Hotel business is one of the businesses with promising profits. But this business is pretty different from any other kinds of business. In a hotel business, success can be achieved by the owners if they prioritize human resources. This is why if you want to start a hotel business, you should hire people who have a passion for hospitality so that you will be able to make your customers feel comfortable staying in your hotel.
Moreover, there are several tips that you can follow to help you start a hotel business. Here are the tips.
The first thing you have to think of when you are about to start a hotel business is the concept of your hotel. There are many hotel owners who succeed because they have a creative concept to be applied in their hotel. So, start thinking about the concept of your hotel. Do you want to build a capsule hotel? Or do you want to have a fancy hotel instead?
This is the most important thing that you must not miss. Without enough fund, it will be hard for you to start a hotel business and make it established. You must calculate how many funds you need to start and run a hotel business. If your fund is not really much you can still start a simple and small hotel business, such as a capsule hotel. In order to start a hotel business, you do not need 100% fund even though it will be great. You can start a hotel business with 30% to 50% fund and for the rest, you can get it from other sources. Such as investors and a bank loan.
The Right Location
You must be careful in determining the location of your hotel business because it will bring a great effect to your business. A location is a determining factor of your hotel business because it will determine the selling value of your business. A location will indirectly influence the Return On Equity or ROE and Return On Investment or ROI.
The Feasibility Study
It is very clear that as a business owner, you must clearly know and understand the risks and chances that will probably happen to your business. By creating a feasibility study, you will be able to have a clear vision of your business plan. A feasibility study will give you accurate descriptions and details about the prospects of your hotel business. Moreover, this study will help you to decide what type of hotel business you should start, how many rooms you should have, the needed facilities, the range price for each room, the investment you should spend, and how long you will get your investment back.
You must take care of the permit first before you run your hotel business. The most important permit is a location permit because without a location permit, you are certainly not able to arrange other permits from the local government. This is the last tip of how to start a hotel business.