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.
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.
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)
- 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.
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.
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.