business development plan, business development canvas model, Bplan

1. BACHELOR’s (HONS) OF ARTS BUSINESS IN HOSPITALITY
MANAGEMENT
ENTREPRENEUR BUSINESS PLANNING
ASSIGNMENTS
BUSINESS DEVELOPMENT PLAN OF NEW VENTURE
MODULE LEADER: MAYA PRAKASH PANT
SUBMITTED BY: YUBRAJ BALAMI (00014633)
BISHAL RAI (OOO14631)
UNISH RAI (00014630)
BIBEK LOPCHAN (00014600)
JENISH NEMKUL (00014627)
RAJAT MALLA (00014609)

2. 1 | P a g e
2017
Boucha group of brother
[BUSINESS DEVELOPMENT PLAN OF
HOTEL SUKUL
Documents is the business development plan and the strategy of the new venture based on the
analysis of the environment of Nepal.
(SPEND YOUR QUALITY TIME)

3. 2 | P a g e
Contents
Executive summary.......................................................................................................................................4
Introduction ..................................................................................................................................................5
Location.....................................................................................................................................................5
Key prepositions........................................................................................................................................7
Mission statement ....................................................................................................................................7
Vision.........................................................................................................................................................7
Objectives .................................................................................................................................................7
Methodology.............................................................................................................................................8
Limitation..................................................................................................................................................8
Company summary.......................................................................................................................................8
Company ownership .................................................................................................................................8
Market analysis summary.............................................................................................................................8
STP analysis (segmentation, targeted customer, positioning) .................................................................8
SWOT analysis...........................................................................................................................................9
PEST analysis...........................................................................................................................................11
Marketing and sales plan............................................................................................................................12
Marketing mix.........................................................................................................................................12
Marketing strategy..................................................................................................................................13
Online marketing; ...............................................................................................................................13
Advertisement.....................................................................................................................................13
Word of mouth....................................................................................................................................13
Positioning and Branding....................................................................................................................13
Public relation departments.................................................................................................................13
Marketing Campagna..........................................................................................................................13
Financial strategies .....................................................................................................................................14
Assumption & startup detail...................................................................................................................14
Profit & loss.............................................................................................................................................14
Balance sheet..........................................................................................................................................14
Exists strategy .............................................................................................................................................14
Annexes.......................................................................................................................................................14
References ..................................................................................................................................................20

4. 3 | P a g e

5. 4 | P a g e
Executive summary
Hotels industry is one of the biggest sector on providing employment opportunity. Each year more
than billions of rupee are invested in the hospitality sector of Nepal. In 2016, Nepali and foreign
investors floated plans to invest NRS 60 billion in different hotel projects. It is estimated that NRS
300 billion has already been invested in the hotel business so far. Various globally renowned hotel
chains are entering or re-entering the country partnering with large local business houses and the
Nepali Diaspora to invest in different hotel projects. (new business age, 2017). Hence this
condition of hotel business has increased the curiosity to the general public as the result people
started visiting these hotel. Thus the trends of visiting hotel is in top chart among other trends.
Guests are even visiting to experience that unique service provided by the hotel.
Talking about the development prospects of Nepal, Nepal is between two big, giant country, which
is fascinating the whole world with their innovation in each and every field. On the south there is
communist country China with the biggest economy in the world and on the north there is India
with socialist model, which is one of the biggest country in production sector. And there is no
doubt on the development of Nepal. Because Nepal is in the position of the small stone trapped
between two big hot stones. And it is impossible that the stone remain cold. I mean sooner or later
Nepal is going to be one of the developed countries. But what I wanted to say is, Nepal is moving
towards the development where people are continuously engaged in their business. They are
working day and night to make their dream comes true. They becomes tired and frustrated between
this processes, where they need a break and get refresh. Precisely, what I am talking is about that
business plan which will refresh them and refill their energy level. And that ultimate business plan
that I am talking about is the beach themed hotel. As Nepal is one of the top 10 destinations of
Asia. (lonely planet, 2017) There is more possibilities of hotel. Hospitality in today’s scenario, is
one of the most profitable as well as biggest sector in the world in term of investment, profit
generation as well as job creation. It may play the ultimate role even in the development of the
country.

6. 5 | P a g e
Introduction
India relies on internal tourism by 70% so as China. Within eight years? Time 7,198 tourists
visited Sirbubari village. Out of this figure 5858 visitors are internal tourists. The above figures
indicate that only 1340 foreign visitors have visited Sirubari till the date. Therefore, it reveals that
almost 81% visitors are internal tourists. (glorious himalaya trekking, 2012). As the statistic reveal
that the internal tourism are the core factors. As this hotel will focused on those internal tourist
with minimal time for the refreshment.
This beach hotel will be operated by its mother company “Boucha the group of brothers” located
not so far from capital Kathmandu but far enough from all these noise, sound and their busy life
with calm and sound environment so that business man as well as professional people doesn’t need
to take a long holidays to be refreshed. This hotel will be the place for the friends and families,
couples and children who will spent their quality time as their wishes. This place will be also the
place for events, functions, honeymoon and celebration. The sea theme will be created in the hotel
with the sand all over the place. Every possible as well as profitable customers will be targeted
through the services which suit them. Location is the most important aspect for this hotel so that
people feels the way that I had described earlier. That refreshment that we want them to feel.
Along with the refreshment and the place for the quality time as well as place for event, the hotel
will have one more unique quality in the contest of Nepal. And that would be the scuba diving
which is generally done in the big sea and ocean. Since there are no any sea and ocean in Nepal
the concept of scuba diving is going to attract the people from whole part of Nepal. With this
unique experience, the hotel will be more popular and helpful to generate more revenue. Nepal of
course does not have any sea or ocean for scuba diving but Nepal does have that enough water for
scuba diving. Nepal do have lakes as well as upcoming project like hydro power dam where the
concept of scuba diving can be implemented. With the artistic effects and the additional sea animal
will make this event more attractive and adventurous.
Location
Location is the main factor that affect directly to any hotel. As stated above, location needed to not
so far from capital Kathmandu but far enough that make guest relax and refreshed. Hence the
proposed location for this project is the upcoming hydro power project of Nepal in the
central/western part of Nepal. This location is more feasible than any other location. Because it is
nearer to Kathmandu and the infrastructure like transportation, communications and other
infrastructure are well developed.

7. 6 | P a g e
Fig; projected Budhigandaki hydro project dam of Nepal with capacity of more than 1200 MW.
Fig 2: real picture of project Budhigandaki hydro project.

8. 7 | P a g e
Key prepositions.
The concept of hotel has changed a lot more comparing to the previous years. Hotel is the overall
package of entertainment, lodging, fooding, adventure and so on. The components or the facilities
of the hotel determines the quality along with the guest flow. But sometimes over generalization
of the departments creates misunderstanding which becomes costly to hotel as well as monotony
to the employee. Hence here are those components of the services that the hotel will provide to its
customers.
1. Hotel will target to those guests who wanted a short break and spend their quality
time. Therefore, we will also be focusing on their short stay. Hence the hotel will
consist of 20 standard double bed rooms for couple, 20 twin rooms for families, 10
deluxe bed rooms and 5 villas with attached swimming pool targeting 130 people
at one time.
2. For the F&B there will be standard restaurants and bar. Hotel will have two bar and
two restaurant and the banquet hall. One bar will be inside the hotel with the theme
of reggae music along with the performance stage and another at the beach serving
beverage and light snacks. One restaurant will be inside the hotel building and on
in the roof top of the building with different cuisine and different theme.
3. Adventure sport as well as event will be organized with the demand of the time.
4. Hotel will be the place for the destination marriage, anniversary
Mission statement
Place to spend the quality time. “Give us your time, we will design it, decorate it, and furnish it to
be the best,”
Vision
We would be one of the best place to hang around. Where the Boucha groups of brothers will
expand its business with other themed hotel with the brand name Hotel Sukul.
Objectives
Objectives of the Hotel Sukul the beach resort is to provide place for the quality time with the
family, friends and relatives with quality food, beverage and the accommodation. Here are the key
activities or the objectives of hotel.
 As the resort will be the place for the guest to spend their quality time, resort will provide
each and every facilities that makes their stay memorable. That may be camping, scuba
diving, boating or another.
 Hotel Sukul will organize different events to attract its new customer. Mainly the events
like musical concert to attract the customer in the weekend and other special days. Events
is also one of the main sources for the revenue generation.
 We will also provide the place for the events of our valuable customer from birthday
celebration to the destination marriage as well as their anniversary.

