Business plan
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The business plan outlines an agritourism venture called The Green Vineyard located in Franciacorta, Italy. The venture will provide accommodation, catering, and recreational activities primarily targeting young customers. Market research found growing tourism in the region and opportunities to offer lower prices than competitors. The plan projects revenues of €345,000 annually within three years, becoming profitable after an initial loss, through effective advertising targeting social media and partnerships with schools.
![The green Vineyard Business Plan
ITC ABBA BALLINI Pag. 3 di 12
2 The Business
Outline your business structure in an organisation chart.
2.1 Description
Business name: The green Vineyard
Business structure: limited company
Business location: Franciacorta, town of Capriolo
Licences & permits: in compliance with law 96 of 20/02/2006 and Regional Law 31 of
05/12/2008
Products/services: accommodation and food on a farm, sports, recreational, cultural
services, direct sale of farm products, cooking classes using typical local
food and products from the farm
Business owner(s): the company is formed by the young owner of the farm and 4 partners
(younger than 30)
Required staff: in addition to the five partners involved in agricultural farming, the
management and administration, we need other workers in charge of
cooking, cleaning, sports and recreational activities, some workers are
permanent, some seasonal ones. Interns coming from schools in the
area will be employed.
2.2 Organisation chart
Administration &
Marketing
[Partner #1]
Agricultural Activity
(viticulture, fruit and vegetable
growing, farming)
[Partner #2]
4 seasonal workers
Accomodation
(guests and booking)
[Partner #3]
2 cleaners, 1 maintenance
man
Sports activities
events
[Partner #4]
seasonal workers (life guard,
swimming instructor)
Catering
[Partner #5]
2 cooks, 2 waiters](https://image.slidesharecdn.com/businessplan-150411104735-conversion-gate01/85/Business-plan-3-320.jpg)
![The green Vineyard Business Plan
ITC ABBA BALLINI Pag. 10 di 12
5 The Finances
5.1 Start-up costs
Explain how much will you spend to start your business: e.g. permits and registrations, taxes, costs
for the market research, for business consultants, etc.
About 3.000 €, due to costs for business consultants, registration and taxes. The market research is
costless because the information are found in the Internet and at the tourist offices.
5.2 Equipment and plant costs
Explain which durable inputs you will need and how much you are going to spend.
Fixed Assets
Purchase price
[€]
Depreciation per year
[€]
Furniture for the reception, the
bedrooms, the dining room
100.000 12.000
Kitchen and dining room equipment, bed
and table linen, tableware
100.000 15.000
Personal computers, tv, electronic
equipment
5.000 1.000
5.3 Financial needs
The total amount of money you need to start up your business.
About 205.000 € for the fixed assets and 45.000 € for current assets (cash for the first expenses, such
as goods, labour wages, etc.)
5.4 Funding
Where and how will you obtain these funds?
The five partner will provide 125.000 € as equity, while other 125.000 € will be obtained by European
Union grants and benefits for young entrepreneurs.
Since other fixed assets are needed, they can be financed by leasing:
- Additional furniture: 50.000 €
- Sports and leisure equipment: 40.000 €](https://image.slidesharecdn.com/businessplan-150411104735-conversion-gate01/85/Business-plan-10-320.jpg)
Business plan
- 1. Business Plan ITC ABBA BALLINI The green Vineyard
- 2. The green Vineyard Business Plan ITC ABBA BALLINI Pag. 2 di 12 1 Business Plan Summary Your business summary should be no longer than a page and should focus on why your business is going to be successful. Your answers below should briefly summarise your more detailed answers provided throughout the body of this plan. Our business idea is to open an agritourism in Franciacorta, in the town of Capriolo, with accommodation, catering and recreational and cultural activities. Our agritourism will be completely different from the others in the area because it aims at young customers, mainly students, with sports and recreational activities and sightseeings just for them. Our peculiarity will be low prices and the many services offered, but also the location : an area famous for its scenic and natural beauties.
