J’ 2020

BUSINESS PLAN

Ms Agathe Marie Anielle

Geraldine
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Table of Contents
LIST OF FIGURES 3
EXECUTIVE SUMMARY 4
1.0 INTRODUCTION 5
1.1 VISION STATEMENT 6
1.2 MISSION STATEMENT 6
1.3 OBJECTIVES 6
1.4 COMPANY STRUCTURE 7
1.5 IMPLEMENTATION OF MANAGEMENT 7
1.6 FINANCIAL PROJECTIONS 10
2.0 DESCRIPTION OF SERVICES 11
2.1 PROMOTIONAL STRATEGY 11
2.2 DESCRIPTION OF BUSINESS 12
2.2.1 HOUSING UNIT 13
2.3 PROPERTY LOCATION 15

2.4 COMPETITIVE ADVANTAGES 15

2.5 LEGISLATION 16

3.0 MARKET OPPORTUNITY 17

3.1 MARKET TRENDS AND GROWTH 17

4.0 FINANCE REQUIREMENT 19

4.1 FINANCIAL ANALYSIS 20

4.1.1 CHARTS 21

REFERENCING 22

APPENDIX 23

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LIST OF FIGURES

Figure1: Master Plan 11

Figure 2: Layout of ground floor and first floor 12

Figure 3: Elevation Plan 13

Figure 4: Tourist Arrivals 17

Figure 5: Monthly Expense for the year 2020 19

Figure 6: Monthly Expense for the year 2021 20

Figure 7: Monthly Expense for the year 2022 20

Figure 8: Profit and loss statement 23

Figure 9: Cash Flow Statement for the year 2020 24

Figure 10: Cash Flow Statement for the year 2021 25

Figure 11: Cash Flow Statement for the year 2022 26

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Business Plan

EXECUTIVE
Summary

‘’Taste the adventure’’

Prepared by:
Agathe Marie Anielle Geraldine,
Director and Author
Phone: 57906631
Email: aniegathe1998gmail.com

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 1.0
INTRODUCTION

The future looks promising for tourisms sector in Rodrigues Island as our
Island is becoming more and more recognize in certain area of the world.
Already, there are a high number of attractive activities developed in
Rodrigues but I will emphasis mainly on the activities performed at Rivière
Banane such as snorkeling and Boat trip.

Combined these tremendous activities with our attractive Flora, there will be
an increase in tourism population in Rodrigues in the future decades.
However, this specific area mentioned above does not have a warm, comfort
and friendly accommodation place where tourists can stay nearby.

Tropical Lodge will be a hostel for tourists around the globe and it will be
organized in a way making it attractive in the eyes of our visitors.
Furthermore, we will focus on offering typical Rodriguans menu to our visitor
while promoting the value of our Island.

Our establishment will offer its services in a strategic location in the North-
East of Rodrigues Island, at Rivière Banane directly adjacent to its gorgeous
and clear lagoon. Our clients will have an overlooking of our ocean where we
have our unique Marine Reserve Aquarium which is located in front of the
village of Rivière Banane on the North East cost of Rodrigues.

The hostel will be located within 15-20 minutes walking distance to the
seaside of Rivière Banane.

1.1 VISION STATEMENT

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 Tropical Lodge vision statements are:

• To provide a memorable experience to our customers in every aspect of

their stay.

• To be recognized as a unique in the industry for fulfilling our promise

'' Where guests become friends''.

 Introduce to them the culture of Rodrigues.

1.2 MISSION STATEMENT

 We are committed to excellence in the local marketplace and it form

part of our goal to help to attract visitors from around the globe with
our quality services. The needs of our guests are in the forefront of
everything we do. We emphasize high quality standards in our rooms,
food and beverage divisions. We will welcome them to our Island, host
them in style, cater to their needs and encourage them to return.

• Moreover, we will create job opportunities for Rodriguan’s Nation and

makes Rodrigues a renowned touristic destination.

1.3 OBJECTIVES

• Provide a welcoming and cozy home for tourists during their stay on the
Island;

• Become a renowned establishment for the quality of service offered;

• Be profitable; profit will allow for further expansion of the

establishment

• We can help to ensure the protection of environment by minimizing our

waste, energy and water usage. Putting into practice the three R’s:
Reduce, Reuse, and Recycle wherever possible.

• Making use of client’s feedback as a source of improvement Becoming

actively involved within our community, Monitoring and recording our
environmental progress always with the goal for further improvement.

