I am in the process of researching and writing a business plan to open a hostel in my home state of Califonria. I have always wanted to start and run a hostel after years of traveling and working in them all over the world. My biggest problem I faced when brainstorming was trying to chose the LOCATION to kickstart my dream. Although idealiy I would like to be somewhere in Europe or Central America, it is too dificult with the visa and business laws as a foreigner.
After returning home to Califonria for a visit I realised the complete lack of hostel choices for backpackers traveling within the states. There is only about 300 hostels in all of the USA, compared to over 10,000 in Europe. Talk about a need! Also, my town is a great locations, as it is located near the coast on the Pacific Coast Highway that many travel to go between San Francisco and Los Angeles. There is no doubt in my mind that a hostel is very much needed and will be used!
My problem is California is so damn expensive! The more and more research I do and progress I make on my business plan, the more convinced I am that this could be a success. My drawback that I have no idea how I am going to fund this.
I could possibly get some some loans from close family and even potentially a business loan, but I still dont think that will be anough. I know that my other option is to find investors, but I wouldnt even know where to begin something like that. Also, it is not like hostels are very well know or recieved in the states and I can't imagine many investors are going to chose hospitality and lodging over other potential options.
How would you go about getting the fund neccessary to move forward?
Any advice would be greatly welcomed!