I guess we're all here for the same reason. We are interested in starting a hostel. Me too! I guess we have to take steps in moving forward, right? Since we're all here, lets begin?
Where do I begin?
CONGRADULATIONS!!! You have already begun. Getting the idea was the first step.
Contact a real estate lawyer or business lawyer. Some firms practice in both. This way you can get information on both business practices, insurance issues and zoning regulations. These people will basically set you off on the right foot (depending on the lawyer you get). YES! YOU WILL HAVE TO PAY. DONT BE CHEAP OR IT WILL BITE YOU IN THE @22. Consultation should range from $50-$200/hr. Shop around. Lots of lawyers will do an initial consultation for free.
What do I do after contacting the lawyer?
How much money do you have saved up? If you have $0 saved up then you do nothing until you have some $$$$. It really depends on your current situation. Do you own a home that you can hostel out to guests? If not then do you have someone elses property that they will allow you to hostel out to guests? Do you have the capitol to purchase the land/building?
If you have "said" property or cash...Then what?
COOL! Lets say the lawyer fixed up your legal end (zoning, insurance, fire codes)...Now we can begin right? NOPE. How shabby does the inside of your place look? Does it need renovating? That costs money. Do you have $20,000-80,000 saved up for renovations? No? Better start saving.
Renovations are finished... Can we open?
Not in your wildest dreams. Where are your guests going to sleep? On the floor? Did you forget the interior decorating? What about the kitchen and bathroom? For me, I estimate I will need $10,000 to $20,000 to buy all he necessary goods to start.
I bought all the necessary goods to start...and???
Now youre ready to open. Its all up to elbow grease now.
Disclaimer: All this information is for reference only. I take no responsibility for anyone misusing the notes above. Dont go rushing off and trying to set this up immediately. Continue to do your research and think about your idea. Dont rush anything. It normally takes 1-2 years to plan and impliment something of this nature.
In my case, I will operate a 6-10 bed guesthouse for a few years to get some cash, understand the customers and get some statistics. Once I have a good level of statistics and some cash, I will contact a bank for a $2 million business loan. Thats 6-7 years down the line so no worries and no rushing.
Did I miss anything?