Before you start you must know where you’re going!
If you’re just starting your Airbnb, your business plan does not have to be complex at day 1. It is something you work on through out the life of your rental business. The key is to just start. Create and write a general idea of where you see your rental business in the future. So, whats you’re plan?
Here are three easy steps to make a beginners business plan:
1.Create a vision/mission – This should be the overarching goal of the company that encompasses the companies purpose and values. This sets the tone of the business.
2.Create a marketing plan – Figure out who your target market is and how you plan to attract them to your Airbnb. In this age of social media and email ensuring you reach you’re target market has become a lot easier. You see with each guest you have ensure they add you as a friend or follower to one of the following or even better all of the following; 1.Instagram, 2.Facebook, 3.Twitter.
Most likely their friends are your target group as well. The key to this is post frequently! This increases the chance for one of your posts to be shared. At minimum post once per day!
Another great marketing strategy is to send newsletters. Create an email list by retrieving each guests email address. Send out newsletters informing past guests of discounts, festivals or tournaments that will be held in your area, upgrades you have made to your property or additional property added to your portfolio. You’re email list is going to take time to grow. This requires the most time.
3.Create a budget – Figure out how much income you want to be making in years 1-5. Then figure out what will be the costs incurred. This will give you an idea of what you’re break even nightly rate would be, which is the minimum amount you can charge when starting your Airbnb. Depending how saturated you’re market is, you will find low pricing the first couple months of your business is what gets you your first few bookings and in turn those needed reviews.
4.Service differentiation – This is what will set you’re rental apart from the others. Write a few things that you can do to make the customer experience an even better one. Whether its providing discounts for businesses in the area, putting blue tooth speakers in the rental etc. Figure out what you think your target group would appreciate the most.
You see you’re business plan does not have to be complex. The objective of a business plan is to connect your goals with how you plan to achieve them. Don’t over complicate it! In fact, here are two things you’re business plan does not have to be:
1.More than one page- You’re business plan does not have to be formal and it doesn’t have to be 50 pages. In fact all you need is one sheet of paper and a pencil/pen.
2.Fixed – A business plan does not have to be fixed. In fact, it is meant to change as you grow in knowledge and experience.
Never start a business with out knowing where you’re going. Always keep your plan short and simple. As you grow your business, your business plan can become all encompassing but for a beginner these four items are essential.