Question 2 a

Question 2 a.

a) Description of Business
Indlovu bed and breakfast is set on the outer edge of Phalaborwa over-looking the Kruger National Park. The name Indlovu comes from the Zulu word Elephant, meaning to “crash through”.

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We are able to offer our guest seven high quality, beautiful and elegant rooms that’s been separately furnished with the taste of Africa. With our five star rating we will provide a full breakfast each morning with no expense spared.

If you are looking for a place to relax and recharge look no further. Each guest will be treated with the kind of attention that s family deserves. When our guests arrive we want them to leave their troubles at the door and step into a world of luxury and rest. We also offer guided tours and walks in the Kruger Park. Our exceptional location is in one of the most beautiful parts of the environment and will ensure a pampered luxury stay.

Goals of the business
The goals to reach success for the bed and breakfast will be based on the following factors:
• Provide a high quality bed and breakfast with attention to detail
• Give each guest a sense that he of she is our top main concern
• Provide excellent breakfasts
• To become the best choice for temporary accommodation
• Retain our guests to ensure repeat bookings and referrals
• Apply a cost effective promotional approach that will maximize awareness
• Achieve a 35% return on referral visits
• Build a strong market position among the local communities
• Maintain sound financial management

Objectives of the business
The main objectives for the bed and breakfast will be as follow:
• Create a customer satisfaction rate above 90%
• Make an average of R200 000 of sales each month
• Stay above 90% on reservations each month
• Achieve a 35% return or referral visits
• Apply a cost effective promotional approach that will maximize awareness
• Obtain a bank loan to cover start-up and early operating costs
• Increase exposure and the market by using Internet technology and direct advertising to other provinces
• Through incentives and increased exposure we hope to increase off-season reservations by 30%
• Increase off-season use by looking into other uses for the bed and breakfast, such as cater parties, receptions, and the stay of wedding guests.

Question 2 b.

b) Name of the business

Indlovu bed ; Breakfast

It comes from the Zulu name for elephant, Indlovu – meaning to “crash through”




Question 2 c.

c) Form of ownership that is suitable for the business

I believe that the appropriate form of ownership for Indlovu bed ; breakfast is a Closed Corporation known as a CC.

A closed corporation has an identity separate from that of an individual owner such as a sole proprietor or a partnership. It’s has legal rights that are usually only for persons, such as the right to sue or be sued, own property and hire employees. As a CC any debts will be the liability of the business and not the owners and this is a great benefit.

The owners are called members because they own shares of the business and share a common goal. Members have the power to decide the direction of the business and the way it is managed. A member is not liable for the debts or other responsibilities of the business in its private capacity except to the degree of any commitment that was made to buy its shares.

Question 2 d.

d) Registration procedure for the business

When registering a close corporation there are a number of legal requirements and certain paper work needs to be completed and signed. One of the documents needed is called a Founding Statement.

The Founding statement of the CC needs to be completed and signed by every member. The Founding Statement needs to have the following information:
• Full name of the CC
• Letters CC added to the end of the businesses name
• Postal address of the registered office
• Principal action of the CC
• Details of each members contributions to the CC
• Full names and id numbers of each member
• Interest of each member which needs to be shown in percentage
• Date on which the financial year ends
• Name and address of the accounting officer of the CC
The Founding Statement is then sent to the Registrar of Close Corporations
• An accounting officer must be appointed to the CC as he will draw up the financial statements
• The Registrar of Close Corporations will then give a Certificate of Incorporation and a Registration number when the CC is registered. One copy of the Certificate of Incorporation is kept by the Registrar, another copy is sent to the CC and a third copy is sent to SARS (South African Revenue Services) to register the business for tax purposes.
• The CC may only commence business after the Certificate of Incorporation has been issued.
So basically there are 2 steps that must be followed in the registration process:
1. Application for reservation of the name of the CC
2. Close Corporation Founding Statement
1. Application for Reservation of Name
• Before a CC can be registered it is necessary to apply to have its proposed name verified, approved and reserved. This procedure involves:
o Checks being carried out to ensure that the proposed name does not already appear on the names register.
o The criteria followed for checking the proposed names include:
? Similar names
? Comparative names
? Offensive names