9. 8 | P a g e
Methodology
The plan is designed on the following base.
 Interacted with team member as the possibilities and the types of hotel industry in near
future.
 On the basis of the data of tourism and the future plan of the government.
 And the international trend of hospitality and tourism.
Limitation
These plan are made and design as per the dream project of the group. There is no guarantee of the
facts and figure that is provided on the report is 100% true.
Company summary
Hotel Sukul will not compromise on the comfortable stay of the guest. Established as the hub for
the quality time, hotel will provide the place for the event, food, beverage, rooms and organize
adventure sports events as well as musical events.
Company ownership
The ownership of the company will be depend upon the interest of the investor and the types of
ownership. However, limited liability limited partnership or joint venture types of ownership may
be the effective and efficient. While the capital of the company will consist of 75% of loans and
remaining as equity.
Key partners.
 Employee
 Suppliers
 Financial institution
 Corporate companies
 Business investors
Market analysis summary
Comparatively growth on the international tourism has boomed the hotel industries in Nepal.
Where the increasing trend on the internal tourism has even developed the tourism industry in
Nepal.
STP analysis (segmentation, targeted customer, positioning)
Proper analysis of the market leads to the successful business operation. As the marketing in
today’s scenario has become one of the most important aspect, organization should not negotiate

10. 9 | P a g e
the marketing of the organization. For proper as well as effecting marketing, organization should
carry out the numerous analysis. Where STP is one of the.
Segmentation
The segmentation of the market for the purposed hotel are.
1. Business people from Kathmandu, Lalitpur and Pokhara
2. Local people of Gorkha and Dhading
3. Tourist visiting Gorkha durbar
4. Upper medium class families
5. Internal tourism
6. Wildlife tourism
7. Honeymoon travelers
8. Family
9. Event visitors
10. Celebrities & VIPs
Target market
The target market for the hotel will be those who can afford the price of the hotel. Specially those
people who can spend 50$ per night in average. They will be business people, upper medium class
as well as higher class families, international tourism, honeymoon travelers, celebrities and VIPs.
Positioning
The hotel will also brand itself as one of the best place for the reasonable price. The images of
hotel will be set as the place where people can spend quality time. Will set as the hub for the busy
personalities who get very less time to enjoy their life.
SWOT analysis
Every organizational have strength as well as weakness in their internal environment. Where
external environment is also the part that should not be negotiate that contain opportunities and
threats. SWOT of the HOTEL SUKUL is described below.
Strength Weakness
 Competitive pricing
 Unique facilities/product
 Challenges on maintaining standard.
 High cost to maintain the theme
Opportunities Threat
 Growing no. of internal tourism
 Trend of staying night in hotel
 Increasing no of event visitors
 Higher competition on tourism market.
 Unstable government and their policies

11. 10 | P a g e

12. 11 | P a g e
PEST analysis
PEST analysis is the political, economic, socio-cultural and technological analysis. It is the
external factors which have high possibilities to affect the organization.
Political environment
The condition of Political environment of Nepal is improving gradually. As the local level, state
level and constituency election has recently finished, there is high possibilities of stable
government in Nepal for 5 years. Hence the political environment in present contest may not affect
the organization.
Economic environment
Our country is based on some of the major factors like tourism, agriculture and remittance.
However, the purchasing power of the people are increasing day by day. Hence the increasing
economic condition and purchasing power is the ultimate advantage for the hotel.
Socio-cultural environment
Influence of the western culture to the Nepalese society has increased the people following the
trends popular in the contest of youth. While the businessman are also slowly following the trends
as well. In fact people are celebrating Christmas and new-year along with the Nepalese festivals
which is also a plus point to us.
Technology
Globalization the biggest impact on the developing of technology. Globalization is that factors due
to which technology has developed to this level. While Nepal is in between the two big developed
country. As technology has affected to the lifestyle of the every people in the world, people of
Nepal didn’t remain untouched.

