Whether you’re new to the hospitality industry or you’ve been working in this sector for quite some time now, it’s perfectly reasonable to toy with the idea of launching a hospitality business, especially once you consider the industry’s overall success. If you’re starting the business with limited capital, however, reaching that success might be a bit more difficult, but not impossible. Here are some simple tips for successfully launching a hospitality business regardless of finances:
Choose a great location
Before starting a business in the hospitality industry, it pays to remember that the location you select is one of the most important factors to success. Restrictive ordinances, current costs, accessibility to customers, and proximity to similar businesses are all crucial factors to consider but don’t overlook the short-term and long-term outlook for the chosen neighborhood either. Look at the historic business climate in the area and estimate what it will look like in the future. There’s a reason LA restaurants with prime coastal and downtown locations are doing so well, for example, and that’s a favorable business climate.
Offer competitive prices
While undermining your competition is never a good strategy for the long-term, it would be wise to guarantee your prices are competitive, to ensure your business impresses from the outset. A significant percentage of startups tend to enjoy low overhead costs and increased flexibility, and you can take advantage of this by splitting those cost savings with your consumers. As capital increases and your hospitality startup begins gaining some traction, you can raise your prices to cover expenses. Just make sure to provide new, interesting, value-added services that your customers will gladly pay for, to maintain competitiveness.
Build a brilliant team
In many European countries, having the right team on board is still considered to be a crucial factor in the hospitality industry, and for a good reason. Not only do skilled and knowledgeable people help to ensure operations run smoothly, but they can also shape the customers’ perception of your business, thus aiding in brand identity and reputation. If you’d like to reap these benefits, look for staff members with a successful track record and enough experience to support your day-to-day processes. Make sure all new hires are the right fit for your company culture and that they share your business’s main goals and values.
Find a unique concept
In a competitive environment such as Australia’s hospitality industry, on the other hand, businesses are mostly focused on creating unique concepts. They know that providing their customers with something new and fresh is key to success, which is why they often invest in beautiful bentwood chairs from Melbourne, for instance. They perfectly complement rustic or bistro-style interiors and are particularly popular among local customers. You can do something similar as well. Think of a distinct hospitality concept that provides your audience with an incredible experience they can’t find anywhere else, and success will practically be guaranteed.
Accept customer feedback
No matter how brilliant your concept might be or how competitive your prices are, you can’t attract new customers if others have had a negative experience and shared it online. While this can destroy any business, it’s especially true in hospitality. To prevent this from happening, focus on providing an excellent service to build your reputation. If your customers have any complaints, particularly those that tend to repeat, listen to them and aim to enhance your business. It might also be wise to share positive experiences and testimonials on your website for an added benefit.
Work on your marketing
Along with developing a simple and sleek website where you can share feedback and necessary information, it’s also vital to focus on online marketing, especially for new businesses. This is quite an affordable way to advertise, and it can easily spread the word about your hospitality business, reach a wide audience, interest and engage customers, and potentially increase your revenue as well. It’s generally advised to focus on social media by posting captivating content regularly, but pay-per-click ads and influencer marketing solutions can be of great help as well.
Attempt to go digital
There’s no denying that digital technologies have become a staple part of modern hospitality, and are necessary to adopt if you want to reach success. Apart from investing in your online marketing campaign, this also means making your business visible on Google, OpenTable, booking.com, and specific hospitality websites. Sophisticated technologies such as chatbots for your website, personalization for digital marketing campaigns, and staff management apps could help to save you some valuable time and money as well. Regardless of the solution, a strong digital presence is necessary when launching any hospitality business in this modern world.
Wrapping up
Launching a hospitality business with limited capital is never an easy task. But with enough determination, some advanced planning, and strategic decision-making along the way, you can easily accelerate your road to success.
Written by Mike Johnston