How to Start a Hotel with No Money
Posted by : Premraj | Posted on : Monday, March 6, 2017
The hotel industry can be exceptionally rewarding, so it is no surprise you might want to create your first hotel. Not only is there a potential to create a profitable business, but you can build lifelong relationships, offer exceptional travel experiences and develop talent from the ground up.
Unfortunately, your bank balance might not reflect your passion or ideas for the hospitality sector. If that is the case, we are offering some top tips on how to start a hotel with no money.
Gain Hospitality Experience
If you haven’t done so already, you must gain experience in the hospitality industry. In fact, the more experience you gain, the better chance you will have at succeeding in the industry. So, try to learn about every aspect of the industry, from working on the reception desk to washing dishes in the kitchen.
No-one can deny that working at a hotel takes hard work, because you will be on your feet all day to provide guests with a high standard of service. Hospitality experience will therefore help you identify if you have what it takes to survive in the demanding industry.
Earn a Business Management Degree
If you don’t have the money in the bank to open a hotel, you might consider seeking investment from an experienced investor. You should therefore consider obtaining a business management degree, which will prove to an investor that you have the commitment, experience, credentials and passion to make a hotel a roaring success.
Find a Gap in the Market
An investor could go away and launch an average hotel themselves, if they wanted to, which is why you must offer something a little different, which means finding a gap in the market that will blow your competitors out of the water. You must identify the best location for the hotel, the types of guests you aim to attract, and where your hotel would fit between the hotels in the surrounding area.
Create a Successful Business Plan
Once you have gained experience, qualifications and identified a gap in the market that will fill an investor with confidence, it is time to create a successful business plan. Don’t overwhelm an investor with every little idea you have, and offer a simplified plan of the hotel concept, the financial investment you require, company projections and how you intend to provide an investor with a return on investment.
For example, do you intend to make a profit in your first year? Will you consult a hotel development professional like Sajan Hansji? Will you provide the investor with an exit strategy?
A business plan can make or break your pitch – so ensure you have every aspect covered, and be prepared to answer the many tough questions that will follow. Once the plan is ready, it is time seek investment, which can take both time and hard work. Start networking to build relationships within the industry, and don’t be afraid to directly reach out to investors to discuss a potential project.