Business Plan Evaluation

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  • Topic: Caribbean, San Francisco Bay, San Francisco Bay Area
  • Pages : 5 (1491 words )
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  • Published : November 3, 2012
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To:Kristen Brown
From: John Doe
Date: December 9, 2009
Re: Business Plan Evaulation
You have asked me to review the following two business plans: •Vette Kat Harbour Bed & Breakfast
Magnolia Inn
I recommend investing in the Magnolia Inn. I have taken the time to evaluate and quantify the two business plans. Each category will be rated on a scale of 1-5, five being most desirable. While reviewing the information I have determined a few factors that helped me draw my final conclusion. These factors are: •Experience

Competition
Feasibility
Demographics
Finances
Experience
The Vette Kat Harbour Bed & Breakfast management team has a colorful background of experience. Kayman, a member of the establishment, has an MBA and has worked in the hotel and resort industry for more than 13 years; including past experience working as general manager. As a result he has a large network of friends in the industry. The other two members on the management team, Max Nevis and Jenné Sequa, are trained chefs. The Magnolia Inn management team is a married couple who in recent years sold a motel to start up this bed & breakfast. They will be residing in the Inn with their own living quarters. No educational background has been formally stated, but the previous motel venture is noteworthy. The Vette Kat Harbour Bed & Breakfast – 4.0

The Magnolia Inn – 3.0
Competition
The Vette Kat Harbour Bed & Breakfast claims to have a high competitive edge. The location in the Caribbean is a hot spot for tourists. Each year over 20 million people visit the Caribbean Islands. The number of bed & breakfast places in the area are limited. Due to the expense of traveling and living the threat of new entrants to this industry in the Caribbean is low. In order for there to be a new start up hotel in the Caribbean is going to be costly for outsiders. Another great asset to the business is Kayman, as previously noted, he is known for his experience. With the Carribean Islands loaded full of large resorts, a bed & breakfast is not a common site to the area, and will provide a great getaway for travelers. The Magnolia Inn is located at Half Moon Bay in the San Francisco Bay area. This place is already loaded with bed & breakfasts. Two of their main competitors are the Riptide Inn, and the Bayshore Inn. Building an Inn on highway 101 is not a new thing, therefore, supplier power is low. It would not be hard to set up an Inn in San Francisco, therefore, the barriers of entry are low. The Magnolia Inn has one competitive edge, their oceanic view, and plans to attract customers from the highway to gain a piece of the market share. A plus for the Magnolia Inn is a vacation to San Francisco is much more affordable than to the Caribbean. If the Magnolia Inn can make a name for itself, it will become a very profitable investment. The Vette Kat Harbour Bed & Breakfast – 4.0

The Magnolia Inn – 3.0
Feasibilitiy
The Vette Kat Harbour Bed & Breakfast seems too good to be true. An experienced MBA graduate, with the ability to start a successful Bed & Breakfast in the Caribbean seems like a lucky combination. I would recommend confirming the credentials of Mr. Kayman. If Mr. Kayman is as good as his business plan is written, than this venture is worth the investment. You may never find another chance to be apart of a Caribbean venture. A notable risk of feasibility is the people on the management team are all related. Family can be a threat to entrepreneurial ventures. Any kind of conflict in the family has potential to affect the business. Opening this kind of Inn in the Caribbean seems like the entrepreneur’s dream ,more than it is a reality. The Magnolia Inn is relatively close to home. If you would like to learn more about your investment, it wouldn’t take long to get from Seattle to San Francisco. The feasibility of this venture I feel is quite high. The owners already have a knowledge of what is needed to own and run a motel. In addition,...
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