Homestay
This one is just for the instructions so you can reference it when you are writing your parts!
Write on this one: Business Plan FINAL
Current Assignments:
Section II) Business Concept and Value Propositions ~ Anna
Section III) Industry/Market Analysis ~ Cielo
Section V) Product Development, Growth, and Exit Strategy ~ Liz
Section VI) Operations Plan ~ Anita
Section VII) Financial Analysis ~ Ilona
From BP assignment in Canvas:
Write in enough detail while being concise and clear.
With your team, develop a short business plan for a growth-oriented business venture. Plans are limited to no more than 20 pages (inclusive of 1 cover page, 1 table of contents page, a maximum of 8 pages of text, maximum 10 pages of appendices). The format of the plan should be single line spacing, 11 or 12-point Times New Roman Font, 1-inch margins all around. This line spacing and font requirements apply to the textual content of the document and not to titles and descriptions accompanying pictures, graphs, tables, or worksheets. All pages must be numbered. The cover page should include venture name and individual team member names. All appendices must be referred to in the written plan, otherwise, they should not be included. All plans must have the minimum components listed below (see Business Plan Template for more details).
4.2 Board of Advisors
4.3 Human Resource Plan
V) PRODUCT DEVELOPMENT, GROWTH, & EXIT STRATEGY
5.1 Growth Plan, Major Milestones, and Timeline
5.2 Future Product Extensions
5.3. Risk Assessment
5.4 Exit Strategy
VI) OPERATIONS PLAN
6.1 Operational Overview
6.2 Key Activities, Resources, and Partnerships
VII) FINANCIAL ANALYSIS
7.1 Summary of Financial Projections and Financing Plan
7.2 Explanation of Assumptions
7.3 Summary of Sources of Capital and Start-up Expenses at time 0
7.4 Annual income statements for years 1 – 5
7.5 Annual cash flow for year 1 to 5
VIII) APPENDICES
8.1 Problem Space (ILONA)
8.2 Validation Surveys and Experiments Explained (Elizabeth)
8.3 MVP
I) EXECUTIVE SUMMARY
II) THE BUSINESS CONCEPT AND VALUE PROPOSITION (Entire section is Elizabeth)
2.1 Our Offering
I) EXECUTIVE SUMMARY
II) THE BUSINESS CONCEPT AND VALUE PROPOSITION (Entire section is Elizabeth)
2.1 Our Offering
2.2 Revenue Streams & Product Pricing sharing economy model
Our target market group would gravitate towards our sesrvice/ product becuase there is nothing else like it on the market for those looking to be fully immersed in a culture and staying with a local is one of the most enriching expereinces a person can get. Our market groups may however resist becuase they are unsure of how safe it is.
2.3 Sales Structure, Process & Terms
III) INDUSTRY/MARKET ANALYSIS
3.1 Industry Overview and Industry Trends Cielo
3.2 Customer Market Pains Anna
3.3 Tip of the Spear Customers and Customer Archetypes Anna
3.4 Channels of Distribution and Target Distributors
3.5 Problem Space & Alternative Solutions Cielo
IV) MANAGEMENT TEAM & COMPANY STRUCTURE (Anita)
4.1 Management Team
4.2 Board of Advisors
4.3 Human Resource Plan
V) PRODUCT DEVELOPMENT, GROWTH, & EXIT STRATEGY
5.1 Growth Plan, Major Milestones, and Timeline
5.2 Future Product Extensions
5.3. Risk Assessment
5.4 Exit Strategy
VI) OPERATIONS PLAN
6.1 Operational Overview
6.2 Key Activities, Resources, and Partnerships
VII) FINANCIAL ANALYSIS
7.1 Summary of Financial Projections and Financing Plan
7.2 Explanation of Assumptions
7.3 Summary of Sources of Capital and Start-up Expenses at time 0
7.4 Annual income statements for years 1 – 5
7.5 Annual cash flow for year 1 to 5
VIII) APPENDICES
8.1 Problem Space (ILONA)
8.2 Validation Surveys and Experiments Explained (Elizabeth)
8.3 MVP
8.4 Customer Archetypes ILona
8.5 Business Model Canvas
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8.6 Gantt Chart / Timeline
8.7 Exit Strategy Appendix
8.8-8.10 Additional Appendices
X) REFERENCES
I) EXECUTIVE SUMMARY
Suggested 1 page
II) THE BUSINESS CONCEPT AND VALUE PROPOSITION
Suggested 1 page
2.1 Our Offering
– Platform in app and website form that connects hosts and travelers to do homestays. Homestays are a a type of accomodation where a local person opens their home to a traveler or travelers to stay with them for any range of time. Our platform will be a much easier alternative to study abroad or other homestay programs that require long commitments, often large amounts of money and a lengthy application processes. The platform will offer a unique experience for travelers excited to culturally immerse and live alongside locals.
