W E A LT H A S A VAC AT ION
What level of taxes will I have to pay to the city, state, and federal government?
• 12%? • 20%? • I’m not sure; I need to research this before writing my revenue management plan. What will my utility bills be?
• • • •
Water is $20 a month. Trash collection is $30 a month. Internet and cable are $100 a month. Electricity will vary depending on how many guests I’ll have.
What will my staff costs be?
• Nothing, I’m doing all of the work myself. • Low, we have a family work philosophy. • High, I’m going to hire a cleaning agency, a marketing specialist, a website developer, etc. What’s my target monthly income?
• Under $10,000? • Over $10,000 to $20,000? • Over $20,000?
2.12 Financial Plan This business takes significant investment. Give some thought to your startup costs and how you will pay for them. We are not talking about the cost of the VRP itself. This plan will focus on the cost of the operations. Of course, you’ve asked yourself this question many times, “How am I going to afford this rental business?” Will it be self-fi nanced or are you planning on taking out a loan? The answers to these questions form your fi nancial plan. As we all know, money
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