(Ted Nicholas comments in red) 5-Star Bargain Villas (Holiday s)

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1 (Ted Nicholas comments in red) 5-Star Bargain Villas (Holiday s) The Goal!! The goal of the business is to build up to 1,000 5-Star Villas with Private pools by the 1st of Jan, Each potentially earning 1,000 profit each a year (after paying wages and advertising costs = 1,000,000 profit each year. Our focus is on 5-Star Villas with private pools. The model to emulate is Jamesvillas.com, select villas, Villa Parade. Tip: I suggested the name, 5-Star Bargain Villas to John Paul. Please note. The name of your product or business is critically important. (T.N.) Year One 20 Properties 20,000 (2010 this was achieved) Year Two 150 Properties 150,000 (Jan 2011 = 150 Villas, profit 30th Dec ,000 on target) Year Three- (1st Jan, 2012 to have 300 Villas with private pools on 1 year contracts Dec 30th profit of 300,000) Year four (1st Jan, 2013 to have 700 Villas with private pools on 1 year contracts Dec 30th Profit of 700,000) Year Five (1st Jan, 2014 to have 1,000 villas on a 2/3 year contracts Dec 30th, 2014 Profit 1,000,000. The goal is to sell the business after 5 years for 7 million. Jan

2 Tip: Great strategy. The goal is clear. The exit strategy is in place, as it should be, beginning the day you start the business. Overview The aim of 5-Star Bargain Villas (Holidays) make a profit for villa owners hassle free, through renting. The marketing will consist of advertising on the three top holiday rental websites, Holiday Lettings, Holiday Rentals and Owners Direct. (Feature listings will also be taken out.) The properties will also be advertised for Free on Villa Renters and Holiday Rentals 365. Tip: Advertising copy needs to strongly convey the hassle free aspect of having the property professionally managed. Other Marketing PR, marketing, Google ad words, social media, systemised referrals, create informational products, direct mail, adverts on other websites, newspapers, BBC radio Merseyside (talking about the price you can rent a 5-Star villa, lifestyle etc- Free PR), Free reports The goal is to rent a minimum of weeks a year for each property owner. Other Up-sell Opportunities car hire, flights, guide books for sale, professional video of the property. Airport transfers. Travel insurance, home insurance, life insurance, mortgages, property sales, cleaning, cots, Hampers etc. Tip: Clearly other services offered by John Paul s company will help clients enormously while increasing profits. Holiday Rental s job is to manage the bookings for the landlords and to upload the properties to the website portals. To handle all enquires and automate this process as much as possible through Infusionsoft system. With the large number of customers and prospects in the database the aim is to then market properties for sale in Turkey and other areas around the world. (Ice Cream Cone Theory, by Ted Nicholas). Tip: Surely you read my strategy to get as many prospects into your Ice Cream Cone (Funnel) as possible. If the rentals go well in one area the company will also be looking to charter flights or buy a number of seats at low costs from the airlines. 2

3 With increased traffic to the site we will also aim to attract paid advertisers, e.g. Easyjet etc. Tip: I believe attracting paid advertisers is an achievable goal. 1. Purpose of 5-Star Bargain Villas Villa Rentals Proposal The 7 P S of the Business Plan The purpose is to effectively market 5-Star Villas with private pools for rental and to increase the number of bookings. I aim to target landlords that have lack of time or the marketing know how to get the rentals. I have identified that the majority of owners of overseas properties either own their own business or have a high paid busy job. Therefore they have limited time to deal with enquires, marketing etc. 5-Star Bargain Villas will be a marketing and booking service for holiday home owners that want to earn money from their villa. Any booking that are made, 5-Star Bargain Villas will take 25% of the total cost of the booking. Tip: A 25% commission seems eminently fair to me. The villa owners will have 3 options. 1. Cost- free- 5SBV will arrange pictures of their villa and promote their villa on our website sbv will arrange the pictures of their villa and take out an extra advert on a property portal. Then 249 every year SBV- will arrange professional photos and a 360 degree tour of their property, promotional video. Plus, arrange an advert on a holiday rental portal. Then 249 every year. Tip: A good service will be provided with recurring income for John Paul s company. 5-Star Bargain Villas service will be: Answer calls from 8am-9pm- Monday- Friday 9am -9pm Saturday and Sunday Prepare a marketing brochure for the clients villa 3

