"Catch a man a fish, and you can sell it to him. Teach a man to fish, and you ruin a wonderful business opportunity." - Karl Marx
In this series of articles, we at Hospitality Skills are examining and discussing the issues surrounding the hospitality industry today. Our aim is to proffer ideas and solutions to businesses looking to improve performance and attain ever greater success. We wish to inspire dialogue with people who are as passionate as we are about raising standards in the hospitality industry and to share best practice from the many years of combined experience.
In part one, 'Having a Vision' (25th July 2013), we looked at the reasons for developing a 'vision' for the business and the thought processes involved. In part two, we will concentrate on developing the content of your five year plan.
Let's first address the time frame. Why five years? Why not one or ten? There is no right or wrong time scale for laying out your vision for the future, it's down to individual circumstances. Whatever it is, the process is the same irrespective of the duration.
In this article, we will look at a five year plan as this is the time-frame generally required by investors looking for their annual return.
Often, writing a business plan is seen as a process for new start-ups, but that couldn't be further from the truth. Its use is more prevalent amongst established companies than is typically understood. Planning is about assessing possible future events and making decisions based on those findings. It's also about trying to minimise potential risks using information available today to help you make better decisions.
"Productivity is never an accident. It is always the result of a commitment to excellence, intelligent planning, and focused effort." - Paul J. Meyer
We at Hospitality Skills believe it is essential that you have a five year business plan. Remember, you can't hit a target you haven't got!
Illustrated below are a number of steps to help you create the content for your plan. We'll examine some of the elements.
Executive Summary
The first page of your five year plan is actually the last one to be written, as it's a summary of the whole and arguably the most important element within the document. The reason for this is that it's often the only part of your report that will be studied by readers. Therefore it should contain a brief outline of the proposal, background information, concise analysis and the main conclusions of the plan.
The prerequisite of the executive summary is to familiarise the reader with the larger body of material without having to read it all. It will also become an invaluable reminder to you, the author, and worth keeping to hand to re-read regularly as you progress through the stages of your plan.
As a guide, your executive summary should be no more than about ten percent the size of the whole document.
Mission Statement
Essentially your mission statement answers the question 'why do we exist?' It's designed to direct the actions of the business, clarify its overall objectives, present a path and guide decision making. It provides a framework within which the organisation's strategies are formulated.
Here are some suggested elements for your mission statement:
- Business aims
- The market
- Your customers
- Products and services
- Value
- Quality
- USP (Unique Selling Proposition)
Examples of mission statements:
Starbucks
Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time.
Hilton Worldwide
To be the pre-eminent global hospitality company - the first choice of guests, team members, and owners alike.
Business Background
The business plan background is the detail of the company's history to date. What your main purpose was for starting or taking on the business and the origin of those ideas. The progress you have made to date, identifying the main challenges faced and overcome, as well as the on-going issues and how you intend addressing them. It's an opportunity to include your own business background and that of the members of your team, their technical skills and areas of expertise.
Highlight why you are different, any advantages you have over the competition and how you are geared up to meet the future needs of your guests. Demonstrate your successful track record.
Be upfront and frank about any disadvantages or weaknesses you feel the business has. This shows integrity and inspires confidence. Conclude by providing an outline of your main goals and a brief explanation of how you plan to get there. Keep this section concise and we suggest you avoid inessential personal details.
Product Description
Here you can add details about your current accommodation, restaurant, bar, leisure or whatever products and services you offer and how your five year plan will bring about changes. Include all your key departments; reception, housekeeping, maintenance etc. This is where you can extol your vision for the future and highlight the intended improvements.
Marketing Plan
The foundation of an effective marketing plan is having a clear marketing strategy with the aim of achieving increased sales and a sustainable competitive advantage. The strategy portrays a longer term view with a tactical plan showing details of specific actions over the first year.
Marketing Plan
The foundation of an effective marketing plan is having a clear marketing strategy with the aim of achieving increased sales and a sustainable competitive advantage. The strategy portrays a longer term view with a tactical plan showing details of specific actions over the first year.
Conducting a marketing analysis initially, will highlight market conditions and current economic factors that are in play. From this you can develop a comprehensive blueprint, identifying the company's target markets, overall marketing efforts and sales promotions.
To help you construct your marketing objectives use the 7 P's:
- Price
- Product
- Promotion
- Placement
- People
- Physical environment
- Process
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