Business Plan: Homy (A Place Like Home)

Submitted by:
Sana Ullah
Roll No: SM-21092
BS English 4D (Morning)

Submitted to:
Sir Amir Khan

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Contents
BUSINESS PLAN ............................................................................................................................................. 4
1. EXECUTIVE SUMMARY .......................................................................................................................... 4
1.1. Business Concept .......................................................................................................................... 4
1.2. Financial Requirements................................................................................................................. 4
1.3. Market and Financial Features...................................................................................................... 4
1.4. Competitive Advantage ................................................................................................................ 4
1.5. Major Achievements ..................................................................................................................... 5
2. BUSINESS DESCRIPTION ........................................................................................................................ 6
2.1. Introduction to business. .............................................................................................................. 6
2.1.1. Business Logo ............................................................................................................................ 7
2.1.2. Vision Statement ....................................................................................................................... 8
2.1.3. Mission Statement .................................................................................................................... 8
2.1.4. Goals & Objectives .................................................................................................................... 8
2.2. STRUCTURE ....................................................................................................................................... 8
2.2.1. Legal State of Our Organization ................................................................................................ 8
2.2.2. Service Oriented........................................................................................................................ 9
2.3. INDUSTRIAL ANALYSIS....................................................................................................................... 9
2.3.1. Current Trends. ......................................................................................................................... 9
2.3.2. Future Possibilities .................................................................................................................. 10
3. MARKETING PLAN ............................................................................................................................... 11
3.1. Market Size ................................................................................................................................. 11
3.2. Anticipated Market Share ........................................................................................................... 11
3.3. Target Market ............................................................................................................................. 12
3.4. Competition ................................................................................................................................ 12
3.5. Channels of Distribution ............................................................................................................. 13
3.6. Sales Strategy & 4P’s of Marketing ............................................................................................. 13
3.6.1. Product .................................................................................................................................... 13
3.6.2. Price ........................................................................................................................................ 14
3.6.3. Place ........................................................................................................................................ 14
3.6.4. Promotion ............................................................................................................................... 14
4. OPERATIONAL PLAN ............................................................................................................................ 15
4.1. Product Design ............................................................................................................................ 15

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 4.2. Product Development Stages...................................................................................................... 15
4.3. Manufacturing Plan..................................................................................................................... 16
4.4. Maintenance & Support.............................................................................................................. 17
5. MANAGEMENT PLAN .......................................................................................................................... 17
5.1. Organizational Chart ................................................................................................................... 18
5.2. Key Managers.............................................................................................................................. 18
6. DEVELOPMENT PLAN .......................................................................................................................... 19
6.1. Product Development ................................................................................................................. 19
6.2. Market Development .................................................................................................................. 20
6.3. Organizational Development ...................................................................................................... 20
7. FINANCIALS ......................................................................................................................................... 21
7.1. Estimated .................................................................................................................................... 21
7.2. Income Statement.......................................................................... Error! Bookmark not defined.
7.3. Balance-sheet.............................................................................................................................. 23
7.4. Statement of Cash-flow .............................................................................................................. 24
....................................................................................................................... Error! Bookmark not defined.
8. APPENDICES ........................................................................................................................................ 25
8.1 Industrial Information

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 BUSINESS PLAN

1. EXECUTIVE SUMMARY

1.1. Business Concept

Homy – Hostels is an online marketplace for arranging or offering lodging, primarily homestays,

or hostels for a wide range of students. The company does not own any of the real estate listings,

nor does it host events; it acts as a broker, receiving commissions from each booking.

We will operate it online from Islamabad. We’ll have our online presences developed in the form

of an app and a website for our customers to avail our services.

1.2. Financial Requirements

Our start up based idea is budget friendly with low investment cost and huge returns. However,

the main non-reoccurring costs include the developing of App and website through a consultancy

firm along with office base expenses. The budget required for the business to get on its own feet

is no more than Half Million in Pakistani Rupees.

1.3. Market and Financial Features

The target market initially covered is the youth of Pakistan, which is a big segment as 60 plus

percent of Pakistani population comprises of youth. Furthermore, the idea is to facilitate students

with suitable accommodation options and to profit from their customer satisfaction.

1.4. Competitive Advantage

Our biggest marketing edge is turning our competitors into our partners by providing a platform

through which we all can profit, creating a win-win situation. Furthermore, key aspects targeted

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by us are the affordability, comfortability and security concerns regarding hostels

accommodation. We’re looking forward to solve them by making policies which will ensure

secure and quality services in order to gain the trust and loyalty of our consumers.

