If you are thinking about starting a business, a hospitality business is a great choice. Consider these factors for success if you choose to go down this road.
Hospitaility is one of the fastest-growing fields on the planet. It is also a major industry as it ranks as the biggest employer around the world (after the government), providing a variety of jobs in various fields within the travel, leisure, resorts, dining and even cruising sectors.
Let’s look at the crucial success factors for starting a hospitality business:
1. Location, Location, Location
Location has traditionally been one of the most vital success variables. A hospitality business in the right place can flourish. However, where there is a lot of competition, and there is no point of differentiation, success will be harder to attain.
2. Your Marketing Strategy is Key
As we said above, you need a point of differentiation. You want long-term success and that is why a good marketing planning is so important. Focus on reaching your target market. Use PR, off-line advertising, internet advertising, competitions along with other sales initiatives to get your brand name out there and start attracting customers.
3. Sufficient Start-Up Capital
Starting a business in hospitality can be capital intensive. It does not matter whether your start a new venture or refurbish an existing one, it will require a substantial amount of capital. So planning to get investors or commercial funding is important.
4. A Simple, Clear, and Practical Business Plan
A business plan not only helps you run the business, it is also necessary when you need to attract investors or find commercial backers.
5. Exceptional Service is another Key
The Ritz Carlton is often held as an example of a fine hotel. The reason is their exceptional service. Make sure your team members are educated, polite, and flexible fixing issues that emerge. Exceptional service is remembered and keeps your customers coming back.
6. Pricing and Positioning
Your pricing needs to reflect your positioning. By positioning, I mean what the customer thinks about you. Are you going to be the cheapest? The most expensive? Good value for money? Friendly and accessible?
Once you have established your positioning, set your prices to match.
Clients can have various expectations of your business, so your personnel should be provided with the ability and autonomy to make decisions that enhance the customer’s experience.
This should flow from top management to the lowliest position.
8. Look after your staff well
We have talked about positioning, customer expectations and staff flexibility. It is important to look after your staff well so they enjoy working for you and can endure those tough moments because they know they are appreciated. This in turn will reflect in their treatment of customers.
So consider these ideas as you commence a business in the hospitality industry.