Essential Things to Know before Setting up Your Own Hotel Business
Want to start your own hotel business? Great! There is nothing excited like setting up your own hotel. There is never late to think about your own venture. At the same time, keep in mind that the hospitality industry is not easy, it is very challenging and very demanding. To survive in your business, you need strategic planning, careful implementation, huge investment and time.
There are certain things to consider while starting own hotel business. You need to know everything about how to plan, how to do market research, how to choose location, how to manage expenses and revenue, and so on. In order to make it a big success, go through these important points to consider while setting up a new hotel business.
The Combination of a great idea and an effective business plan is must for development, growth and success of hotel business. Start from a unique yet practical idea, you should have something different to offer to your guests apart from normal hotel services. Once, the idea has been finalized, start writing a business plan. It will help you in determining practicality and feasibility of your idea. Having a plan will help you in achieving your goals step by step.
Location of the Hotel
What kind of hotel are you thinking of? Location solely depends on the type of hotel and services offered by the hotel. Here, the research work starts. Work out on the demographics you want. Search about the type of customers you want to target. Consider the location which has easy access to transport, healthy surroundings, is located in the well known area and is not much crowded with the hotels or motels. Make sure that the area has good internet and connectivity as this is the most important thing required to check before selecting a location.
Financing and Budget
Opening a new hotel business require a good amount of capital. Get ready to invest huge amount of your investments initially, once the business start flourishing, all the costs will turn into the profits. This calls for budget planning and financing, which are essential to run a business. There are many costs involved with the business such as setting up the hotel building, investing in the amenities, setting up a restaurant, hiring staff, and many more. Find out the ways to fund your business at the initial stage. This will help you in bifurcating the money into fixed
Another important thing to consider while starting up your own venture is choosing the reliable suppliers. Who will be your Wholesale Tableware Suppliers? Who will be your Hotel Crockery Suppliers? How will you deal with them? Most importantly, how to find professional suppliers? Apart from catering, you may be needing suppliers for bed linens and stationary. You need to do market research for finding answers to all these questions. Look out for the reliable and affordable suppliers who cater all your needs by serving in your area.
Most of the business owners forgot to take care about building a polite and well mannered management team. Hiring staff, making arrangements for maintaining the property and fulfilling customer’s expectations is the next step for your hotel business. You have to think like a customer, what all you need when you stay in a hotel. Your main aim is to deliver excellent services to the guests, in order to let them recommend your hotel to others. Maintain healthy and hygienic surroundings of the property, change bed linens, glasses, and toiletries in the room on a regular basis. Keep your property neat and clean. Welcome your guests and provide them outstanding services.
Last but not the least, to check out the various legal requirements; you need to comply in order to start your hotel business smoothly. Check various registrations, permits, licenses and insurance required for your hotel. Legal documentation depends various criteria’s such as type of hotel, type of services offered, ratings, and location of the hotel. A fire safety permit, trade license, bar license, ESI registration, PF registration, VAT registration, service tax registration, and FSSAI food business license are some of the essential requirements which your hotel must have. Make sure that all legalities have been completed before you start your hotel business.