Bed & Breakfast Marketing Plan

The Enchanted Vineyard Bed & Breakfast

Financials, Budgets, and Forecasts

4.0 Financials, Budgets, and Forecasts

This section will offer a financial overview of The Enchanted Vineyard Bed & Breakfast as it relates to the marketing activities. The B&B will address break-even analysis, sales forecasts, expenses forecasts, and how those link to the marketing strategy.

4.1 Break-even Analysis

The Break-even Analysis indicates that $23,158 will be needed in monthly revenue to reach the break-even point.

Break-even Analysis



Break-even Analysis

Break-even Analysis
Monthly Revenue Break-even	$22,011
Assumptions:
Average Percent Variable Cost	5%
Estimated Monthly Fixed Cost	$22,000

4.2 Sales Forecast

The first four months will be used for the renovation of the home to fully accommodate guests. Once complete, the house will handle five different rooms. There will be no sales activity during this time. By month five the B&B will be ready to go. Missy will have started advertising, joined as an B&B association member, as well as formed a strategic relationship with the university by month two so business will ramp up fairly quickly. From month five on, business will steadily grow. Beginning with month five, Missy will hire one full-time employee. This employee will perform housecleaning as well as outdoor maintenance. This will free up Missy's time so she can spend it will the clients.

Sales Monthly



Sales Forecast

Sales Forecast
	2001	2002	2003
Sales
Weekend getaway customers	$11,396	$42,000	$54,000
Travelers	$13,089	$60,000	$62,000
Total Sales	$24,485	$102,000	$116,000
Direct Cost of Sales	2001	2002	2003
Weekend getaway customers	$570	$2,100	$2,700
Travelers	$654	$3,000	$3,100
Subtotal Direct Cost of Sales	$1,224	$5,100	$5,800

4.3 Expense Forecast

Marketing expenses are to be budgeted so more money is spent during busier months. The website requires constant maintenance and this expense will also be relatively uniform each month.

Monthly Expense Budget



Marketing Expense Budget

Marketing Expense Budget
	2001	2002	2003
Advertising with Association	$1,900	$1,800	$1,800
Website	$2,400	$2,400	$2,400
Other	$1,900	$1,800	$1,800
	------------	------------	------------
Total Sales and Marketing Expenses	$6,200	$6,000	$6,000
Percent of Sales	25.32%	5.88%	5.17%