There are a lot of things that needs to be looked into when one proposes to start a hotel. There is the financial aspect where one needs to calculate and decide how much the venture will cost and what the best prices are in order to quote for the services rendered. There is also the decision regarding the size of the intended work force and the remuneration that will be offered to them in lieu of their services and then there is the marketing mix which basically investigates the ways in which people can be made to feel the presence of the hotel. This document is a look at just the marketing mix for a proposed hotel. The proposed hotel should be located in an area such that the traveling time to an airport or to a railway station should be as low as possible. The intended location will need to be within approximately 20 minutes of both.
[...] These problems include the financial aspects of the promoters of new enterprises and their administrators during early development, the accounting problems connected with the distribution of capital and the financial adjustment required for the bolstering up or rehabilitation of a corporation which has come into financial difficulties. Scope of finance- The scope of financial management is to arrange sufficient finance for meeting short term & long term needs Estimating financial requirements: The first task of a financial manager is to estimate short term and long-term financial requirements of his business Deciding capital structure: The capital structure refers to the kind of properties of different securities for acquiring funds Selecting a source of finance: After preparing a capital structure, an appropriate source of finance is selected. [...]
[...] EVALUATION OF A PROPOSED INVESTMENT: The three criteria for the evaluation of the proposed investments in business are profitability, return on investment and cash flow. Profitability: The profitability will be greater than one only when the net present value is possible. Return on Investment: The main purpose of investing our savings is not just to protect our capital but to earn a reasonable return as well. Cash Flow A cash flow statement can be defined as a statement which summarizes the sources of cash inflow and uses of cash out flow during a particular period of time. [...]
[...] In many hotels a reduction of man power may prove economical but it is often the cost of service which cannot be substituted by machinery. INTRODUCTION TO FINANCE Financial Management in Determining the Financial Viability: Managing finance is very essential in any firm or business concern because finance occupies a very important role in any business enterprise. An entrepreneur has to have the capability and efficiency in managing different types of finances. The complete study of financial management determines the financial viability of the industry. [...]
[...] Working capital: Working capital is the amount of funds necessary to cover the cost of operating the enterprises. It refers to that part of the capital which is required for financing short term requirements, current assets such as cash, debtors etc. Break even analysis: Break even analysis is a specific way of presenting and studying the relationship between cost, volume and profits, it indicates the level of sales at which costs and revenues are in equilibrium. Land. & Building. Plant & Machinery. [...]
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