A hotel business plan starts with a set of protocols and measures that need to be followed when launching, consolidating the business, attracting customers, and, ultimately, so we know how to face any kind of problem that may arise in the future. We can, in addition to coming up with a business plan, use software from websites such as https://tradebeyond.com/a-beginners-guide-to-long-range-planning/ to help with long-term planning to achieve business success.
A hotel business plan can be useful for:
- Knowing what to do if we experience feasibility problems.
- Identifying all kinds of factors that can make our hotel profitable.
- Gaining new investors with the aim of having the necessary funds when expanding the business.
- Helping us know what kind of hotel we want to create, how to make ourselves stand out as competitors, and how to identify ourselves.
- Being able to develop a marketing strategy (i.e. knowing how we are going to promote it).
The first step consists of studying all aspects associated with the hotel; whether there is enough demand to set it up, what kind of hotel it could be marketed as, what position other competitors are in and whether or not we can do anything to leave them behind.
A very important point during preliminary analysis is market segmentation.
The aim is to divide the target audience in to segments (i.e., gender, age, preference, etc.). This involves obtaining enough information to know what segment we are targeting. This means that if we are going to design a specific advertising campaign, for example, we will minimise costs and achieve better results.
What are we are going to offer?
When we are clear on the previous point, it is crucial to know what we are going to offer, and how we are going to offer it. Remember that with a hotel, we are not just rendering a service, but also marketing various products.
It will be at this stage when we ask ourselves what we can offer our customer, whether it is attractive, what kind of approach we will use and above all, how much it will cost.
It is important to be realistic: we are not looking to create a business that we like, or one that would tempt us to use its services or buy its products, but one that our target audience may like, which, ultimately, is what will sell.
Forming the plan
Once we are clear on all of the previous stages, we will then be able to form the hotel design plan. This isn’t the easiest stage because there’s a lot to consider! So much so, you may even want to consider reading this article for a few helpful tips for start-ups.
However, thanks to the information that we have been compiling in the previous stages, we will be much clearer on the goals that we are going to meet, and how we are going to achieve them.
We will generally set both long- and short-term goals. They must be realistic, with an actual possibility of achieving them.
Whilst it’s important to keep these goals fresh in our mind at all times, we also need to set aside some financial aspirations for ourselves, as well as asking the question of whether we can achieve them. By incorporating the use of scenario planning, from somewhere like Synario (https://www.synario.com/solutions/scenario-planning) into our business plan, we will be able to effectively predict how we will fair when it comes to the future of our finances. With the help of scenario planning, we’d be able to take preventative measures in order to provide some security to our business and its finances; measures like having our most essential employees insured with a key man disability insurance, in case they were to get in an accident and suffer from serious injuries. When we’re building a business, such aspects can be very important to cover.
If we create an unrealistic hotel business plan, then we will be starting out with a dream that will only end up costing us money.
Implementing a hotel design plan
The last stage of the hotel plan is carrying it out, logically. And how can we do this? Well, as a starting point, by using the protocols that we outlined in the first stage.
It is important to bear in mind that, although this plan should be the hotel’s foundations, it may be subject to change depending on how well it works. If it doesn’t help us to achieve the established results, we should already think about making changes.
If we are not sure about how to create a hotel design plan, there are specialist companies that can lend us a hand with this, especially when designing a hotel. At IHCS, we think it is very important to choose a suitable partner, which is why we fully rely on CMA Resort Designers, a consulting firm that specialises in developing holiday destinations and projects related to the hotel sphere.
Once the implementation stage is complete, your hotel will be fit to start out as the big business that you planned it to be.