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 sucess
to
key

 Provide high quality food through the collaboration of local suppliers.

 Use the natural framework of Rodrigues through advertising to attract

visitors and highlighting our cost and service advantage.

 Develop customer incentive and loyalty programs to create customer

relationships and also create positive word of mouth.

1.3 COMPANY STRUCTURE

Our company will be a sole trading business which will be owned, managed
and controlled by Ms Agathe Marie Anielle Geraldine. The Managing director
will be assisted by her assistant AC Kang Mc Jordan.

1.4 IMPLEMENTATION OF MANAGEMENT

For the first 2 years of operation of the business we will assembled a few but
strong team for the smooth operation of the business.

It is suggested that the establishment is to be staffed by a team of people

comprising of 5 subordinates, under the direction of the managing director Ms
Agathe Marie Anielle Geraldine and her assistant Ah Kang Mc Jordan.

The team will be constitutes of:

 The Managing director

Responsibilities

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  The financial and accounting functions of the business. The director
is actually undertaking her degree in Bsc Accounting Minor Finance.
 Supervise the work assigned to employees.
 Monitor all types of communication with potential clients.
 To be responsible for the construction of other infrastructure related
to the business.

 The assistant
Responsibilities
 Being the right hand of the director
 Help to manage the business
 In charge of the communication to the public
 Help to direct the work of the staff

 1 Chef
Responsibilities
 Manage the overall kitchen and be involved in the daily operation of
the kitchen
 Planning menus
 Inventory management that is he decide when and what ingredients
to purchases from suppliers.
 Ensure that the food providing is of the best quality.
 Inspects the freshness of the ingredients.

 2 House maids

Responsibilities

 Keep all floors, rooms and surfaces free from dust so that health
standards are met.
 Collect dirty towels and replace them as needed.
 Watch dishes and clean kitchens and cooking utensils.

 1 Watchman
Responsibilities
 Act as a watch dog to ensure the security of the establishment.
 To be alert and quick detect to any attempts to damage the property.
 Control access to the property.

 1 Gardener
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 Responsibilities

 Monitor the health of all plants, watering and keeping green spaces.
 Perform a general maintenance such as managing weed control.
 Maintain outside clear by cleaning rubbish from the garden.

 1 Poultry farmer

Responsibilities

 Responsible for daily care of the chickens

 Sometimes distribute feed
 Administering medications
 Maintenance
 Ensure health of the flocks in collaboration with veterinarians

It is expected that the business will grow slowly and gain repute both locally
and internationally, in accordance to that, we have projected to construct a
second infrastructure in year 3 along with the margin of profit gained from
the first infrastructure business, and hence staffing of the company shall
expand accordingly.

1.6 FINANCIAL PROJECTIONS

The most important thing for us is to ensure financial success for Tropical
Lodge. We believe that we can achieve this by offering and maintaining an
excellent service to our clients.

Based on some knowledge and a study about accounting, we have come up

with projections for the business.

We expect to earn a modest profit by year two, based on projected sales. Our
projections are based on the following key assumptions:

 Initial growth will be moderate as we establish awareness in the

market. Residual profits will be reinvested in expanding the service
line.
 Tariff for 1 room/studio = Rs. 2000 for one night stay
 Maximum capacity is defined as full occupancy of the establishment,
hence a total of 16 persons at a time.
 We project first-year revenue of Rs 960 000 and a 12.4% growth rate
for the next two years.

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  Start up sales shall be the sales during first year of operation, while
normal sales shall be sales after 1st year of operation onwards. This
will account for the fact that the company will not operate at its
optimum capacity during its first year of operation.
 For start- up sales period: In peak period, the business is assumed to
run 30 % of its maximum capacity, while for low periods the business
is assumed to run 10 % of its maximum capacity.
 For normal sales period: In peak period, the business is assumed to run
70 % of its maximum capacity, while for low periods the business is
assumed to run 20 % of its maximum capacity.

NOTE: Peak periods for the business year shall be during the months of
January, April, July, August, November and December.

Low periods for the business year shall be during the months of February,
March, May, June, September and October.

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2.0 DESCRIPTION OF SERVICES

On top of providing accommodation to our clients, Tropical Lodge shall also

aim at promoting the local products available in the island. The menu at
Tropical Lodge will focus on Rodriguain Cuisine. There will be several
specialities to choose from to make them discover and dreams about
Rodrigues.

