Posted by gautam munot on April 22, 19101 at 02:30:44:
In Reply to: looking for funds USD1M with ensured high returns from hospitality industry posted by amrik khokhar on October 07, 19100 at 23:50:28:
: Little Big
: Executive Summary
: Alwin Toffler the world famous futurist said in his best seller FUTURE SHOCK “ There are only three Ts which are going to do well & survive the 21st century, and those are TOURISM, TRANSPORTATION & TELECOMMUNICATIONS.
: Little Big Hospitality Services Private Ltd. is poised to become India’s First & Finest Economy Tourism & Lodging system:
: a. It will make India’s best places available, affordable & accessible for each potential traveler, we will have at least one economy member hotel in each place of tourist interest. And on the other hand,
: b. Our segment divisions will offer quality economy services to millions of member & non- member travelers to explore the globe.
: Apart from creating a large base of potential national & international member travelers, Little Big has seen a BIG OPPORTUNITY to create a branded chain of at least 100 SMALLER HOTELS all over the country by the end of 2004, followed by this we will start owning hotels.
: As common sense suggests & our 10 year long research with more than 500 smaller hotels has confirmed the need of professional support services to smaller hotels.
: It is an increasingly competitive world and the independent smaller hotelier is under constant pressure from the chains, also:
: - They can not afford to hire senior industry professionals to run the hotel professionally
: - They can not afford to open offices in the cities from where their business is generated
: - They can not afford to have affiliation with the known chains of India nor they can compete with them.
: - Smaller hotels have visibility problem, because they are not well publicized
: - Technical training & education is the prime need
: - They have to repay their loans to the investors, for this they need regular business
: - They can not tap all revenue boosting industry segments, where Little Big has already penetrated these target segments, which constitute the following numbers:
: a) Corporate: (MICE, or Meetings, Incentives, Conferences, Events): Generate 50,000 conferences & incentives in India & more than 30000 international conventions take place globally every year, added to this is major chunk of individual travel on business. A big bucks segment with a potential $21 billion market lie with MICE (as told by TOI, Sunday, July 30, 2000).
: b) Travel Agents/ Tour operators: 60% of the bookings of individuals & groups (Indians & foreigners) are still routed through this vast segment.
: c) Schools & Institutions: 18000 Schools send their students out for excursions every year.
: d) Leisure travel market: Domestic and International: 175 millions Indians traveled last year, this does not include the pilgrimage segment. 5.9 million foreigners visited India.
: e) Film Units: Out of 100 movies produced every year 60% is shot out of Mumbai & Chennai.
: f) NRIs: Millions of Indian Expatriate population spread across the world has great love & affection for their mother land, 6.86 lakh NRIs visited India this year.
: g) The Senior Citizen: 51 million potential 55+ elders moved out of USA & UK to explore the globe. A good share of this segment comes to India.
: Added to above there are many more avenues from where business can be generated.
: - Little Big’s segment divisions are very smartly reaping volumes out of the above segments & presently we are the only professionally experienced & qualified set up in India, who is in a position to offer guaranteed support to smaller hotels. (All these segments are discussed in detail in Products & Services section.)
: All the above support can be provided by Little Big, for this hotels have to sign up a Management & Marketing Support Services agreement. This agreement will be for first five years thereafter can be renewed. No other chain can compare our fee & business generating capabilities in India. (Details of Little Big Advantages & Fee Structure are attached in appendices.)
: - As per Ministry of tourism, Govt. of India there are only 1209 hotels, which are listed with them (More than this number is operating without listing!). Out of which 47 are 5 star deluxe, 54 are 5 star and 80 are 4 star. Balance 1028 hotels fall under smaller hotels category. Which are in need of support.
: - Our Director General Tourism, Ministry of Tourism, states” There is a huge market of over 170 million domestic tourists whose needs are to be met. Most look for budget hotels.”
: Little Big is working on this idea for the last seven years and is now ready to reap this opportunity. The idea is to give brand recognition to hotels & resorts which are not too well known. The symbol of Little Big will give them the much-needed visibility and professional management & marketing support with guaranteed high occupancies.
: On the other hand, Little Big will also create a base of at least 1,00,000 member travelers by the end of 2004. These member travelers will always travel through us as we offer them plethora of services & discounts all over.
