“There is no place like home” is a regularly used phrase. This may be true, as the feeling in one\u2019s home is quite different from being away from it. Anyone who has traveled abroad or knows someone who does can attest that the warmth and hospitality in one country can vary greatly from another. Hotel quality and convenience can be factors. Starting an Airbnb business helps to eradicate this. Airbnb business is an acronym for \u201cAir Bed and Breakfast business\u201d. It’s a business model that allows apartment owners to rent out a room or the entire unit to tourists. Travelers can rent a communal area, rooms, or a whole house. In this article, we are going to be walking you through the steps, and checklist of starting up an Airbnb business plan regardless of your current position.<\/p>
Like with every business idea, it is important to have a business plan when starting an Airbnb business. Starting an Airbnb business plan might be or is often the difference between those who excel and those that do not excel in this field. Starting an Airbnb business plan helps to provide an ethos, or north star, that helps guide major decisions that would be made before the start of the business and during the day-to-day running of the business. Let\u2019s walk through some steps to take when starting an Airbnb business plan.<\/p>
The following are steps to be taken in starting an Airbnb business plan;<\/p>
The first step when starting an Airbnb business plan is to get a mission statement for yourself and the business. This mission statement will serve as a rendezvous point for major decisions made in business. A mission statement will help make good decisions in times of uncertainty, most especially if you are unable to answer the following questions;<\/p>
If these questions are duly answered, it places a business owner on the right path to actually succeed in that Airbnb business. However, trying to always remember it in all you do, makes having a mission statement worthwhile.<\/p>
When starting your Airbnb business plan, it is important to do a proper market scan or survey. In certain life scenarios being unique might be good, but, in a business such as this, it can be damning. <\/p>
People appreciate what they can relate to; therefore, surveying the market will help me have an overview of what the business should look like and how you should go about it. It also helps to make you understand the kind of competition you have and to know how best to cope with it.<\/p>
Factors that can influence the success of the business such as your demographic, the amenities available to you, and other environmental factors will help you determine your pool of customers and feasible price ranges. You will have to search online for listings close to you to ensure you don\u2019t overcharge or undercharge massively. I recommend the use of the Airbnb Smart Pricing tool. <\/p>
This is a pivotal step when starting an Airbnb business plan. An entrepreneur cannot afford to make mistakes in the monetary estimations of an Airbnb business. The budget should contain the various levels of expenses; those incurred in setting up the house before and while in use, also the expenses used to ensure that the place is secure are also crucial.<\/p>
This planning helps to ensure that the entrepreneur is not taken by surprise in any way or form. I recommend using a spreadsheet for this.<\/p>
This is one of the most important attributes an entrepreneur should not forget. It is quite important to imagine you were a guest to avoid you missing minor details such as toiletries and so on. As a method of precaution, you can invite your friend to come and spend a few days there to get an idea of anything you might be missing.<\/p>
People frequent places that seem comfortable and stress-free, if you put this in mind while planning it helps you plan better. It is important to have hospitality at the forefront of your mind in order to run an Airbnb business effectively.<\/p>
As the world is advancing there also exist technological advancements that help make life easier and this is a game changer in the world of Airbnb hosting. A website that helps to make booking easier and sends you notifications once a booking is confirmed are helpful. <\/p>
The use of smart locks which changes once the duration of a guest\u2019s stay is completed means you don\u2019t have to be there in person always. Although, I would recommend you should always be present if you are just starting and to run the day-to-day activities yourself.<\/p>
There are 8 crucial steps in starting an Airbnb business. They include;<\/p>
Different environments have different rules and regulations that guide them (their social values) socially. Certain environments do not allow visitors, pets, and other specific things without a special permit or permission. Therefore, it becomes important to check if you will need such a permit, to avoid your guests being embarrassed when they come around. <\/p>
Some environments do not allow it and if you are living in such places you can\u2019t be starting an Airbnb business. Furthermore, if you are in a rented apartment you will also have to seek permission from the landlord to know if you can carry out the business.<\/p>
After confirming how feasible it is to start your Airbnb business in your environment, you would need to plan your business following the steps aforementioned in this article. The planning of the Airbnb business is important because it is the first step toward a successful business. <\/p>
When a business plan is carried out it helps you know and understand the specifics of the business and also highlights the unknowns. A good business plan will help you discover;<\/p>
Starting an Airbnb business as a legal business entity will go a long way in protecting the entrepreneur. Because doing this will prevent him from being personally culpable if the Airbnb business is sued. I recommend using feasible business entities like a limited liability company or corporation, rather than a sole proprietorship or even partnership. <\/p>
You can do this in two ways; either by setting it up yourself and paying a small state limited liability company costs or you can get a limited liability company specialist for an improved fee.<\/p>
Paying taxes is a fundamental part of business; it is the civic duty of every citizen. Therefore it becomes important that when starting your Airbnb business you register for all the various state and federal taxes by visiting the internal revenue service (IRS) website or office.<\/p>
For certain states there are also other special taxes you are expected to pay, you are to find out and pay them.<\/p>
Experience has shown that you cannot keep an individual account and a business account together successfully. One of the ventures will eventually suffer the cost. Oftentimes, businesses have collapsed because the owner has mishandled the business funds by overspending on personal things which in turn affected the business. <\/p>
Also, the reverse can be the case, you can end up spending so much of your personal funds on the business, and eventually find yourself in an uncomfortable situation. This policy helps to protect both personal and business assets. <\/p>