1.5. Major Achievements

Homy – Hostels is a friend owned and managed business that believes in the passionate pursuit

of excellence with uncompromising services and integrity which is why we have decided to

venture into the hospitability industry by establishing our own online platform for vacant rooms

and hostels.

We are certain that our values will help us drive the business to enviable heights and help us

attract the number of clients that will make our accommodations listed on our website fully

booked all through the year. We are going to be a customer-centric Homy – Hostels business

with a service culture that will be deeply rooted in the fabric of our organizational structure and

indeed at all levels of the organization.

Homy – Hostels is founded by Sana Ullah and his friend Roohullah Khan. They both are the

students of NUML Islamabad doing BS English degree and they have a combine experience that

revolves around Marketing, business areas, real estate brokering, corporate branding and

advertising and business management etc.

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2. BUSINESS DESCRIPTION

2.1. Introduction to business.

Homy is an online marketplace for arranging hostel facilities for a wide range of students. This is

done through providing a platform in between house owners or already existing hostels with

students who are in need for rooms. The company doesn’t own any sort of real estate listings, it

acts as a broker, receiving commissions from each booking.

The problem solved with this venture is of limited hostels for students, by providing them with

newer options in different cheaper price variants. Along with that it will be ensuring security and

other concerns of our stakeholders on both ends, making a win-win situation.

It is a friend owned and managed business that believes in the passionate pursuit of excellence

with uncompromising services and integrity which is why we have decided to venture into the

hospitability industry by establishing our own online platform for hostels booking and

management.

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 Partners Consumers

Organisation

2.1.1. Business Logo

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 2.1.2. Vision Statement

Our vision is to establish a booking platform for Homy - Hostels that will become the number

one choice for students in Pakistan.

2.1.3. Mission Statement

Our mission is to deliver reliable and excellent service superior to what our competition can offer

and to ensure that Hostels listed under our platform enjoys over 90 percent occupancy in most

parts of the calendar year.

2.1.4. Goals and Objectives

Our main goal is to provide students with cheaper, easier and securer hostel solutions for their

stay while they continue their education out of hometown and to profit from this concept. Our

another concern is to make a win-win situation for our stakeholders i.e. the room lenders for

hostel, by providing them with a platform to earn extra just by renting any of their vacant rooms.

By achieving these goals not only the company will profit itself but also the stakeholders will be

able to earn. The process is designed to be hassle free for both parties i.e. lender and renter, in-

order to ensure our goals are achieved not only by monetary aspects but create value for our

stakeholders too.

2.2. STRUCTURE

2.2.1. Legal State of Our Organization

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Homy is a platform which is owned by two friends Sana Ullah and Roohullah Khan through an

agreement of partnership. Furthermore, the App and website we’re going to develop will be

registered on online web with its own distinct domain name and identity.

2.2.2. Service Oriented

Our company is related to the hospitability business providing hostel facilities to those in need at

cheaper rates, with more comfort and security. We’re going to do this by creating a platform

where we’ll connect individual house owners (who have extra guest room to be rented), hostel

owners with students and those who need room. The goal is to make win-win situation for both

parties by giving house owners a chance to earn extra, while students a comfortable cheaper

accommodation. In exchange of the service provided throughout this process we’ll charge both

parties with a slight commission.

2.3. INDUSTRIAL ANALYSIS

2.3.1. Current Trends.

Hostels industry is one of the most quickly emerging industries in Pakistan. As the number of

universities are increasing with related to the increasing population requirement of Pakistan, the

chance of many students for travelling from rural areas to urban areas for better education

opportunities is also increasing. This is resulting in the need for hostels in urban areas for the

accommodation of such pupils. The need is aggravating on a country level, however we’ll

portray its industry size and growth in the capital of Pakistan.

The twin cities consist of over 50+ universities, with some universities having little or no

accommodation facilities for its students, which give birth to private hostels for out of the station

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students. There are already 125+ hostel business running in the twin cities and increasing.

Statistics of major universities in the twin cities show that over 30% students in a single

university come from different cities and seek hostel for living.

Also counting the aspect of Covid-19, many students are facing the problems of finding short-

term stay hostels or hostel facilities at cheaper rates due to lockdowns and ongoing crisis. Many

of the public sector universities have closed their hostels over safety concerns; the students from

such universities are also facing tremendous problems and ultimately shifting towards private

solutions for accommodation.