4 Pick out the best pictures to showcase the property Write the body copy for the marketing, prepare the headlines to entice the holidaymakers Follow up the leads, using Infusionsoft and automated systems To handle the booking and take the payments To work closely with the property managers To work closely with villa owners, to keep getting referrals etc. To ensure all our villas are well maintained and up to a 5-Star standard To make sure the reps and property managers are providing our clients with a 5-Star service Overseas Property Business! 5-Star Bargain Villas (Sales) Target potential buyers from the rentals Send s every month to try and get them to purchase Find the right investments to sell at the right price Sell the properties in the areas we rent. (See separate business plan.) 2. State the business Position The aim is to provide a quality service at a quality Price. The commission on all bookings is 25% of the booking fee. But in return the client will get a FREE marketing brochure, great headlines, answering service to deal with the enquiries, automated follow up with all leads, booking service and overall increased bookings. To provide renters with 5-Star Villas with private pools at a Bargain price. 3. Product/Service Management of all booking enquiries. To market holiday homes for rent on the major website portals. To assist landlords with the marketing of their holiday Homes for rental. To process payments online and to increase the number of bookings through automated follow up 4

5 A great telesales office to increase the amount of bookings. Renters Service- Each villa 5SBV takes on must have all the contents listed on our check list. A service team of 4 people will visit every property rented by 5-Star Bargain Villas every year before the renting season starts. (The crack team). They will test every property to make sure it is up to our standard. Any improvements required will be noted. And a scheme of work will be carried out to bring the villa up to this standard. Owners will be notified and charged accordingly. When the renters are on holiday- Speed Stuns is our goal. Any issues must be dealt with very quickly. Extra items for the villas will be bought in advance for the season e.g. Glasses, cutlery, bottle openers, bed linen etc. Tourism, reps. The reps must give a welcome talk to the renters on the day of arrival or early next morning if arriving late. Points to note are below!!! 4. Profit and Price 1. How everything works in the villa. 2. Who to contact in an emergency or if something breaks. 3. Places of interest, recommended bars restaurants, local tours, car hire, taxi services, golf green fees, informing clients that we also build and sell properties. Once this is explained, the rep can take or arrange any touts etc required. 4. Pick up times for leaving also explained etc. When the renter/client has returned home after their holiday / phone call sent asking for a review and also any of their friends that may be interested in renting our villas in the future. 10% discount will be given off their next villa holiday if they book with 5SBV. If the clients rebook within 28 days of their return. They will receive a further 10% off their villa holiday. The renter will also be asked if they are interested in purchasing a villa in the future. 5

6 We will charge 25% for each booking made through 5-Star Bargain Villas. Year 1 Business started in Feb Achieved goal as above. Year 2 Currently have 163 properties. On target to reach year 2 goals. Year 3 Villa rentals forecast. Starting January 2012, the goal is to have 300 private villas with pools to rent. Average rental is about % = 175 x average 15 weeks = 2,625. Year Villas x 2,622 = 786,600. Costs Sales staff approx- 5% of each week booked = 35 x x 300 villa = 157,500 costs for 4 sales staff -= 39,375 each. 6 sales staff - 26,250 per sales staff. Customer services 20,000 Advertising marketing costs Each villa requires a minimum of 3 adverts- at approx 100 each on the holiday website portals. 100 x 3 = 300 x 300 Villas = 90,000. Google ad words- 10,000-20,000 Newspapers 10,000-20,000 Pr- Free Other websites 5,000 Social media Property Managers, Introducers etc 7.5 % or 10% worth paying a wage to someone on certain properties. Office costs 10,000-15,000 or use a home office for year 3. Phone systems Clients that enquired put into a dial system and called automatically research costs etc. 6