: To support each member hotels in filling up rooms Little Big has already started its segment divisions to tap different segments. These segment divisions will not only support member hotels but also do volume business with other hotels of India & abroad. Little Big will stand on more than ten solid legs and each will be an independent profit center. Without having a single member hotel, Little Big’s segment divisions have already started reaping volume margins. They have already handled thousands of tourists and have already operated more than 200 corporate groups ranging from 15 people to 1000 people all over the country in various hotels. (List of the companies handled is in appendices). The present turn over of only Delhi office has already reached close to one crore. If we have funds & operate from all over India, We have estimated to exceed Rs.38 crores turn over by 2004 with a net profit of Rs.3.7 crores.
: Each segment based products & services were first tested, prototyped, proved & then put in service, all of them are inter linked and are interdependent on each other. Each of them is highly revenue productive, also offer opportunities to earn millions of foreign exchange sitting in India.
: We do not have to wait for revenues to come. Little Big is already established in Delhi. Without wasting more time we have to capture other cities of India at the earliest. For which we need to open capsule offices immediately.
: With Head Quarters in New Delhi, Little Big will run by five full time well-rounded team of professionals and advisors whose wealth of experience & skill run from Sales & Marketing, Planning, Operations to Finance. Little Big will always strive to attract outstanding subordinates & will always be careful in choosing the best cream who is honest, loyal and totally devoted to company’s idea. Little Big will maintain the depth of their management by retaining quality professionals who can take over in case of loss of important personnel.
: Young ones will be trained & educated by the in-house Institute. This institution will be affiliated with World famous Educational Institute of American Hotel & Motel ociation. This institute will give us in-house manpower support, this will save our major manpower expense. We will retain few outstanding students. These students will later be sent to head our regional offices, member hotels or handle responsibilities in HQ .
: To build the brand and create national & international awareness, Little Big will participate in major trade shows, run striking and informative advertisements in trade journals added to this will be advertisements in Internet. A lively web site will be maintained. Our PR department will ensure the regular professionally written press releases. Our excellent rapport with the press community will ensure free PR. Frequent press community get- to- gathers & press conferences will be organized with an intention to build strong brand awareness. We will ensure that the money is not n up in over exposing. Apart from national potential our eyes are also on the opportunities that lie in millions of current Internet subscribers of the world.
: Our strategy of extending & appointing Vacation Industry Professionals Network (VIP Network) licensees in all business potential cities will help us earn & expand immediately with minimum increase in head counts & over heads. We will train VIPs. We can see ourselves establishing a strong marketing network quickly enough with the help of VIP Network to secure control over our market share.
: Little Big’s strategy is to have at least one member hotel in all most all cities by 2004. Added to this will be a base of 1,000,00 members, with our own offices & VIP Network all over the country, will generate fabulous business from different segments. We surely can hold the fort & combat any competition in the years to come.
: Little Big will do much better than any of tourism DOT.COM start ups because Little Big team is serving people with all their pion for the last ten years. The bonding with their loyal customer base will take them a long way. There is a strong trend already of existing brick-and-mortar companies taking lead over DOT-COM on many sectors. LITTLE BIG IS NOT A START UP, WE ARE ALREADY DOING THRIVING BUSINESS. WE HAVE TO REACH THE NEXT LEVEL.
: To reach the next level of business, we urgently require an initial investment of Rs.4,50,00,000, this would make us grow to exceed gross receipts of Rs.427,931,000 with an estimated net profit of Rs.27,535,653 by the year 2003-2004, and also, can ensure a healthy pay back within 60 months.
: Little Big’s ultimate goal is to grow with all possible speed to cover all major tourism producing segments, Representing at least 15000 clean, economy, quality rooms and at least 10,00,000 potential travelers all over. Capturing at least 10% of the market share of our country, and establishing such wide brand recognition in the international & national market as to constitute a serious barrier to any inevitable competitive entry. This will permit us to grow rapidly while returning most of the investment money with healthy returns to investors. Having reached this stage we will think that we have succeeded.
: The need to grow with all possible speed on all India basis has led us to seek venture financing on extremely attractive terms.
i am ready to invest with you guys in your business but just send me the details regarding this so that i can be clear as what exactly it will be.
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