Baltrum

Foremost what makes a business fail? resort-style hotel in not island area?

I am possibly opening a resort-island style hotel. What are the top reasons, before I get started, what do you think are the big probs?

Public Comments

1. Usually piss-poor financial planning but weather can have an effect on it too.
2. Foremost I think it is concept, originality and great marketing. You've got to major-market the idea AND IT MUST BE TIMELY, fashionable this period. Make sure your focus group is interested. People rely on their instinct which is all well and good if you're a gambler, but when it comes to opening your own business it's like an extension of yourself. Study/research your market and do a private demographic study or hire someone to do it for you. Demographics for the focus group in the area you will be opening your business. You can do them on the internet as well, but you'll probably have to hire someone. Because it’s a resort theme, very important to Mix and Mingle with the Demographic as well by yourself, and if you have close friends ask them to join in if they can give an honest opinion. It wouldn’t hurt just too look and listen to what everyone feels and says about their likes and dislikes. Become a part of the party and you can get a real sense of the element. On the retentive side/Must have a pragmatic game plan and good outline which includes a budget for each item (to do list) in your outline. Like a shopping list. When you finish, with the amounts/costs to accomplish each item listed, total it up and you'll have your basic budget projection. This is the amount you'll need to save or borrow to get the biz off it's feet, but you'll need a RESERVE FUND that is significant, unfortunately at this time at least 30% of the budget, for extraneous unexpected costs. AND Don't waver from the list unless it's an essential you were not aware of (which ALWAYS is the case). When these problems arise you need to figure in these costs/place them on the list and add them to the total. Lastly, people who don't keep their books/accounts straight or get a flaky easy-get-them-2-do-what-u-want accountants will fleece a biz & or/leave you exposed if the IRS gets wind! Keep fresh - Clubs/resorts thrive in L.A. & don't have east-coast life spans!
3. Causes of biz failure: 1. Insufficient capital 2. Poor planning 3. Inadequately educated & experienced management. In short, if you have not managed a hotel for a number of years, don't even think about it. And if you don't have a pot of money, don't even think about it. And if you can't figure out how much money you need, you have no hope of getting it off the ground no less making it profitable -- dream on.
4. I think Bastion is right overall, but guru has a point. Although the negative was asked, I prefer a positive solution. Watch out for the negs but B gave both.
5. I think the whole hoola idea bites! WHadaya think of that! seriously too much of this commercial c---! Give Hawaii BACK to the Hawaiians! We STOLE it in the 1st place, let the Japanese steal it...Oh yeah, they have. nuf said.
6. If you have the money to open an island-style hotel resort, you should be asking your professional financial advisors! You need to do alot more in-depth research, than just asking questions on Yahoo! You are talking about a HUGE financial investment!