A Business plan Douro River Hostel

Abstract

A business plan, as its name implies, is a plan that describes all the objectives and phases of a new business. In order to be successful, it is necessary to assess the expected feasibility considering all risks and uncertainties.

The present work has as main objective the evaluation of the profitability of a Hostel in the city of Porto, more precisely in Ribeira, a privileged place.

In a first phase, we start by presenting the business model through the Business Model Canvas, where in a single sheet we describe the main characteristics of the business focusing on the central idea of ​​creating value for the consumer. We move forward with a brief overview of the current market, as well as a small analysis of the existing offer and prices charged, confining ourselves to the vicinity of the predefined location, which we point out as the main competitive advantage.

After presenting the idea and description of the services provided, finally, we evaluate the financial interest through the analysis of the investment and financing, the estimated costs and generated revenues. In a final phase, we evaluate the sensitivity to negative variations and in a way they may call into question the viability of the Hostel.

The results obtained conclude that we are dealing with a business that has the necessary conditions to make the decision to move forward.