Starting your own hospitality business is a great achievement. On opening day and for many days thereafter, you will probably feel more excited than anxious if you know what to anticipate and the blunders to avoid.
1. Lack of Concept
Opening a restaurant, hotel, bar, lounge, etc. with the sole goal of providing “good food, drinks, and service” is simply insufficient in the highly competitive hospitality sector these days. Due to the saturation of the hospitality market, consumers are seeking out businesses that provide a distinctive experience that they can not get anywhere else. It is no longer acceptable to cater to everyone’s interests; instead, you must be clear about what you offer clients that your competitors do not, and they should be able to tell as soon as they walk into your business. It is your responsibility to develop a unique selling point that will attract customers and help your hospitality business succeed. The more unique selling points you have, the more likely you are to succeed. Find your niche, build credibility with your products or unique style, and make sure your workspace is set up for optimal productivity.
2. Overestimating your location
It is reasonable to assume that, given the financial commitment involved in starting a hospitality business, you have carried out your research and calculated the costs and profits according to your location. However, give careful consideration to every observable feature of the property, including its visibility, foot traffic, customer parking, surrounding noise, local clientele, and competition. If there are many similar businesses in the area, how well do they perform throughout the day and how will yours standout? Take into account your space constraints as well as upcoming neighborhood developments.It can be expensive, both financially and in terms of time, to overestimate revenue because you chose the incorrect location for your specific brand. Make sure your hospitality business is in a prominent and easily accessible area for your target market. Location can play a big role in attracting customers and increasing business visibility. A good location can attract the attention of a hungry prospective client and generate additional revenue in addition to what your advertising offers. Paying less should not be an excuse to choose the less popular but second-best location.
3. Neglecting your staff
Businesses in the hospitality industry rely heavily on their workforce. This means that you must have the right people doing the job. If you do not choose wisely who you hire, you might end up having to clean up after other people’s mess all the time. Employing people who are committed to their work and have the necessary skills is essential.Given the importance of customer service in hospitality, it is surprising how often the “wrong” people are placed in customer-facing positions. Many employees are simply not cut out for hospitality, as they must bring their “A” game to every shift, and your customers will notice. Many employers choose to hire inexperienced workers at lower pay rather than attracting highly skilled workers with higher compensation offers because they are more interested in hiring quantity than quality. In order to avoid making the mistake of selecting the incorrect staff, take a look at the following:
- Don’t cut corners when hiring. When you are recruiting, keep the above in mind and make sure you seek out qualified and passionate candidates. Look out for candidates with experience who are committed to staying with you rather than leaving for another job after a few weeks.
- Make sure the compensation you are offering fits the job requirements and is sufficiently attractive. Opting for cheaper labour with lack of experience could be detrimental in the long run. And never forget to acknowledge and thank your staff for their hard work in order to keep them on board and make them feel satisfied. To keep them motivated, think about occasionally offering incentives.
4. Not Creating a Business Plan
Any new venture must have a business plan in order to succeed. It helps the business owner set future objectives as well as strategies to achieve them. You can save money, time, and stress by using it to help you budget. Making a business plan requires time, which is why many people put it off, but if it helps you avoid making costly mistakes down the road, the time invested will be well worth it.
5. Not taking the right advice early enough
Seeking guidance is essential, but only from the appropriate people and not from anyone in particular especially if you are new to this. The hospitality industry is well-known in business for its high risk. Assuming you know everything increases the risk for no good reason. So, who do you ask. Examine various information sources and their motivations in order to solve that. If they have business experience, friends and family may be able to assist you a little bit. At least you will know that they support you. The issue arises from exaggerated experiences and opinions that are frequently valued more highly than true knowledge.Independent advice is best, even if you have to pay for it. Long-term financial savings could result from investing a small amount of money for right counsel. Consult professionals who specialize in hospitality. Ask someone, even if you do not ask us!
Conclusion
At Vertiline Synergy Limited, our Pre-SetUp Services helps you avoid the blunders mentioned above by working with you to develop your business concept, carry out location, feasibility, and financial analysis, create sales and marketing strategies and equip your business with the operational blueprint required for sustainable success.
Contact us to book a consultation.
