Small business owners in the hospitality industry are particularly good at sticking to a budget. When it comes to counting pounds and pennies, every buying decision is based on what’s affordable, how it’s going to boost profits, and how long for.
Spending cash without a second thought isn’t your thing! If you’re feeling restricted, or lacking imagination, here’s how you can still develop your hotel business on a tight budget.
Make ‘little and often’ upgrades
Your guests will pick up on very small details, and they’ll be quick to list off what they did or didn’t like in their TripAdvisor reviews. If you keep fixtures and accessories looking shiny and new, you’ll give them plenty to rave about and very little to nit-pick…
If your reception, dining area or rooms need some TLC, you don’t need to overhaul everything at once. For the sake of your cash flow, it’s easier to upgrade the glassware, linens, or furniture gradually, rather than putting a massive order in. Make a plan and prioritise, what needs the most attention?
Super smart added bonus: You know how things have a habit of breaking down at the same time? If you upgrade things in stages, you can usually avoid the sudden mad panic.
Wait for the best time to buy
Patience pays off when you’re searching for big, expensive purchases, like mattresses, beds, and kitchen equipment. Needing something quickly makes it a lot harder to be picky.
As a rule, the best time to buy is when other businesses aren’t. If that’s too tricky to judge, monitor prices online or ask your suppliers if they can help you out. (They’ll be more willing if you have a good relationship with them).
Super smart added bonus: If you’re happy to wait around, you might be able to buy other people’s returns at a cheaper rate. Some suppliers will even do ‘scratch and dent’ deals, where you can buy cosmetically damaged equipment that still works like a charm!
Sometimes it’s not possible to bide your time and wait for a good deal. If you need new equipment sharpish, Capify’s small business loan can help.
Raise up to 75% of your average monthly turnover to pay for essential upgrades, renovation, and supplies. Repayments are easy too. Unlike a traditional loan, Capify’s small business loan is paid back in very small amounts regularly – you choose whether you want that to be every day, or every week.
Buy second-hand when it makes sense
Buying used obviously won’t work for bed linen and towels, because they get a huge amount of use. But design features and accessories can be. A classic leather sofa, decorative frames, mirrors, and ornaments are even more characterful when they’re second-hand.
Shop around antiques fairs, sales, auctions, flea markets, and even car boots. You’ll find lots of affordable one-offs.
Super smart added bonus: Eye-catching furniture and ornaments make your hotel very, very Instagram-worthy…
Identify waste and cut those costs!
Every business wastes cash, no matter how careful they are. Go through your books regularly (your accountant will be able to help with this) and make a note of how and where cash is leaking.
It can be a really surprising exercise – some hotels find something as simple as ditching tablecloths for a more modern table arrangement can cut down on laundry and supplies costs. Be creative, consider reuse potential, and how often you have to buy new.
Super smart added bonus: Cutting costs has loads of benefits. The best one is probably being able to use all those savings for better, more important stuff.
With a small business loan, you can give your budget a serious boost! Find out how much you can raise with Capify – depending on your turnover, it could be from £5,000 to over £500,000.Get a Quote