Provide an adequate level of detail.
I) EXECUTIVE SUMMARY
Suggested 1 page
II) THE BUSINESS CONCEPT AND VALUE PROPOSITION (Elizabeth)
Suggested 1 page
2.1 Our Offering
– Platform in app and website form that connects hosts and travelers to do homestays. Homestays are a a type of accomodation where a local person opens their home to a traveler or travelers to stay with them for any range of time. Our platform will be a much easier alternative to study abroad or other homestay programs that require long commitments, often large amounts of money and a lengthy application processes. The platform will offer a unique experience for travelers excited to culturally immese and live alongside locals.
Provide an adequate level of detail.
Features/benefits of Value: How is this different from other offerings on the market?
This is different from other offerings in the market as it is offered for a much smaller price and commitment, it is also different in the sense that you are able to go for a shorter amount of time and for a less legthy application process. (the above paragpragh kind of already says this, so for the sake of space we prbably don’t need it- Anna)
You should refer to your MVP appendix.
2.2 Revenue Streams & Product Pricing sharing economy model
Are there multiple revenue streams ?
A table might be helpful here.
Our revenue stream would come from a percentage of sales from locals staying with our hosts. (Will resemble airbnb status)
Explain product pricing for each revenue stream, and how you validated this will be appropriate.
Pricing will vary based on how the host wants to price their property, considering location and what is offered.
How are products or services bundled together (if applicable) ?
Hosts will be given a certain amount of autonomy in whether or not they want to offer special packagses like meals, tour guides, etc. They may choose to include options that are all inclusive with the stay.
Why will target market groups gravitate toward your service or product / why might they resist it?
Our target market group would gravitate towards our sesrvice/ product becuase there is nothing else like it on the market for those looking to be fully immersed in a culture and staying with a local is one of the most enriching expereinces a person can get. Our market groups may however resist becuase they are unsure of how safe it is.
2.3 Sales Structure, Process & Terms
Will you have your own Salesforce or hire an external saleforce?
We will hire an external sales force of people who will meet people face to face.
What is the cost structure of the salesforce?
I am currently unsure what this question is asking.
Will the salesforce earn a commission or a salary or both (be specific)?
Our sales force will earn a salary of an amount of which I am unsure of right now. Assuming they love to travel and get flights paid for and food and trasport taken care of, maybe a salary of $30,000 – $50,000 initially
Describe the steps involved in your sales process
Steps involved in the sales process include advertising, meeting with groups of travel fanatics and opening them up to the idea, with quality assurance and offering discounts to give it a try and maybe even a referral bonus.
How will you track sales (what systems will you use?)
This is a great question, of which I am unsure what exact systems will be used but it would most likley be something similar to how airbnb and bookings.com track their sales. Sites to check out to further your knowledge on airbnb:
Why Airbnb’s Business Model Is So Successful | The Motley Fool
How does Airbnb track and measure growth marketing? | by Jing Guo | The Airbnb Tech Blog | Medium
What are typical lead times in your industry?
Lead time is currently unknown as we dont have any products, our product is a homestay service but I will look into further.
Are there any specific sales terms that you would like to specify?
