Financial Templates for Hostels
Start a Hostel
There seem to be a few business plan templates kicking about on this site, but I have yet to come across some fiancial templates. Does anyone have any they can share that a more aligned to the industry? I'm after the following if possible please... Profit and Loss forecast cashflow forecast Balance Sheet Broken down over 36 months ideally. I don't want to ask for peoples own figures (although admittedly that would be great ;)) but a template to work from would be great. For the record, i've attached the P+L template I'm currently using.
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15 years
Metty: 36 months won´t do because if they really give you their money they expect you to think ahead over a longer period even though everybody should know predictions usually fail, especially those about the future... This is the thing I always hand over to the bankers to convince them it makes sense to fork over some cash for the project. It´s a very rough calculation but it does the job for them. It has worked. Two hints how to use it:
ONLY change the figures in YELLOW cells if you don´t know exactly what you´re doing. All the other cells contain formulas. No need to touch them.
I think the whole thing explains itself well enough except cell O3 ("rate/revenue correction factor"). For the sake of keeping things simple, there is just one rate for one room category. You will have several though, e.g. beds in double rooms, which will be more expensive than dorm beds. Hence, the correction factor will be bigger than 1. Then, on the other side, you will not get the full price for every bed, e.g. if you sell all your beds through Hostelworld, the correction factor is 0.9. To find out the correct factor for your project, you will have to add up the revenue for each room for one night, including the probable share of bookings you paid commissions for, divide the sum by the total number of beds (now you have the average revenue per bed) and divide again by the rate of your standard dorm bed. The figure is usually something between 0.95 and 1.05 - that doesn´t seem much, but if you run a hostel in a city with tough competition and small margins it´ll make all the difference between boom and bust.
If you use this template successfully in your business plan, I expect a free bed and free booze when I visit your hostel! :)
15 years
Klaus - cheers a LOT for that one. i owe you a beer and a bed at some point :D ... though i probably owe you more than that anyway!
15 years
Thanks Klaus
Don't worry, there's free bed and booze whether I use it or not!
I'm slightly suprised you think 36 months isn't long enough. I can only speak from my own experience but from what i've encountered in the UK, 2-3 years forecasting is pretty standard. Investors like to see it broken down by month to show that you have thought things through (and the effect it has on cash). Doing this over a longer period can get a bit messy.
Lets face it, we all know that whatever the numbers, they'll be wrong anyway!
15 years
I have been asked for a 15-year forecast last time. That´s really ridiculous considering how our economic environment has changed during the alst 15 months alone.
You can use my spreadsheet for monthly breakdowns with a few modifications just as well. Just add two more columns and you can use the "years" as months. Since you don´t nedd the seasonal price breakdown for a single month, you can use the "seasons" as room categories, say with two different room categories with weekday and weekend rates. ´
I have a much more detailed spreadsheet for our internal use (including monthly breakdowns), but I guess it would be a bit too complicated for anyone else to use. It´s not designed to be user-friendly, just Klaus-friendly. Besides that, it´s in German. Besides that, I wouldn´t give it away anyway! :p
It delivers surprisingly precise results. I use it to double-check what I get back from the accountants. If their figures are diffenent from mine, usually they have made an accounting mistake, not my spreadsheet a calculation mistake.
I also use them to make yearly budgets for our hostels. One hostel´s GOP was just 22 Euros off my budget last year. :)
15 years
santa thanx for a great tool
I just have one qustion, what does line Capex and leasing refears to, what are a hostels expenses that go in that line??
15 years
Capex = Capital Expenditure.
You borrow money to invest it into your property, e.g. for renovation. You pay it back in monthly rates - that´s it.
15 years
Klaus, so have you started your hostel or if not when do you think you can start.. You seem to be quiet detailed in your spreadsheet.. are you currently working in a hostel ?
15 years
I´m currently working in a hostel chain. I´m in charge of crunching the numbers here. I´m willing to help you with my humble wisdom if you plan to open a hostel somewhere we don´t plan to open a hostel. :)
15 years
Thanks for the offer. I have done the numbers for myself and am looking in southern europe so im not worried about you wombats :)
Are you looking to open your own hostel ?
I have many many questions... also do you guys own your own or rent your vending machines ? What security systems do you recommend for a hostel ?
Thanks
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