Starting the hostel business
Starting an inn in our times is an interesting challenge because of its double function: accommodation and food. It is a business that competes with hotels in price, offering a quality that prioritizes food. These picturesque places are the traditional stops on the way somewhere, to refresh ourselves, rest and recharge our energies by feeding ourselves.
That’s why we’ve added this idea to our list of profitable ventures, where we tell you everything you need to know to get started, from start to finish. Stay until the end to start your own business.
Let’s get started!
How does an inn work as a business?
An inn combines the activity of a hotel with that of a restaurant, so that it offers stay and food to its clients, two vital needs when we leave home. So, why open an inn? Common hotels have prices that, sometimes, are unthinkable for many people who do not have enough money. As if this were not enough, they do not have food service included but, it is charged separately and it is usually. incredibly expensive.
That is precisely why starting an inn offers a double solution, which is extremely practical for the customer, while giving the possibility of eating in the same place you stay, adding practicality to the life of the traveler.
Who are your clients? They will be people who are passing through on a route and need to stop for the night and eat something. That is, as long as your hostel is on a route; otherwise, your audience will be people looking for cheap accommodation and food, that is, mainly tourists from different parts of the world who do not have an important capital to spend on their trip.
What are the requirements to open an inn?
You must prioritize all legal documentation, registration of the operation of the hostel, permits and licenses of operation with the corresponding entity to carry out your business are problems. Also, as obvious as it is, you will need to put together the schedule up to which guests can stay without paying another day, the price list, the schedules for breakfast, lunch, snack and dinner, the menu for each meal throughout the month, cleaning schedules and other details that will make your hostel run like clockwork.
Remember that a space like this will need to have several services, so, if you are practical in one or several of these tasks, you will be able to do them yourself, but you will need to cover the reception area, cleaning, kitchen, table service and check that all the guests are perfectly attended.
Steps to open an inn as a profitable business
The first step is to get a large building or house to serve as a place for your hostel. The establishment will need to have a kitchen in which the dishes will be prepared and a common space that will make the dining parts, in which the guests will converge at lunch time.
Make a previous investigation that will allow you to make a complete business plan in which you will include all the elements you will need, from the necessary furniture, the conditioning of the place, the cleaning, the personnel, the permits and the location, to the promotion and launching of your business, including what you will spend daily in the service. All this will help you to define more precisely an initial investment amount to open your hostel.
Tips for opening an inn as a profitable business
Keeping track of your hostel’s income and expenses is an activity you cannot skip, so if you don’t know how to do it, ideally you should hire an accountant to keep track of everything related to the movement of money. This leads me to another point and that is that at the time of hiring staff, you must take very good care of the people you hire, thoroughly review their résumé, references and experience.
Maintaining good communication with the staff working there is crucial to respond to their requirements, know their needs and generally improve the working environment for them, which will be evident in the quality of service and that will be the image of your business. Hold regular meetings, listen to their suggestions and needs, because they are the ones who directly perceive the operation of the hostel and can contribute a lot to its management.
However, for the promotion of your hostel, make sure you have a website through which you can access the virtual world and thus, make alliances with other businesses in the sector to exchange mentions, as well as being present on social networks to attract the attention of your target audience with promotions, seasonal discounts and other advertising strategies.
Weak points
when a business is launched into the market, you must bear in mind that in the initial stage, it will not have all the profitability of a business that has been in the market for a long time and has achieved recognition, so you must be patient so that, little by little, the investment capital returns and you start to see the first profits. Ideally, a business like this should be located within sight of areas that are heavily traveled by local visitors, as well as those who come as tourists, although of course, these areas tend to be more expensive.
Pros: Since this is a business that combines two essential elements when it comes to travelling, it is a field that increases its profitability considerably, which is why the chances of it becoming a profitable activity with proper management are so high. Do not lower your guard with advertising, because they are businesses like this, which must have a continuous promotion.
Success stories
This is one of the sectors with the highest performance, however, there are few entrepreneurs who with effort and dedication, have decided not to give up their business idea and overcome the obstacles to get where they are. This is the case of the hotel franchises that you will see below, where the innovation of their projects has allowed them to achieve what they have achieved.
Your business can be as successful as the ones we saw just now, so don’t wait any longer and start your own inn now.