None Currently
Will you take credit? what is the length of terms?
How will this affect cash flow and growth?
See chapter 10
III) INDUSTRY/MARKET ANALYSIS
Suggested 2 pages
3.1 Industry Overview and Industry Trends
Classify your business in a single industry or explain how your business sits at the intersection of two or more industries
Provide concrete data on the industry size (use secondary/ library sources).
In general, be brief but clear as to where you fit in the industry and how big the industry is overall.
Explain briefly at least 2-3 trends in the industry that your business will capitalize on.
Referring to graphs or tables as appendices may be appropriate in this section.
Industry Overview and Industry trends
Within the hospitality and travel business, a unique and promising environment is presented by the junction of homestays through study abroad programs and Airbnb with hotels and tourism sites. This creative strategy blends the comfort and variety provided by Airbnb and conventional hotels with the individualized and immersive experience of homestays. Travelers are looking for more genuine and unique experiences; thus, this market has a lot of promise.
Intersection of Homestays
A radical change is occurring in the hospitality and travel sectors, our platform can combine the industries of homestays and similar programs with Airbnb, hotels, and tourist destinations. Authentic experiences are in high demand as tourists want for real relationships and cultural immersion, which is one of the major trends in the market. In response to this need, the industry is creating an adaptable housing environment that combines traditional hotel offers with the convenience of Airbnb and the individualized touch of homestays. It is clear that the industry is going digital, as internet platforms are essential for reservations, evaluations, and tailored suggestions . The increasing popularity with environmentally friendly as well as ethical tourism practices is in line with the eco-conscious traveler’s preferences.
3.2 Customer Market Pains
Discuss and describe the customer pain points that your business intends to solve (and how you validated them).
The pain points we are addressing are that there are limited outlets for cultural immersion when travelling abroad. Services like Airbnb and hotels don’t offer the unique experience and meaningful relationships from living with a local person in their home. Services that do offer homestays are untrustworthy, or are expensive, hard to find, and have complicated application processes. To validate these points we conducted interviews and a survey with people of all backgrounds, as well as passionate travelers and those who have done homestays before.
3.3 Tip of the Spear Customers and Customer Archetypes
Details from the Validation exercise will be appropriate for this area. Who is your tip of the spear customer/provide details and/or reference your customer archetype as an appendix, and explain how they derive value from your product. Why is this the best market to start with?
Refer to your Customer Archetype Pictographs as an appendix (include psychographics / demographics)
Describe if any of the customer relationships already been established? Where will your launch your product first
How costly will it be to establish initial customer relationships?
What level of automation or personal customer service will you use when dealing with customers
Discuss next steps. Who will be in the eventual target market groups? You may want to break this down as Tip of the Spear Customers (primary target market), secondary target market, and tertiary target markets.
Long-term which target market segments are the most lucrative
Our tip of the spear customer is a solo traveler, aged 18-24 years-old, and earns a low to medium income. This customer is passionate about travelling, seeks out authentic cultural experiences, and enjoys making connections with new people. They are open to the idea of living with a local and may have considered a homestay or something similar before. This market of customers will be most receptive to doing a homestay with us because of their passion for traveling, openess, and low responsibilities keeping them at home. Our first launch will be in blank.
3.4 Channels of Distribution and Target Distributors
Through which Channels do you intend to reach each of your target market segments?
How are the Channels integrated or disintegrated?
Can you leverage existing channels of distribution?
Who are your target distributors (name them, describe them, size of firm?)
What is the cost of dealing with these distributors?
3.5 Problem Space & Alternative Solutions
Describe the alternative solutions available.
Several alternative solutions are available, catering to diverse preferences and needs. Among these options, Couchsurfing stands out as a unique platform offering stays at host residences under a subscription model. Similarly, Au Pair World facilitates a distinct homestay experience, wherein guests contribute work in exchange for accommodation, providing mutual benefits to both hosts and guests. Additionally, traditional avenues such as study abroad programs and college-affiliated homestays offer structured experiences, often integrating academic and cultural immersion. Online platforms like Airbnb and Booking.com also provide a wide range of lodging options, from casual stays to luxury accommodations.
