BUSINESS MODEL AND BUSINESS PLAN DEVELOPMENT

Kulekhani Resort

Presented By: Chandan Shrestha

INTRODUCTION

• cater traveler travelling from Kathmandu to eastern region through biroad route

• provide homely environment to the routinized people frustrated living in an around Kathmandu valley

• Sisneri is a place located in Makawanpur district where most of the people of Nepal are unaware of. It is located 55 km from Balkhu, Kathmandu and 20 km from Hetauda

• Kulekhani Hotel and Resort shall be located at Sisneri offering lodging for vacations, weekends, and over-night trips along with food

MANAGEMENT AND ORGANIZATION STRUCTURE

• Kulekhani Resort and Hotel is a partnership firm owned by four persons who shall be investing 31.88% and remaining 68.12% will be on debt

• The Resort will be well staffed with 1 manager, 2 marketing manager, 1 accountant, 2receptionists, 3 room boy, 2 peon, 2 security guard, 2 gardener in administrative, marketing and operation department and on the side of Kitchen and Restaurant department there will be 2 head chef, 3 cook helper, 4 cleaner and 10 waiter

PRODUCT AND SERVICES

• Resort will be providing AC and non AC rooms at reasonable price

• There will be 20 AC rooms and 20 non AC rooms• The Resort will have its own restaurant for the

guests located inside with various tastes of food and beverages

• There will be free Wifi, internet and e-mail facilities for the customers

• Resort also has a facility for trekking, hiking and cycling as the route is a perfect location for the same

MARKET ANALYSIS SUMMARY

• The market for lodging industry in Makawanpur is limited only to Hetauda. Kulekhani Hotel and Resort could be another best place for internal and external tourists

• People of any ages can be attracted towards the resort for their small visit

• middle class families around the Kathmandu valley, Hetauda and other people travelling on the way

• travelers travelling on budget, middle class families, and also internal and external tourists travelling for short period holidays on limited budget, youth couple and group of friends

Continue…• Various auxiliary services like fishing, hiking, trekking and

various other services• Word of mouth by providing best service, quality food and

homely stay• The AC room will cost Rs 1500 and non AC room will cost

Rs 1200 per day of stay• Hoarding boards will be kept on the main way of

Dakshinkali and entrance of Hetauda connecting Sisneri• Business cards and brochures• Resort will also be equipped with websites for online

advertisement and online booking and payment facilities• Resort will also be having contract with various business

colleges of Kathmandu

FINANCIAL PLAN

• The loss on the 1st year will be Rs. 893,512• profit from second year of Rs. 772,766• The payback period is 5.13 years

Particulars Total Fund Required To be financed by loan

To be financed by the company

Fixed Capital 58,030,000.00 40,000,000.00 18,030,000.00

Working Capital 3,625,550.68 2,000,000.00 1,625,550.68

Total 61,655,550.68 42,000,000.00 19,655,550.68

Debts Equity Ratio 100.00% 68.12% 31.88%

Computation of Break Even Point

(Taking Base at 60% Capacity Utilization)

Particulars Amount 

Revenue from Sales 20,695,500.00  

Less-Variable Cost 8,741,700.00  

Contribution margin 57.76% 

Fixed Cost 13,145,150.00  

BEP in Rs 22,758,072.90  

BEP in Capacity Utilization % 65.98%