Is it just me or what. This past week I received three requests to meet starting entrepreneurs on ‘how did I set up my business’.
I see it all around me; people are missing something in their current job and either want to start for themselves or have already made that step. Little pop-ups start appearing everywhere. I will confess; same here. 5 years ago my itch started.
Starting a business asks for dedication, stubbornness, flexibility, drive and the ability to listen.
It’s finding answers to all possible objections.
So for all of you questioning how I did it. Here are some answers to questions I get.
Where did you start?
To be honest, I have no idea. I guess I started writing down all the things that make me happy, everything you can wake me up for in the middle of the night. Of course that’s not a clear business plan all at once. It takes time, think, think, rethink. I made a moodboard, stuck it on the wall and looked at it daily. Once I put 2 and 2 together and knew I wanted to start a hostel, I started writing a business plan. I wanted to make sure I had thought of everything (yeah right is what I think now).
Ok step one is made. I want to start my own business. I want to open a hostel. I started putting things on paper. Some say a plan is overrated. I get that, a 40 page plan will only be read by nobody else but you. Just do it, get your thoughts structured.
Ready for step two: Get educated! Start picking brains online and offline. So much information is available online. But apart from that start talking to people. Every time you tell your idea; it is a pitch. Not always so much a pitch to the other person but for yourself. When you hear yourself talk; you know what’s right and not. Also the questions people ask you will get you thinking.
From there take one step at a time. The journey is half the fun. All you need to do is make a huge amount of choices. Choices about pricing, marketing, renovation, kitchen, matrasses, cash register, OTA’s, security systems, heating system, administration, HR, help exchange or not, cleaning etc. Soon you will be an expert on all these topics.
Obstacles
In a bar one evening I ran into an old classmate. He told me the following. ‘Well I started with a business plan with someone else. But our initial investor pulled back, so, you know…. What can I do….I am back to my day job’.
I have overcome 200 obstacles (guestimate). To name a few:
- The owner of my ‘first’ building decided, after I obtained the required permits, that having a first time business owner in his building was too big of a risk. I had quit my job when the permits were in place.
- Running out of money.
- Bank withdrawing two weeks before show time
- Permits not coming in on time (resulting in 9 months delay)
- Builders finishing way too early (oeps, had everyone lined up, no delays happen and is easier to deal with then needing things earlier)Things are not going to happen by itself. Just keep going and enjoy the ride.
How do you pay for it?
Well, what do you think? How do you plan to pay for it all. Your couple thousand euro savings won’t get you far. Think a bank is going to give you a loan? Forget about it. Go the trending way? Crowdfunding. Well give it a shot (looking for someone to help make you crowdfunding a success? Let me know! I can get you connected). Family and friends? Think about the consequences it can have when things go bad. Can you handle that?
So how I did it? I worked 3 jobs for a couple years, put every penny aside and paid about 2/3 of the investment out of my own pocket. The last part I had a bank saying yes for 2 years and 2 weeks before I needed the money say; Oh, well, eh, you need to rewrite your business plan because we need it in a different template (2 weeks before opening, like I have the time and what is the point, please), and, eh, we just decided we aren’t doing loans in the hospitality industry at the moment. But if you rewrite it we might look at it. Obviously that resulted in a small stress moment. But won’t get anywhere if you can’t deal with situations like that. I found a way. Within a week I found a private investor offering a normal rate to loan me the rest.
I did not take the fast route. If you are able to find an investor that is ok that you have a minimum amount of personal resources and is willing to loan you the rest. Go for it, it saves a lot of time. Do think about all the worst case scenario’s. And if you can live with that.
What’s your occupancy rate? How did you make sure you get guests coming in? How many people do you have working?
Answers to all these types of practical questions are available online. Find a forum on the related topic and take whatever information you need.
Do get all stakeholders involved from an early stage like the city council, the neighborhood and your creditors. You can do it. And if you really want to you will find a way!
Want to know more? You can always hire me. Want to see the result of my hard work? Come take a look in Haarlem!
#helloimlocal #business #hostel #hotel #Haarlem #Holland #Netherlands #thingstothinkabout #gettingstarted #goforit #travel #traveltalk
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