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How To Start An Accommodation Business
Finding comfortable and suitable accommodation especially as a tourist or being new in a state , town, country, can be very difficult sometimes even with the numerous sites that are created to help tackle the accommodation issue.
You would realize that some of the features advertised on these sites may not be available when you end up seeing them. So probably you have decided to start up your own accommodation business and wondering how to go about it, I will be giving a little insight on how to go about this business, the cost implications, the various branches of the business you could venture into.
Before I go any further, I must mention that this business is standard oriented and lays so much importance to finance to the extent that even when a financial institution is contacted for financial help, they expect that you have your own cash and assets that can be used as security.
So, it is expected that you have 50% of the income you require because this business has major requirements that every accommodation should meet especially when it is to serve commercial purpose.
These factors are of great importance and some of them include:
• The location of the business
• Your target market
• Your budget and your financial capability
Now the requirements for an accommodation venture especially the requirements highly related to cost include;
1. Your location: Although, I mentioned this earlier as a factor that is important, but your location cannot be over emphasized.
Your location should be put into intensive consideration, reason being that a location of a business determines its success. The target market is also a determinant for choosing a location.
If your target is to provide accommodation for tourist you might want to consider places like Kenya, or Dubai because they are good tourist sites.
2. The lack of maintenance culture is what kills a lot of things it is not building an infrastructure that is a problem, but taking care of this things is what matters, repairing damaged pipes immediately they are damaged will help save the cost of replacing them.
Its simple continuous upgrade of facilities improves the services rendered would guarantee more customers automatic success.
3. Marketing is a business strategy that helps grow you customer line. Social media is an excellent tool for such and website is a requirement. It helps people have access to information about your enterprise.
This comes in very handy because you give people entrance into your business, giving them information about what you offer and how you can be contacted hereby giving your business a boost.
The accommodation business has different arms, meaning that the business has different branches that you can venture into.
Running an accommodation business could be running a hotel, a lodge’ building up accommodation for commercial purpose ( for the purpose of rent) , lodging services, hostels, inns, restaurants with room, private house, bread ad breakfast, self-catering. etc. All of these require all that was mentioned above to succeed.
Hotel accommodation is one business that thrives when attention is paid to details and the guidelines given are followed religiously. While starting this business it is advisable to start small but should have the standard of a 5 star hotel or accommodation.
Your accommodation rate varies due to the neighborhood. If for example your location is a student residential area, you should consider the budget of your customer and put first affordability of your accommodation. Standard should be a priority.
Customers always consider the facilities and amenities that you offer them some of which include room services, internet access, mini bar, bathtub, room services etc.
There are something’s to consider before you venture into this business.
• You need to create a business plan this helps you have a focus on achieving your goal. Your business plan helps you know how much your capital would be, what you need and have overlooked etc.
• Your employees need to know and understand your codes and conducts and also know that your customers have a standard that they expect to be met. This would ensure the smooth running of your business with little or no hitches.
• It is important to note that you need to obtain planning permit, health sanitation permits, federal and state licenses, business registration and insurance for your business and stuff.
• Sustainability of funds as you run your business is important. Any business capital is required but the ability for your capital to yield profit is what makes a business successful.
Accommodation is always on high demand, it is one business that would bring in good profit especially when attention is given to details and a lot of hard work and dedication is but into it, then it will succeed.