How to Start a Business in the Tourism Industry
There are many people in the world that have been bitten by wanderlust and are looking for new places to see. They are ready to spend their hard-earned money to travel to the ends of the earth and explore the different beauties that it has to offer. For this reason, tourism in many countries is a booming sector and one to consider starting a business in. Dubai, for instance, has managed to build a mega tourist hub that has given its economy a major boost. As a result, people from all over the world travel there regularly to see their sandy desserts and excellent structures. On that note, if you’re thinking about trying your hand in business, this article will tell you how to do so within the tourism industry.
Decide What Area You Want to Specialize in
The travel and tourism industry is said to be one of the world’s biggest industries. Apparently, in 2016 the industry contributed 7.6 trillion dollars to the global economy. This makes it an attractive sector to consider starting a business as its thriving and growing. One of the first things you’re going to need to do if you want to start a business in the travel industry is figuring out what exactly you want to do. Seeing as a tourism business can be defined as any business that caters to the needs of tourists, you will have to figure out exactly what needs you want to meet. There are many things that people traveling to a new country need which include places to stay, things to do, and souvenirs to buy. You could, therefore, consider starting a tourist guide business, restaurant and bar, hotel, luggage delivery service, shuttle bus business, language translation, or welcoming service. These are just a few of tons of possible ideas that you could consider. You should do your research and see which idea is most feasible in terms of location, start-up costs, demand, and sustainability.
Draw up a Business Plan
The next step in starting a business is drawing up a business plan. This will help you assess your idea and see if it’s truly one that can work. A business plan should be like a map that tells you where you’re going and how you’re going to get there. It will help you to poke holes in your idea and see where you need to improve on your plan. Some tips for your business plan include keeping it short, ensuring its inherently strategic, and that it clearly defines how you are going to reach your objectives and goals as a business. Some subheadings in an ideal business plan should include an executive summary, business overview, operations plan, market analysis, competitive analysis, sales and marketing, and details about your products and services. You can download a template online if you don’t already have one or choose to customize your own business plan. You can add any subheadings that you feel are relevant to make it as comprehensive and concise as possible.
Raise the Funds to Start
While drawing up a business plan, it is likely that you may have done a financial forecast. Within this forecast, you may have included initial start-up costs and how much you’re likely to spend on a monthly basis. These figures should give you an indication of how much it’s going to cost to run your business. The next reasonable action should be to figure out how you’re going to raise the funds. There are a number of options which include saving your capital on your own, crowdfunding, and taking on extra work. One of the most conventional ways of funding a business is to take out a loan. You should learn more about loans that you can take out irrespective of your credit score and how you can use them to start your business. Even if you’re only able to take out a personal loan to sustain you and meet your personal needs while you get your business off of the ground, that could go a long way as well.
Once capital has been raised to start your business, you should be almost ready to take off. It is therefore imperative that before doing so that you’re surrounded by the right people. Having a support system in business is critical to your success, especially when you’re just starting out. It’s easier to get your first client, land your first major contract, or make your first mistake when you have people there to guide, advise and support you. One of the ways that you can find such people is by effectively networking. You should attend relevant industry events, use social media to your advantage as key ways of meeting prominent people in your industry. Some networking tips that you should keep in mind are getting over the initial awkwardness, making your intentions clear, making good use of your time, and making it a priority to ensure you follow up regularly. Following on from the last point, following up is one of the important aspects of networking. Failing to do so could mean that you’re both out of sight and out of mind to the people that you’ve connected with which could result in you missing out on key opportunities.
Tie up Loose Ends
One of the most monotonous and sometimes boring aspects of starting a business often relate to the back end. Before starting a business in the tourism sector, it’s important that you find out all of the legal requirements you’ll need. What licenses or registrations that you’ll need to operate are heavily dependent on the nature of your business. You should also note that the licenses and permits needed to operate will likely vary from state to state. Whatever the case, it may not be wise to begin operating when you haven’t handled all of the legal requirements first.
Tourism is an exciting and promising sector for many reasons. For one, you’re given the opportunity to meet people who travel thousands, of miles across the globe to see new places and meet different people. If you enjoy interacting with a variety of people and showing them the ropes, then a tourism business may be worth starting.