I. Executive Summary
This Section's Contents
You can download our Airbnb Business Plan Template (including a full, customizable financial model) to your computer here.
Business Overview
[Company Name], located at [insert location here] is a new, small Airbnb space focused on providing rooms with a clean and modern character that is attractive to leisure visitors to the area. The Company’s rooms will feature modern furniture, high-end technology and modern accessories.
Services
[Company Name] will offer all of the standard Airbnb services including daily room cleaning, free local calls, cable TV, a free wireless network and various other amenities.
Customer Focus
[Company Name]will primarily serve leisure travelers who seek comfort, necessary amenities, and simplicity of services. In general, the market for the Airbnb segment tends to be relatively affluent and well educated.
- The single largest segment that uses Airbnb are guests on vacations/pleasure trips. These tend to be short, weekend breaks to relieve work-related stress. Special events, such as weddings, are important revenue drivers.
- Group travel and business meetings/seminars are important revenue drivers during weekdays and increasingly access points at a central point or in rooms, to attract this latter market.
- 150,000 visitors to the area in according to Office of Tourism
- 55% between ages of 40 and 49, 16% 18 to 29, 18% 50-59, 10% 60+according to the National Household Survey of Travel
- Average household income of $85,900 according to the American Lodging Association
Management Team
[Company Name]is led by [Founder’s Name] who has been in the Airbnb industry for 20 years.
While [Founder] has never developed an Airbnb from the ground up, he has worked in the industry most recently as a general manager, and has held various positions in the management chain over the last 10 years. As such [Founder] has in-depth knowledge of the Airbnb business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There is currently no Airbnb in the community we are entering. In addition, we have surveyed the area and determined that they have frequent visitors who would use our Airbnb location when launched.
- Our location is central to the downtown, airport, tourist attractions and corporate district of the city.
- The management team has a track record of success in the Airbnb industry.
- The city announced plans to invest over $1 billion in tourist attractions over the next two years and existing hotels will not be able to handle the increased capacity of visitors traveling to the city.
Financial Highlights
[Company Name] is seeking a total funding of $3,000,000 to launch the Airbnb business.
Specifically, these funds will be used as follows:
- Design/build: approximately $2,500,000
- Working capital: approximately $500,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even
Topline projections over the next five years are as follows:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $1,980,125 | $2,832,031 | $3,409,160 | $3,783,447 | $4,100,713 |
| Total Expenses | $1,375,530 | $1,561,763 | $1,866,977 | $2,027,436 | $2,107,349 |
| EBITDA | $604,595 | $1,270,268 | $152,183 | $1,756,011 | $1,993,364 |
| Depreciation | $372,760 | $372,760 | $372,760 | $372,760 | $372,760 |
| EBIT | $231,835 | $897,508 | $1,169,423 | $1,383,251 | $1,620,604 |
| Interest | $164,782 | $144,184 | $123,586 | $102,988 | $82,391 |
| PreTax Income | $67,054 | $753,324 | $1,045,837 | $1,280,263 | $1,538,213 |
| Income Tax Expense | $23,469 | $263,663 | $366,043 | $448,092 | $538,375 |
| Net Income | $43,585 | $489,661 | $679,794 | $832,171 | $999,839 |
