How To Start A Hotel Business
As we all know that it comes to a time in a mans life when he sees there is a need for him to have one or two businesses to boost his income or rather, standard of living.
There are lots of businesses you can venture into but we will be focusing on how to start a hotel business. Hotel business is a lucrative business which in no doubt involves a lot of capital to start with. At times, it might requires that one needs to get a loan from a bank in a capital project like this.
The funniest thing is that, one might invest huge capital and might still be at loss. But think of it, does it make sense to invest such amount and in the long run, not making reasonable questions which is why we need to put some factors into considerations.
You might have a good structure in terms of building and the human structure might be lacking. I've seen some beautiful hotels that are not making profits because they lack the following factors:
- Good Location
- Poor Management
- Marketing
Good Location
We all know that before we can start such business, we need to look into the location we want to site the hotel. This factor goes a long way in the successful running of your hotel business. Before you build an hotel in a particular location, you need to ask yourself the following WHY question?Why do I need to build my hotel in this area?
This is an imperative question you need to first ask yourself. You might have a good plan but it would be quite frustrating if your plan is built in a wrong location. I have seen people built hotels in urban areas while some are built in remote areas along high ways or in a city with sparse population. The most surprising part is that some hotels that are built in remote areas are making profits than some hotels that are built in cities. I will like to share my experience with you when I traveled to a remote town at Ondo state, Nigeria for a burial, the hotel we lodged was filled up with guests. What can you deduce from that? For me, I could sense that one of the reasons such hotel was built in such a place is because of people who are from that town who are coming home for one or two functions maybe for wedding, burial, housewarming and lots more can actually lodge with their friends. That is a good WHY question which the owner of the hotel or groups of people who own the hotel was able to solve.
So, can you see that there is possibilities such hotel situated in a remote city might be making money than those in the cities.
Environmental factors plays vital role in running an hotel business. One of the major factors that affect an hotel is electricity. If an hotel is situated in an area where there electricity is not efficient, the hotel would be faced with the issue of burning fuel or diesel to satisfy their guests. Now this is where the problem lies. If such hotel decided to depend on generator, they might run at loss if the number of guests they have are in short supply compared with the amount of fuel they burn daily. As time goes on such hotel begins to lose their customers gradually since their is no more constant electricity supply. Such situation is not the fault of the hotel but an environmental factor which is beyond their control.
Poor Management
Having a good management is a big contributing factor to a successful hotel business. Having a well-structured management makes your hotel services receptive to your potential customers.
Management plays vital roles in every organization aiming towards achieving their goals which is why you need to take it into deep considerations staffs who are going to make up the management body for your hotel. It is advisable to employ staffs who studied hotel management, hospitality, accounting and some other related fields to work in your hotel. Also, it would be an added advantage if your staffs have minimum of 2years working experience.
Marketing:
For any business to flourish, a reasonable amount of capital needs to go into marketing. So, there is going to be a need to have a marketer in your hotel whose work is to design strategies on how to create publicity for your hotel in terms of marketing which includes advertisements and branding. What is the essence of building a hotel people doesn't know exist?
I have seen people who are into hotel business and are making profits from this business. It takes a lot of efforts and commitment to be successful when it comes to business. People are now going into this business not just for the money but as asset.
When people come to lodge, you must put the following into consideration:
Restaurant:
As we all know the importance of food and the role it plays in our day to day activities which means your restaurant must be of class and standard furnished with all kinds of local and continental dishes to suite the taste of your customers. This will require recruiting a chef who is professional in this aspect.
Bar:
A bar is a relaxation center where your customers who lodge can come and relax and have a nice time. Bar also attract people who are not lodging but decide to come and have a drink. So, you have to take this aspect serious because profits can be made in this line if it's well structured and managed.
Swimming Pool:
I don't think in this present generation there is an hotel that doesn't have swimming pool. Having a pool is another aspect you need to look into. All you need is a lifeguard whose work is to see into the maintenance of the pool.
The good thing is that, bar and swimming pool are always close to each other. Some will decide to come to the bar, while drinking they are enjoying the views they are seeing from the pool. Some come to drink and swim at the same time.
However, doing a survey to know what your customers want will go a long way to improve your services. If you put all what I mentioned above and seek for further information's, will all makes your hotel business flourish.
Thanks for reading: How To Start A Hotel Business, Sorry, my English is bad:)