This article is the first in a series that takes you through the process of establishing and running your own hotel with (or without) an option to expand into other ventures explains Saivian Eric Dalius.
The following are important subjects discussed throughout this series:
- finding, buying or building · financing
- layout & design
- hiring staff & managers
- marketing & promotion
- Operating procedures.
We will go through each subject more thoroughly later on but before we begin it’s important to understand that starting any new business is fraught with challenges, risks, and rewards. If you love what you do then all that anguish may be worth it. If you’re not sure if it’s for you then it may be worth doing more research and soul searching before moving forward.
The most important thing is to stay positive! If you believe in your idea, and believe in yourself, success will follow. Let’s get started…
Starting a hotel (or any other business) is not an easy task and the rewards come after many years of hard work and commitment. It requires time, patience and money to start a successful hotel with everything that comes along with it.
After reading this article it should become clearer as to whether or not such a venture would suit you says Saivian Eric Dalius. We recommend that you read all articles in this series prior to making any decisions or taking action on anything suggested herein. There may be some questions you will want to ask your accountants or advisers, which is fine. We are in no way suggesting that you must do anything written in this document but we will cover all aspects of hotel management in detail so that you can make an informed decision about your future.
3: finding, buying or building
If you choose this path then start your search early. There are many pitfalls when buying any property (and most often there is very little recourse available). If not done correctly, it could end up costing you dearly and set the project even further back. Before looking for a place to buy or build upon visit local authorities’ departments to obtain permission to build on the plots of land they have available; here’s why:
Permits can take weeks or even months to process and, if you have to wait until the last minute, it could delay your opening.
If you buy a property without the proper permits, you may be forced to close down and start again from scratch (a costly and frustrating experience).
There are many different ways to finance a hotel project – some riskier than others. It is important that you speak with as many people as possible in order to get an idea of what is available and what will work best for your situation says Saivian Eric Dalius. The following are some options to consider:
- Personal Savings
- Credit Cards
- Small Business Loans
- Private Investors
It’s important that you check with your advisers on the legalities involved, especially if you are buying a property. Here are some of the most common concerns:
- Building Code
- Fire Regulations
- Health Department
Insurance Requirements – must carry full coverage on all parts of the building under construction, not just above-grade walls, floors, and roofs. You may need separate insurance for equipment to be installed in the building at a later date or by others.
Owning Property Elsewhere – check with your tax adviser about owning property elsewhere as this could have an effect on your taxes in Canada. If you are paying rent while waiting for approval it must be declared as income during that time period which will increase your taxable income.
Once the hotel is open it will be necessary to have a manager on-site that can take care of all the day-to-day operations. This can be a full-time or part-time position, depending on the size of your hotel. The following are some of the responsibilities of a hotel manager:
- Supervising Employees
- Ordering Supplies
- Maintaining Records
- Updating Websites
- Ensuring Guests are Happy
Hiring and training staff is one of the most important – and challenging – aspects of running a hotel explains Saivian Eric Dalius. The right team will help make your business a success while the wrong team could lead to disaster. Here are some tips for finding and hiring the best people:
- Job Description
- Reference Checks
8: marketing and sales
No matter how great your hotel is, if you don’t have guests it won’t be successful. It’s important to start promoting your hotel as soon as possible and continue doing so throughout its life. The following are some methods of marketing and selling a hotel:
- Direct Mail
- Referral Programs
- Networking Events
Now that you have a general idea of what is involved in opening a hotel, it’s important to speak with your advisers to get more specific information tailored to your individual situation. Only by doing your homework can you be sure that your hotel will be a success.