The hospitality industry is one of the most exhilarating and adrenaline-filled, but one of the most competitive fields to pursue. Entering the cut-throat industry takes guts and determination, so the fact you are willing to launch a business in such a tough market means you already have what it takes to survive….. Or do you? No one is ever fully prepared for what it entails to succeed in this field, most learn the do’s and don’ts while in the business.
Not to worry, for every problem, there’s a solution. Having studied what could POSSIBLY go wrong in your new venture, I will equip you with all the tools you need to survive;
- Get the exposure
You might think this is a waste of time, but I guarantee that without the necessary experience, you might dive into debt expecting a bed of roses. Learn by working at a hotel, restaurant or bar, get to understand the challenges/risks, also know the perks but gain knowledge on what it takes to survive. Run with these ideas and improve them to make your business stand out.
- Research exhaustively
What kind of establishment are you interested in? Who will it attract the most? Location is key! A strategic business plan will help set long-term goals for the company. Know your numbers; If you fail to understand the difference between turnover and profit, lose track of the company outgoings or struggle to maintain a balance sheet, your doors could close as quick as they opened. Funding for your business may come from various sources; savings, bank loans or even private investors or venture capitalists.
Various licenses may also be required, such as liquor licenses and those permitting the playing of music. All of these matters will need to be in place prior to opening and the time these will take should be factored into any launch timetable.
- Technology/ role of social media
A well laid out social media strategy can be used to raise awareness for a launch, offer targeted discounts and to grow a database of loyal customers who can be targeted in the future. Growing brand awareness and identity is now technology and media led.
There are several factors to consider when creating a brand for a new venture. Ensure you do not breach the rights of third parties when designing any slogans, logos or brand names. You should also register any branding you create to prevent the infringement of your rights by third parties and potential damage to your brand.
- Staff and contracts
It is not uncommon for staff in the hospitality sector to be employed on a short term basis, so it is possible to obtain well trained staff relatively quickly. You will need to gauge your requirements for such staff, together with longer term staff to fill management roles, and put in place contracts of employment.
Conditions and contracts should be put in place to govern relationships with suppliers and customers. Having agreements set out in writing will mean that any problems should be easier to resolve further down the line.
- Future goals
It is important to set forth goals for your business progression. This will enable you to take advantage of the gaps in the market, investment opportunities, new trends and technology. It will also enable you to combat risks to your business.