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Operating costs to consider

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kabilea's picture
kabilea started this discussion 9 years 5 months ago

5

Hello to all,
I am hoping to open up a hostel in Montreal and am presently working on a business plan.
I am trying to figure out what are the operating costs that need to be considered when working out a budget.
So far I have:

Rent
Payroll
Utilities (includes laundry)
Insurance
Professional fees (accounting)
Internet + phone
Marketing + Operational software
Repairs + maintenance
Food for breakfast + common kitchen
Office + Cleaning supplies

Am I forgetting anything?

Many thanks,
Lea

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Rucksack Brian's picture

Rucksack Brian

9 years

Hi Lea,

Just a few more expenses to throw in there:

  • Toilet paper (if you did include that under supplies)
  • Security (a contracted company if you don’t have this covered by in-house staff)
  • Commissions (from OTAs/agents/partners if you don’t include the commissions in the price)
  • Fees (credit card/bank withdrawal fees)
  • Taxes (sales tax, VAT, hotel/occupancy tax, property tax, etc)
  • Depreciation of your equipment
  • “Oh Shit” fund for the things you don’t cover in the general maintenance budget
  • Supporter contribution to HostelManagement.com

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kabilea's picture

kabilea

9 years

Great. Thanks so much!
Toilet paper is definitely a biggy :)

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Fontaineblhostel.com's picture

Fontaineblhostel.com

9 years

Perhaps also your personal social/health insurance coverage costs. And your personal professional driving costs.

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Emily A Robinson's picture

Emily A Robinson

9 years

Thanks so much for this post it is very helpful I was wondering if now we could get some average numbers. I am opening a small 30 bed hostel in Canada and I am almost ready to present to my investors but I still need my Expenses and Income to be completed.

I have put the expenses that both of you have discussed in a list I am wondering if someone could give me a rough estimation of a hostel with 30 beds in a house roughly 450 sq meters. That would be so helpful I have done some research bu it is hard to know if you have never done this kind of thing before. Thank you so much for your time I look forward to being an owner one day and helping the next generation like you! Emily

Rent
Payroll
Utilities (includes laundry)
Insurance
Professional fees (accounting)
Internet + phone
Marketing + Operational software
Repairs + maintenance
Food for breakfast + common kitchen
Office + Cleaning supplies
Toilet paper
Commissions (from OTAs/agents/partners if you don’t include the commissions in the price)
Fees (credit card/bank withdrawal fees)
Taxes (sales tax, VAT, hotel/occupancy tax, property tax, etc)
Depreciation of your equipment
“Oh Shit” fund

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