Create Your Airbnb Receipt Generator for Planning Effortlessly

Airbnb receipt generator for Planning

hi my name is Kyle Fawcett and I'm here with projection hub and I'm going to show you how to create a business plan for a proposed Airbnb or short-term rental unit now once this video is not going to be is I'm not going to write an entire business plan right here in front of you but what I am going to do is I'm going to go through and show you an outline of a typical business plan and then I'm going to highlight five key areas that could really make or break the success of your business plan when it comes to you know trying to land and approval of a loan request or maybe get an investor so you're going to want to to do that now if you're not trying to raise funding I still think this video is going to be helpful for you because there's five key points are really going to make the difference in your business plan and kind of level it up now who is projection hub projection hub has helped over 50 000 small businesses entrepreneurs create Financial projections for their business plans own applications pitch decks including actually many Airbnb and short-term rental projections it's actually one of our most popular I would say are common customers in the last year or two so we've helped a lot of them and now before my time with projection hub I actually worked for seven years as a small business lender putting together loan applications for small businesses and for startups and reviewing their business plans and reviewing their financial projections and helping them through that process so I don't own an Airbnb unit or a short-term rental unit and you know so my perspective isn't coming from this is exactly how to run your business but more so these are the things your lender or potential lender are going to want to see in your business plan so if at any point you like the video please give it a thumbs up subscribe to our Channel we have a lot of other content around airbnbs as well that I think will be helpful to you now I'm going to be using a free Airbnb business plan template you can grab that down in the description below no strings attached at all so feel free to grab that and I will go ahead and get started okay so why is your business plan important now might sound kind of obvious but the purpose of this isn't to educate the potential lender or the audience on what airbnbs are or you know why they're important or anything like that I think at this point it's a well-known enough concept that you don't need to do that but instead what you really need to focus on is how your specific plan is going to be successful what is your tangible roadmap to being successful and being a good return on an investment whether that's a loan that you're going to pay it back or an investment that you know you will contribute and build something of worth for a potential investor so you'll notice here in this table of contents some of the sections we're going to go through it and but one thing I want to point out is you'll notice this is only nine pages long okay now a myth about business plan is that they need to be really long to be really good and that's just not true I'm telling you and my time as a man wonder if I got a 50 page business plan there's no way I'm reading that whole thing so that means I probably missed some really important details that the business owner really wanted us to see but they just get lost in all of those details so you want your business plan when you hand it over to be refined down to maybe 5 10 15 pages so you can really let the meat of it shine and that your lender doesn't have to go flipping through all those pages to try to find everything so what I'm going to do is I'm going to scroll through here highlight kind of each section and talk a little bit about it but then when we get to those five key highlights that I mentioned I'll stop for a little bit longer dig into that and try and even provide some examples for you there so first off we got the executive summary kind of like a cover letter to a resume for a you know job interview or job application just kind of Hit the highlights right like where it's going to be located are there some key attractions nearby what is your your expected like startup costs or your costs to get the property up and running and are you gonna need to finance that or you have an investor involved that kind of thing so just the highlights here and then coming down to market analysis which is going to be key Point number one now we want to demonstrate straight that there is opportunity in the market for your Airbnb unit now depending upon where your units can be located now if that's like on the coast the Gulf of Mexico and you've got a beachfront view there's probably thousands of other airbnbs but because it's such a popular destination there's probably still an opportunity for your unit to do really well now I live in Indianapolis Indiana and while we have a few attractions here in the city it's not exactly like a tourist destination okay so if I wanted to create an Airbnb unit here I gotta probably be located close to the Indianapolis Motor Speedway where the Indy 500 is or next to the Colt Stadium or you know something like that and you need to demonstrate if you're in a market like that how many other Airbnb units are they're in that proximity enough it's in a heavy heavy tourist destination you're probably going to be able to be just fine if it's not a heavy tourist destination but that happens to be where you own a unit then you got to do a little bit more homework about what's in the area what's the price range and make a good case for why you still think it's going to be a successful unit there so some simple things you might be able to do I pulled up Google AdWords you can create a free account here I'm using their Keyword Planner tool I have it set for anyone in the United States if they're searching for these phrases how often are those being searched for and so I can see Airbnb in Indianapolis is being searched for a little over 6 