3 Ways Your Hospitality Business Can Make a Strong Start
3 Ways Your Hospitality Business Can Make a Strong Start
Opening a business in the hospitality industry takes a lot of planning. According to Epos Now, 60% of businesses fail within the first year. To help keep your fledgling business out of that demographic, you need to take a few vital steps before you open your doors.
Consider Business Essentials
Your business structure affects your ability to raise money, how much you pay in taxes, your personal liability, and the type of paperwork you file. Often, a limited liability company (LLC) is the best choice for those in the hospitality industry. Choosing an LLC allows you to take advantage of tax benefits and protections. For example, your personal assets are protected through an LLC, meaning you're not in danger of losing your home, vehicle and other assets in the event of bankruptcy or a lawsuit.
Automate the processes of running your business by investing in some key software. For example, ERP (enterprise resource planning) software like QuickBooks Enterprise allows you to consolidate essential business functions like marketing, accounting, tracking employee time, and managing inventory.
Find a Mentor
A mentor in your industry can help you get your business off the ground, share best practices and grow your network. Finding someone with experience can be a lifesaver when you're struggling. A mentor can also help you celebrate the wins and better understand the losses.
Think of some business owners you know of and determine if one of them could fit the role of mentor. Is there someone who has achieved a goal you want to reach? Are they where you want to be in 10 years?
In addition to finding a mentor, if you need to expand your network, consider joining the local chamber of commerce. You can meet other professionals in your area — some may be potential mentors, while others may introduce you to one. Aside from finding a mentor, your chamber of commerce membership can lead to mutually beneficial relationships.
Once you find one or two people you'd like to work with, share your goals with them, and tell them why you think they are the right fit for a mentoring relationship. Once you settle on a specific mentor, establish a framework for your relationship. Let them know how often you'd like to meet, your expectations, and what you're willing to give them in return. Set an end date (four to six months is a reasonable time frame) and provide them with the opportunity to decline if they need.
Keep Current on Industry Regulations and Training
If you are preparing to open a business in the hospitality industry, you probably know that there are very specific laws and regulations that govern food services, hotels and venues. It's imperative to stay current with these to avoid noncompliance. By doing so, you will ensure:
● Customer safety
● Reputation management
● Thorough record-keeping
● Fair marketing practices
To ensure you and your staff are up-to-date on current trends, take advantage of training opportunities. New hires, for example, need an orientation process to help them understand company culture, learn the technology you use and shadow experienced employees.
There are also industry-specific hospitality certifications you and your staff can earn, such as:
● Certified Professional in Catering and Events
● Certified Association Executive
● Certified Rooms Division Executive
● Certified Hotel Administrator
Many programs require ongoing training and recertification, ensuring your skills and knowledge stay current.
There’s no question that it's worth the research, preparation and planning that go into your hospitality business before you open. Laying the groundwork now and keeping an eye toward the future can set the stage for success.
Customized research reports from Mr. Accuracy Reports can uncover new areas of growth for your business. Call 804-500-1224 / +44 7418413666 ( email- sales@mraccuracyreports.com) to learn more about how we can help grow your profits!
