June 21, 2018
Top business tips for hospitality start-ups
If you are planning on getting involved in the hospitality sector, then it is an exciting time. Start-ups are the very backbone of the US economy and power the whole country along with them. Whether you are going to be opening a hotel, a bar, a café or a restaurant, you will be in a very vibrant yet crowded sector. With this in mind, it is definitely worthwhile having a solid business plan in place before you begin trading.
Why a business plan is so key
When it comes to setting up a new business in any sector, a solid business plan is vital. It not only allows you to see if your idea will actually work in real terms but also identifies any areas that need attention without risking any money. If you require any funding or investment, then it will also be needed to help access that.
Hospitality is also a very specific sector that requires special attention to detail and careful business planning. With high overheads and spend on supplies, you must be sure of your business idea being sound before risking any money.
Business tips for new hospitality start-ups
Once you have your business plan in place, it is worth picking up as much general business knowledge as you can to help you in the early stages. Here are some great pieces of advice.
Operate in a niche that you know
This is a classic bit of business advice that is as relevant now as ever. Don’t make the mistake of thinking that you can move into a niche within hospitality that you know nothing about and succeed. Many have made this mistake and failed! Stick to what you know and what you have experience in, whether that is running a café or managing a hotel. There are so many things that you just do not know about when you haven’t worked in a certain area before – these are the nasty surprises that can really hit your chances of success.
Probably more so than any other industry, start-ups within hospitality need to have an effective marketing plan in place. This will allow you to get your brand out there and stand apart from the many other bars or restaurants in your local area. Be sure to find something unique about what you do and make that a key selling point when marketing your business.
Effective marketing does not have to be costly. Chalkboards are a great way for any hospitality-related business to let the public know where they are and what they have to offer. Remember that you will need more than just the chalkboard though – a chalkboard eraser is also an essential so that you can re-do your signage when needed.
Hit social media hard
Social media is very important within the hospitality sector, especially when you are just starting out. It not only gives you a direct way to engage with the public and let them know that you exist but also enables you to gather feedback to improve. Make sure that you are active on all the major social media channels and that your posts are always memorable and informative. It needn’t all be text – video and images in posts are often more effective at connecting with people.
Hire the best staff
The chances are that you will have to hire staff to work in your business. As the face of your organization that the public come into contact with, they are a key element in your success. Service in the hospitality sector can make or break your business, so only hire the best staff you can, within your price range. Doing this will repay you back many times with the repeat and new custom that they help you to attract.
Use the best-quality ingredients and supplies
As with all businesses, keeping costs as low as possible is essential within hospitality. However, you need to make the distinction between doing things in the most cost-effective manner and not simply as cheaply as possible. Source the best-quality and best-value ingredients you can for your food and drink so that your customers get an amazing experience. If you are running a hotel, then make that things such as bed linen and towels are of a good quality, without being overly expensive to buy.
Start-ups in hospitality can succeed
Though it is a crowded sector, new start-ups within hospitality can succeed. If you get the basics right of offering top-quality service, excellent dining and well-furnished rooms if applicable, then you will be on the right path. Hopefully the above tips will give you that small head-start to business gold that you need.