So, like at the beginning of any other type of business, everything starts with a goal. One should answer oneself to the questions: «Why do we need to start all this?», «Is it necessary for people?».
It is important to note here that businessmen are divided into several types: there are people who simply want to invest and receive passive income, but there are those who want to do this actively and develop exclusively in this direction.
For the Russian tourist market, the hostel is a little-known phenomenon, but the situation is actively changing. In the cost-income ratio, the hostel niche seems to be an interesting business area. About how to open your hostel, we learned from the owner of the hostel network Rustam Ayupov.
Where to begin?
That is, we need to define our desires – we just want to earn huge money, or we like this sphere and we intend to improve it, introducing innovations into working conditions, and providing people with a new high-quality service. It is necessary to understand that huge money from one hostel can not be earned, but in order to develop further, it is necessary to scale. After the goals, the audit of the market of the city and the country immediately begins, in which it is planned to engage in a «hostel» business.
It is necessary to determine at what level the sphere is located, what competitors exist, their strengths and weaknesses, it is also necessary to take into account the tendencies of the international market and take into account the needs of different target segments. This will make the hostel more modern and competitive, and the business project successful. There were practically no competitors in this segment in the city.
The sphere is relatively new and one can not say that it is rich in experience. The niche is open, but it is necessary to «trample down the road to it». and the business project successful. There were practically no competitors in this segment in the city. The sphere is relatively new and one can not say that it is rich in experience. The niche is open, but it is necessary to «trample down the road to it». and the business project successful. There were practically no competitors in this segment in the city. The sphere is relatively new and one can not say that it is rich in experience. The niche is open, but it is necessary to «trample down the road to it».
One of my friends wanted to open a hostel in Barcelona. We are very much working on this project: looking for rent premises were estimates, spending huge amounts of time on understanding how it will look for a hostel, but forgot about the audit. Only after two months of hard work it was found out that in Barcelona hostels to open to foreigners is prohibited.
In order to win-win to put the required amount of money, we must first examine everything and to have the information. Once again: market audit, research of competitors, viewing of requests. With regard to the latter, on the Internet there are services that allow you to learn and understand the key questions is whether the moment suitable for the opening of hostels. In this regard, all the resources are useful, for example, you can create a real online ads that opened a new hostel and see how much will come of calls to a specified number. The audit gives the entrepreneur an opportunity to assess the appropriateness of actions, the reasonableness of financial and time costs.
It is very important to assess your own competence and capabilities, and also to be convinced of the real interest in the work in the service sector, since this area has significant differences from production. Here you need to contact your client and solve his problems, when he, roughly speaking, comes to you «home to visit.»
In Kazan there are about 46 hostels and every month new ones are opening, 30% of which are being closed. You can see the jump in the opening of hostels on the eve of major events, when the tourist flow is expected, but again many of the newly-named hostels can not stay afloat for a long time, as many do not realize in what area they work.
Investment size
On average, in order to open a hostel for 30 seats, it will take approximately 1 million rubles. But often this amount is not enough, if there is no experience in this area, because, not knowing many nuances, it is impossible to minimize costs. The most important link in the expense item is rent. Having established a dialogue with the landlord, you can reduce the rental rate. If this fails, then you can try to persuade to give a discount on the use of the premises in off-season.
The conditional calculation of monthly costs is as follows:
- Rent – 550 r / sq.m;
- Expenses of TNC (telephony, Internet, household expenses) – 5 000 r;
- Advertising – 10 000 r;
- Remuneration of labor (three administrators, one maid) – 60,000 rubles;
- Security – 5 000 r;
- Funds – 15% – 6%.
Rustam Ayupov, owner of the hostel «Cat on the Roof» and the network of hostels «Like» in Kazan
I opened the first hostel at my own expense. The second hostel I opened 9 months after the first, but generally without investing my own funds. Someone approached me, who was engaged in leasing about 30 premises in Kazan and offered me his services. Despite the fact that I did not have the necessary savings at that time, I agreed to rent a room in the city center, provided that this person will repair at his own expense while I look for the necessary funds. He agreed. At the end of the agreed period, I was unable to find the amount, and I turned to the landlord with an offer to invest in the purchase of furniture and equipment necessary for the hostel. He agreed again. In the end, I managed to cut down a few significant items of expenditure.
There are many ways to attract financing. In my opinion, it is better to choose those in which it is more likely to preserve independence. In the case of working with a partner, it is necessary to specify the nuances in advance.
It is desirable to organize the scheme so that the partner in the organization has a smaller percentage of influence and, accordingly, fewer rights. This rule avoids the negative situations that may arise in the process.
