Patricia and Richard are owners of a guesthouse in rural Wales, called Snooze Cottage. They are thinking of investing in a second property. So I am going to investigate whether or not Patricia and Richard should invest in a second property and to discuss the advantages and disadvantages of this business move. Patricia and Richard Wright own ‘Snooze Cottage’ this is a guesthouse in rural Wales. This is a 10-room guesthouse that has a range of single, double and en-suite accommodation of the highest standards possible.
As Snooze Cottage is such a popular place no advertising has been necessary, word of mouth has ensured that throughout the year rooms are always fully booked. Patricia and Richard are involved in the running of the business, they are not trained in management but they deal with the customer’s side of the business. They currently have six employees working for them, keeping the rooms clean and tidy, making sure any little jobs and repairs are done including the garden and cooking a range of food for their guests. Richard and Patricia are discussing the possibility of buying a new property and expanding their business.
Although neither Richard nor Patricia are fully qualified in business or management they both have good experience and success in this sort of business, as Patricia’s parents owned a bed and breakfast and she grew up within this area of business and has recently attended computer course for accounts which would be very good for her joint business. Richard has also had experience growing up in his parent’s family business working behind the counter working with customers. Richard and Patricia need to take into account that they need to find out what the local leisure and tourism is like.
They also need to take into account travel information and what the local media sources are. I am going to inform them of what the local area is like for these three things and the advantages and disadvantages on expanding their business. People will be travelling to their guesthouse by car or train so they need to take into account what the local train services are like. It’s likely that there will be a main train station in higher populated areas of Wales and then from there trains going round the rest smaller, rural parts of Wales. It would be very helpful then if there were a train station not far from the guesthouse.
If people are travelling by car then they need to make sure that the new property they are buying has areas for cars to park as they will not be able to have all their guests parking on the streets etc as local home owners may become very annoyed with guest parking in the areas of their homes. So it would be best if the guesthouse has an area out the front or back for parking especially when it comes to the height of the season and more guests are about. If they would want if promote there new guesthouse then they need to use the media in doing this i. e. Internet, leaflets, newspapers etc.
This will be very useful in doing this in a high popular area so there are more people able to see there promotion this would be very useful in a small town as it wouldn’t go out to a large audience. If they would like to promote to people all other the U. K. then television would be there best offer as most people have televisions as they it would go out to a large audience. There is going to be a number of things that Richard and Patricia need to think about before buying a new property. One of the main concerns for the new property is going to be to the staff.
They are going to have to hiring new staff along with keeping the current staff. The current staff will be very useful in the new venture as they already know the general running of the B ; B. I would consider promoting all the current staff and splitting them into two groups making one group stay with there current roles at ‘Snooze Cottage’. The second group I would send to the new property and let them run it, but making them in charge of the new workers. This will help as the current workers can train the new employees to cope with the general work at the cottage.
Something else that Richard and Patricia need to take into account is the cost of the new venture. The new property will help bring more income in from extra customers. These customers can help the income also by word of month. It will give the business more entertainment options with the bigger house and there will be more room’s available. But this is all going to cost a lot to get the new business up and running. More staff needs to be hired, money on new furniture, catering and the cost of the property and renovation of the building all need to be taken into account.