The market research we conducted has shown that tourists are likely to spend more on certain types of services.
This has led us to focus on providing family vacation rental services in addition to the most common types. We have even gone a step further to make provisions for pet owners. However, this won’t disturb or interfere with tourists who love their privacy. In other words, there’s something for everyone.
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Vision Statement
Our brand perception is utmost in our poise to set up a formidable business. We are driven by excellence in all areas of our operation. Through this, we plan on eventually establishing a rental business that will be known beyond Cape May.
We hope to become not only a national but an international tourist brand.
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Mission Statement
Currently, there are major vacation rental brands in America. These have captured a greater share of the market. We understand this fully and seek to compete favorably. This is only possible through getting the best hands in the industry. This we already have and are implementing growth strategies that will enable us to compete.
Our focus is on penetrating the top 10 rental vacation business categories in New Jersey within a decade.
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Capital Investments
Starting a vacation rental business is basically capital intensive. So far, we’ve expended the sum of $7,500,000.00 on construction other aspects of our operations. However, this won’t be enough as we plan on expanding in the short term. This will require sourcing for funding from the banks as well as investors.
We intend to attract investments to the tune of $15,000,000. A large part of this (70%) will go into the construction and development of new homes. This is in addition to furnishings. The rest of this amount will go into running costs.
We are targeting a loan with an annual interest rate not greater than 9.
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SWOT Analysis
Since we commenced operations 2 years ago, our business has seen a modest and steady climb in profits. This makes us more optimistic about what lies ahead. While things have been good, certain basic indices of our operations show we need to double our efforts.
We have called for an in-depth assessment of our rental business. Experienced business consultants were hired and did a thorough job. The following findings have been made in these key areas;
i. Strength
Our commitment to building a world-class rental service through the recruitment of the best brains in the industry has paid off. These are professionals in marketing, branding, customer service, etc. Through the adoption of best practices in the industry, we have, and continue to witness steady growth.
Our business continues to be a reference point for excellent customer care and client satisfaction. We have also chosen a choice location for siting our business. Cape May is a tourist delight that continues to witness rising tourist visits. The best is yet to come with our expansion plans soon to unfold.
ii. Weakness
Our business operations haven’t been without their own challenges. Thankfully we have been able to identify our areas of weakness. These include our undercapitalization as well as the stiff competition we’re faced with. Despite these weaknesses, our resolve is strong and we plan on overcoming them eventually.
iii. Opportunities
That is the fuel that drives our entire operations. Opportunities are never in short supply in the vacation rental industry. Innovations attract patronage in this industry. As such, this is something we aren’t in short supply of. We will explore all opportunities available in promoting our business.
iv. Threats
In the event of a recession, there will be less disposable income. This presents a problem as a lesser number of people will patronize our business. Nevertheless, we will also be planning for such situations. This will enable us to remain afloat even at the worst times.
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Competitive Advantage
We hold a competitive advantage over our competitors due to the quality and depth of our workforce. Our experience and understanding of the rental industry also give us an edge. These will be fully exploited to make our business more visible and growth-focused. We also have an attractive remuneration package.
This is above the industry’s average and helps us attract the best hands. Our location counts for something too. We deliberately chose Cape May due to its status as a tourist favorite.
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Sales Projection
Our post-expansion projected sales are huge. The current demand for our services will see a jump when we successfully increase our capacity. A 3-year post-expansion shows a significant increase in our earnings as shown below;
- First Financial Year $2,000,000.00
- Second Financial Year $4,500,000.00
- Third Financial Year $10,400,000.00
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Target Market
Our target market is diverse. However, we are more focused on the rising middle-class population. This isn’t only within the United States alone, but around the world. Our vacation rental business will also be available to people with families as well as those with pets among others. We hope to be a one-stop tourism destination with a focus on diversity.
This vacation rental business plan sample has been summarized for easy understanding. You can use this to create your own unique plan with a focus on implementable strategies which are growth-focused.