You have a brilliant plan! You want to start a business in the hospitality industry. Starting a hospitality business, be it a cafe, restaurant, food truck or bed and breakfast, requires extensive planning. Starting a new business is always a risk. So take the time to prepare well. The right location, a good concept, excellent service and the right business strategy are parts of a successful catering facility. Marketing needs to be addressed – plans to attract customers should be high on the priority list. If all this does not deter you, then we have listed 5 tips here if you want to do business in the hospitality industry.
1. Make a plan
Put your ideas on paper. Do research, make a business plan including who your target audience is, who your competitors are and what your financial needs are. If you do not know how to draw up a business plan, you can read how to draw up a business plan at the Chamber of Commerce.
2. Money matters
No business can start without money. And in the hospitality industry, that can add up. Think of a commercial building, insurance, any renovation, interior styling and of course kitchen equipment for the catering industry. Funding for a new business can come from a variety of sources, be it your savings, a bank loan, crowdfunding, or a private investor. When investments are made by a third party, it is essential that the terms of the relationship between the entrepreneur and the investor are established and that this is the key to the ongoing relationship between the parties. Also, don't forget that you need to open a business bank account and have payment solutions in place for your customers.
3. Location and layout
The location of your hospitality business can be a key factor in its success or failure. It is important that you research different locations to ensure that the demographic composition of the area complements the type of location you want to settle.
Questions to ask yourself are:
Can your potential customers get there easily?
Are there enough suppliers available?
Who are the potential competitors already established in the area?
How can existing businesses in the area complement yours?
In addition to the location, the layout is also important. After all, you want it to match what you want to radiate and the customers you want to attract.
4. Make your catering company stand out!
What does your company offer that your competitors don't? You have to ask yourself this. If you don't know an answer so quickly, this is the first thing you should work on. Making a unique difference is the key to a successful hospitality business. Some of the factors to consider include quality, service, menu, location, prices, variety, interior and social responsibility.
5. Service Service Service
You may have the best food around, but if you don't provide great service, the adventure could be over soon. Try to make sure that every customer is happy, regardless of whether they are wrong. This will encourage them to come back and spread positive word of mouth. As difficult as it is to satisfy some customers, it is something small that you have to do for a good result. Something you should never forget is that your customers pay your bills! And ensure continuity of good service.
Good service is only possible with a good team. Finding and retaining the right staff is critical to a successful hospitality business, and very difficult. So take good care of them and keep them motivated by, for example, rewarding them for good work ethics and for maintaining a positive work environment. Happy staff =happy customers.