7 Website systems This has already been developed in year 1. Approx other revenue streams 1. Car hire 15% on each booking. 300 Villas x 15 average weeks = 4,500. Average car hire cost 35 per day x 7 = 245 x 15 weeks = 3,675. 3,675 x 300 Villas = 1,102,500 Say 50% of our clients take car hire = 551,250 overall turnover for car hire. 15% average commission = 82,687 5% - sales team = 27,562 / 6 = 4,593 or / 4 = 6,890 each. 2. Airport transfers Average bookings say 1,800 Say 20% take airport transfers average % of 1,800 = 360 x 150 = 54, % = 8,100 5% to sales staff = 2,700 / 4 = 675 or 6 = guide books 10 each = 1, Book 50 flights 5 per flight = 10, Mortgages 10 x 1,000 = 3, Sell 20 properties from the database = Average commission 15,000 x 20 = 300, Life insurance for villa buyers 5 = 1, Home insurance 2, Travel insurance 10,000. Total potential extra revenue = 417,787. Total potential Turnover 1,204, People involved in the business Currently July

8 1. Michael To handle all rentals enquires, take bookings, sort data base, call clients, speak with landlords, sign them up to Holiday Rentals 365, load properties, send out marketing s. 2. Kev Website, advertising on the internet, key words, function of the site, increase rankings in Google, look after online adverts, keywords, develop new ideas for the site, attract advertisers, find other sites to advertise properties on. Keep updates in twitter. 3. JP To work on the marketing for the site, writing all the copy, headlines, working on the PR, sales and advertising to attract more landlords to sign up to the site. Speak with developers of large sites and see if they want to advertise their properties for rentals. 4. Mick Dow Load properties onto the site, handle enquiries, send s etc By 2012 I need to have a minimum of 3 more sales staff by Jan If I am able to get 300 Villas. Then I will need 6 Telesales team. Hours to be covered for selling from 8am to 9pm, Monday to Friday. 9am to 9pm, Saturday and Sunday. 6. Place 5-Star Bargain Villas will be an online business. Currently we are based in a home office in Liverpool, England. Jan 2012 The goal is to set up a Telesales Home office, large enough for 6 people in Belfast, Ireland. This environment must be nice with great views. Jan 2013 To have a telesales office large enough for 12 people. Again the location must be nice with lovely views. A positive, buzzing environment with great views. Jan 2014 Telesales office large enough for 20 people. 7. Promotion How do people find 5-Star Bargain Villas. Renters Website search engines, website portals such as Holiday Rentals, Holiday lettings, Owners Direct Bluetooth marketing, PR, advertising Google ad words Free reports Social media 8

9 Newspapers Adverts on other popular websites Systemised referrals Direct mail to existing data base Weekly campaigns Exhibitions Door drops, flyers Special events Monthly news letter Travel magazines Airline magazines Free reports How do we find clients to sign up to 5-Star Bargain Villas (Owners) PR, echo, daily post, Radio, buy a database of people who own Overseas property. Referral from existing clients Advertising. FREE reports on-line, start a blog, special events etc. Systemised referral process for existing clients using our rental programme Social media Companies that sold villas in the past Affiliates Trade Fairs Property developers Property Managers Web marketing Villa Owners!! Describe what the client looks like The customer is middle aged, between They more than likely own their own business or have a high paying job. They have limited time due to family and work commitments. They tend to only use their overseas property for 2 weeks of the year. They are not that good on the internet. They like to read newspapers, especially the business section of their local news papers. They are a bit annoyed that their property is not making them enough money and is costing them. Their motivation is to move away from the pain of loosing money but also the hassle of trying to organise the rentals themselves. They are also tired of going to the same place every year and would welcome the idea of switching a comparable property in a different area for one week in their property. 9

10 Renters This tends to be families that love to spend good quality time together. (This type of holiday will appeal to large groups). The idea of renting a 5-Star Bargain Villa appeals to them. They will eat in a lot to save money. For this reason extra fridge storage inside or outside will be necessary. They will also want home entertainment to relax during their holiday. Board games, Sky TV, I-Pod docking stations, pool table, table tennis, books, DVDs, are important. The idea of a private pool appeals a lot to them. They will want plenty of activities at the villa to keep them entertained. A BBQ is a must. Plenty of sun beds, outdoor chairs and umbrellas to protect from the sun. 10

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