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How to project revenue and expenses?

Start a Hostel

callcor started this discussion 14 years 7 months ago

Hi all,

I am writing a business plan to start my own hostel. At this point I need to project my revenues and expenses to see if this idea is even possible. I don't know what all goes into the expenses of operating a hostel. A simple expense report would GREATLY help me get started.

I would love to look at an expense report from another US hostel so that I can have a starting point. I spent all day yesterday calling other hostels in the US trying to speak with managers and owners to establish a relationship, hoping they would be willing to help a fellow hostel ambitionee get started. Most of the responses I received were very cold and I was told to email their info section.

One of the thing's that drew me to hostelling is the sense of community and connection all manager's and owner's have together. Although I didn't feel that yesterday. Hopefully y'all will change my mind.

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Josh Hostels

14 years

I think people sometimes don't want to give away their "secrets" especially if they might be worried you are a competitor :)

Some ideas for a hostel business plan:

property expenses (rent/mortgage/maintenance)
utilities
employee payroll
insurance
licenses
pest control
Internet
phones (you can also use Skype phones)
laundry for sheets/towels/pillowcases
wear & tear (furniture, computers, etc.)
accounting/bookkeeping
marketing, including website
IT, depending on the size of the hostel
property management software, depending on the size of the hostel

There will also be more expenses for initial startup: bunks, linens, lockers, etc.

If I missed anything major, hopefully someone will add it :)

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callcor

14 years

I hear ya about trying not to be too public about expenses.

What type of licenses would I typically need?

Also, I can make a good guess on all of these expenses except maybe insurance. Does anyone have a ballpark figure on how much I would pay on insurance for a facility somewhere between 3,000 - 5,000 SF?

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Josh Hostels

14 years

What type of licenses would I typically need?

Maybe check with the city hall -- it's probably different for every city/country.

Also, I can make a good guess on all of these expenses except maybe insurance. Does anyone have a ballpark figure on how much I would pay on insurance for a facility somewhere between 3,000 - 5,000 SF?

If you don't get a reply here right away, maybe ask city hall, chamber of commerce, and/or a hotel association if there is one. They might have local tips...

A local hotel/hostel probably won't give you tips because you're a potential competitor, but a hostel or even hotel a few hours away in the same state might help you out if you approach them as a future partner (sending guests to each other).

(Many people here are from different countries so their numbers are going to be different.)

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