If you look up vacation rentals in Memphis, you’ll likely get a lot of hits. While this might be great for those looking for accommodations, it can be intimidating for new vacation property owners.
To help you stand out from the competition, you need a vacation rental business plan. With a detailed system in place, you can make a profit and gain more bookings than your competitors.
Keep reading for a free business plan template.
Executive Summary
Every great vacation rental business plan has an executive summary. Writing this summary can be a bit daunting, but it’s simpler than you might think.
Think of an executive summary as a quick synopsis, like you would read on the back of the book. In a few sentences, describe your vacation rental business and include essential information you need to share.
Anyone reading the first page of your business plan will know, at a glance, what the company entails. Your executive must include these points:
- Vacation rental location
- Type of vacation rental (family home, glamping accommodation, suited for business travelers)
- The best time to stay at the rental
- Why you have the property (for extra cash, top up your pension, main form of income)
Following this structure can help you outline the information you should include.
Business Goals
The executive summary provides a broad overview of where the business is going. The goals section solidifies your vision. Goals determine what you believe success looks like for your business.
Do you want a full calendar at the end of the year? Are you expecting only a few bookings a month? Set goals to pin these thoughts down.
Make sure you have measurable and attainable goals. Making them relevant by setting time bases is also helpful when you track the goals.
Value Proposition
Why will customers choose your vacation rental to stay at? This is the question that a value proposition should answer.
Try to take yourself out of the equation to value your business accurately.
All of your efforts should be adding value to your rental property, but the guest experience is ultimately what matters the most.
Value your property by comparing it to similar vacation rentals in the Memphis area. Complete market research to find out what other properties can’t provide that make you stand out from the competition.
Business Analysis
As a property investor, it’s important that you can explain the unique selling points (USPs) of your new business. Outline the characteristics that make your business unique to the current market.
Performing a short company analysis can help you figure this out. To figure out how your business is different than others, consider these simple questions:
- Is your location better than others?
- Is the price of your accommodation better?
- Is the property interior different or better than others?
Be confident and detailed about your strengths and explain why your guests will enjoy them.
Industry Analysis
The short-term rental industry is booming, which requires you to be strategic and competitive to find success. This section is where you should state key findings about the current industry trends and what you can expect in the future.
An industry analysis involves looking at other vacation rental businesses and evaluating their details. With this information, you can develop a successful business strategy.
To help you with your industry analysis, use these sample questions to find information:
- What do vacation rentals near me charge per night?
- Who is the main target audience and clientele within the market?
- Are luxury units or basic rentals more common?
- What websites and agencies do they use for bookings and marketing?
Focusing on profit per booking rather than occupancy rates can help you determine profitability.
Customer Analysis
Customers are the key to making money in this market, so it’s important to understand them properly. Create buyer personas in your business plan, showing the type of guests you want to attract.
A buyer persona acts as a profile of your ideal customer with details ranging from income to age. Make your buyer personas as detailed as possible. If you need help creating them, check out buyer persona examples.
Buyer personas will repeatedly come up in all business aspects. They can help you understand what your customers want and need.
To complete a customer analysis and find your ideal guest, ask yourself these questions:
- What is their job?
- How old are they?
- Do they have a family, or are they single?
Creating a name for each of your personas might seem silly, but it can bring your analysis to life and better put you into the shoes of your customers.
Competitive Analysis
Conducting competitor research can help you understand how your business can thrive. This analysis is similar to an industry analysis, but in this research, you are focusing on your immediate competitors and not the industry as a whole.
For example, if your vacation property is in Downtown Memphis, your competition would be those in the same area.
Look for the businesses that could win a booking over you to complete your competitive analysis. Gain more details by asking these questions:
- How much are competitors charging per night?
- What standard accommodation do they offer?
- Do they offer amenities?
- Do they offer transportation services?
The answers to these questions will help you determine how you can stand out.
Marketing Plan
A long-term strategy for gaining more bookings requires you to have a comprehensive marketing plan. Find which strategies will work best for your business and explain how they can target your market.
Consider online and offline marketing. Think about how you can run campaigns during high seasons to win out over the competition.
Your marketing plan is how you will advertise your business to customers and gain more profits. Pro tip: Your buyer persona will come in handy for this portion of your business plan.
Creating a Vacation Rental Business Plan
A solid vacation rental business plan must include these items. To have the best chance of success with your business plan and beyond, hire a property management company in Memphis.
Reedy & Company offers unrivaled property management services in the area. We manage over 3,5000 rental properties, including vacation homes. Our wide range of local knowledge allows us to provide the best services for you.
Contact us today to start making better property decisions.
