HOSTEL

Hostels

Hostel

Introduction

Hostels allow people of different nationalities, cultures and social realities to live together. Hostels are the ideal platforms for learning by living together with different people. A hostel as a business is quite a profitable business. The turnovers are normally high in this business. We have a plan to open a good and standardize hostel where people will be having all the facilities they want to have. The facilities include a good accommodation, a cafeteria, TV rooms, Leisure room, classrooms / workshops, An auditorium, Swimming pool, Terrace, Laundry area, etc.

Discussion

Overview

My business type will be sole proprietorship. This means that the profits will be completely my property and there will be no distribution involved in our business. I have selected this form of business because it is the simplest and cheapest way to hold and organize a business. Sole proprietors have full control, within the parameters lay down by law, and can make decisions that suit them. Business owners have all the revenue generated by your business, either to save or for reinvestment. Business profits flow directly to the personal tax return of the owner. If so desired, it is very easy to dissolve or wind up the business. “Sun Shine” is one of a new hostel located in the best area of ??Medellin, neighborhood, near the Village Park and stores. It is one of the successful Hostels. The hostel is 5 minutes from metro station the town and the best nightlife in the city site Park. There are bedrooms from $ 17000 and private rooms from $ 35000. It's a big house and the back has a cool lounge, sun loungers and water pipe or service pipe, etc.

The hotels are much more predictable compared to the shelters. Always get a private room, usually with a sink and sometimes a kitchen or coffee. Not have to make our bed in the morning, or pick up the room when we leave.

The location and type of clientele, however, are so varied to the hotels and hostels, so the surprise factor so we will be there. But seen from the positive side, the discovery of the hotel is part of the adventure travel of the first surprises that we will have to find (Anderson, 2009).

Financials

Projection for sales of my hostel for the Year 1 is $ 741,000 as for a new business the sales cannot be very high but it will gradually increase therefore in year 2 it would be to 915,000 and in Year 3 to 1,022,000. For starting a new business, some capital is always required therefore in year 1, capital for my hostel will worth around $ 57192. Total long term assets would be $335,720. Total long term Liabilities for the first year of initial investment are estimated to be $320,000.

Break-even Analysis

The monthly break-even point is approximately $52,900.

Projected Profit and Loss

The following is the projected profit and loss for three years.

Projected Balance Sheet

The following is the projected balance sheet for three years.

Projected Cash Flow

The following is the projected cash flow for ...