In business and entrepreneurship, it is not always enough to have just a large amount of money, you also need a competent approach in the course of their investment.
It is possible to unwind and achieve financial stability with the correct preparation of a business plan, taking into account all the «pitfalls» of the chosen business.
If you want to start something small and be part of a small to medium business, you might want to consider hostel business plan.
The essence of the business is to maintain a hotel-type room at affordable prices for visitors and tourists (read more about the hostel business idea in this article ).
The main advantage of opening a hostel is the stability of such an idea — there is and will be a demand for cheap economy class housing. Therefore, choosing a good place for the location of the hostel, you can successfully build your business.
Hostel business plan: counting costs
Before proceeding to take active steps to implement the idea of opening a hostel, you need to calculate all the costs of starting a business.
The main thing you need to invest in is the room in which the hostel will be located. When choosing a location, you need to take into account nearby objects in the form of:
- bars and restaurants;
- shopping centers;
- parks and squares;
- accessible transport network;
- Universities, technical schools, etc.;
- attractions.
1) For a hostel, you can get by with a room in the form of a 3-room apartment — buy or rent.
Renting such an apartment in a small town will cost $25,000.
2) Cosmetic repairs to refresh the interior will cost about 100-200 thousand dollars.
3) The next investment will be the purchase of furniture. We need the following items:
- bed — 8 pieces / 47,000 dollars;
- pillows — 16 pieces / $ 10,000;
- blankets — 16 pieces / $ 13,000;
- floor lamps — 16 pieces / $ 5,000;
- cabinets — 3 pieces / $ 36,000;
- mirrors — 4 pieces / $ 2,500;
- tables — 2 pieces / 2000 dollars;
- chairs — 16 pieces / $ 10,000;
- mattresses — 16 pieces / 5,000 dollars;
- reception desk — $5,000;
4) It is also necessary to include bedding sets, bath and hand towels, sets of dishes and cutlery. All of these purchases will cost another $100,000.
5) To maintain the hostel, you need to hire staff — an administrator and a cleaning lady, who should be paid a salary of 40,000 dollars.
6) You also need mandatory payments for consumables, Internet and advertising. In general — up to 10,000 dollars.
As a result, having calculated all the costs, you can count on $ 1,000,000 to open your hostel.
Hostel business plan: project risks
The main risk of this project is an unfortunate choice of premises and location, which can lead to a small flow of customers. How to look for clients for a hostel, read the marketing research article .
Also, you need to keep in mind that if the hostel is located in a residential building, then there may be claims from the neighbors with the noisy behavior of your guests.
Therefore, it is better to draw up a contract for renting a room in a hostel with each of them.
The main steps to implement a hostel business plan are:
- good and comfortable accommodation for the hostel;
- providing bedrooms with high-quality and comfortable pieces of furniture;
- selection of experienced and friendly staff;
- opening a laundry, retail outlet at the hostel, as an additional source of income;
- providing advertising on booklets, in magazines, on business cards, on the Internet.
I also recommend reading the following articles on the topic of the hostel on our website:
- you can read more about how to choose a room for a hostel here ;
- you can read about how to achieve growth in hostel sales in this article ;
- specific calculations for opening a hostel — see this article .
In order to get a clear and clear idea of the project that is just being born in you, as well as to present it beautifully to investors, you can always order a business plan or get advice: