Writing a vacation rental business plan is the first step to taking your business to the next level. This document will help you to define the strategy that will guide your business as you start the business or increase the number of Airbnb properties. It can also help you to secure the funds that you need to develop your business from lenders or investors.
Finally, creating a viable business plan for your vacation rental business will also help to identify potential risks before others invest in your business. To help you figure out what to write down, here are the top things your vacation rental business plan needs to include.
The executive summary outlines the history of your vacation rental business, including your prior successes and accomplishments. You’ll also want to make sure to cover future goals for your business, as well, as information on your current properties, employees, and third-party vendors. When potential lenders or investors read this at a glance, they’ll be able to know in a nutshell what your business has to offer and why it is worth investing in.
The company description provides details on your businesses USPs, providing an in-depth analysis of the unique offerings that your business brings to the market. Here you’ll describe your target customers, including the types of Airbnb guests that your business attracts or you hope to attract. In this section, you’ll also explain how the growth of your vacation rental business will make you a standout in the market.
Here you will outline your current position in the vacation rental market and explain in detail the size of your market and what technology will be required to grow your business. For the marketing strategy for your business, describe the strategies that you will use to achieve bookings in the future. Will you need to invest in new technology, develop new collaborations or change your customer experience strategy? All of these factors must be outlined in detail.
Your plan should discuss all of the channels, both online and offline that you plan to use to advertise your vacation rental business. Make sure to provide details on how much they are expected to cost and how you plan to manage each channel.
A sound management structure for your vacation rental business will improve productivity and ensure that all members of your organization can achieve their true potential. Is the structure of your company, as a partnership or ownership by a single individual, living up to its potential? Explain the management structure for your business in its current state, including any property management services you use.
The operations plan will help you to make decisions regarding hiring, company standards, and how you will keep up with the day to day activities involved in running your business. Daily tasks include managing all the business aspects of your properties, such as taxes, insurance, reservations, payment processing, maintenance, and related administrative tasks. Discuss how your current setup has worked so far. Are there any improvements that can be made as you expand your business?
At this juncture, you’ll also need to decide what role you want to play in your vacation rental business in the future. Do you want to continue to play a key role or would you like to bring in additional staff to help spread out the responsibilities?
To start, cover the financial history of your business by discussing all of your prior successes and how those successes have led to the state of your business as it is today. You will also need to create a detailed financial plan and projections.
Your financial plan should include a 12-month profit and loss project, a 5-year financial growth plan, a cash flow project, estimated balance sheet of expenditures for your business, and a cost analysis. For this part of the business plan, it is a good idea to work with an accountant to ensure that your documents meet the financial reporting standards required by commercial lenders.
In addition to financial documents, you’ll also want to put together some information that helps to build the case for the viability of your vacation rental business plan. Here are some ideas for documents to include: