There are a lot of things you can do to earn and living and begin building your wealth. However, if you want your finances to thrive, you need to think a little outside the box. Working a traditional 9-to-5 job, while stable, won’t allow you to maximize your income.
If you’re like most hungry entrepreneurs, you’re probably thinking about starting a business. Why not jump into the hotel industry?
Sure it’s a large undertaking, but the room for growth and revenue is substantial. The only question is, how do you get started?
We’re here to help. Keep reading for a quick guide on opening a business in the hotel industry.
Research the Industry
First, you need to know what to expect from starting a hotel. Begin your journey by researching the local market to determine your potential future as a hotel earner. For example:
- How many other hotels are in the area?
- What niche can you capitalize on that will help your hotel stand out?
- What are the average hotel rates in your area?
- What can you expect in terms of startup costs?
- How much does it cost to run a hotel?
- Is there a demand for temporary lodging in your area?
- What are your competitors doing right/wrong?
- And more
When starting a company, you need to move forward with your eyes wide open. Learn everything you can about starting a business to optimize your success. It’s important to remember that just because this type of business is physical, does not mean you neglect the online side of your business, namely, creating a website for your potential customers to use for easy booking and general enquiries.
You will want your brand to be the same across the board, so that means your website should have the exact same name. This should be easy to do if you have made one up, but the internet has been around for a while now so you will need to do a domain name search to see if your name is free to use so you can then register it. Once you have that in the bag, you can move on to your next steps.
Create a Business Plan
Next, you need to build a professional business plan. A business plan will outline your hotel business and its operations. It will also provide a detailed explanation of your costs and potential earnings.
Most importantly, you’ll need a well-written business plan to win over banks, investors, and other lenders. If you need startup funding, the quality of your business plan could very well determine your ability to get the money you need.
Get Financed
Once you have completed your business plan based on your market research and analysis, start applying for startup funding through various sources. We recommend starting a business with an SBA loan you can acquire through your bank.
However, if you get turned down, you have other options. These include:
- Private investors
- Crowdfunding agencies
- Angel investors
- Personal investors (friends and family)
- Bootstrapping
- And more
Alternatively, consider taking on a business partner who can either provide the funding you need or help you get approved for the loan you require.
Figure Out the Logistics
Finally, when starting a business in the hotel industry, there some important logistics you need to figure out before moving forward. For example, will you build from the ground up or renovate an existing hotel or apartment complex?
You also need to think about your floor options and other decor-related items. The hotel flooring, furniture, and color scheme you choose will help you define your brand.
Managing the acquisition of these physical assets requires a strategic and well-structured approach.
Decision-makers must carefully evaluate quality, reliability, and long-term value before committing to purchases. At the same time, costs need to be controlled to ensure the acquisition stays aligned with overall budget goals.
Professional RW Purchasing Procurement Services can streamline this process by leveraging global supply chain relationships to source high-end furniture and operating supplies. By utilizing expert procurement, hotel owners can often secure vendor-direct pricing that significantly reduces initial capital expenditures.
This level of oversight also helps in mitigating risks associated with shipping delays or inventory discrepancies during a renovation or new build. Ultimately, having a dedicated partner for equipment and supply management allows owners to focus on the broader operational aspects of their new venture.
Additionally, you need to start marketing your hotel early, before opening day. Try to build hype in your community using social media, email campaigns, and paid advertising. Perhaps you should host an event at your hotel to get the word out and let people know you exist.
Moreover, understanding your target audience and their preferences can also be important. Using tools and resources that provide more information about customer behavior can improve your marketing strategies. This is where using tools like Hotel Metrics (available at https://myhotelmetrics.com/), or similar software, can be beneficial. It can ensure that your branding and promotional efforts can resonate with guests.
Planning on Starting a Business in the Hotel Industry?
If you’re starting a business in the hotel industry, we couldn’t be more excited for you. As noted above, it a massive undertaking. However, the rewards will be well worth all of your hard work.
And if you need more advice on marketing, floor materials, finances, or decor, stick around and check out some of our other articles. Our blog is full of valuable content created to help readers like you find success.
