Rolling Hotel Business Plan – A Sound Strategy To Succeed With Numbers

In my consulting experience, I often come across managers and entrepreneurs who seek advice on hotel budgeting process. Now that we are towards the end of August, the process for many of you must have already begun.

Sometimes however, I get alarmed when I hear someone raise a question mark on the very need for a budget or their ability to cast one. Typical doubts that you hear are, “do we really need a budget?”, or “how can I look into the next twelve months and put a number to it? Well my answer to these questions is always very simple “Yes we do” and “Yes you can, we will work on it together”

It is a fact that the budget process for any period commences at least six months prior to the start of the period. As an example if your plan period is January 1st to December 31st, you would start the preparation of budget assumptions around the month of July of the previous year. From that point of view, I really sympathize with those who are yet to sharpen their forecasting skills. But the job has to be done. They better start learning it. From my experience of being involved with the budget or business plan process of some of the most reputed and efficient international brands during the past over four decades, I have finally settled on a process with rolling budgeting for the twelve plan sub-periods, month after month.

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Using a Business Plan to Answer Key Questions

A major reason for having a business plan is to make sure you are addressing the multitude of questions that have to be answered before you can point your business in the right direction. Trying to start a business without considering every detail is like looking for something in a disorganized room with the lights off: pretty soon you’ll trip, and if you fall, it’s likely you won’t ever get to what you were looking for. On the other hand, if you make a plan and follow it like a map, you will get to where you want to go.

Your business plan will answer these questions:

* What sort of business are you planning?

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5 Reasons Why NOT to Write a Business Plan

Looking back I don’t think I’ve ever written specifically about business plans before and the more I think about it the more I realise why, because they’re usually a pretty boring subject.

Let’s be honest, business plans are not fun things to write or to read, so I’ve quite happily avoided the subject up to now.

So why the sudden change of heart?

» Read more: 5 Reasons Why NOT to Write a Business Plan