Launching a hospitality company is bound to be both scary and exciting, because there will be many challenges ahead yet so many rewards to enjoy. Entering the competitive hospitality industry takes guts and determination, so the fact you are willing to launch a business in such a tough market means you already have what it takes to survive.
To help you get off to the perfect start, we’re offering 10 top tips to help you launch a hospitality company.
Nothing is more professionally, physically and mentally challenging than running a hospitality business. So, before you decide to sink all your money into a new hotel, restaurant or bar, you must gain experience in the industry first – or you might quickly discover you have made a big mistake.
Find a Mentor
It is important to find a business mentor when launching a new hospitality business, because the experienced pro can offer advice on what to do, and you can also learn from their mistakes when starting out. Someone who graduated with a Masters in Innovation and Entrepreneurship, with a focus in the hospitality industry, is an advantage as they’ll have the entrepreneurial expertise in starting and scaling a business.
You must have an in-depth understanding of the business, industry and customer before opening your doors to the public, so undertake market research. For example, running a large hotel will be completely different to operating a bed and breakfast, because they will have a different business structure, licenses and facilities.
The target audience will determine your advertising, brand and business operations. It is therefore important to learn the type of customer you are targeting, such as families, business travelers, young couples or large groups.
The brand, advertising and employees should live and breathe the business values, which will determine every action the company makes. It is the business owner’s responsibility to ensure the same message is conveyed across all corners of the company, and that staff maintain the company values each day.
A Financial Plan
A company is as strong as its financial plan. If you fail to understand the difference between turnover and profit, lose track of the company outgoings or struggle to maintain a balance sheet, your doors could close as quick as they opened. So, know your numbers. You should have a good grasp of financing options.
A Strategic Business Plan
A strategic business plan will help set long-term goals for the company, whilst helping you identify if this is a viable financial option before you invest in a new business.
The Hotel Development
Real estate professionals, such as Sajan Hansji, understand the importance of identifying the best location for a hotel development. The area you choose will determine how successful a company will be. If the location isn’t popular with tourists, the hotel will not become a popular option for travelers.
Care for Your Staff
Never underestimate the importance of hard working employees. While they are the biggest company expense, they can also be the greatest asset for your business. So, care for them and they will care for your company.
An Exit Strategy
You might not have started the hospitality company yet, but that doesn’t mean you shouldn’t create an exit strategy. While you will be excited to hit the ground running, a day might come when you decide to move on to other projects. So know how you will say goodbye to the company when you decide the time is right to leave.