Sample business plan for opening a hostel (mini-hotel) in a city with a population of 1 000 000 people.
How much money you need to start a business
The purpose of our company is to organize a budget mini-hotel (hostel) and provide accommodation services at the most affordable prices. According to the preliminary calculations of the business plan, the organization of the hostel will need to invest about 1 450 000 rubles:
- Repair and design of the premises – 400 000 rub.
- Arrangement of the hostel (purchase of equipment, furniture, etc.)-900 000 rubles.
- Advertising budget-50 000 rubles.
- Business registration and other organizational expenses – 100 000 rub.
Description of products and services offered
The price of services of our Organization should look as follows:
- 4-bed room-700 rub/night per person;
- Room with 8 beds-550 rub/night from one person;
- Room with 12 beds-450 rub/night from one person.
The average price tag will be 525 rubles per person. It is assumed that the average daily load of the hostel after a large advertising company will be at least 70%. That is, from 24 vacant beds daily will be occupied 17. Average daily revenue from the provision of beds will be 8925 rubles, and monthly-267 750 rubles.
In addition, our mini-hotel will provide additional services such as:
- washing of clothes;
- Sale of food, drinks and light snacks (mini snack bar);
- Free Wi-Fi;
- Watch TV, game consoles and board games (free).
Of course, these services should increase customer loyalty and make our institution more popular.
What room to choose for the hostel
To accommodate the hostel we plan to rent 5-to an apartment area of 170 sq. m. M. Monthly rent payments will make 45, 000. Rubles, plus utility services.
The apartment is in the center of the city, which is very convenient for hostel accommodation. Nearby there are the Metro, the main transport hubs and tourist flows, so, to get to the hotel will be very convenient. This factor should provide a good flow of customers.
Before purchasing the equipment will be repaired and a small re-planning of the room (bathroom and toilet). It is planned to spend at least 400 thousand on these goals. Rubles. This amount will be included in the credit for the lease payments.
According to the business plan, the hostel is planned to be divided into several rooms:
- Reception at the entrance to the hostel. Visitors will be registered here, luggage storage and safe deposit boxes will be located.
- Large spacious sitting room (living room). Here it will be possible to entertain visitors, watch TV, play console, table football, hockey. Free Wi-Fi is available throughout the hostel.
- Kitchen area. Here you will be able to prepare food and eat. Snacks and drinks can be purchased from the vending machine.
- Economic unit. In this room will be located washing machines and ironing boards.
- Three rooms to accommodate visitors. The total number of beds – 24 (for 12 persons, for 8 persons and for 4 persons).
- Two bathrooms and two toilets.
At the initial stage will be purchased all the necessary equipment: furniture (two-tiered beds, cabinets, lockers, safe boxes), kitchen equipment (incl. H. Refrigerators, microwave ovens, etc.), washing machines, entertainment equipment (plasma TV, consoles, board games), security system (fire alarm, video surveillance). For these purposes on preliminary calculations will be spent about 900 000 rubles.
A separate word should be said about the beds. The main thing that you provide to the client (that's why they go to you) is a dream. Good and peaceful sleep. Therefore, special attention will be paid to the purchase of quality beds and orthopedic mattresses. Purchase of one fully equipped storey bed will cost our organization in 25 thousand. Rub.
How to pick up personnel for work
The staff of our Organization will require: Administrators (2 people) and manager (manager). The duties of the administrators will include reception of guests, booking, maintenance of cleanliness and order indoors. The manager will be obliged to promote services, to follow economic component of development of hostel. Services of accountant and cleaning ladies will be taken to outsourcing (15 thou. Rub. Per month). Monthly wage fund, including social payments, will be 85 thousand. Rubles.
What tax system to choose to open a hostel
As an organizational-legal form will be registered individual entrepreneurship. The most convenient system of taxation of hostel is simplified system of Taxation (USN), 15% from profit of the organization. A bank account will be opened and a stamp is made.
Marketing plan for the hostel
Competition in the hotel business in our city, as well as in many other cities of the Russian Federation is quite serious. There are quite large hotel complexes and small hotels and mini-hotels. A certain share of the market is kept and apartment landlords. The latter are among the most budget accommodation options for tourists and business travellers. Working hostels (the cheapest option) in our city-units. It can be said that the niche in the segment of budget hotels is almost free.
Special attention will be paid to the ways of promotion of services. Our main clients are tourists, youth and students (they like to save) and business travelers. The main emphasis will be placed on advertising in international hotel booking systems: Hostelbookers, Booking.com and Hostelworld. According to the experience of the existing hostels from these services comes about 50-80% of guests. Also, a significant proportion of visitors can be obtained by handing out leaflets at the railway station and the airport.
We will count on acquiring a constant audience of clients who will be not only our regular visitors, but also will actively advise us to other people (the Sundress radio).
Hostel financial plan
Let's proceed to calculation of the basic indicators of economic efficiency of business.
Regular monthly expenses of the hostel:
- Rent apartment-45 000 rub.
- Salaries and contributions to extrabudgetary funds – 85 000 rubles.
- Utility payments – 15 000 rub.
- Outsourcing services (accounting and cleaning) – 15 000 rub.
- Consumables (incl. H. Kitchen and bath accessories, cleaning products) – 5 000 rub.
- Other expenses – 20 000 rub.
Total-185 000 rub.
The structure of the fixed costs is as follows:
Calculation of gross and net profit is presented in the table-Forecast of income and expenses of the hostel:
How much you can earn on this business
The net profit, according to the calculations of the business plan, will be 70 338 rubles per month. The profitability of the business is 38%. With such indicators, investments in the project pay off for 22 – 25 months (taking into account the period for the promotion of the hostel).
This is a complete, ready project that you will not find in the free access.
Business Plan content: 1. Konfindencialnost 2. Summary 3. Stages of project implementation 4. Object characteristic 5. Marketing Plan 6. Technical and economic data of the equipment 7. Financial plan 8. Risk Assessment 9. Financial and economic substantiation of investments 10. Conclusions
Turn-based plan for opening a hostel
- Market analysis, target audience.
- Conclusion of the contract for renting the premises.
- Bringing the premises to the standards and requirements of controlling bodies.
- Business registration, obtaining permissions.
- Purchase of equipment, furniture, inventory.
- Carrying out of advertising campaign, distribution of business cards.
- Search for service personnel.
- Arrangement of the hostel.
- Starting a business.
What to choose the equipment for the hostel
The first thing you need to buy for a hostel is furniture. As a rule, in such establishments install wooden wares: a wardrobe, a shelf for footwear, a bed, a bedside table, a desk, chairs, a sofa and a chair. Depending on the services provided, you will also need to buy a washing machine, iron, refrigerator, microwave, TV, safe.
It will be necessary and textile things: sets of bed linen, towels, room slippers.
To decorate the hostel, and accordingly to purchase equipment, furniture is recommended in one style. You can buy everything you need in specialized shops. To save money it is possible to conclude a contract on wholesale purchases.
What okved to specify at registration of activity
- 10 – Provision of places for temporary residence
- 20 – Places for short-term accommodation;
- 30 – Accommodation on the territory of the campsite;
- 9 – providing other places of short-term residence.
What documents are needed to open
- Registration of Pi or LLC in the Tax Inspectorate at the place of residence of the applicant;
- A document for real estate or lease of premises;
- Contract for the disposal of household waste.
Do I need permission to open a hostel?
To open a hostel it is necessary to get permission to meet the requirements of SES and fire inspection.
Business Launch Technology
At the opening of the hostel it is worth to understand that it is not just temporary "flophouse". It is very important to create a special entourage, to emphasize the local flavor. Well-designed hostel has its own style, created details of the interior. That is why at the opening of the institution it is recommended to give special attention to the creation of design in the rooms. It is also perfect to break the premises into zones: sleep, rest, eating. It is also not necessary to forget about the quality of customer service. Hostel is a place of budget stay indoors, but not poor.
The technology of starting a business is simple. Adhering to clearly stated goal and created business plan will not arise.