7. Financial plan

SCOPE OF FINANCE

In order to create 2 hotel complexes we need funds for building, its repair and equipment, getting HIS and fire fight permission as well as expenditures cover during first year.

Expenditures for 2 complexes opening:,00 UAH или 250000$

PRICE POLICY

It is really practice to set prices upper than medium market prices but a little lower than other hotels’ prices which have been working for long period. гостиниц, работающих на рынке продолжительный период времени.

Competition environment is crucial; this influences pricing. Expenditures will be changed while pricing. There are expenditures for building, staff keeping nad accountant.

We are focusing not on the lowest prices but high-quality service and uniqueness.

FINANCIAL CHARACTERISTICS

Major characteristics:

1. Hotel complex square – 1500 sq. M.

2. Salary fund – 170 000 UAH per month. (7000$)

3. Income (expecting) from living (420000,00 UAH иor (16800$) per month (according to minimal price and capacity 10 days in a month) – 1 complex income

4. Income (expecting) from additional service – 300000,00 UAN or (12000$) per month (according to minimal price and capacity

5. TOTAL AMOUNT if capacity is minimal (10 day in a month) and minimal price, it is around 18000 $. (1 complex)

More detailed financial plan is attached to our business plan.

8. Execution plan-graphic

Project steps	Execution conditions	Execution terms
Investment agreement signature	1 month	1-30 banking days
Entering State Register, Tax and Administrative institutions	Investment agreement signature	1-30 consecutive days
Location choice and documentation	Предварительные работы	1-30 consecutive days
Building - ground area purchase - making and getting building documentation	Investment agreement signature	Purchase - 30 consecutive days. Building – 180 consecutive days
Furniture and equipment purchase	Investment agreement signature	1-30 consecutive days
Area modification	Getting investment fund	1-30 consecutive days
Personal hire	Manufacture activity	1-30 consecutive days
Marketing strategy implementing	360 consecutive days	1-360 consecutive days
End of the project		Less than 12 months

9. Conclusions

So, hotel complex is high profitable and perspective business if manufacture is organized in a perfect way in spite of the market conditions which became rougher. Citizens quantity (who wants to have rest) has not been reduced, but vice versa, it has been increased due to family money saving during It increases visitors quantity Complex creation with the help of large investments will bring income and paybacks the services during 2 years. That’s why financial investment is really legitimate.

This investigation shows that such business as hotel complex and providing following service is profitable and perspective. On of the crucial activity conditions is skilled labor that can lure client and keep for a long period. Hotel business requires CEO’s discipline, knowledge and effectiveness and he needs to realize that such project requires perfect elaboration to attract clients and to make perfect staff system.