One of the very profitable businesses one can venture into is the hotel business. Several people are in need of hotels, where they can relax and unwind. Foreigners who visit the country also look forward to having good accommodation. Business people travel from one state to another and will definitely have the need for a good and hospitable hotel. This is where this business gets its relevance.
Although it can be capital intensive and seem challenging at first, it is usually worth it in the end. Starting and running a hotel business can be daunting. However, in the article, I simplify relatively easy steps to starting your own hotel business.
1. Draft a business plan
Before now, you should even have a sketch of what your hotel will look like and everything in between. However, at this stage, you will draft a more concrete plan of how you intend to run your business, the number of staff involved, the capital needed, equipment purchase, etc. All these will be properly outlined. You can get a professional business strategist to guide you through this process.2. Source capital
The mistake some entrepreneurs make before starting their businesses is to go in search of funding before they even know exactly what their business’ aims and objectives are. That is why this step came after that of drafting a business plan. Inasmuch as capital is what drives the business to start in the first place, without direction, the capital gotten can be mismanaged. So, now you have a plan, you already know exactly how much is required, you can source for loans, grants, money from friends and relatives, or even money from your savings, if you are buoyant enough. Just ensure that you have a plan to pay back, in the case of a loan.
3. Register your hotel business
To start this business, you will need to register your hotel name under the Corporate Affairs Commission. This gives you the leverage to operate legally without unnecessary drama that could erupt from a lack of registration.
Usually, you will be asked to submit two names of your choice. You will need to come up with names that resonate with the brand you want to portray. You can also get a certified CAC agent to help you out with the registration process. Once you are done with this, you are ready to move on to the next step.
4. Choose a location
You will need to, before every other thing, choose a place you think will suit the siting of your hotel. You will decide if you want to build it from scratch, or you will be buying an already developed property and renovating it to your taste. Determine if the location is accessible to your potential customers. You don’t expect to site your hotel in one remote area of town and have people troop in. You have to do a thorough survey of the area and make sure it will be a healthy place to site your hotel.
5. Commence the hotel project
If you are building from scratch, you will need the services of an architect, surveyor and a building engineer. Reason together with them and start the construction immediately. If you will be renovating an already developed property, you will have to engage an engineer that will advise you on how to go about the customization, in addition to your own picture of what the place should look like.6. Recruit the best hands
The key positions in a hotel include; a hotel manager, chefs, receptionists, waiters, barmen, cleaners, etc. Be sure to have a solid hiring and training process to bring these people on board. It should be effective so that your labour in the hotel will not go down the drain. This is because poor hospitality and mismanagement will make potential customers avoid your hotel. So, you need to be intentional about this.
As important as it is to build and recruit staff members, it is also paramount that you advertise your hotel. This could be through the printing of fliers, banners, tv and radio adverts or online advertising. This will let people know that your hotel exists and that you are open for patronage.
With these steps, you are ready to start your hotel business. Remember, you can start small, but ensure you are growing with time. Goodluck!
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