2.3.2. Future Possibilities

As things are getting online day by day due to globalization and technology advancements, more

consumer are getting prone to using online methods for availing services and shopping of

products. This trend has recently gained much uplift in the covid-19 situation and is expected to

grow even furthermore. Now keeping in mind the upcoming younger generation, we can predict

that in the future, the online market will have more significance over the traditional one. Keeping

this whole point of view in mind, this creates a future opportunity for us to serve this growing

market segment.

Secondly, little by little but a newer trend is seen in the tourism sector of Pakistan just like

western world. Where young people are developing and inspiration for travelling while staying

in their budget, instead of going for hotels, they look for cheap options for overnight stay such as

combined hostels, dorm rooms etc., this helps their pockets regarding accommodation in budget.

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So far this is an untapped market in Pakistan, which has much potential in it. This will serve as

another opportunity for our organization to target this market and reap its fruits.

3. MARKETING PLAN

3.1. Market Size

Nearly more than 60 percent of the population in Pakistan is youth. Narrowing down further,

according to statistics bureau of statistics of Punjab there are more than 2000 educational

institutes in Punjab, from intermediate colleges level to post graduate university level. This

creates a huge size of market within Pakistan for hostel industry, along with it the market of

bachelors; job holders, etc. are also included.

The Market size has always been growing and predicted to grow in future as well, with the

inauguration of newer educational institutes day by day and due to the increasing opportunities.

Bachelors at different levels require cheap accommodation which usually results in need of

hostel facilities.

3.2. Anticipated Market Share

Since we’re no single hostel owner and more inclined towards providing service to our

consumers by providing a platform. We’re looking forward to capture major market share

starting from the capital territory of Pakistan, and then further expanding towards whole Pakistan

as per business requirement.

The key is to search for loop holes and tap the already untapped market areas with our facilities

in order to have a greater market share. Also, we have the advantage of our uniqueness in

achieving this object as not much ideas alike us are already working in the market.

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 3.3. Target Market

So, far we’re looking toward targeting the youth and youngsters of Pakistan, who’re either

enrolled in any sort of educational institute or are working as a bachelor. These could be both

men and women with ages ranging from anywhere in between 16-25 mostly (exceptions

acceptable).

The reason behind this target market is as hostels are cheap and mostly required by this target

market due to their budget accommodation requirement. Another reason is that hostel rooms are

mostly shared and not much of a luxury, but the youngsters are flexible and have no issues

adjusting.

3.4. Competition

Our direct competition includes a few already existing apps that just work as a booking platform

for the providence of hostels, secondly dealers which work as intermediaries between students

and hostels by facilitating both parties in compensation of commission. In our indirect

competitors we can count, a few hotels and other room lending owners that lend their rooms in

need of hour.

However, competition isn’t the bigger challenge because of our strategic approach where we

plan to make our competitors our business partners. As this will not only eliminate competition

but also will result in greater number of customers for us, who can earn through us and we can

profit through them. Not only attaining a win-win situation, but also helping us in achieving our

larger goals of covering greater market share.

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 3.5. Channels of Distribution

Since our business would be based on its online significance, we’re looking forward to

developing an application and website for our services through which our customers can connect

with us. The idea is, our customers can register with us as someone looking for a room or as

someone trying to lend one. The further case of each category will be dealt accordingly.

However, we’re also looking for a jumpstart by connecting with some hostels and house owners

at first and partnering with them so that the new audience looking for rooms on our site can have

quick options available since the start.

In a nut shell, online business platform of ours will work as the channel of distribution for all

kinds of our stake holders.

3.6. Sales Strategy & 4P’s of Marketing

Since our target market consists of people with budget. We’re looking towards entering market

with Market Penetrating Strategy where we will set our prices low and try to cover the masses.

Along with it we’ll try to cover different loopholes through making different SOP’s, in order to

make our service easier, cheaper & readily available, not only this but also to make the living

conditions in hostel much more comfortable and acceptable. Now discussing our 4P’s of

marketing,

3.6.1. Product

Firstly, our products will include different sorts of rooms listed on our site through our different

stakeholders. We will be dividing them into different categories on the basis of their, prices,

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living amenities, facilities, size of room, no of person shared with, location etc. These rooms

enlisted by our different stakeholders along with their full details will be the main attraction for

our target audience.

3.6.2. Price

As talked earlier, we’ll be going for low prices. We will ensure this factor by having low

service/commission charges and by developing policies which will regulate prices set by the

room owners to an affordable extent. As our main focus is on our pricing strategy, in order to

entertain our budget consumer fully to their satisfaction level.

