HOW TO SUCCESSFULLY START A HOTEL BUSINESS FROM SCRATCH AND EARN GOOD PROFITS
Who doesn’t love travelling around and getting to learn the world, meet new people and just take a break from our busy lives. The most worrisome thing when you are travelling to a new place is finding a place to stay. Thanks to hotels, that this is now not a big problem for us. Hotels nowadays are not just a stay place, they have become a refreshment centre with the kind of facilities that are introduced by innovative hotel curators. As much so, the hotel industry India almost hosts more than 1.5 billion people, international and national, and is a very profitable business sector.
If you have A desire to serve and are a great host, who knows how to manage, arrange the resources, and are a good leader, the hotel business is very likely to bring you a profit. You must have the tenacity, ability to work hard, and must know how to juggle between job and family as this business will surely take most of your time.
Here is a plan to start a hotel business form scratch and earn good profit!
Create a Plan
Decide beforehand what kind of Hotel Business you want to open. Before planning and taking any initial steps, it is very important to educate yourself and understand how Hotel works. If you are starting a business, you also need to have good management skills. Opening a Hotel business will require you to be extra vigilant with ongoing requirements and trends in the market and provide your client with facilities based on that. Have an understanding of hospitality and marketing as well. There are a lot of things to cover, so do your thorough research on this, learn what are the skills required, and be an expert! Look at the prerequisites given below to have a profitable hotel business.
Make a plan for what is going to be the size of your business at first. The growth will only follow if you thrive in the market and the hotel business needs investment and time.
Do your research
The hotel business is not an easy venture to open. You have to do a lot of research about how the market functions and what is the demand and supply chain in this business. Learn the basics of hospitality and about the staff that will be required for the proper functioning of the hotel. Hotels require maintenance even when there are rooms empty at your hotel, so learn how to manage them wisely so that none of your resources are wasted and you are not wasting your money anywhere. Take care of all the safety measures and rules and regulations which are set up by the government.
Take Permits and License
To start any business in India, you need to have legal permission sorted beforehand to avoid any hassles with government officials. You’ll need to get yourself registered as a business person, get your GST registration, and all sorts of licenses and permits are done. There are certain guidelines to be followed for the building and restaurant of your hotel and require great attention to detail. Getting a hotel license is not easy. Make sure you are ready with all the paperwork and to take multiple rounds of government offices because opening the hotel business in India calls for this.
Choose the right Location
The location of your Hotel business matters a lot. Your hotel should be at the premium location of the city you are planning to establish your business in. The hotel should be around your residence or near a place that is accessible to your 24*7 as you might be demanded there any time. You can open it near airports and railway stations where people are more likely to look for a residing place. Opening a store in a small town where there are already many Hotels available already makes no sense. So, look for a place where you can stand out and be highlighted.
Understand your customer
Any business needs you to be focused on their target audience. In the hotel business, your client’s comfort is very important. Take notes of their requirements, what are the new facilities offered by other hotel businesses, and how you would like to inculcate them for your guests, etc. If your customers are not satisfied, your hard work is bound to fail. Take their reviews sincerely and focusing on the target audience is very important in this business so keep that in mind.
Decide your services
Depending on the location of your business, decide the services that you will be providing and how you are going to arrange those resources. Go for the resources which are available to you locally. From décor to the staff. It will be easier for you to arrange and will cost you a lot less. Even in your food and restaurant services, introduce a range of local dishes. Never compromise on their quality. Focus especially on the comfort and attention to detail of your facility. There should be the comfort of home but the facilities should be maximum.
Generate funds and make the right investments
Building a hotel from scratch is a huge investment. It requires a huge investment as the building cost of the infrastructure will be high. If you already have the infrastructure available with you then all you need is to spend on facilities, décor, in-house staff, and marketing. You will have to look for the right location and build the facility according to your budget.
If you are refurbishing an old building for a hotel, it will require a good deal of money and a lot of work. Work closely with builders and interior designers. Make sure you are satisfied with the changes you make and there are no problems regarding them in the future with your client.
Build a team
Having a team that you can work with closely and have a good understanding relationship with is really important. Have good mangers, a PR team, interior designers, and along with them have in-house staff that will carry out tasks like housekeeping, serving, billing, loading, shifting, etc. Once you have a hotel and you desire to build it bigger, have a trusted group of people who will help you on each level as this is not a task that can be handled alone.
Setting up any business requires a strong local connection and communication so that the business can propagate but with the rise in the use of e-commerce, things have become a lot easier. Make a website for your Hotel Business to attract potential customers. Market your facilities and show off your infrastructure. Use various models and tools which are available online to make your website catchier and more attractive. Give all the contact details and booking references on your website so it is easier for your potential customers to book you for services. You can also integrate with different travel organizations such as Goibibo, Trivago, etc to increase your accessibility to potential customers.
Focus on Marketing
Make use of social media as it is almost certain that at least one person in your locality must be using any social media platform. Putting up pages on Facebook and Instagram and asking youth in youth in the locality to share it amongst friends, developing a strong SEO, and investing in marketing offline can bring great audience attraction to your new hotel business. Putting up ads with discounts and amazing offers are always a plus. Along with online, spending on offline methods to propagate business is necessary. Go old school and hand our pamphlet whenever a customer arrives. Since you have an offline store and most customers will save your number for future reference, you can invest in WhatsApp Business and use its marketing tools to propagate your business. It is convenient to use and digitally provides a personal touch as the medium is one-to-one messaging which has become one of the best provisions of converting prospects to customers. Remember to greet them nicely and make them feel important.
Opening a hotel business is a great opportunity to get involved, meet, and host people of different cultures from around the globe and sharing our culture with them. If you have the right resources and impress the first few guests, you are all set to make a profit in this business.