000 times per month in the last three months that's grown 22 percent year over year it's decreased about 20 so that's kind of interesting it's like why is that you're being searched for less and we have Airbnb Indianapolis Indiana okay that's up 51 downtown Indianapolis is pretty consistent uh Airbnb Indianapolis that's gone up 20 cheap Airbnb in Indianapolis up 50 so you can see for the most part the trends are going up so that's a good sign okay doesn't necessarily signal that Indianapolis is going to be the number one tourist destination you know in the States but that does indicate that a growing number of people are searching for short-term rental units to stay at in this area so that's a good indicator now depending upon where your unit's gonna be located you might want to look at how many hotels are close by because when it comes to short-term stay industry miles make the difference so if your unit is going to be three miles from an important attraction and the next closest one is going to be 10 miles away that's a really big deal for you okay so highlight that or is there a lot more closer to an attraction than you're the farthest one away so that's an important thing to keep in mind the goal is to provide as much information like this in your business plan to support the fact that you do think there's an opportunity for you to gain bookings when you're doing that okay all right so that's market analysis key Point number one we just talked a little bit about the property and the location analysis that's kind of one and the same we're just an elaboration you're going to talk about what's close by where's your property have how many bedrooms is it going to have because you know there's something to be said for a lot of people get airbnbs because they have more people stay in one place so the bigger it is typically the more attractive it is so you're going to go into those details a little bit more attractions close by we already we already discussed that a little bit and yeah your business model and the revenue streams okay so talk a little bit more like your nightly rate does that change if someone wants to stay there for a month of time uh what occupancy are you estimating your fees you're gonna have cleaning fees that kind of stuff make sure you talk about that in here if you're going to have someone manage the property for you I would probably talk about that in here as well that's a section where it's probably not going to make or break your business plan success or if you don't put enough information in there then it's going to hurt you so make sure you put ample attention there okay marketing and sales strategy that's gonna be key Point number two how are you going to acquire your customers so we've already identified that there are customers to be gained now we have to demonstrate that you have a good plan to actually acquire to those customers and you know you should include things like we're going to be on social media and you might have a website for a unit or something like that so you want to have some information there but an even stronger thing to make your business plan shine right here is do you have any what's called traction now that's a very Tech related term but I think it can apply really in any industry and so that might be an example of did you build a social media profile for the location and you've done these really you know nice and artistic videos and you've got you've jumped up some interest in the location in the following or maybe you're building out the Airbnb unit and you're bringing your social media followers along with that process and building some excitement that they want to come stay because it looks so great and you can highlight things close by the property and people like wow I never thought I would go to Indianapolis but this looks amazing if I can build a following there you might think do my social media followers make a difference my business plan yeah they would in that kind of case because that's a really good indication that people are aware of your your unit and have expressed interest in being there include that data you might be able to build a wait list or an interest list so when the property is live you'll send out emails to those people and first come first serve when they get those units that type of stuff whatever you can put in numbers or in writing that you already have a little bit of momentum you're not just gonna like open up you know you're not just going to launch the unit put on an Airbnb and then sit back and relax that might work but if you're putting effort into giving it kind of a head start that looks really good for a potential supporter all right now we're going to keep moving on financial projections which is kind of what we do here at projection hub so here we're including things like startup funds you got your projections five years of key data like revenue and total expenses your profitability kind of breakdown here of how many properties you have how many units you're going to have a chart detailing the growth of the sales and the profitability some key industry ratios and then I've got a five-year Financial pro forma for income statement or profit and loss and and a balance sheet and a cash flow statement now A lender is probably going to want at least three years so just conservatively I have five and all of those were generated using this financial projection template I if you're trying to get a loan or something like that for or an investment for a new property you're going to have to have projections or at least demonstrate how that property is going to perform creating Financial projections or having them created can be kind of expensive even up to thousands of dollars this template you can pick it up for less than a hundred dollars I'll even give you a discount code at the end of the video to give it even cheaper but just to show it to you really quick you'll be able to put in here your investment related data the things you need to purchase you can even do loans down here and then you'll be able to