A lot of people think that it’s really simple to just open up a business and gain a profit. Unfortunately, it’s not as easy as one would think. Opening up a business requires a lot of planning and it also needs a ton of financing to get everything ready.
This is why those who wish to become business owners need to come up with a well-developed and efficient plan that will help them show their ideas for their business and what they need in order to fulfill them. So, this article is going to focus on how you will go about creating a business plan for your very own hotel.
Steps for Creating Your Hotel Business Plan
Let’s say that you’ve realized that owning a hotel is your ideal business and that you’ve thought of all the ideas that will ensure an amazing guest experience. The next step is coming up with a business plan that will sell your idea and that’s where a lot of people get stuck. Whether it’s because they don’t know how to acquire the financing or simply don’t have the time to make one, people will find it difficult to come up with a hotel business plan that best explains the type of hotel they want to release to the public. So, if you’re one of those people, then here are the following steps that will serve as a guide to helping your create your hotel business plan:
This is basically the whole idea of your business plan that’s summarized in a single page. This particular section is separated into two different parts:
- This should consist of a one-line description of the essence of your hotel and nothing more. This is basically where you get to explain why you are in the business or if there is a huge need that you are willing to fulfill that isn’t being met by anyone else. This is the part where you point out that your hotel is one that focuses on the people and kind of experience that you want them to have.
- Objective. This is the part where you talk about what it is you want your hotel to accomplish. Or you can talk about the personal goals that you want to have for your hotel such as trying to make sure that you reach an annual occupancy rate of 90%.
This is the part where you’re going to do your research and come up with a situation analysis that will help you understand the current situation of the hotel industry within your area. This means that you need to have a better understanding as to what your strengths and weaknesses are, as well as what threats and opportunities lie in the industry. If it’s not that, then you have to think about the current market trends and how they will have a direct impact on your hotel. This analysis is needed as potential investors will want to learn about this information for when they have to decide as to whether or not they should invest into your business.
This is basically an in-depth understanding of your ideal target audience. This should include information such as geographic, demographic, socio-economic, psychographic, behavioral segmentation details. Think about questions that will affect your business. What kind of people do you hope your hotel will attract? Do you have everything prepared that will help you meet the needs of your ideal customers? Do you think that they’ll want to buy anything that your hotel has to offer them? Getting the answers to these questions will help you make a hotel that will help you acquire the customers that you need as well as make sure that they keep coming back.
With just about every business, there’s always bound to be some form of competition. This is the part of the business plan where you will need to do your market research on your competition that will allow you to understand how they operate. You need to be able to understand what it is your hotel has to offer that differentiates you from the rest of the competition. Also, by learning how your rival hotels conduct their business, you will be able to learn both their strengths and their weaknesses. By learning their strengths, you can use it to your advantage by trying to copy what it is they do that makes them successful. Just make sure that what they do works out well for your hotel. By learning about their weaknesses, you can use that as an opportunity to attract their customers over to your hotel. For example, while one of your rival hotels may have a ton of good business, most complain that their customer service is lacking. You can use this information by stating that your hotel has employees that will cater to the needs of the guests and make it sound in a way that will attract people over to you. Just remember that you have to point out what makes your hotel stand out from the rest so that you’ll gain the competitive edge.
This is the section of your business plan where you have to think about the strategies that you should come up with to make your hotel a success. This section is divided into 3 different parts:
Marketing: This is the part where you think of how you are going to attract people to actually stay in your hotel. You also need to consider how you are going to position yourself in the market in a way that will get these your target audience. Assuming that you already know the methods in which you will advertise to these people, you need to consider the budget that will allow you to do so.
- Distribution: What kind of 3rd party channels are you going to use to introduce your business and how are you going to manage its distribution? Are you going to make use of a particular piece of technology to help you out? You need to consider how distribution will go if you want people to know about your business
- Revenue Management: What pricing and yield techniques will you use? If you are going to set up your payment and cancellation policies, then what content should it have? Consider these as things to think about to ensure that your hotel is able to gain money, while at the same time making sure that it’s fair for the people that decide to stay in your hotel.
You need to show these to your potential investors as they’ll be wondering what operations are going to be conducted in your hotel every single day. This should provide them with information that should tell them who your employees are and what roles each of them are assigned to. You also need to provide them with answers to certain questions. These would include:
- What are the job descriptions / responsibilities of your employees?
- What background and experience should they have?
- When should they start?
- What are your standards in terms of customer service?
- Which supplier are you going to use?
- Are you going to provide your employees with manuals?
Once you’re done with all of those questions, you’ll need to talk about all of the activities that will be done in the hotel. It’s best that you provide a schedule of how things are going to be handled as well as who’s going to be in charge that will ensure that the hotel runs at a smooth pace.
This is where you should include the profiles of the owner (you),your partners (if you have any), and those who are in charge of handling business operations. Focus on what uniquely qualifies you to make your hotel such a success.
Provide the start-up costs of the hotel (capital investment), the future business expenses, operational expenses, and how much revenue you think your hotel is going to gain within the next 5 years. If you’re trying to raise money for the capital to start up your business, then you will need to outline just how much you are going to need for funding. Explain how you will generate a return on investment for investor and explain how your lenders will be paid back.
As stated before, it’s never an easy thing to open up your own hotel. But if you’re able to follow all of the steps above, you should have a business plan that will make people interested in your hotel and one where you can get a ton of investors.
If you would like to learn more about how to create a business plan for your hotel or anything related to this particular topic, then all you have to do is go through any of our available articles, find the information that you can make use of, and utilize them in a way that will help you out.