• The form that is needed to reserve a name is the CK7 form, “Application for Reservation of Name, or Translated Form, or Shortened Form”.
o You can download and print this form
o A CK7 form can also be lodged electronically
o This form (CK7) can also be bought from stationers that supply legal forms
o If not done online, the CK7 form must be completed in black ink. The writing must be readable and in capital letters.
o The CK7 must be accepted before the lodgement of Form CK1 for registration
• An application for a name reservation, for the close corporation, can be lodged electronically through a registered Customer.
• Once the proposed name has been checked and approved, the CC Registration Office will confirm the acceptance by way of a confirmation letter, indicating the name that has been confirmed and reserved. This letter is e-mailed or posted to the applicant or can be collected from the counter in Pretoria.
o Allow 7 working days for actual processing.
o The approved name is reserved or is valid for 2 months (if expiry falls over a weekend, the name expires on the previous working day i.e. the Friday).
• If there is a query regarding the proposed names, the CK7 form is returned to the application process for changes and re-submission.
• If the name reservation request failed, the applicant is refunded with the cost of the application.
2. Close Corporations Founding Statement
• Only when the proposed CC’s name has been approved and reserved can the actual registration of the CC be processed.
• The registration process begins with the completion and submission of the “Close Corporation Founding Statement” (CK1), the cost of which is R100. You can also lodge a CK1 electronically.
o This form calls for important information about the proposed CC such as details of the members, nature of the business, address, etc.
o CK1 forms can be downloaded and printed
o The CK1 form is made up of 3 pages:
? Pages 1 and 2 to be completed for all registration applications
? Page 3 is only applicable if there are more than 4 members.
o The form must be completed in black ink, in block letters.
o No changes are allowed.
• The original CK1 form is to be completed and submitted to the Close Corporation Registration Office in Pretoria.
• On Page 1 of the CK 1 form the name and practice number of the Accounting Officer must be provided
o An original signed letter from the Accounting Officer, confirming his/her approval to act for the CC must be handed in with the CK 1 forms.
• The Accounting Officer must be registered with one of the following institutions:
o 1. The South African Institute of Chartered Accountants (SAICA)
o 2. Auditors registered in terms of the provisions of the Auditing Profession Act, 2005(CA)
o 3. The Southern African Institute of Chartered Secretaries and Administrators (ICSA)
o 4. The Chartered Institute of Management Accountants (CIMA)
o 5. The South African Institute of Professional Accountants (SAIPA)
o 6. THE IAC who have obtained the Diploma in Accountancy (IAC)
o 7. The Association of Chartered Certified Accountants (ACCA)
o 8. The Chartered Institute of Business Management (MCIBM)
o 9. The South African Institute of Business Accountants (SAIBA)
o 10. The South African Institute of Government Auditors (SAIGA)
• The letter confirming the name reservation must accompany the completed CK1 form.
• Allow 5 working days for processing and on completion a confirmation certificate of the approved CK1 form that includes the registration number and registration date is posted or e-mailed to the CC.

Requirements for the bed and breakfast

Tax requirements:

Corporations are taxed differently than other business entities. They must pay their own income taxes on profits as it’s a separate legal entity from its owners, the bed and breakfast is taxed on all profits that it cannot deduct as business expenses. Taxable profits are money kept in the company to cover expenses and profits that are paid to the owners as dividends. To reduce taxable profits we can deduct all business expenses like start-up costs, operating expenses, product and advertising, salaries, bonuses and incentives to employees or guests.
We will pay corporate income tax rates on our net profits to SARS.

We will also liable for employee’s tax and value- added tax. If the bed and breakfast earnings are more than a R1 million a year the law requires for the bed and breakfast to register for VAT and pay the VAT over to SARS. As a taxpayer we will have to submit financial statements every year and pay the required tax on taxable income.

Health regulations:

Food Act Registration and Food Safety Programs is a must under the Food Act 1984. Where food is prepared and/or provided from another site and is transported to the client, the transport arrangements must be included in the Food Safety Program. The registration method will focus on the kitchen and areas used for storage, preparation and handling of meals. To this end you will be required to meet basic structural requirements of commercial kitchens.

Public Health ; Wellbeing Act Registration is needed for all accommodation venues that provide accommodation for more than 5 people. Prior to receiving registration, a detailed plan of the accommodation facilities is required, including room sizes, facilities provided and the number of persons in each room.

Smoke Detectors must be installed in all accommodation rooms. This is a must under the Building regulations but it is fitting for all accommodation in spite of Public Health ; Wellbeing Act registration. Fire inspections are also needed.

