The hotel business is a highly growing industry that is gaining importance in recent years. A hotel is a place for accommodation as well as dining that is convenient for visitors and guests. With the increase in passion for a world tour, destination weddings and to travel around the world, hotel business sounds like a great option. Although only 44% of the industrial establishments comprise of the hotels, it nearly accounts for 87.4% of industry revenue and 82.0%. But before seeding a hotel business, several characteristics and aspects need to be considered like:
- Weather conditions
- Type of services provided
- The venue of business
- Price and number of rooms
- Individual or a joint venture
Steps to consider
Starting or investing in any business requires not only passion but also involves a lot of dedication and patience.
- Business Planning: An entrepreneur ought to have a business plan before starting a hotel business. This will help map out the specifics and also bring the unknowns to light. Key aspects like cost of the startup, target market and names are a must to give a thought, before you think of starting a hotel business. For instance, even the most normal hotel in the US cost up to $4.5 million, on average. But this number also depends on factors like building material, location, luxury etc.
- Forming a legal entity: This is a golden rule in the bible of business. It is essential to register the business under a statutory authority like LLC, to prevent from being personally liable to all the damages in future. It can be an intimidating task. Hence it is wise to get it done by a registered agent.
- Register for taxes: No matter what property is built, irrespective of the country, it is essential to register for taxes as a responsible citizen and to prevent future complications.
- Bank account and credit cards: It is essential to separate personal and professional assets, hence opening a business bank account with a separate credit card will keep things in place.
- Business accounting: Starting up business accounting will aid in keeping track of the financial whereabouts. The process gets complicated as the business starts raising. To avoid future chaos, it is better to be prepared from the beginning.
- Permits and licenses: In many countries around the world, it is vital to get access to the permissions to construct a building. Obtaining permits and licenses prevent from being questioned by the government and avoid paying hefty fines.
- Business Insurance: During events of loss, if any, like fire, earthquake and other factors and incidents, insurance will cover most of the property’s charges. Hence it is a wise move to get business insurance done right at the beginning.
- Brand Definition: Once the legalities and formalities are done, it is essential to set a brand motto, whether it is comfortable to stay or feel-at-home services. The hotel logo and name should scream the purpose and motto.
- Online presence: Creating an online presence for the hotel is the best way to reach out to the world, by posting information and beautiful pictures of the hotel. It will attract customers from, all over the world