Presented with the task of creating a better business model for a bed and breakfast, I and my team of five (myself included) took to researching the bed and breakfast industry across the United States, and especially in Eastern Kentucky. We compared and contrasted many bed and breakfast businesses using figures and insights obtained from state and government websites to cold calling and cold emailing several resource persons. Eventually, we were able to come up with two scenarios based on the current model they had that showed profit projections and the chance for scalability.

1. PRESENTED BY:
Destiny Goodson
Mateo Diaz
Phurbu Tsetan
Salem Ben Saad
Raymond Okyere-
A Taste of Southern Comfort
Wednesday, July 18, 2018
Final Summer 2018 EPG Case Study Presentation

2. Overview
 Kickstarter Campaign Video
 Our Mission
 Appalachian Adventure Pains
 Sheltered Farms Pain Relievers
 Trends in B&B Market
 Primary Operations
 Competitive Matrix
 Secret Sauce
 Operations
 Social Media
 Financial
 Social Media Consultant
 Our Team
 Brand Video
 Q&A

3. Kickstarter Campaign Video

4. Our Mission
We are dedicated to providing our customers with the safety
and maintenance of their costly belongings such as bikes,
ATVs, motorcycles and a stable for their horses as well as
boosting their outdoor experiences by giving them
opportunities to expand their stay through guided introduction
to unique destination features.

5. Appalachian Adventure Pains
Typical Lodging Issues for Eastern KY Tourist:
Hotels that are far away from the things you want to discover
Cabins that barely offer the very basic necessities
Campgrounds that require you to bring everything you need
B&Bs that do not offer privacy and space

6. Sheltered Farms Pain
Relievers
What We Offer:
 Spacious both inside and out

7. Spacious Interior & Exterior

8. Sheltered Farms Pain
Relievers
What We Offer:
 Spacious both inside and out
 Offer snacks, fresh farm-raised non-GMO eggs, and access to a hot tub
at no extra cost

9. Snacks, Eggs & Hot Tub

10. Sheltered Farms Pain
Relievers
What We Offer:
 Spacious both inside and out
 Offer snacks, fresh farm eggs, and access to a hot tub at no extra cost
 Located near Biking, ATV, Hiking, and Equestrian trails

11. Trails

12. Sheltered Farms Pain
Relievers
What We Offer:
 Spacious both inside and out
 Offer snacks, fresh farm eggs, and access to a hot tub at no extra cost
 Located near Biking, ATV, Hiking, and Equestrian trails
 Privacy and Security

13. Privacy & Security

14. Sheltered Farms Pain
Relievers
What We Offer:
 Spacious both inside and out
 Offer snacks, fresh farm eggs, and access to a hot tub at no extra cost
 Located near biking, ATV, hiking, and equestrian trails
 Privacy and security
 Unforgettable, one-of-a-kind Appalachian Experience

15. Appalachian Experience

16. Trends in the B&B
Market
$3.4 billion
Bed and Breakfast Market Size
4%
Expected Growth for Next Four
Years
45%
Occupancy rate of B&Bs in KY
54%
Of people have booked a B&B, Inn, or
Private Home Reservation for vacation
within the last 12 months (2017)

17. The Market
Kentucky travel and
tourism generated
over $15 billion in
2017
Our Serviceable
Available Market is
2.2 Million
Seviceable Available Market
Trans Am Bikers Hikers Motorcyclists
ATV Riders Wildlife Watchers

18. Who Are Our Guests?
Motorcyclists
(106,648)
Wildlife Flora and
Fauna Watchers
(1.6 million)
Trans Am 76 Bicyclists
(3,000)
ATV Trail Riders
(20,000)
L❤VERS

19. CompetitionSheltered
Farms
Your County
Rentals Lazy Cottage Daisy Haven
Creek Tree
Cabin
The Cabin in
the Hills
Sweet Valley
Retreat
Yes No No No No No No
Yes Yes Yes Yes No Yes Yes
Yes No No No No No No
Yes Yes Yes No No Yes Yes
Yes No No No No No No
Yes Yes Yes Yes No Yes Yes
Yes No No No Yes Yes No
3br & 10gs 3br & 8gs 3br & 6gs 1br & 2gs 2br & 6gs 3br & 6gs 2br & 6gs
$119 $65 $65 $65 $129 $127 $96
Wash/Dry
Garage
Hot Tub
TV & Wi Fi
Snacks
Kitchen
Grill
Size
Base Price
Competitive Matrix