- 3. The green Vineyard Business Plan ITC ABBA BALLINI Pag. 3 di 12 2 The Business Outline your business structure in an organisation chart. 2.1 Description Business name: The green Vineyard Business structure: limited company Business location: Franciacorta, town of Capriolo Licences & permits: in compliance with law 96 of 20/02/2006 and Regional Law 31 of 05/12/2008 Products/services: accommodation and food on a farm, sports, recreational, cultural services, direct sale of farm products, cooking classes using typical local food and products from the farm Business owner(s): the company is formed by the young owner of the farm and 4 partners (younger than 30) Required staff: in addition to the five partners involved in agricultural farming, the management and administration, we need other workers in charge of cooking, cleaning, sports and recreational activities, some workers are permanent, some seasonal ones. Interns coming from schools in the area will be employed. 2.2 Organisation chart Administration & Marketing [Partner #1] Agricultural Activity (viticulture, fruit and vegetable growing, farming) [Partner #2] 4 seasonal workers Accomodation (guests and booking) [Partner #3] 2 cleaners, 1 maintenance man Sports activities events [Partner #4] seasonal workers (life guard, swimming instructor) Catering [Partner #5] 2 cooks, 2 waiters
- 4. The green Vineyard Business Plan ITC ABBA BALLINI Pag. 4 di 12 2.3 Plant & equipment List your current plant and equipment purchases. These can include vehicles, computer equipment, phones, software, etc. - Reception and common area furniture, electronic equipment - Dining room furniture and dining set - Kitchen furniture and cooking tools - Bedroom furniture, bed linen and bathrobe - TV sets and wi-fi - Outdoor furniture - Sports relax and recreational fitting
- 5. The green Vineyard Business Plan ITC ABBA BALLINI Pag. 5 di 12 3 The Market 3.1 Market research We have carried out a market research to evaluate the possibilities of success of our business idea, taking information from web sites, such as “Camera di Commercio di Brescia”, tourism authority of Franciacorta and sites of accommodation structures already present in the area. The research has developed the following points: 1) analysis of tourist flows (trend, origin, motivation); 2) competitor analysis; 3) analysis of tourist local attractions. 3.1.1 Analysis of tourist flows In the last 10 years there has been a constant growth of arrivals, while the stay trend hasn't been constant with a substantial growth in the last two years. Italian tourists (50.6% of the total) come mainly from Lombardia or, in general, from centre and northern Italian regions. Foreigners (49.4%) come mainly from Germany (39.5%), The Netherlands (16.3%), France (9.3%), Switzerland and United Kingdom (7%) and, in lower percentages, The United States, Austria, Belgium and Ireland. Tourists coming from The Netherlands represent the highest percentage. Tourists choose the area for the following reasons: - natural beauties; - wine and food; - possibility to reach the area easily thanks to the proximity of important connection roads and airports. 3.1.2 Competitor analysis The number of businesses has grown steadily over the last few years, whereas sleeping accommodation has settled since 2007. At present in the area there are 25 agritourisms and other 102 facilities which include : 23 B&B, 28 hotels, 18 campsites, 3 +20 inns and lodges. Agritourisms are small (from 5 to 8 rooms) and they offer facilities, like educational courses on wine or oil and guided tours of the most renowned cellars. 3.1.3 Analysis of tourist local attractions There are several tourist attractions in our area: - Events and festivals related to wine production, visits to famous cellars with tastes of wines and sparkling wines "spumante" like: "Di Cantina in Cantina", "Festival della Franciacorta in Cantina";
- 6. The green Vineyard Business Plan ITC ABBA BALLINI Pag. 6 di 12 - "La Strada del Franciacorta": 80 km among hills and vineyards with loops suitable for walking, cycling, horse riding; - close to Lake Iseo where you can go sailing, surfing, water skiing, fishing and diving; - 27 holes green , riding stables; - Spa, Wellness centres. 3.1.4 Conclusions The steady increase in demand and the tourist attractions of the area are positive factors. On the contrary there is a strong competition due to the particular tourist vocation of the area. The new agritourism will be successful if it can differ from the others offering specific services to a particular category of consumers (young people–students). It should exploit economies of scale resulting from its bigger size and run the business efficiently charging lower prices. 3.2 Target market Our business addresses to a market segment represented by young people, both Italians and foreigners, for individual or group journeys ,for school trips and for people who likes hiking. Our customers prefer comfort and simplicity to luxury because they have small budget. In addition to a normal hotel service, they look for extra leisure activities for example sports, excursion, entrainment. 3.3 Target Customer Define who your target customers are and how they behave. You can include age, gender, social status, education and attitudes. Our potential customers love travelling, visiting new places, they appreciate our natural beauties, they care for environmental issues and like healthy cooking. They are young, they attend high-school or university, they are educated and love sports. They also want to have fun, relax and meet people from other countries. 3.4 Market targets Outline your planned sales targets. What quantity of your products/services do you plan to sell in a planned time? Are they monthly or yearly targets? The activity concentrates from March to October and at Christmas time, with peaks in July and August. Its capacity is of 40 beds, with an average occupation of 60% for 8 months (30 days) a year, the
