Business plan on existing Omakau business

PAST PROJECT

The property located in Omakau, Central Otago was a 5 bedroom 2 bathroom luxury period homestead and a converted Woolshed venue complete with commercial kitchen set amongst private gardens, sweeping lawns and mountain views on 1.94 hectares of freehold land.

The property operated as a wedding venue at the time with potential future scope for holiday short and long term rental and corporate/dining retreats. The client was seeking guidance on both value and viability of existing and future business.

The main intention of this work was to give the potential purchaser an overview of the current product and potential scope, the current tourism market and demand growth areas, your key markets and then allow all of this to draw analysis on how they see their product placed, it's rates and access to the market share currently available.

This would then determine further financial analysis and obtainable projections.

In a nutshell, Central Otago showed strong signs of growth however current occupancy rates were concerning across the entire district (we would have needed to ascertain further stats for the Rail-trail and Omakau/Ophir specifically)

These low occupancy rates could simply be due to an oversupply of very casual product (i.e lots of people just operating accomodation options relatively non commercially and not year round) or these stats may not be including the likes of airbnb or they are just low. 

The prognosis was to discontinue with the existing business and challenge the going concern of this sales offering. With a low cost base, as the occupancy rates and revenue increases, this would allow for future investment, growth and in turn ideally an increase in market share and a possible greater diversification in product.