put in how many properties you have up to 10 different unique properties and you can also do multiple of that right so if you have five that are the exact same you can do that here and you can put some details around how much you've renovated it for you have a mortgage on that or you're leasing the space then you'll be able to calculate the revenue from that how many people are staying there what are they paying per night Tempo also allows for you to do seasonal data right if I'm using the Indianapolis example I mentioned the Indy 500 that happens in May every year you'll probably be completely booked out you know for that or it'd be really easy to book a unit for that but maybe other times of the year February for example nobody wants to be in Indiana in February probably don't have as many as many bookings during that time so this template would allow you to do that and count for occupancy data so it's nice because the template isn't just like what's your estimated Revenue it's actually going to help you calculate it for you based upon all of your data there's a video walkthrough of how to fill out the whole thing our team's also here to answer questions as you fill it out you'll be able to include your operating expense data on a monthly detail level again to account for seasonality if your Airbnb Empire is growing and you actually have a salaried employee that's involved with it you can include them here but you can also take them out if you know you're going to be doing that all your own and then it will generate all those charts that I showed you for you in the financial statements automatically and any changes you make they will be updated here so I just wanted to show that to you that's how I created those so Financial projections are not key Point number three because they're just expected to be involved but what is a key point is are your financial projections realistic and within industry Norms now how would you know if they're realistic go to Google I'm going to go here and I'm curious how profitable are airbnbs Google tells me they can make and Peak locations eight percent profit and more modest locations a profit can be closer to four percent okay let's go and look at our projections I see first year we have a loss maybe it was a partial year when we got started but then I get seven percent two percent so you can see I'm that's realistic I'm within that range and something important to mention about airbnbs is nobody expects them especially if you only have one or a few properties to be a huge Cash Cow in regards to profitability what makes airbnbs attractive is they are covering the cost of that property while you're likely appreciating that asset right the asset is getting more valuable as you pay down the debt that it has or maybe just in general the property is getting more value based on what the Market's doing and your income might be covering that so anything over that is gravy and if it's not a lot of gravy at least the value of the asset is is increasing but that's the kind of example what you can do any of this data that's in here go out there and look for what are averages for other people what are averages for other markets um to expect I believe in this template we reference a tool called error DNA go to air DNA it'll give you reports exactly on like typical rental rates in your area or your desired area I don't know if those reports are free I think you have to pay for them but that's another example of a tool you can use to get prepared for that so those projections are going to bring us down pretty close to the end except here we go management and Personnel key Point number four is anyone a part of your business have some relevant industry experience Now for Something Like An Airbnb it's not crucial that you've managed a property before but what is your experience right have you done some Renovations home renovations before if you're buying a property that you're going to have to fix up have you ever flip the house or that kind of thing not saying that's a requirement it kind of depends on your situation are you asking for money to renovate a property are you asking for money to buy a property and then you're going to manage that depend on what your plan is if you're trying to get some funding you need to make sure you demonstrate that you have the relevant experience and the skills to do whatever you're saying your plan is so yeah make sure you include anything that's relevant that would be key Point number four and then that brings us to the end and we're missing one key point and that's going to be what's called Skin In the game now this relates more so if you're trying to get a loan or maybe even raising some investment but mostly if you're getting a loan and that's going to be I mean we might be buying a house so this is probably a good example it's just like if you're buying a house you'd probably have to put into down payment and then you're using the homeless collateral for that same concept applies whoever's giving you the loan isn't going to give you 100 of the proceeds they're going to expect an investment from you and then they're going to need collateral you know against that loan which in this case could very well be the property so it's key Point number five but it's kind of an obvious one for this industry so that brings us to the end on how to create a business plan for an Airbnb or short-term rental unit as I mentioned I linked this template for free down in the description but also if you're interested in the projection template specifically for Airbnb again here's the video that will walk you through exactly how to fill it out you can use ph20 BP at checkout to get another 20 discount and yeah that is the five key things if you have any questions reach out at support projectionhub.com happy to help and answer any questions you have this video was helpful please give us a thumbs up down below and subscribe if you want to see some more Airbnb content for your business to be helpful but we appreciate you sticking around and best of luck foreign