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

Finance in Hospitality Industry - Assignment ExampleThe business idiosyncratic quite a little by with cash 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 an other(prenominal) option to funding. There is several of this kind of funding. coin bank loan is one example. Banks tin cigaret 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 terminate 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 owners capital Friends and family may also be a source of external funding. Family screwing 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 bills for business setup. In this method the individual access loans that are provided for by the federal government The essence of interest is minimal in SBAs. 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 go for a variety of methods to realize the optimal profits. The enterprises engage in various forms of generation .Fee for service, selling of products, social rank dues, tangible and untangible assets are focuss 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 hot els in different contexts .Eatery services can be offered within the organization. Customers visit the hotel and get food and drinks for which they are charged .Hotels can cater for wed sand parties in the neighborhood and make profits. Catering services can be taken to institutions of learnedness by the hotels and the administration reciprocates the service by paying up. Tangible assets can also be employ 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 drive can be well lawn and presentable. Consumers can therefore rent the place and pay up for the fall of time they use the place. Furthermore, boarding services can be provided for. The consumers are offered spaces to sleep for a impose .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 companys progress. Cost can have various elements to it that adopt to be considered. These elements include revenue, Cost of goods sold, formula as well as management. Revenue refers to as gross sales in companies. This is the receipts and debits over a certain