Where alcoholic drinks are given, a liquor licence is also needed.
Other regulations that can also have an impact on the bed and breakfast are:
• The fire safety act
• Insurances – for liability of owners and their guests
• Health and safety act for employment
• Consumer guarantees act
• TV Licence
• Certificate of compliance for food preparation

Trading licences and regulations

I will have to approach the Town Planning Department of the Local Council for permission to go ahead with my plans, once permission has been given then I can register with the Regional council. As the bed and breakfast business sells fresh food then a trading licence must be purchased from the Business Licensing department of the Local council and the business will have to be qualified by Gauteng tourism authority.

My application for a trading licence will be distributed by the local council to the health, fire and building inspectors and the town planning department.

Question 2 e.

e) Description of the layout of Indlovu Bed ; Breakfast

The idea for the layout comes from the word Indlovu which is Zulu for elephant. Using the tusk of the elephant, like a U shape as the main idea.

In the middle will be the entrance to the lodge with the foyer that will be used as the reception area. As you go through the reception area you will walk into the Living room where you can just relax in front of a fire place and enjoy the quietness of Africa.

The dining room with service area and kitchen will be next to the living room with a patio overlooking the gardens and natural habitat. The rooms will be situated on both sides of the communal area and will form the “tusks” of the elephant. Each room will be fully equipped and with an on suite bathroom. There will be four rooms on the left and three rooms on the right, on the right side there will also be a store room for the linen and any extra equipment that is used to run the lodge. The lodge will also have a laundry room which is only for the use of the lodge and not by the guests.

There will also be secure and safe parking area for the guest.

See layout drawn to scale attached as Annexure A.

Location of the business

Indluvu bed and breakfast is conveniently located on the outskirts of Phalaborwa, in the Province of Limpopo, bordering to the Kruger National Park where the animals roam freely making it an ideal option for nature enthusiasts.

Guests can spend their days spotting the Big 5 or travel around the town with its different cultures and nature activities and you’re nights listening to the calls of the African bush right on your doorstep.

Phalaborwa is called the city of two summers as we more often than not have a very nice temperature. In the South African summer the average temperature during the day is between 30 and 40 degrees C and in the evenings around 20 degrees.

Indluvu bed and breakfast is only 10km away from the Phalaborwa airport and this making your travelling to your accommodation and town a stress free experience.

Question 2 f.

f) Design of Business card

Indluvu Bed & Breakfast
Adjacent to the Kruger National Park

Dante de Wit, Owner
Address: 161 Kent street
Phone: 015-781 0995
Cell: (+27) 071 672 0056
Fax: 015-781 0996

Email: Indluvub&[email protected]
Website: www.indluvubed&

Question 2 g.

g. Price list of the business

Question 3

List of employees including job description

• Owner / Accommodation manager:
They have to make sure that guests have an enjoyable experience and make sure that the business is run well and beneficially. They are also required to fulfil different roles and carry out a mixture of duties.

? Meet and greet of guests
? Administration duties such as preparing budgets, keep financial records, advertising strategies, promote and markets the business
? Plans and organise the bed and breakfast
? Maintains quality control
? Manage staff
? Deals with guest complaints and comments
? Deals with contractors and suppliers
? Makes sure security is in place and helpful
? Stick to the licensing laws and other regulations
? Develop and build positive relationships with guest and employees
? Communicate with other managers

• Housekeeping Manager
Is there to oversee the housekeeping employees and keep track of all housekeeping duties.

? Oversee housekeeping employees
? Maintains quality control of employees
? Recruits, trains and manage employees
? Drawing up a work schedule
? Stocktaking and ordering cleaning equipment, linen and room supplies
? Checking for faults or damage and arranging repairs
? Managing budgets and control costs
? Make sure employees works to health and safety rules

• Housekeepers
To keep a clean, hygienic, comfortable and tidy environment for the business

? Clean and tidy up rooms and bathrooms
? Make up beds and change linens as needed
? Clean common areas
? Do laundry if required
? Maintain all cleaning equipment and materials in a safe and hygienic working order

• Reservations Manager
Needs to make sure of the smooth and well-organized process of reservations to get maximum room takings in order to meet or exceed income targets and also help to perform any other duties that might be needed

? Communicating with travel agents
? Helping the owner in setting the rates
? Maintaining the in-house reservation systems
? Forecasting income streams
? Manage front desk receptionist
? Responsible for reservations
? Give daily tasks to receptionist
? Review daily reservation bookings and arrival reports
? Make sure of special handling of repeat guests
? Monitors and coordinates group reservations
? Follow up tentative bookings and update reservation status

• Front desk Receptionist
Provides a friendly, welcoming and capable service to guest’s that is in line with the bed and breakfasts vision and values on guest satisfaction. Respond politely to guests’ requests and play a part in the common running of the reception area.

