I was asked by Elizabeth Todd, owner of Bimbadeen Estates, to assist her in preparing a business plan for a business expansion. The banks required this plan to approve a loan.  Boy was I in for a treat!  Bimbadeen Estates is nestled on a hill overlooking the Hunter Valley in New South Wales in Australia, about two hours north of Sydney. It consists of 14 acres of vineyards, a winery and six vacation chalets. The vacation chalets functioned as a bed and breakfast. Elizabeth invited my wife Cristina and me to stay in a chalet while I was working so we could get the feel of the place.  It was luxurious.

I immediately went to work, gathering 3 years of financial statements from which I extracted the current average revenues and expenses.  This was used to justify the current revenue and profits and enable a forecast should the property stay the same.  Elizabeth remarked, “Working with Kirk I have found his advice to be instructive, sound and easy to grasp. We have a lot of work to do yet to achieve our objectives, but I have no doubt that with Kirk’s guidance in preparing our business plans [that] we will be successful in attaining our goal.”

Elizabeth wanted to add a few more acres onto the vineyard and add 3 more chalets to the bed and breakfast. We worked through the detailed description of the renovations, the costs, effort and time needed.  From that, I extrapolated the future revenues and expenses and the increase in profits.  The loan repayment was calculated and determined it would take approximately 10 years depending on maintaining high occupancy for the bed and breakfast and total sales from the winery and vineyard.

After reviewing the completed business plan with Elizabeth, they decided they were too old (the early sixties) and would sell it instead. After all that hard work The beautiful property sold three months later for their asking price. They attributed their quick success in selling the property to an effective and complete business plan. Elizabeth and her husband retired comfortably to the Queensland Gold Coast.

Bimbadeen Case Study

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