3.6.3. Place

We will be launching our online app on both apple and android apps store, along with a website

on the web. The online presence of our services, will enlist all the available option of rooms

along with their different specifications. The two types of users, one who will lend a room and

other who will rent a room will benefit from our services through either our app or our website.

So, far we will only be channelizing ourselves online only due to the dynamics of our business

and keeping in mind the ongoing Covid-19 situation.

3.6.4. Promotion

Since most our work is related through online medium, so we’ll also be promoting mostly

through online mediums. We’ll use paid media advertising services through top social platforms

such as Facebook, Instagram etc. One reason for it is, the younger generations are more prone

towards online shopping and being attracted towards online adverts. So, this will work in our

favor heavily.

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However, we’ll also be creating a Digital-Traditional Marketing Hybrid strategy, which we will

use to target house and hostel owners, where we’ll use techniques of personal selling and

networking to register them onto our platform, so they can avail our services to lend their rooms

hassle free.

4. OPERATIONAL PLAN

4.1. Product Design

Marketing Aspect: The only product we’ll be developing would be the medium of online

presence for the provision of our services. This will include an app and a website, where online

audiences can engage with our services. However, in order for it to be attractive the main focus

will be on its design and user friendliness. We’ll be outsourcing our app development and

designing to another software consultancy instead of hiring our own employees to do so, just to

stay along the budget line. Furthermore, for its marketing, up to date digital marketing

techniques will be used such as SEO, SEM, PPC etc. for its growth and in an objective to

increase audience visit.

Technical Aspect: Throughout the designing and development of the app, we’ll make sure its

bugs free, runs smoothly, has a user-friendly interface, a unique outlook and most importantly to

ensure the quality of its overall user experience ambiance. Since our consumers will be judging

us over its look, so perfection is where we have set our benchmark.

4.2. Product Development Stages

We’ll be basing our app on three stages,

DEMO PROTOTYPE APPLICATION

by one, to see the running and smoothness of the app and analyze performance according to the

set standards. This step will consist of all the sections in the app, like its programing, interface,

categories, polices and statements, colors and designing etc. Once the demo version will be up

and running. We’ll test it on our own against the set standards to measure success, if there’s any

fault that needs to be neutralized or not.

In the Second Stage, once we’ll be done with the demo version. Then we’ll make a full prototype

of our app with all features. The prototype will be tested within a group of real consumers, where

they will interact with it and give feedback about it. Their opinions will be heard in further

development, to see if the app is loved the way it is or not, and as a marketing effort to initially

create our visibility in real world.

The Final Stage will lastly be about turning the prototype into a fully operational app, ready and

available for users.

4.3. Manufacturing Plan

We’re not a tangible product producing organization, however we do have a strategic plan on

how to launch our service. The strategy is to gather market geographically, in which we’ll first

target the capital of Pakistan i.e. Islamabad, afterwards we’ll move towards metro towns of

Pakistan such as Lahore, Multan, Faisalabad, and further then we’ll start covering province to

whole country.

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 4.4. Maintenance & Support

This part will also be outsourced to the same consultancy from where we’ll be making our app

and website from. This will include the maintenance of website, keeping out the bugs, updating

to newer software’s, and further technological advancements. The support will be given by the

consultancy to us in order to guide us on how the run the website and app, along with the know-

how of different features. Keeping in mind the further support given to our customers would be

from our side regarding the services we provide. In customer support system we will have

different sections which will be covering the three phases,

Customer Customer
Customer
Choice Feedback &
Finalization
Selection Queries

5. MANAGEMENT PLAN

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 5.1. Organizational Chart

5.2. Key Managers

We have divided our organization into three most essential parts and assigned key managers

accordingly, they are as follows.

1. The Functional Part:

This part will be related to all the functions relating to the development and maintaining

of website. Our IT Manager will play a key role in this part, by initiating different

collaborative strategies in accordance to our contracted IT Consultancy firm, to ensure

that everything is run smoothly. Moreover, he’ll be overlooking our research programs,

in order for the company to advance and excel to optimum levels.

2. The Customer Part:

This part will be related to the queries and guidance of our customer, in order to provide

them with optimum levels of customer service and gain customer satisfaction & loyalty.