- 7. The green Vineyard Business Plan ITC ABBA BALLINI Pag. 7 di 12 average price of 20€ per day, we expect 115.200€ revenues in the first 3 years. We think to serve about 10.000 meals at the average price of 20€, for a total of 200.000€. From extra activities (extra recreational and sporting services) we expect annual revenues of about 30.000€ We expect total annual revenues of 345.200€. 3.5 S.W.O.T. analysis List each of your businesses strengths, weaknesses, opportunities or threats in the table below and then outline how you plan to address each of the weaknesses/threats. Strengths Weaknesses - Tourist attractions (landscape, proximity to Lake Iseo and Art cities) - Quiet location and natural setting - reasonable prices - possibility of recreational and sporting services - proximity to connection roads - attention to quality food and use of local products - Strong competition - The structure is new and needs to be known on the market - Seasonality of the activity, concentrated in the summer period Opportunities Threats - Growth of tourist flows with Expo 2015 - Events organised in the area that attract customers (gastronomic events) - Bike Paths - Economic crisis - Climate conditions (usually favourable, but sometimes unpredictable) 3.6 Competitors How do you rate against your competitors? How can your business improve on what they offer? Our agritourism is competitive for its low prices, the running costs are favourable thanks to eco-saving (the building will be modernized according to eco standards), low staff cost (presence of interns , trainers), use of raw material from farm to table, and self-management of some services as it often happens in youth hostels, even if the quality standard is higher. 3.7 Advertising & promotional strategy What strategies do you have for promoting and advertising your products/services in the next 12 months? According to our target young people (Italians and foreigners), we intend to build a website, a
- 8. The green Vineyard Business Plan ITC ABBA BALLINI Pag. 8 di 12 Facebook page and to be part of social networks. The advertising investment will be directed to: - Facebook ads targeted at young people. - Subscriptions in the major online booking sites (Airbnb, booking, etc.). - participation in fairs - Sending literature to schools and travel agencies to advertise the possibility of school trips with us. - before opening at local level a launching campaign with posters and flyers and an evening event for young people in the area (advertised on the web through YouTube channel) will be organised - Regular evening events during the summer The restaurant (also addressed to local customers) will be advertised with leaflets, posters , special offers on Groupon, themed events. 3.8 Sales & marketing objectives Who makes up your sales team? What sales techniques will they use? What sales goals/targets will they meet? We will be selling mainly online. The goals we want to achieve is a constant increase in turnover of 10% per year for the first 3 years. The partner in charge of bookings is also responsible of managing orders.
- 9. The green Vineyard Business Plan ITC ABBA BALLINI Pag. 9 di 12 4 The Future 4.1 Vision statement The vision statement briefly outlines your future plan for the business. It should state clearly what your overall goals for the business are. We think that our company in the future will become a landmark for holidays in our area, attracting more and more tourists from all over the world. We think we can help raise awareness in international young tourists of the beauty of our landscape and the culinary culture of Franciacorta. We believe in the respect of the environment and healthy diet. 4.2 Mission statement What is your business' mission statement? I.e. how will you achieve your vision? Our goal is to offer fun and entertainment at reasonable prices in a charming landscape. 4.3 Goals/objectives What are your short & long term goals? What activities will you undertake to meet them? Our short-term goal is to achieve balance between revenues and expenses, in the medium term to constantly increase revenue and in the long term reinvest profits to upgrade equipment and be the first on the market to introduce the latest innovations. We will keep pace with the needs of our customers to provide the services they wish , maintaining however our goal to moderate prices
- 10. The green Vineyard Business Plan ITC ABBA BALLINI Pag. 10 di 12 5 The Finances 5.1 Start-up costs Explain how much will you spend to start your business: e.g. permits and registrations, taxes, costs for the market research, for business consultants, etc. About 3.000 €, due to costs for business consultants, registration and taxes. The market research is costless because the information are found in the Internet and at the tourist offices. 5.2 Equipment and plant costs Explain which durable inputs you will need and how much you are going to spend. Fixed Assets Purchase price [€] Depreciation per year [€] Furniture for the reception, the bedrooms, the dining room 100.000 12.000 Kitchen and dining room equipment, bed and table linen, tableware 100.000 15.000 Personal computers, tv, electronic equipment 5.000 1.000 5.3 Financial needs The total amount of money you need to start up your business. About 205.000 € for the fixed assets and 45.000 € for current assets (cash for the first expenses, such as goods, labour wages, etc.) 5.4 Funding Where and how will you obtain these funds? The five partner will provide 125.000 € as equity, while other 125.000 € will be obtained by European Union grants and benefits for young entrepreneurs. Since other fixed assets are needed, they can be financed by leasing: - Additional furniture: 50.000 € - Sports and leisure equipment: 40.000 €
- 11. The green Vineyard Business Plan ITC ABBA BALLINI Pag. 11 di 12 - Computers: 10.000 € The annual leasing cost is estimated in 36.000 €. 5.5 Profit and loss forecast Profit and loss 2015 2016 2017 Sales revenues 300.000 335.000 345.000 Variable costs 60.000 67.000 69.000 GROSS PROFIT 240.000 268.000 276.000 FIXED COSTS Rent 24.000 24.000 24.000 Leasing 36.000 36.000 36.000 Labour 120.000 120.000 120.000 Utilities 20.000 20.000 20.000 Phone 3.000 3.000 3.000 Insurance 4.000 4.000 4.000 Advertising 10.000 7.000 7.000 Accounting 1.500 1.500 1.500 Interest and bank charges 6.000 6.000 6.000 Other costs 500 500 500 Depreciations 28.000 28.000 28.000 Start-up costs 3.000 - - TOTAL FIXED COSTS 256.000 250.000 250.000 TAXES - 3.000 4.000 NET PROFIT -16.000 15.000 22.000 We expect a net profit from the second year on, so we think our business can be profitable. Thanks to further advertising we think we can constantly raise our sales and our profit in the future years.