In general, I think that a partner is only needed at the first stages, if you do not have the necessary funding, experience or qualifications to open your business. If you share business with someone in equal parts, then in a critical situation, when an important decision is to be made, you can reach a deadlock, because this decision can not be made if there is not the most important from the legal point of view. It is necessary to understand that when you open your business, despite the type and direction of activity, you need to do everything yourself. In this sense, there is a rule: if you want to go fast – you need to go alone, if you want to go far – you need to go with the team. It is necessary to emphasize the word «team», it is the team, and not an equal partner.
Step-by-step instruction
In matters of promotion, it is necessary to understand that each type of activity has its own specificity. When choosing an advertising policy, one must proceed from the target audience. It is generally accepted that young people are the main consumer of hostel services, but recently there has been a tendency for demand to shift towards a more senior clientele. The market is very quickly reformed, and it is necessary to keep up with the changes. In hostels are populated people who have different travel goals, these nuances are important to consider. In general, marketing should be directed towards a more diverse audience, but the key bet in the advertising campaign still needs to be done on attracting students, young people and foreigners. As for the channels of promotion, of course, the Internet wins in many ways – this is both coverage and cheapness.
How to choose the personnel? Personally, I divide all posts into two groups: «fluid» and permanent. For example, the administrator is the most inconsistent post. Managers of my hostels always keep open vacancies, which are most relevant. This rule for hostels, I think is mandatory. Thus, I have a base through which I can replace bad employees, hire new ones and not keep places «empty». I spend a lot of time communicating with my employees, and during the reception of new ones I conduct a thorough resumption. I personally instructed my staff how to attract guests, how to meet them and how to place them so that they were satisfied. I did not have any problems with the service and training of my employees, but there were problems with the fact that I did not have enough places for settling so many people,
A place
The place and premise for this business are the foundation. Therefore, the choice of premises should be treated with extreme severity.
The main criteria, which it is desirable to give preferences in order to gain customer loyalty:
- Location. The proximity to the popular places and objects of tourists, to major shopping, entertainment and business centers, as well as to railway stations (transport accessibility) is a big plus.
- The amount of the lease. The profit depends on this.
- Parking available.
- Separate entrance. The emergency entrance is also important in terms of comfort and fire safety.
- The planning.
- Design, repair, visual design.
It is recommended to consider rooms with an area of 120 square meters. For reasons of freedom and convenience, it is desirable to be located in a separate building or on the first floor of an office building. Advantage of location in a residential building in the fact that sometimes this option is more economical, both in terms of rent and in connection with their initial validity.
Documentation
It is preferable to choose LLC and a simplified taxation system for revenue minus expenses, since this is the simplest way to save on strict accountability forms and work without cash registers. After the registration of a legal entity, you need to file documents about the average number of the firm, make a seal and open a settlement account. After opening it is necessary to submit documents for classification. Satisfaction of certain requirements allows obtaining a classification «without stars» and gives the right to have the status of an official means of accommodation. It is worth noting that at the moment classification is not a prerequisite, but its availability gives a serious competitive advantage.
Check-list of opening
- Purposefulness;
- Audit;
- Estimate and financial plan;
- Search for starting capital;
- Business registration;
- Choice of premises;
- Planning, repair;
- Purchase of furniture and equipment;
- Staff recruitment;
- Advertising;
- Work and adjustment of actions.
Is it profitable to open
The market is undergoing evolution. Many old «unscrupulous» hostels are closing, opening the way to new and progressive institutions. In general, hostel business does not apply to quick paybacks, but in general the direction is relevant and in demand. The opening season should be determined by the ability to regularly invest and improve the services provided, this is a key factor. The presence of a financial plan allows you to calculate the potential and risks at the very beginning.
If the hostel does not pay back in a year and a half, you need to change the strategy and cut costs. If the initial investment exceeds the amount of 2 million rubles, then in a year and a half it is almost impossible to pay off.
In general, the factor of seasonality affects the host business. If you «start» at a good time (tourist «high» season), then you can go to a certain level, which will keep you afloat. As a rule, in the Russian regions, October, November, February and March are the most undesirable months for the opening. Of course, it all depends on what kind of work is being done to ensure a steady flow of customers. If you establish cooperation with travel agencies and sports organizations, the influence of seasonal factors can be reduced to zero, and the risks are minimized. It is recommended that before the formation of the starting capital and the opening of the hostel, an amount of two to three months of rent be added to the budget as a safety net. In general, the risks when opening a hostel are quite low.