We’ll be outsourcing some parts of it, such as customer helpline calling to some other

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 firm. Our Customer Relationship Manager will ensure through collaboration and by

direct issue resolving of our customers that our customer related services aren’t

undermined. He’ll be developing strategies to attain the trust of customers and provide

them with quality services. Furthermore, he’ll be effectively initiating and retaining

relations, and will also be handling the Feedbacks.

3. The Managerial Part:

This part will be related to all the services provision, including contract and legal aspect.

A further sub part of it will be handed over to a reputed legal consultancy firm. As having

the security aspect for our consumers in this business is the most vital factor. However,

this portion will be handled by the General Manager, as he’ll be looking all the general

activities including documentation, finances, HRM etc. In future when the company will

expand, the general activities will be further divided into sub parts with newer human

resource as per need and budget.

6. DEVELOPMENT PLAN

6.1. Product Development

Since we’re a service provision company, there is no tangible product of ours. However, in order

to provide our services to a larger market with optimum results we sure do have strategies in

plan. We will be developing our online presence through app & website, where our consumers

will be able to avail our services. Furthermore, we’ll be adopting newer Hybrid Marketing

Techniques in order to have a larger audience to serve. However, on the technical side we’ll be

developing our app in three phases i.e. Demo > Prototype > App.

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 6.2. Market Development

In order to develop larger share of market for organization, we’ll be using both traditional and

hybrid marketing strategy. We’ll strategize in such a way, that to make our name’s presence

online through different online marketing techniques. Secondly, we’ll also be working on

ground, on developing relations with our partners in start who’ll become the room lenders.

6.3. Organizational Development

relations and create value for our consumers, through provision of quality service. For our

organizational development it is very vital for us to grow ourselves through the support of all

types of our stake-holders. Instead of working as a profit-centric organization, we will be

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focusing more towards customer satisfaction as we believe in the longer run it will benefit all of

us creating a win-win.

7. FINANCIALS

7.1. Estimated

ESTIMATIONS COSTS

1. Application & Website 150,000/- PKR

Development.

2. Business Equipment. 100,000/- PKR

3. Office space & Furniture. 100,000/- PKR

4. Precautionary Cash. 75,000/- PkR

5. Initial Expenses Estimation. 50,000/- PKR

6. Marketing & Advertising. 25,000/- PKR

TOTAL 500,000/- PKR

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22
7.2. Balance-sheet

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7.3. Statement of Cash-flow

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8. APPENDICES

8.1. Industrial Information

In the Global Market, there are more than 22,000 properties registered at Hostel world, spread

across more than 2,600 cities in the entire world. Europe has almost 1,000 cities with hostels,

however it is in Asia, where the largest presence of hostels is felt, with more than 7,750 hostels.

“There are 22,000 hostels at Hostel world”. The governance structure in the hostel industry is far

less complex than in the hotel industry. Most hostels are independently owned and operated, and

Portugal is no exception to this rule potential for growth the integration in chains is scarce, with

the major players accounting for merely 8% of the global hostel beds’ supplies (the top 5 hotel

chains account for 20% of total room supply). Top hostel chains account for more than 30% of

the total revenue, while the top 5 hotel chains account for around 15% of the global hotel

industry revenue. Global hostel industry revenue is expected to reach USD 7 billion in 2018, at a

staggering. 8% yearly growth.

(Source: Phocuswright, Colliers International)

The largest hostel chain in the world is A&O, based in Germany, recently acquired by TPG Real

Estate, with more than 30 hostels (24 in Germany, 4 in Austria) and 22.000 beds. Menninger,

also based in Germany, comprises 18 hostels (10 in Germany and 4 in Austria) and 8.400 beds,

together with Wombats, based in Austria (6 hostels, 1.900 beds, with 2 in Vienna and 2 in

Germany) further attest Germany as the largest hostel market in Europe. St Christopher’s Inn and

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Generator, both based in the United Kingdom, have 19 and 12 hostels, 3.500 and 8.639 beds,

respectively. St Christopher’s Inn includes 8 hostels in London and combines a bar (Belushi’s)

with the hostel business. Hostels integrated in chains are, usually, mega hostels. For instance, the

average hostel in the top 3 chains, has more than 600 beds. In Spain, Equity Point has 3 hostels

(1.500 beds) in Barcelona, while HipHop Hostels include 14 hostels in Paris. Equity Point is the

only largest global player present in Portugal (Lisbon).

(Source: Colliers International)

Global Hostel & Hotel Hostels Around the World

23%

5% 32%

Hotel 18%
Hostel
14%

95%
Africa Asia
North America South America
Europe Oceania

The End.

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