Finance in Hospitality Industry Assignment Example | Topics and Well Written Essays - 2500 words

Finance in Hospitality Industry - Assignment Example The businessperson can apart with money to put into the business. This could include savings or start up capital. This method of approach ensures that the person has complete ownership of the business. External sources are another option to funding. There is several of this kind of funding. Bank loan is one example. Banks can offer one capital to fund a business. The loan repayment is spread over a long period of time and one has to pay interest. One can have additional partners when starting a business. An individual may decide to team up with another person in the business venture. The new partner usually pays more capital than the individual. I would go for owner’s capital Friends and family may also be a source of external funding. Family can invest in a business with little or no interest. They can support an individual in the business venture without making demand for shareholding .Small Business Administration (SBA) can generate funds for business setup. In this method the individual access loans that are provided for by the federal government The amount of interest is minimal in SBA’s. The best sourcing for me could be family and friends. Interests, security and shareholding are not demanded for with the approach. To add on, the family can offer counsel and support during the business initiation. Generating income in hotel Business. Venturing in business is usually for the purposes of income generation. Various businesses employ a variety of methods to realize the optimal profits. The enterprises engage in various forms of generation .Fee for service, selling of products, membership dues, tangible and untangible assets are ways that money is earned in an institution. The hospitality industry also can employ these strategies to make economic gain. Services can be sold as a way of making money. Catering services can be provided for by hotels in different contexts .Eatery services can be offered within the organization. Customers visit the ho tel and get food and drinks for which they are charged .Hotels can cater for wedding sand parties in the neighborhood and make profits. Catering services can be taken to institutions of learning by the hotels and the administration reciprocates the service by paying up. Tangible assets can also be used to gain profits. Leasing and renting out of assets such as space, equipment and land. The hotel can hire out rooms for conferences and workshops to other organizations. This ensures that they make for the leasing and the assets remain their own. Space for hosting events such as parties and weddings can also make up for income generation. The grounds can be well lawn and presentable. Consumers can therefore rent the place and pay up for the amount of time they use the place. Furthermore, boarding services can be provided for. The consumers are offered spaces to sleep for a levy .Investment and dividends can offer funds for an organization. The hotel can enroll in the stock exchange and gain accrued interests with time. This is the passive way of income generation as the stakeholders are not directly involved in money making. TASK 2 Costs, gross profit percentages and selling prices fort products and services are important in mapping out a company’s progress. Cost can have various elements to it that need to be considered. These elements include; revenue, Cost of goods sold, formula as well as management. Revenue refers to as ‘sales ‘in companies. This is the receipts and debits over a certain