13. 12 | P a g e
Marketing and sales plan
Marketing mix
Product
Hospitality and tourism business in Nepal is growing rapidly. A lot of investors inside as well as
outside the country is interested on the investment on the hospitality sector. This is only because
they has seen the immense possibilities in hospitality field of Nepal. The idea of beach resort with
scuba diving is one of the new and never heard project in Nepal. So that the product has high
possibilities.
Different product will be introduced according to the season. For example camp firing with hot
food and beverage will be introduced.
Place
There are no such big hotel in that location. Probably there are no such hotels in the whole country.
The place that the project going to take its physical shape has the pleasant environment which is
far from pollution. There is transportation, communication, internet and over all infrastructure. In
facts there is also some of the historical place of Nepal. The palace of Prithivi Narayan shah is
nearer to the place which is historically important. Hence the place is perfect for the project.
Price
The price will be reasonable to its product and service. Where the price strategy to the product
would be the flat pricing or the competitive pricing. However to increase the sales volume the
price for the product will kept low and promoted as the discounted or opening price.
The strategy like package with comparatively low price would be introduces. A separate menu for
the festivals will be created. Since the business goes down in of season, the special offer as well
as promotion tariff and menu will be created accordingly.
Promotion
Today’s world is the world of technology. Everyone has got cell-phone in their hand with internet
connection. Everyone is connected to the social network. Therefore the promotion will also carry
out through internet. The official website of the hotel will be opened, pages on Facebook,
Instagram, twitter and other social network will be opened. Every possible online marketing will
be carried out since online marketing is the fastest way to create awareness.

14. 13 | P a g e
Marketing strategy
In order to attract profitable customer, marketing should must be done. And to do something there
must be the long term as well short term plan. Here are the possible marketing strategy that will
be adopted by hotel.
Online marketing;
With the development of communication and technology, online marketing is becoming ultimate
choice for the long term marketing planning. Marketing through social media like Facebook,
Instagram, twitter and other social networking sites are seen more effective than any other
marketing tools. Connecting or informing people through emails can also be the effective
marketing strategy. Advertisement in different YouTube videos, pop up advertisement in different
website will be carried out.
Advertisement
As advertisement is one of the major part of advertisement, company will not miss the chances to
acquire the customer through the advertisement in different channel. Advertisement in television,
radios as well as internet will be performed.
Word of mouth
Word of mouth is another core factor that have high effect on marketing. Hence, collecting and
recording feedback from our valuable customer will be done eventually. The feedback will be
video recorded and then shown on various channel of marketing to get positive word of mouth.
Positioning and Branding
The proper branding and positioning of the products helps to know about the product in the market.
It shows the company’s position and the value in the market. Identifying the direct competitors,
targeting the market, market definition, brand promise and reason to believe will help to establish
positive brand value.
Public relation departments
Public relation for marketing and betterment of the company is always important to any company.
Therefore the separate public relation department will be created which will look after the public
relation of the company.
Marketing Campagna
An example would be The Duck campaign launched by the American Family Life Assurance
Company in 2000. While the company had been in business since 1955, it had only a 12% brand
recognition rate before the campaign launched. The company used the Kaplan Thaler Group to
improve its name recognition. Kaplan created a new character, the Aflac Duck, who appeared in
ads featuring customers who had trouble remembering the insurance company’s name. (marketing
guides , n.d.) Hence the different marketing campagna will be done to make people remember our
brand.

15. 14 | P a g e
Financial strategies
Assumption & startup detail
 Total capital will be comprises of 75% loan and remaining from equity and share
 Targeted sales will be increased by 10% annually.
 Expenses will be increased by 8% annually
 Rate of depreciation will be calculated 15% per annum.
 Tax rate on earning 25%
 Loan installment will be paid yearly till the 10th
anniversary of the hotel
 The total capital investment including equity share and loan will be $290,040,000
 Sales targeted per year will be $3.82 millions
 Products will be segregated into two part i.e. room and others
Profit & loss
Annual revenue will increase by 10% of the previous year. As the revenue increases the expanses
will increases by 8%. Where the analysis shows that company will bear the loss in the first year.
Bur will gradually improve from second yers onward.
Balance sheet.
Total liabilities of the HOTEL SUKUL will be $29.29 million which will decrease up to
$22.982113 million where assists will decrease up to $23.181113 after 5 years of operation.
Exists strategy
The external as well as internal environment is seen positive for the project. But the uncertainty
cannot be measured so that if the problem such as political, legal or any related issue aroused then
the exit strategy will be leaving the market. That mean selling the brand to any other companies
or ending by selling the assets.
Annexes

