This document provides worst and worst case monthly cost and profit scenarios for a business over a 3.5 year period. The monthly costs range from $2,839 to $3,154 with annual costs of $34,068 to $37,848. The worst case annual profit is $69,500 while the best case is $100,800. The document recommends continuing marketing to maintain profits. It also notes the business is for sale at a low price so the owner can move on, but offers will not be accepted until the lease is finalized the following week.
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1. This is a rough example of worst and best case scenarios, based on the passed 3.5 years in business.
(note: to keep these results i recommend that keep up the marketing and follow the promotional plan.
This is why i offer a full year of marketing consultation, as I have a proven winning strategy for all
seasons!)
Monthly costs
Rent 2000
Telus main business line 60-100
Telus geust phone 25
Telus cell 75-100
Bc hydro 300-400 every 2 months
City utilities 200-350 every 2 months
internet 54.00
Breakfast 300.00
Supplies 100-200
Marketing/advertising 15-20% of profits (2000 per year min)
Total costs per month 2839.00 - 3154.00
Total costs per year 34,068- 37,848
Costs 34,068- 37,848
Worst case 69500
Month Worst case Best case Explanation
Total profit 35,432-
January 1500 6000 Close and rent it for the off season $1500 would be the
Best case 100,800
absolute minimum you would get!
February 1500 6000 6000 is based on 200 per night = 50 per private room
and 20 per night in dorm
March 6000 8000 Job seeker season 350-420 per week in private rooms
140-175 in the dorm
April 6000 8000
May 7000 9000 Starting to average 300-350 per day
June 9000 10,500 Should make @least 300 per day
July 10,500 11,400 350 per day =20 per extra person
August 10,500 11,400
September 8,500 10,500 First half of the month should still average 300-350
should stay full last half making min 250-300
October 6000 8000 First 2 weeks 250-300 last 2, 200-300
November 1500 6000 (busy holiday week)
December 1500 6000 “ “
total 69,500 100,800
2. After looking at these numbers you should realise that The trek inn sale price is very low. My goal is to
sell quickly and move on to the next chapter of my life. I do realise this is not the ideal time to buy in to
the business but I do believe my price reflects that. I will not be able to accept any offers on the business
until at least Friday the 12th As I am still finalising the lease. As soon as the lease is finalised I will be
taking offers, do keep in mind you are not the only interested party, and i have an advertised open
house on Saturday the 13th, with many out of towners expected.