In evaluating these services, we focused on several key criteria deemed most important by our target audience, as identified through comprehensive survey feedback. See appendix 8.1. These criteria include trustworthiness, suitability for short-term stays, cost considerations, cultural immersion potential, and the quality of customer service provided. Our aim was to assess each service’s ability to meet these specific needs and preferences, thereby offering valuable insights to help individuals make informed accommodation choices.
These axes of comparison were carefully chosen to reflect the priorities and values of our survey respondents, ensuring that our analysis aligns with the real-world considerations of travelers and guests seeking accommodation solutions.
Reference your “problem space” map as an appendix.
IV) MANAGEMENT TEAM & COMPANY STRUCTURE
Suggested 1 page
4.1 Management Team
List each member of your management team
Describe roles and responsibilities
Describe previous experience and how this relates to responsibilities
Optional: if the company is large enough that it warrants one create an organization chart as an appendix.
See chapter 13
Anita is the app designer. Responsibilities include: brainstorming different ideas for app features, developing user interfaces that are easy to navigate, and using graphic design to create visual elements that align with the app’s branding. Previous experience includes designing multiple prototypes at various stages for the HomeStay app.
Anna is the marketing manager. Responsibilities include: conducting market research to find certain trends, analyzing competitors in the industry, and identifying both opportunities and threats within the market. Previous experiences include researching the target market to better understand what kinds of values are important to customers.
Cielo is the financial analyst. Responsibilities include: conducting analysis to assess financial performance, assisting in the development of budgets and forecasts, and preparing various financial reports. Previous experiences include analyzing the maximum amount of money and value that a customer is willing to pay for a service (customer willingness to pay).
Elizabeth is the team leader. Responsibilities include: providing guidance to team members, setting clear goals that align with team objectives, and managing deadlines in an organized manner. Previous experience includes coming up with the innovative idea to create an app that allows travelers to gain meaningful cultural experiences.
Ilona is the customer specialist. Responsibilities include: efficiently keeping track of customer feedback, analyzing trends from interview data to form conclusions, and understanding specific customer needs. Previous experiences include gathering evidence and performing research that focuses on customer pain points.
4.2 Board of Advisors
Ask reputable people in your industry to serve on your “volunteer” Board of Advisors (for business plan purposes)
Use this area to address “gaps” in the management team
3 – 5 people: They could be industry experts, business people, lawyer, accountant, consultant, professor, investors, etc. —> provided there is a reason to have such a person be an advisor for your management team
List each member’s experience and how it relates to the industry or your company.
How can each of these people be utilized to advance your business to the next stage.
See chapter 13
If desired create an appendix to provide more detailed information, profiles, and pictures.
This section is not necessary.
4.3 Human Resource Plan
Who will you hire first? why?
How much labor will be required?
Do you have a production plan (weekly/monthly)? How will this change over time.
What are the qualifications you will look for related to each position you plan to hire here.
If necessary refer to an HR appendix or table documenting your hiring plan.
This section is not necessary.
V) PRODUCT DEVELOPMENT, GROWTH, & EXIT STRATEGY
Suggested 1 page
5.1 Growth Plan, Major Milestones, and Timeline
When did you begin testing, building MVP, and when is launch?
How does your model allow you to scale?
What are your major milestones
Refer to and describe your gantt chart/timeline appendix
See chapter 15
5.2 Future Product Extensions
What future product extensions can you introduce?
What new markets can you target in the future
See chapter 15
5.3. Risk Assessment
See chapter 9
5.4 Exit Strategy
How will you exit the business?
Who specifically might be a potential acquirer?
A table or list might be useful here.
How will the investor get paid back?
What is the target return for the investors?
Refer to and describe your exit strategy appendix. This appendix should document recent acquisitions in your industry and/or recent IPOs in your industry.