16. 15 | P a g e
Year 1 model inputs
Use this area to capture key components of the Profit and Loss Statement and the Balance Sheet for the first year only.
1. Year-one revenue expectancy
<Product room> other products
Number of units sold annually 18,000 32,000
Average sales price per unit $70.00 $80.00
Annual revenue per product $1,260,000 $2,560,000
Total year 1 revenue $3,820,000
2. Year 1 cost of goods sold
<Product room> other products
Expected gross margin per product 50.00% 40.00%
Annual cost of goods sold per product $630,000 $1,024,000
Total year 1 cost of goods sold $1,654,000
3. Annual maintenance, repair, and overhaul
Factor (%) on capital equipment 15%
4. Number of years for straight-line depreciation 10
5. Annual tax rate 25%
6. If long-term debt is being used to finance
operations, enter the total loan value.
$21,780,000
Table for model input
[Company Name]

17. 16 | P a g e
5-Year Financial Plan—Manufacturing
Profit and loss projections
Year-by-year profit and loss assumptions
Year 1 Year 2 Year 3 Year 4
Annual cumulative price (revenue) increase - 4.00% 8.00% 10.00%
Annual cumulative inflation (expense) increase - 4.00% 8.00% 10.00%
Interest rate on ending cash balance 0.50% 0.50% 0.50% 0.50%
Year 1 Year 2 Year 3 Year
Revenue
Gross revenue $3,820,000 $3,972,800 $4,290,624 $4,719,68
Cost of goods sold 1,654,000 1,720,160 1,857,773 2,043,55
Gross margin $2,166,000 $2,252,640 $2,432,851 $2,676,13
Other revenue [source] $0 $0 $0 $
Interest income $1,000 $0 $0 $
Total revenue $2,167,000 $2,252,640 $2,432,851 $2,676,13
Operating expenses
Sales and marketing $80,000 $83,200 $89,856 $98,84
Payroll and payroll taxes 70,000 $72,800 $78,624 $86,48
Depreciation 20,000 20,800 21,600 22,00
Insurance 80,000 $83,200 $89,856 $98,84
Maintenance, repair, and overhaul 25,000 15,600 16,200 16,50
Utilities 30,000 $31,200 $33,696 $37,06
Property taxes 15,000 $15,600 $16,848 $18,53
Administrative fees 18,000 $18,720 $20,218 $22,23
Other 50,000 $52,000 $56,160 $61,77
Total operating expenses $388,000 $393,120 $423,058 $462,28
Operating income $1,779,000 $1,859,520 $2,009,794 $2,213,85
Interest expense on long-term debt 2,025,217 1,888,557 1,738,232 1,572,87
Operating income before other items ($246,217) ($29,037) $271,562 $640,97
Loss (gain) on sale of assets 0 0 1,000
Other unusual expenses (income) 0 0 0
Earnings before taxes ($246,217) ($29,037) $272,562 $640,97
Taxes on income 25% 0 0 68,140 160,24
Net income (loss) ($246,217) ($29,037) $204,421 $480,73

