Adapted from content excerpted from the American Express® OPEN Small Business Network
The Quiet Spot Bed & Breakfast is an established business looking for money to expand and take advantage of new opportunities.
Every summer, the population of the area in and around ABC National Park in Any State swells by six million. By the year 2000, due to increased travel on the part of retirees and families with children wanting a convenient, affordable place to vacation, the Any State Chamber of Commerce estimates that 8 million people will visit the area each year.
The Quiet Spot Bed & Breakfast wants to build on its reputation and take advantage of this growth by renovating and expanding its current three-room, two-cottage inn. Ben and Sara Jones have been running Quiet Spot since 1988 and since then have been featured three times in the “Best of B&Bs” annual write-in contest for the country’s three best B&Bs. Located on the ocean in ABC town with a view of the water and 2.5 acres of landscaped grounds, the inn creates a great getaway spot. Ben Jones’ experience as a chef at the Triangle in the Square restaurant also attracts guests who are looking for good food. Occupancy in The Quiet Spot has risen at rates of 20 percent or more annually since 1988.
In addition to improving current accommodations, the renovation will add two rooms to the main house of the inn and one cottage to the grounds outside of the house. The renovation will take place over a six month period, from November 1996 to April 1997, the slowest months for the inn. A permit from the zoning department and three bids from local contractors have been procured. Renovations include refurbishing bathrooms to add overhead heatlamps, airtight windows, and larger sinks – amenities guests can find at other local B&Bs, and extras retirees want and expect. The bathroom amenities, along with fireplaces, will be added to some cottages because market data from the B&B Institutes Annual Survey indicates that guests will pay top of market prices for these features. Cottages will be remodeled to add room for a bedroom with twin beds to accompany the master (king size) bedroom, thereby making the cottages suitable for families. All renovations will enable the Jones’ to raise room rates by 30 percent.
The business is structured as a sole proprietorship. The principals, Ben and Sara Jones, seek loans totaling $300,000 to perform renovations and improvements. The Jones’ will provide $50,000 for the renovation.
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