For instance, Tropical Lodge shall consider the possibility of making business
collaboration with various local suppliers for the supply of local products such
as Honey, “Haricot rouge local”, “Ti Piment Rodrigues”, “Aigre Doux Limon”,
“Piment Ourite” and other products only produced locally in Rodrigues.
Tropical Lodge will easily have access to fresh vegetables as Rivière Banane is
a small agricultural village.

Moreover, this will certainly create lot of employment opportunities in

Rodrigues, boost local SMEs and help small local suppliers to stand out on the
international scene since their products will be known through the customers
of Tropical Lodge.

The hostel will be defined by its warm and comfy atmosphere. To create such
atmosphere, the hostel will be painted in warm, tropical and welcoming
colors. In each bedroom will be a small vase with fresh flowers.

The service offered will be friendly and we will hire people with a great
hospitality, people we can count on to provide the best services to our clients.

2.1 PROMOTIONAL STRATEGY

Marketing will play a huge role in attracting potential clients to the tourist
residence.

It is intended to set up a website for the company, where services offered will
be advertised. To improve the visibility of the website online and direct it
towards potentials clients, Google ads service can be used.

Moreover, enlisting the business on www.booking.com will be considered

since this website has a huge client database which will be beneficial to the
company.

Facebook also can be used as a way to advertise specially for Mauritian

people.

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2.2 DESCRIPTION OF BUSINESS

Tropical Lodge is a tourism enterprise falling under the category of Tourist

Residence in line with the guidelines set out in the Rodrigues Regional
Assembly (Tourism) Regulations 2007 act. The business shall consist of two
residence housing units, having a maximum accommodation capacity of 16
person altogether. This shall be the short- term plan objective for the
business. This is represented in Figure 1 below.

Figure 1: Master Plan

2.2.1 HOUSING UNIT

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The house unit presented in Figure 2 below consists of 4 separate units that
can accommodate 2 persons each, accommodating a maximum of 8 persons
altogether at a time.

Figure 2: Layout of ground floor and first floor

2.2.2 ELEVATION PLAN

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The structure shall consist of a ground floor and first floor level. Figure 3
below shows the elevation plan and an underground rain water reserve for
the private usage of the residence.

Figure 3: Elevation Plan

2. 3 PROPERTY LOCATION

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The proposed location for the setting up of the establishment has been
identified in the North - East of the Island more precisely in the village of
Rivière Banane.

Preliminary site visits have already been conducted in the region of

Rivière Banane and we found that it is the ideal location for our business.

It has been estimated that the business shall require a total area of 3500 m2
for its operation. The area of land also accounts for parking space as well as
future developments that will be decided in the future based on the market
trend.

The area selected is close to main area of attractions such as the beach and
the sea. The seaside is made up of beautiful peak formed basaltic rock and a
pure and turquoise water with a shade of green. The air is so fresh and soft
that the clients can just sit down near the sea soaking up the atmosphere.

In additional, as the village is an agricultural village, we can easily have access

to fresh, bio and healthy vegetables which may not be too costly. Rivière
Banane also provides some wild red fruit with juicy flesh which are not
recognized on the market. It will allow our clients to make new discovery.

2.4 COMPETITIVE ADVANTAGES

Tropical Lodge will differentiate itself from the competition by creating a

unique and exciting living atmosphere.

We will set ourselves apart from other hostel through our commitment to
high quality products made by Rodriguan people and also high quality
services.

Moreover, we are planning to construct a chicken coop near the locality, to

encourage our tourists to know deep about our ways of living. People could go
see and feed the chickens if they want to. They can also take some pictures
with. Additionally, they will be allowed to collect the fresh eggs of the
chickens in the morning for their daily breakfast.

We will also offer some artisanal products to our clients for their departures
from Rodrigues as means of a memory of our beautiful island. It shall also
help some craftsman to increase their sales as well.

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Other strategy to differentiate us from other competitors is that we will
develop Tropical Lodge as the most convenient and cost-effective hostel
alternative for the thousands of tourists who flock our Island each year.

Once underway, we will take advantages of high- margin services sales and
within three years we will intend to create a great comfort and become the
premier hostel destination for our visitors.

2.5 LEGISLATION

The tour operator will make sure to have the tourist hold enterprise license
and permit at local level issued under regulation 6 of the Rodrigues Regional
Assembly (Tourism) Regulations 2007 act to be able to run legally. Our tourist
enterprise will be bound to all the guidelines under the Act 2007 and also to
the environment regulations.

