The hotel and hospitality industry is breaking records when it comes to growth. With promising numbers of the highest proportions, it’s no wonder that investors are looking to get into action with haste. When it comes to entering the hotel industry, you have various options. You can either purchase a well-established hotel, inquire about franchising, or build one from scratch.
With the first two options, you can expect to fork out a lot of funds and you will most definitely need a large group of investors by your side. However, with the final option, you will have the option to enjoy the whole process and scale your business when you deem fit.
Either way, the road is not always straight and it’s usually filled with different challenges and obstacles. Let’s take a look below at how you can effectively reach your dream of starting a hotel business.
Do your research and outline your goals
Before you set things in motion, it’s advisable to conduct thorough research about your desired hotel location area. If you find that there’s a competitor in your area, you will have to devise a plan on how you can stand shoulder-to-shoulder with them in the long run. Take a look at the current hotel industry trends. These will assist you in shaping your strategies.
To keep up with all your planning and ideas, you will have to craft a business plan that will encapsulate what your whole business is about. Having your passion written on paper will help you convince all potential investors to finance your business and join you on your long journey in the hospitality industry.
If you are wondering how you can create the perfect business plan, consider using templates. They will get the job done quickly and easily. A hotel business plan template will help you plan out the various aspects required for successful operations in the hospitality industry. Some of those include:
- Executive Summary;
- Industry Analysis;
- Management Team;
- Marketing Plan;
- Operations Plan.
Get the paperwork in order
There’s no going around the fact that starting a business will bury your work desk with various legal paperwork.
To get the right idea of what you will need when it comes to paperwork, you can consult an attorney and a legal specialist. In most cases, you will need a hotel license and a building permit if you are planning to build or renovate your property.
In addition to that, you will have to obtain the right insurance if you want your business to be completely operational. Consult your insurance team and consider obtaining liability waivers. A single injured guest can push your whole hotel into a state of financial ruin. Having a liability waiver can protect you from serious consequences.
Hire the right staff
Your hotel’s staff is what will represent your brand on a daily basis, so picking the right team will make all the difference in the world. Try to hire individuals that have extensive experience in the hospitality industry.
If that’s not possible, try to train your employees and offer them feedback about how the operations should be carried out. When it comes to hotels, conducting background checks is always important as your employees will have to possess virtue and a strong moral foundation.
Prepare for the opening
Spending all your remaining funds for the hotel’s grand opening ceremony might be a bad choice as you can use that money for marketing purposes. Try to have a solid grand opening without breaking the bank. Pay attention to the experience your first-time visitors will get rather than the luxury presented on plates.
But before that happens, focus on the soft opening. Welcome mega entrepreneurs, investors, and influencers to test how your whole business operates. Here you can capture the attention of all the big names in the game and boost your chances of success.
If you create the perfect soft opening environment, you will have no problem toning it down for the grand opening and focusing more on the aspects of the hotel business that generate profit.
Starting a hotel business from scratch might be one of the most rewarding business ventures out there. However, the sheer amount of work and complexity requires solid planning. To make sure that you are prepared for every obstacle you face on the way, focus on creating a business plan that will serve as the guide that will take you toward your goals and milestones.
Lastly, don’t forget to leave a solid impression on influencers and big names on the day of your soft opening. Wine and dine them, and give them an unforgettable experience worthy of accolades to increase your word-of-mouth marketing efficiency from the very start.