Opening a lucrative hotel business takes careful planning and research.
Opening a hotel business can be very profitable; however, the competition in this industry is usually very fierce. Not only should you have a large amount of capital to start this kind of business, but you should also expect a considerable amount of time to pass before pulling in crowds of customers to your hotel.
Instructions
1. Write a hotel business plan. Your business plan should specify the fundamentals of how you are going to start and run your business. It should include the business goal, mission statement, budget, hotel location, hotel information, employee information and marketing strategy.
2. Seek out financial aid. If you are building a hotel from scratch, buying an existing hotel or renovating a building into a hotel, you might need to invest anywhere between tens of thousands of dollars to millions of dollars depending on your location, the size of your hotel and how much renovation is needed. Make sure you have a credible business plan so you can attract wealthy people who might want to invest in your business, such as angel investors or venture capitalists. You may also be able to obtain financial aid by showing your bank your business plan or applying for one of the financial programs from the U.S. Small Business Administration (see Resources).
3. Apply for an employee identification number. Every business that has employees will need an employee identification number for dealing with tax returns. To apply for one, visit the IRS website (see Resources) and search for the term EIN. This will lead you to a web page that contains information on apply for an employee identification number, or you can apply online.
4. Obtain a business license. Facilities like hotels often require a review by a city planning commission before a license is granted to the owner. This offers the local community a chance to express any concerns or ask any questions about the project, such as parking provisions or impact on the environment. For more information on apply for a business license, visit the Business.gov website (see Resources) and search for "business license." Click on the search result that says Business Licenses and Permits. Enter the state or zip code you are in and choose the business type. Since "hotel" is not listed, click on "General Licensing" and follow the links to your state and local licensing agencies to find the licensing requirements for your type of business.
5. Select a location. Choosing the right location is one the most important factors in determining whether your hotel business will succeed or fail. If you choose to open your hotel in a beautiful neighborhood that already has one or more successful existing hotels, it's going to be very difficult for your potential hotel to succeed because you might not have the capital or credibility to compete with established hotels. But if you open your hotel in the right location with little competition and have something about your hotel that's unique and good quality, then there's a good chance that your business can thrive and pull in visitors to the area.
6. Determine how your hotel will stand out. Come up with strategies to make your hotel unique in different categories such as themes, amenities, atmosphere and services that you will offer. Research the hotels that are already doing well, figure out what qualities they have to make them stand out and figure out how you can copy them or improve on their practices. A good place to start is by reading reviews for hotels that have high ratings on websites or in magazines.
7. Advertise your hotel business. Hire public relations and advertising representatives to help you promote your business. Inform them about how your hotel stands out from its competitors and what makes it the best choice in the market. Continue to repeat the same message of what your hotel represents in various media, especially online. Have surveys ready for your customers about their opinion of your hotel and what could be done to improve the service. Use your customers' feedback as a way to constantly improve the quality of your hotel and in time, people will help you market your hotel by telling others about it.
Tags: your hotel, business plan, hotel business, business license, employee identification, employee identification number, identification number