MARKET
MARKET ANALYSIS
ANALYSIS

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3.0 MARKET OPPORTUNITY

According to the statistics, the overall tourism industry is increasing year by

year. Over the time we forecast an increase in the sales as the arrivals of
tourists are rising meaning that the demand will also increase due to the
growing of the market.

Our forecast is based on the assumption that there will be the expansion of the
airport of Rodrigues in 2022 which will lead to more flights coming directly
from abroad and moreover, nowadays Rodrigues is becoming more
recognized from abroad.

Our target market has one basic need, which is the availability to provide
service at a competitive price. We will be targeting all types of tourists who
will flock our Island. The general demographics of our target market are males
and females in the 10 to ageing people.

3.1 MARKET TRENDS AND GROWTH

The growing trends of the tourisms sectors in Rodrigues really favor our
venture. According to the latest statistics of travel and tourism on Rodrigues,
our target market has grown by 4.37% for the past three years.

The table below shows the Passenger Traffics arriving in Rodrigues from the
year 2016 to 2018.[ CITATION Che19 \l 1033 ]

Arrivals in Rodrigues

Both Sexes Male Female

2016 94270 47329 46941

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 2017 97827 49500 48327

2018 98418 50268 48150

Table 1: Tourists Arrivals by Gender (Male and Female)

Tourist Arrivals
120000

100000

80000

60000 Tourist Arrivals

40000

20000

0
2013 2014 2015 2016 2017 2018
Years

Figure: 4 Tourists Arrivals (2013-2018)

4.0 FINANCE REQUIREMENT

As a startup, 1 of the 2 residence houses shall be constructed and shall be in

operation for 3 years. The second residence house shall be constructed after
the 3 years of operation of the business, as it is expected that the business will
generate enough profit for the funding of the second house by then. Therefore,
the second residence house will be self -funded from the revenue of the
company itself. As for the first residence house, funding shall be sought from
the bank.

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A bank loan of Rs 1.7 M shall be sought to invest into the infrastructure of the
first residence house and for any other one-time purchase items. It has been
estimated that the invested capital of Rs 1.7 M shall cover all the expenses to
get the business up and running.

SME loan facilities dedicated to emerging business are currently offered in

banks such as SBM, MCB and Mau Bank. These loan facilities shall be sought
for the funding of the business. The loan shall be reimbursed over a period of
15 years, equivalent to a payment of Rs 12, 000 to be paid each month.

4.1 FINANCIAL ANALYSIS

At the start up of Tropical Lodge, the revenue generated will be low hence the
business will be making little profit

However, it is noted that there will be an increase in the sales within the year
2020 to 2022. It causes the gross profit margin to fluctuate from 90.97 % in
2021, 91.97% in 2020 to 92 % in 2020. The reason for the changes will be
because due to the increase in sales, Tropical Lodge will have to purchases
more, so we forecast to purchase on bulk where we can obtain some discount.

The above sentences means that for every Rupees Tropical Lodge will
generates in sales, the latter will generate 91.97% for the year 2020, 91.97%
for the year 2021 and 92% for the year 2022 in gross profit before the
business paid expenses.

Additionally there will be an increase in the Net profit Margin. It is at the

range of 45.59 % to 53.39% from 2021 to 2022. This means that there will be
an increase in profit made over the years. . More details about the figures will
be shown in the appendix below.

4.1.1 CHARTS

The charts below show the level of expenses of the business on a monthly
basis. It is shown that some of the expense will increase during the years but
this changes will depends on other external factors

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 Estimated Expenses for months 2020

Loan repayment Electricity Trading license

Salaries Website Marketing

2% 4% 33%

44%

11% 5%

Figure 5: Monthly Expenses for 2020

Estimated Expenses for the months of 2021

Trading License Electricity Loan repayement

Website Marketing Salaries

11% 6%

44%

32%
4%

2%

Figure: 6 Monthly Expenses for the year 2021

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 Estimated Expenses for the months of 2022

Trding license Salaries Loan repayment

Website Marketing Electricity

9% 11%
4%
2%

31%
43%

Figure: 7 Monthly expenses for the year 2020

5. 0 REFERENCING
Suet, C. K., 2019. DIGEST OF STATISTICS ON RODRIGUES 2018, PORT LOUIS: s.n.

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