Great that I've found this website, so now I can finally ask the number 1 question I've always had: how can I make any profits on that money?
I explain myself: before I even start a business plan, what I've done was check the average price of hostels where I want to open, in an Eastern European country, with amazing mountains and quite a big potential for year round tourism.
Looking at towns nearby, I see that the average hostel daily rate is around 8 eur (let's round up to 10 to make things easier). So, making a very very very superficial calculation of my gross income only with accommodation from 100% occupation (in my beautiful dreams) of a 20-bed property multiplied by 30 days of the month, that would give me a monthly income of 6000 eur. But when you calculate it more realistically, you can work with 50% and 3000 eur.
Things are cheap, maybe staff salary is extremely low, catering is cheap and maybe I find an extremely cheap property. But then, we have taxes, insurance, permits (if I have to start from zero), expenses I don't know about when you're talking about a place with at least 3 to 4 months of snow, etc etc and most importantly: I need some money to live on, probably will need a car if I want to offer some kind of transfer, pay my own rent if I don't want to live in the property or have some privacy.
What do you think, am I being too pessimistic, or is this not the way to calculate? Thanks.