? Meeting, greeting and attending to the needs of the guests
? Checking guests in and out
? Answering questions and complaints from guests
? Manage guest behaviours
? Deal with guest requests to ensure a relaxing and enjoyable stay
? Take on common office duties, including correspondence and answering of phones
? To ensure that all reservations are processed well
? Report any maintenance, breakage or cleanliness problems to the appropriate manager

• Recreational manager
Has to run operations regarding the leisure part of the business to deliver an outstanding guest experience.

? Give information to guests on tourist attractions
? Arrange tours including, the tour guide for an experience of a life time
? Manage guests feedback well and to make sure constant service and programme improvement
? Communicate with other partners involved
? Makes sure guest receive friendly and reliable personalised service

• Kitchen Manager / Chef
To make sure of a smooth running, professional kitchen with little problems. Their work will have direct impact on the success of the business as incorrect prepared food or poor timing will give the business a bad name.

? Take control of the breakfast service and makes sure that guests receive a truly tasty and unforgettable breakfast
? Cooking and managing breakfast service
? Maintain quality control
? Trains and manage employees
? Plans employees work schedule
? Estimating food quantities and cost
? Buy food supplies
? Supervision of the kitchen
? Collect feedback from the guest during the breakfast session
? Stick to health and safety policies

• Kitchen staff
To help the kitchen manager / chef that the kitchen is run smoothly and without problems

? Setting up and cleaning down the kitchen after breakfast
? Makes sure the kitchen is kept clean and hygienic at all times
? Makes sure that any expected issues are communicated to the manager / chef
? Able to handle pressure calmly
? Carry out any other duties as needed by manager / chef

• Gardner
Is in charge of the general maintenance of the gardens, plants and lawns, and also maintain the lawns and gardens in order to draw guests to the business and green surroundings

? To maintain all tools
? Keep gardens, plants and lawns in a good condition
? Keep grounds clean
? Makes sure that all equipment are stored securely and clean
? Plant and transplant flowers, shrubs and trees
? Maintain garden by naturally fertilising, trimming and making sure that plants are receiving adequate water
? To keep gardens clean from litter
? Tiding up and cleaning all areas
Question 4

List of suppliers, with names and addresses and items required

• Bare Essentials
Physical address: Holland Insurance House
14 Jan Hofmeyr road
Items required: Guest amenities
Cleaning materials
Décor and accessories
Dispensers and bulk refills
Paper products
Bath and shower products
Sundry items
Uniforms and name badges

• African dream amenities
Physical address: Plot D454
Farm Berge-Rondom
The Rest
Items required: Guest amenities (body wash, lotion, shampoo ect.)
Linen (Summer and winter range)
Towels and gowns
Beverages and snacks
Accessories (hangers, laundry bags, good night chocolates)

• Northern Food Distributors
Physical address: Polokwane Industrial park
Block E Unit 242519
Lood street Futura
Items required: Dry foods
Extract soups
Wholesaler’s foods

• Bidvest Foodservice
Physical address: 61 Silican street
Polokwane Ext 17
Items required: Foods
Frozen foods
Breakfast foods

Question 5

Planning for the Grand Opening

• One month prior:
? Onsite visit to the bed and breakfast
? Meet with wholesalers
? Make sure Menu is set
? Grand opening materials ready
? Advertising is placed in the media and on social media
? Parking and entertainment is met
? Plan a suggested agenda

• Three weeks prior:
? Finalise the agenda
? Send first press materials
? Send out Grand opening invitations via mail, email and social media

• Two weeks prior:
? Follow up with all press channels and social media
? Follow up with important guest invites
• One week prior:
? Follow up with press
? Follow up with important speakers
? Final checks on site – seating and catering set-up
? Final checks on décor
? Gather press kits and photos for on-site and internet to give to the media
? Put together information kits for handing out to guests

Gantt chart to illustrate the “To-do” list
See attached as Annexure B