20. CompetitionSheltered
Farms
Your County
Rentals Lazy Cottage Daisy Haven
Creek Tree
Cabin
The Cabin in
the Hills
Sweet Valley
Retreat
Yes No No No No No No
Yes Yes Yes Yes No Yes Yes
Yes No No No No No No
Yes Yes Yes No No Yes Yes
Yes No No No No No No
Yes Yes Yes Yes No Yes Yes
Yes No No No Yes Yes No
3br & 10gs 3br & 8gs 3br & 6gs 1br & 2gs 2br & 6gs 3br & 6gs 2br & 6gs
$119 $65 $65 $65 $129 $127 $96
Wash/Dry
Garage
Hot Tub
TV & Wi Fi
Snacks
Kitchen
Grill
Size
Base Price
Competitive Matrix

21. The Secret:
Authentic Southern Hospitality
& Perfect Location…

22. Location Map
Sheltered Farms Bed & Breakfast

23. Operations
What do we do?
Market to our customers so that they
can find our business quickly and easily

24. You can Find us HERE!

25. Facebook Reviews

26. HomeAway/VRBO Reviews (#1)

27. (#2)
Sheltered Farms BnB

29. Sheltered Farms Bed
and Breakfast

31. Social Media Marketing Strategy
Motorcyclists ATV Riders Wildlife Flora & Fauna
Watchers
Hikers
Distance to the
Destination
200+ miles 50-150 miles 50-150 miles 75-180 miles
Age 40+ 18-35 50+ 23-45
Income Upper Middle
Class
Middle Class Upper Middle Class Upper Lower
Class
Social Media
Groups
Facebook groups
Instagram groups
Facebook groups
Instagram
Facebook groups
Instagram groups
Facebook
groups
Instagram

32. Instagram Group (Motorcyclists)

33. Instagram Group (ATV Riders)

34. Creating a Targeted Facebook Ad (Step 1)

35. Step 2

36. Step 3

37. Step 4

38. Social Media Marketing Funnel
Facebook Ad
Our Website
Boone Tavern Reservation
HomeAway Comparison
Booking on Airbnb

39. Awareness

40. Interest

41. Decision

42. Evaluation

43. Action

44. Founded
March
2017
&
Launched April
2017
Received 10
5-star
rating
online
May 2017
Started Facebook
& Instagram
Page July 2017
Reached 100 customers
May 2018
Purchased hot
tub August 2017
Began renovations for two
additional cabins in Feb 2018
Milestone
s
&

45. Financials
Base Case Better Case Best Case
Gross Sales $14,804 $17,084 $23,426
COGS $814 $937 $1,288
Total expenses $6,813 $6,813 $9,656
Net Profit $7,177 $9,334 $12,487

46. Base Case
Gross sales - $14,804
COGS - $814
Total overhead expenses - $6,813
Profit before tax - $7,177
$ Normal price of $119 a night for 2 guests
$ Additional guests after 2 would increase the cost $10 per night
$ Occupancy rate is 29%

47. Better Case
Gross sales - $17,084
COGS - $937
Total overhead expenses - $6,813
Profit before tax - $9,332
$ Increase the base price to from $119 to $129 for 2 people per night
$ Increase the $10 added per guest to $15
$ Profit would increase from $7,177 to $9,332

48. Best Case
Gross sale - $23,426
COGS - $1,288
Total overhead expenses - $9,656
Profit before tax - $12,487
$ $3 earned for every $1 spent in social media marketing
$ Hire a social media consultant
$ Our gains will improve to $4 earned for every $1 spent
$ This helps us get 1 more booking a month at the value of $572
$ Our occupancy rate boosts from 29% to 39%

49. Becky McCray-Rural & Small Town
Business Expert

50. Email to Becky

51. Becky’s Reply

52. Deb Brown-Social Media Consultant

53. Email to Deb

54. Deb’s Reply

55. Best Case
Gross sale - $23,426
COGS - $1,288
Total overhead expenses - $9,656
Profit before tax - $12,487
$ $3 earned for every $1 spent in social media marketing
$ Hire a social media consultant
$ Our gains will improve to $4 earned for every $1 spent
$ This helps us get 1 more booking a month at the value of $572
$ Our occupancy rate boosts from 29% to 39%

56. Critical Risks
We do not execute
social media
strategies
Posts are not as
effective as planned

57. Meet Our Team!
International Experts on Bed and Breakfast
Destiny Goodson
Social Media
Marketing
Mateo Diaz
Research &
Marketing
Rofy Ray
Web & Graphics
Phurbu Tsetan
Advertisement
Salem Ben Saad
Booking &
Operations

58. Our Brand Video

59. A Taste Of Southern
Comfort