Running a guest house cannot only be extremely profitable, but it is also a life-long dream for many people. And, with more of us holidaying in the UK, there’s never been a better time to start a guest house business.
Although exciting, establishing any business can be incredibly daunting. So, before you start your guest house business, it’s important that you familiarise yourself with the process.
Is running a guest house for you?
First and foremost, you should ask yourself whether or not this is the right decision for you. After all, running a guest house is a huge commitment and it’s important that you understand what to expect from the role. You should spend some time researching the market to determine whether or not there is a gap, or demand, for what you plan to offer.
Find a property
To run a guest house, you’ll of course need to have the house itself. Think about where you want to set up your guest house business – location is everything and it’s important you set up your business in a place that people want to visit.
Many people choose to buy an existing guesthouse as it will be all set up and ready to go, rather than having to convert a property.
Research the market
It’s important to consider the market to ensure there is a demand for your offering. Is there a demand for a guesthouse in the area? Who is likely to stay at your guesthouse? What services and amenities will they be looking for?
Develop a business plan
The next step to starting a guest house is to develop a business plan. A business plan is vital when it comes to starting a guest house, as it will outline the measures you will need to take to make your business a success. It’s also important if you are making a credit application to obtain funding for your guest house. If you’re applying for a commercial mortgage, for example, your lender will also ask to see a business plan.
Having a sound business plan will help to keep you on track when it comes to achieving your business goals and, of course, it will also give you a clear indication into operating costs.
Generating interest in your guesthouse
If you’re starting a guest house from scratch, you will need to start by drumming up as much interest as possible in your new business venture.
You can do this by…
- Investing in a website showcasing your guest house – integrating a booking system within your website is also a great idea.
- Create a customer database from the offset.
- Hire a marketing team to design a powerful logo and any other marketing materials you might need.
- Advertise using all available platforms.
Ensure you meet regulations
If you are starting a guest house in the UK, you will need to comply with all fire safety laws and legalities. If you are altering a property or building a guest house from scratch, you will also need to obtain planning permission.
Why choose Stewart Hindley for your guest house finance?
If you’re considering buying a commercial property such as guest house, it’s important to speak to someone experienced in the sector to ensure that you are aware of all the funding options available to you. Get in touch to speak to one of our skilled and experienced team. We are always on hand to answer any of your queries regarding guest house commercial mortgages.