Business Proposal

Economic ( business proposal ) Option

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Elms hotel and spa operated only as a hotel in the previous years but it’s due to offer spa services after renovation. The number of customers that visited the premises asked for spa services hence the need to include the services. The market for hotel and spa services is wide ranging from those who visit the premises only for a day to those who stay for several days or weeks. The business of offering hotel and spa services should succeed because of the enormous figure of populace who require the services all year. The business is also set to expand by establishing other business premises in different parts of the country and even venture in the international market because of the wide spread market. The management team exhibit high managerial qualities with that see to the achievement of the organizations objectives and goals Peterson, Jaret, & Schenck, 2010.

The organization is managed by a board of directors that includes a number of investors who have the best interests of the organization at heart. Funding required by Elms hotel and spa is both equity and debt capital from investors and banks Abrams, 2003.

The equity capital is favored to protect against bankruptcy and motivation to work towards making more profits while the debt capital provides opportunity for easier expansion of the business while making profits even while repaying the debt.


Elms hotel and spa is an enterprise that offers quality lodging amenities with modern facilities and quality meals of varied types with the introduction of a spa that is intended to offer services rated as one of the best in the world. People are in constant need for relaxing at a hotel that offers the best quality of services and facilities that are up-to-date for a maximum get away from the home environment. Many people all over the world take vocations which they spend at hotels hence the business opportunity. Elms hotel and spa has the mission to add value for customers and shareholders by continually providing quality services and improve the customer’s well-being, health and happiness Peterson, et al., 2010()


Elms hotel and spa is an enterprise that offers services that are high on demand while at the same time. Spa services mainly offer hydro therapy but Elm’s hotel and spa will venture into offering other wide ranging services to attract a wide customer base. The barrier to this business plan is that the business already exists and there are many already well established businesses to compete with. Enough funding to set up all the business ideas is also a barrier to the business plan as some aspects of the plan may end up being foregone yet are great opportunities to generate income. The business is targeting both new and existing customers that utilize the service because all year round people take vocation at different times and even during peak seasons, customers will evenly spread. Other services to be included in the hotel and spa include manicures and pedicures, facial and skin treatments, full body treatments, massages, hair styling, hair removal and make up application Fiore, 2005.

This would mean that the enterprise’s spa operates both as day and resort spas. The hotel services will also include cuisines from different parts of the world so as to attract even international customers and locals who would like to experience other people’s culture. In addition, the organization of varied events all through the year such as social awards and cultural nights will also attract many customers. The wide range of services will mean more income generation and the good profits will be passed to customers through affordable rates. This will increase our competitive power against our competitors. Product differentiation would be enhanced by maintaining a botanical garden that enhances the scenery of the hotel and even encourages camping activities.

Elm hotel and spa will be operating in a monopolistic market structure because there is are a large number of business that provide the same services with only slight differences and each having small proportions of the market. This would imply stiff competition requiring fast to ensure the business is up and running in pace with any developments in the hospitality industry. Market research would entail opinion and social research that requires gathering and explanation of information about organizations using analytical and statistical methods of applied social sciences to gain insight that supports the decision making process. The profit maximization level will be reached by equating marginal cost with marginal revenue. This requires information about market prices, demand and costs of production at different levels of service output. Without this information decision making would require wide consultations with other participants in the hospitality industry and analysts which would slow down the decision making process. The advertising technique for elm hotel and spa will follow the use of websites because they are effective and inexpensive Abrams, 2003.

This will be backed up by the use of newspapers that are circulated countrywide at a reasonable price which attracts business customers for the service being provided. Finally, the use of the newly created customer base that can provide referrals of where they received service to their satisfaction generates another base of customers with the benefit of offers and discounts for every customer referral. In order to maintain customer loyalty the enterprise will maintain constant communication through emails and newsletters.

The financial feasibility is that the startup cost is expected to be several thousand dollars until the company acquires a good number of customers and income to pay expenses from the current revenue. The current rate for competitor hotels and spas is $100 a day, elm hotel and spa can charge $80 a day and $40 for other extra services provided during daytime and this offers a good profit margin for a business that serves a wide variety of customers (Peterson et al., 2010). The elasticity of demand for the services of hotel and spa is in direct relation to the economy of the United States. When the economy grows the demand for hotel and spa services also increase and therefore the hospitality industry is well performing when the economy is good. The pricing strategy will involve the manipulation of the profits made over costs incurred while the non-pricing strategy will include the advertising that is not related to price changes. The mix of the two strategies ensures that the business is incurring expenses in its operations whilst maximizing profits. Strategies to minimize cost of offering services mainly include offers and rewards for a wide variety of services offered to customers especially during holiday seasons. Keys to success for Elm’s hotel and spa will involve a branding strategy that creates awareness among customers that elm hotel and spa is the standard service provider in the hospitality industry, ensure patent protection of our from our customers and maintain a complementary relationship with other organizations interested in investing in our service providing business.


The hospitality industry is a growing industry that generates a lot of income every year Fiore, 2005.

Operating a hotel and spa allows for creativity of wide ranging ideas that are utilized by different people as they seek for the perfect place for relaxation. The other aspect is that operating hotel and spa provides the opportunity to experience the services at a small fee whenever one is in need. Offering the best foods brings people together from different cultures during every eating occasion enhancing happiness and togetherness.


Abrams, R.M. (2003). The successful business plan: Secrets & strategies. Palo Alto, CA: The Planning Shop.

Fiore, F. (2005). Write a business plan in no time. Indianapolis, IN: Que.

Peterson, S.D., Jaret, P.E., & Schenck, B.F. (2010). Business Plans Kit For Dummies. Hoboken: John Wiley & Sons.