Report

Starting off a buisness plan for the bank?

Start a Hostel

paulg1770 started this discussion 15 years 5 months ago

hi, so ive taking my life savings to australia with me in the hope to open a hostel. But Where do I start?
What is the order in which you started off opening a hostel?
Do I secure a busniess loan with bank first and the look for a property to refurbish and get started within that budget or do I shop around different buildings, get quotes from builders etc and approach the bank with the costs?
As you can guess im new new here so any advice will be greatly appriciated.
It would also be great to hear from any one who has set up a hostel in Australia.
Thanks

Comments

Report

Alexski

15 years

Yes. If you want a loan to refurbish the property and get started up you obviously have to write a business plan.

Before writing your business plan though, make a spread sheet that includes ALL the expenses for the first 6 months of your hostel. Then, calculate the profit margin in the 1st year and first 3 years at 50 or 60% occupancy depending on how safe you wanna play it. Remember to think of ALL the expenses (renovations, VAT, utilities...) and remember there will be expenses you won't be expected (there ALWAYS are). Be it agent fees for the property, hardcore maintenance, etc.

Secondly, find out ALL you can about your local municipality. What is the VAT rate, taxes etc, employment laws, etc.

If you are in a bigger city the municipality might offer benifits.

For example, when I start up MY hostel, I read up that the city pays for over 50% of supplies for starting businesses (desks, computers... and I don't what else.)

I am a foreigner here, and I also read up that there are certain benefits for foreigners.

When you have done those 2 things you can start writing a business plan.

I'm really busy right now and can't bother to look for the links but I have a few good outlines for hostel business plans. If you want I can find and send you those links. I don't know how far you are into writing it.

Anyway, good luck!

Report

jonnyceic1

15 years

if you can send me those links that would be great. [email][email protected][/email]
thank you.

Report

youb

15 years

If you want I can find and send you those links. I don't know how far you are into writing it.

Anyway, good luck!

Hi, i could also do with those links, just to get an idea of layout etc.

[email][email protected][/email] if its not too much trouble, thanks!

Report

liquid

15 years

Mate, dont want to be negative but without local (Australian) property to secure your loan with there is next to no chance a bank will give you a loan, with or without a business plan. I would recommend finding a leasehold property and negotiating with the leasee. In regards to regulations etc check the relevant states business licensing website, a simple google search will get this information for you.

Report

youb

15 years

Could the loan be secured on the hostel property that he will buy?

I ask because i'm in NZ trying to do the same. I havent approached the banks yet cos i want to do a proper business plan first, but i'm hoping that they'll go for it once they see its financially sustainable, even at 45% occupancy.

Report

liquid

15 years

The loan could be secured by the property you are purchasing. However as it is a commercial property i would say the bank would look at offering 60 - 70% finance at a max meaning you would need a considerable deposit and a tight business plan. The other thing to consider is whether or not you can get a loan in Australia if you are a non resident or citizen. I own a hotel in Japan and had to borrow in Australia against currently owned property as it is next to impossible for a foreigner to get a loan in Japan unless you have lived there for 10 yrs + and married to a local.

Report

Scotch Argus

15 years

In my experience the banks would look for a large percentage of equity that you'd have to hold. The business loan would be secured against this. If a customer is asking the bank to loan the money for the business and property, the bank is taking all the risk if the business fails. They won't do this. If you put in a large amount of capital (say in the form of property you own) and the bank loans you some then you are taking the risk if your business fails. The banks like this better.

Report

scotty

13 years

Yes. If you want a loan to refurbish the property and get started up you obviously have to write a business plan.

Before writing your business plan though, make a spread sheet that includes ALL the expenses for the first 6 months of your hostel. Then, calculate the profit margin in the 1st year and first 3 years at 50 or 60% occupancy depending on how safe you wanna play it. Remember to think of ALL the expenses (renovations, VAT, utilities...) and remember there will be expenses you won't be expected (there ALWAYS are). Be it agent fees for the property, hardcore maintenance, etc.

Secondly, find out ALL you can about your local municipality. What is the VAT rate, taxes etc, employment laws, etc.

If you are in a bigger city the municipality might offer benifits.

For example, when I start up MY hostel, I read up that the city pays for over 50% of supplies for starting businesses (desks, computers... and I don't what else.)

I am a foreigner here, and I also read up that there are certain benefits for foreigners.

When you have done those 2 things you can start writing a business plan.

I'm really busy right now and can't bother to look for the links but I have a few good outlines for hostel business plans. If you want I can find and send you those links. I don't know how far you are into writing it.

Anyway, good luck!

these outlines would be a great help

[email][email protected][/email]

Report