No Contract! (NC) – pay as you go
HOW IT WORKS:
We agree on the proposal we provide to you: Scope, budget, level of effort, timeline, critical path, decision tree and reporting relationship.
We will agree on the scope and budget for the FIRST month. You pay for the estimated first month time and materials costs. At the end of the month we settle, actual vs. estimated. Actual is guaranteed to be no more than plus or minus 10 per cent.
Five days before the end of each month we provide a Progress Report. Reconciliation between actual and previously estimated costs will be invoice for the next month to be paid before the first of every month.
You decide whether you want to continue or not
At any time during this process you can elect to opt OUT of the NC option. Typically this happens when we are well into the project and you need a team larger than four. Once you opt out, it is not possible to opt back in.
CORE CONTINUUM: Project Evaluation > Pre Opening and Opening > Startup Assistance
BEFORE YOU INVEST: PROJECT EVALUATION AND PLANNING
Don't invest before you know! Is this project worth the money you will spend? Are the returns (benefits) greater than the costs? Have your hospitality venture evaluated with a competent
- Cost-Benefit analysis: What do we get and at what cost?
- ROI Return On Investment estimate using
- DCF Discounted Cash Flow analysis:
- NPV Net Present Value: how much is the project worth in today's money?
- IRR Internal Rate of Return: If the financial benefits are restated as an interest rate, what would that rate be?
- PP Payback period in number of years: How quickly does this project pay for itself
- Market Analisys is provided as an input to the project's revenues per month; your location, positioning, competitors, local market trends. Venn chain Marketing Mix diagrams, Competition Matrix analysis diagram
- Forecast with 3 year Plan
WHY ADVANCED DECISION TOOLS?
Why should you insist on advanced decision tools? Big companies like Procter & Gamble will not touch a project unless they have a handle on the associated risk and uncertainty measured by Palisade Decision Suite. Now these tools are available to mid size companies and small investors. They do not cost "an arm and a leg". Says Principal, Modris Reinbergs: "A small investor can not afford an investment loss as easily as a large player. Too many investors are getting hammered by unforeseen events after laying out a large part of their capital or even their nest egg. A Typical 3 year monthly Cash flow forecast with ROI Return on Investment and Payback years' does not cut it anymore in today's economic conditions. Advanced Decision tools allow medium and small hospitality and hotel investors to undertake or forego a project with 'eyes wide open' regarding how much or how little risk he can tolerate. But more than that, these tools also uncover and evaluate hidden opportunities that must be exploited at a critical point in time before they evaporate".
- CPM Critical Path, or Gantt Chart or PERT Chart Project Evaluation and Review technique
- the first year and 3 year forecast budget will be prepared using available data input to a Risk Analysis model using Palisade @RISK and Decision Tools software and/or Syncopation DPL 7 software.
- a Decision Tree Diagram is presented to show the decisions that have to be made at critical points during the project. An advanced Precision Tree model is used to assign values and probabilities to each branch of the tree and then calculate the expected Payoff. Sensitivity analysis is used to see the results when costs and values are varied. The model can also be linked to Excel project cost spreadsheets.
- A One to 3 year Corporate Business Plan with measurable objectives and tasks can be included.
- more than two dozen additional decision tools are available for application to special situations. Example: Neural Networks. As work on the investment project progresses, a learning process takes place. We apply Palisade Neural Networks non-linear statistical data modeling to uncover complex relationships between inputs and outputs and to find hidden patterns in data that would affect project viability.
PRE OPENING and OPENING SUPPORT
At this stage, you have already decided to invest and have your budget. Now you need pre-opening support during the construction or rebuild phase. If you don't have a Corporate Business and Strategic Plan, it can still be added here.
A clear holistic understanding in how to bring the business model to fruition in a pre-opening and opening support is essential to the long-term profitability of the asset. Focus, binding energy and enthusiasm must be present as part of the strategic approach to the action and implementation of every task.
Hospitality Makers will partner to secure that the business model is deployed and executed on a timely and successful manner. Accountability throughout the whole process, albeit interior and exterior components, are basic to the asset competitiveness and profitable success. Hospitality Makers will aggressively implement among all other components:
Franchise compliance and utilization of services
Prepare pre-opening budget
Recruit, hire and train team members
Determine organizational structure
Policy and procedure manual
Employee job descriptions and handbook
Obtain required licenses, permits and insurance
Pre-opening sales and marketing
Prepare and execute Internet marketing plan
Establish pricing structures
Procure supplies and inventory
Highway Signage (Interstate Directional / Billboards)
Guest Service Directories
Set-Up Telephone Services
System Selection and Related Hardware
Interface / Programming Logistics
Secure Bids for Contract Services
Television Service / Cable
Guest Laundry and Dry Cleaning
Establish Agreements for Property Services
Assist and Troubleshoot with Pre-Opening Situations
We apply a pre opening and opening checklist with more than 1,400 tasks, each with a deadline.
You have recently opened your hotel. But things are not going right as you expected. Occupancy may be
low, staff may not be perfoming and costs may be excessive. You bring us in to get you back on track.
If you already have a Hotel Management company doing your work but results are poor, check out this article on "Restatement of Agency":
You may want us to prepare a Corporate Business Plan and forecast budget to keep things on track. This includes a forecast budget with measurable objectives and tasks. The achievement of objectives and execution of tasks are assigned to individuals or matrix managed teams. The responsibility assists with manager and employee performance reviews and advancement.
Our consultancy allows maximization of the asset, with an independent, objective, and unique view, giving your business the ultimate edge and creating a sustainable individuality among the competition.
You may want us to prepare a Corporate Business Plan and forecast budget, with measurable objectives and tasks, to keep things on track. The achievement of objectives and execution of tasks are assigned to individuals or matrix managed teams.
As part of our asset turnaround consulting services, we can:
• Develop a marketing plan that balances traditional marketing strategies with your Website, SEO and Social Media Marketing via Facebook, Google+ Plus, and Twitter.
• Devise a revenue management plan that emphasizes profitability, as well as revenue growth.
• Evaluate pricing, inventory management, and distribution channels.
• Improve your call center
No obligation, just CALL for free advice regarding what it takes to do your project:
Scope, the level of effort that would be required, team size and reporting relationships.
We can help you set your budget, timeline and size and composition of the consulting team.
For larger projects with an RFP (Request for Proposal) structure, we will respond according to the terms and conditions of your RFP.
Modris Reinbergs 310-691-2586
Cesar Gonzalez 407-484-6218