18. 17 | P a g e
[Company Name]
5-Year Financial Plan—Manufacturing
Balance sheet projections
assest Initial balance Year 1 Year 2 Year
Cash and investments $29,040,000 $27,647,188 $26,085,697 $24,682,1
Accounts receivable 0 0
Total inventory 0 0
Prepaid expenses 0 0 0
Deferred income tax 0 0 0
Other current assets 0 0
Total current assets $29,040,000 $27,647,188 $26,085,697 $24,682,1
Buildings $100,000 $100,000 $100,000 $100,0
Land 100,000 100,000 100,000 100,0
Capital improvements 0 0 0
Machinery and equipment 100,000 100,000 100,000 100,0
Less: Accumulated depreciation expense 0 20,000 40,800 62,4
Net property/equipment $300,000 $280,000 $259,200 $237,6
Goodwill $0 $0 $0
Deferred income tax 0 0 0
Long-term investments 0 0
Deposits 0 0 0
Other long-term assets 0 0 0
Total assets $29,340,000 $27,927,188 $26,344,897 $24,919,7
Liabilities Initial balance Year 1 Year 2 Year
Accounts payable $0
Accrued expenses 0 0 0
Notes payable/short-term debt 0 0 0
Capital leases 0 0 0
Other current liabilities 0 0
Total current liabilities $0 $0 $0
Long-term debt from loan payment $21,780,000 $20,413,405 $18,910,151 $17,256,5
Other long-term debt $200,000 $150,000 $175,0
Total debt $21,780,000 $20,613,405 $19,060,151 $17,431,5
Other liabilities 0 0 0
Total liabilities $21,780,000 $20,413,405 $18,910,151 $17,256,5

19. 18 | P a g e
Equity Initial balance Year 1 Year 2 Year
Owner's equity (common) $7,260,000 $7,260,000 $7,260,000 $7,260,0
Paid-in capital 250,000 250,000 250,000 250,0
Preferred equity 0 0 0
Retained earnings 0 (246,217) (275,254) (70,83
Total equity $7,510,000 $7,263,783 $7,234,746 $7,439,1
Total liabilities and equity $29,290,000 $27,677,188 $26,144,897 $24,695,7
[Company Name]
5-Year Financial Plan—Manufacturing
Cash flow
Year 1 Year 2 Year 3 Year 4 Year
Operating activities
Net income ($246,217) ($29,037) $204,421 $480,734 $786,08
Depreciation 20,000 20,800 21,600 22,000 22,00
Accounts receivable 0 0 0 0
Inventories 0 0 0 0
Accounts payable 0 0 0 0
Amortization 0 0 0 0
Other liabilities 0 0 0 0
Other operating cash flow items 0 0 0 0
Total operating activities ($226,217) ($8,237) $226,021 $502,734 $808,08
Investing activities
Capital expenditures $0 $0 $0 $0 $
Acquisition of business 0 0 0 0
Sale of fixed assets $0 $0 ($1,000) $0 $
Other investing cash flow items 0 0 0 0

20. 19 | P a g e
Total investing activities $0 $0 ($1,000) $0 $
Financing activities
Long-term debt/financing ($1,166,595) ($1,553,254) ($1,628,580) ($1,768,938) ($2,075,83
Preferred stock 0 0 0 0
Total cash dividends paid 0 0 0 0
Common stock 0 0 0 0
Other financing cash flow items 0 0 0 0
Total financing activities ($1,166,595) ($1,553,254) ($1,628,580) ($1,768,938) ($2,075,83
Cumulative cash flow ($1,392,812) ($1,561,492) ($1,403,558) ($1,266,203) ($1,267,75
Beginning cash balance $29,040,000 $27,647,188 $26,085,697 $24,682,139 $23,415,93
Ending cash balance $27,647,188 $26,085,697 $24,682,139 $23,415,935 $22,148,18

21. 20 | P a g e
References
Bplan, n.d. Bplan. [Online]
Available at: Bplan.com
Cooley, M., n.d. Shopify. [Online]
Available at: https://www.shopify.com/guides/businessplan/the-financial-plan
glorious himalaya trekking, 2012. Glorious Himalaya Trekking. [Online]
Available at: http://glorioushimalaya.com/hello-world/
hospitality industry in nepal, n.d. hospitality industry in nepal. [Online]
Available at: http://hospitalityindustryinnepal.blogspot.com
lonely planet, 2017. lonely planet. [Online]
Available at: http://www.lonelyplanet.com
marketing guides , n.d. Marketing MO. [Online]
Available at: http://www.marketingmo.com/strategic-planning/marketing-campaigns/
new business age, 2017. investment pouring into hospitality. kathmandu: new business age
magazine.