- 12. The green Vineyard Business Plan ITC ABBA BALLINI Pag. 12 di 12 6 SUMMARY 1 BUSINESS PLAN SUMMARY ................................................................................................................................................2 2 THE BUSINESS.........................................................................................................................................................................3 2.1 DESCRIPTION .......................................................................................................................................................................................................................3 2.2 ORGANISATION CHART .......................................................................................................................................................................................................3 2.3 PLANT & EQUIPMENT.........................................................................................................................................................................................................4 3 THE MARKET...........................................................................................................................................................................5 3.1 MARKET RESEARCH ............................................................................................................................................................................................................5 3.1.1 Analysis of tourist flows............................................................................................................................................................................................................................5 3.1.2 Competitor analysis....................................................................................................................................................................................................................................5 3.1.3 Analysis of tourist local attractions....................................................................................................................................................................................................5 3.1.4 Conclusions.....................................................................................................................................................................................................................................................6 3.2 TARGET MARKET.................................................................................................................................................................................................................6 3.3 TARGET CUSTOMER ............................................................................................................................................................................................................6 3.4 MARKET TARGETS...............................................................................................................................................................................................................6 3.5 S.W.O.T. ANALYSIS ............................................................................................................................................................................................................7 3.6 COMPETITORS......................................................................................................................................................................................................................7 3.7 ADVERTISING & PROMOTIONAL STRATEGY.....................................................................................................................................................................7 3.8 SALES & MARKETING OBJECTIVES.....................................................................................................................................................................................8 4 THE FUTURE............................................................................................................................................................................9 4.1 VISION STATEMENT.............................................................................................................................................................................................................9 4.2 MISSION STATEMENT..........................................................................................................................................................................................................9 4.3 GOALS/OBJECTIVES ............................................................................................................................................................................................................9 5 THE FINANCES...................................................................................................................................................................... 10 5.1 START-UP COSTS...............................................................................................................................................................................................................10 5.2 EQUIPMENT AND PLANT COSTS ......................................................................................................................................................................................10 5.3 FINANCIAL NEEDS ............................................................................................................................................................................................................10 5.4 FUNDING............................................................................................................................................................................................................................10 5.5 PROFIT AND LOSS FORECAST ..........................................................................................................................................................................................11 6 SUMMARY.............................................................................................................................................................................. 12