See chapter 15
VI) OPERATIONS PLAN
Suggested 1 page
6.1 Operational Overview
How will your products or services be produced?
Where, Why?
Is this scalable, explain.
What are the advantages of this plan / disadvantages?
6.2 Key Activities, Resources, and Partnerships
What Key activities does your Value Propositions require?
What are the key activities for operation success?
What metrics will you use to evaluate your progress?
How will you ship products?
What Key Resources does your Value Propositions require?
Will you develop resources in house or partner with other organizations (outsource)?
How, Why, What will the cost structure look like?
Will you undertake your key activities in house or partner with other organizations (outsource)?
How, Why, What will the cost structure look like?
How will you partner, who will you partner with (list them by name and describe them*)
Refer to operational maps, plant schematic appendices (if applicable).
Refer to the business model canvas.
VII) FINANCIAL ANALYSIS
Suggested 2 pages
7.1 Summary of Financial Projections and Financing Plan
Provide a brief written overview of your financial projections
How will you raise capital? Private equity, convertible debt, crowdfunding?
How many shares and what % of equity will you give up in exchange for shares (if applicable).
Optional: Provide your company valuation (unless you are offering convertible debt)
Optional: Refer to your capitalization table (if needed)
7.2 Explanation of Assumptions
7.3 Summary of Sources of Capital and Start-up Expenses at time 0
Insert statement (from Excel)
7.4 Annual income statements for years 1 – 5
Insert statement (from Excel)
7.5 Annual cash flow for year 1 to 5
Insert statement (from Excel)
VIII) APPENDICES
Suggested 7-10 pages
8.1 Problem Space
Update your problem space map and include it here.
The primary competitive advantage of our app in the current market will be its focus on trust and reliability. With a robust security infrastructure ensuring the safety of both hosts and travelers, we will stand out from the competition. Coupled with other factors such as competitive pricing, a rich cultural experience, and high-quality customer support, our short-term homestay app will establish a strong position compared to our competitors. Our comprehensive approach addresses all key aspects, as illustrated by the graph, while competitors and alternative providers often excel in one area but lack in others.
8.2 Validation Surveys and Experiments Explained
Insert details on experiments / tracking of validation.
Our survey recieved 162 responses of which we got generally positive feedback and received 41 emails from people who would be interested in our idea!
Present data/results of your surveys
Style counts! (think back to your validation presentation).
Our Problem Space:
Pertinant Survey Results:
$30 – $200+ per night (willingness to pay increases with assurance of saftey and also varies depening on location, and if its all inclusive)
8.3 MVP
Describe or display a mock-up or sketch of your MVP.
8.4 Customer Archetypes
Update your customer archetypes. Include at minimum the tip of the spear customers, you could also include eventual customers.
The target market we are reaching is young solo travelers between ages 18 and 24, additionally, we are reaching the older target markets such as 50 to 65 years old since we received a lot of positive feedback from them. As they transition into this older age bracket, they tend to have more leisure time available, allowing them to fully immerse themselves in cultural experiences.
Our primary focus will be on the younger demographic, with our key customersIl being individuals aged 18 to 24, typically falling within the lower to medium income bracket. These customers are passionate about traveling and are eager to fully immerse themselves in the authentic experience of a new culture. Many may have already explored options such as homestays or living abroad, demonstrating a keen interest in diverse cultural encounters.
8.5 Business Model Canvas
Update your business model canvas and include it here
e
8.6 Gantt Chart / Timeline
Include an updated copy of your company timeline / Gantt Chart.
8.7 Exit Strategy Appendix
Include an exit strategy appendix that documents recent acquisitions in your industry and/or recent IPOs in your industry.
Indicate your anticipated exit strategy
8.8-8.10 Additional Appendices
– Optional
– Insert additional graphs, tables, or figures as needed. Properly label and title of each appendix.
– Suggested (if applicable): Operations and distribution flow-chart, plant schematic, product sell sheet.
X) REFERENCES
Suggested 1 page
You must include a references and citations to reference the published sources you have used to support your plan.
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