Business Goals
First year:
- Reach 25% occupancy rate (surpassing our projected 20%)
- Establish good neighborhood relations
- Develop an award-winning brochure
- Be listed on-line and in associations and AAA booklets
- Create unforgettable guest visits
- Spend ten hours a week on marketing
Third year:
- Operating at 40% occupancy rate with 5 guest rooms generating $83,950 income
- Terminate Alexandria's outside occupation
- Attend a national conference
- Actively involved in the Munising Area Chamber of Commerce
- Renovate the basement as a rental apartment for income and snow-blowing help
- Complete a third year written evaluation of the competition, market, service, finances, and personal goals
Fifth year:
- Repaint the outside from dull beige and brown to a more colorful Victorian style to match its time period and to attract tourists
- Develop an offshoot homemade craft or baked goods business
- Continue to develop the front gardens and backyard
- Renovate rooms as necessary
- Hire summer help
- Complete a fifth year written evaluation of the competition, market, service, finances, and personal goals
Summary
Although Bed and Breakfasts have been firmly established in Europe for years, they were only introduced in the United States in the late 1960's. By staying and eating with a family, B&Bs were an inexpensive way to travel and learn about an area. Since then, B&Bs have grown immensely, becoming a weekend retreat from a fast paced lifestyle and a tourism alternative to high-rise sterile hotel accommodations. Signs of the maturing industry are the increase in occupancy rates and number of national, state, and regional associations setting standards, and the number of travel publications, and guidebooks. The Tom Peters Public Library carries over a dozen Bed and Breakfast tourism guides and books.
We are interested in becoming part of this growing home-based business. We see this as an opportunity to invest in a large historic home, gain additional income and do what we enjoy most — meeting people and acting as ambassadors for Munising. We see our role as an information resource for guests on events such as the two Food Festivals at the Lower Harbor Park, Limestone concerts, Munising Choral Society concerts, Pine Theatre performances, Rock the Arts, the Glacier Glide, the U.P. 200 Sled Dog Race or even the outhouse races in Trenary. And for those couples wanting a cozy, romantic evening we can just as easily retire quietly to our separate quarters.
The Victoria Bed & Breakfast Company is seeking $160,000 in financing at 8.5% interest over 20 years from a banking institution for the purchase of the property. Before any renovations, an independent appraisal company assessed the property at $260,000 in August, 1995.
An additional $85,000 line of credit at 9.5% interest over 5 years is being sought to cover startup costs. Early renovations planned include adding a sprinkler system (required), two bathrooms, installing gas fireplaces, three new interior doors, a new entryway by the kitchen with a deck and stairs to the parking area, landscaping the front yard, wallpapering, painting and furnishing common and guest rooms.
We are investing $100,000 as a down payment for the property purchase. We have already invested $6,670 in start-up costs and have another $5,000 available for closing costs.
