How to Make an Airbnb Business Plan
You want to list your property as an Airbnb host but have no business plan?? We will help you make a step by step business plan. We know making an Airbnb business plan can be a very daunting task.
Why shouldn’t you make a profile on the Airbnb website, upload a few pictures and start earning? Is an Airbnb business plan really important?
Yes, and no matter how overwhelming it is, having a strategic Airbnb business plan will ensure you have a seamless and profitable earning experience. With over three million listed properties in more than 65,000 cities across the globe, the Airbnb host market is only growing. Add to that the brilliant idea of hosting any room or property, and the extremely easy way to start using the Airbnb website, and you can imagine why everyone is investing in the air-hosting business.
The competition in the air hosting market is fierce. And to stand out in the crowd, you will need a proper Airbnb business plan. You don’t have to be a pro to make a business plan, just put your business cap on and start making the plan. You can use the Airbnb website, your local rental market trends, and online rental market tools while making the plan.
In this article, however, we will talk about the basics layout of a business plan.
Airbnb began in 2007 and has rapidly grown to include listings for over three million available properties in more than 65,000 cities around the world.
Airbnb Business Plan: The Simple Steps
You can use the following steps and tips as a template to make your Airbnb business plan.
Steps & Tips for Beginners and New Investors
1. Choose a Property where you will be Hosting.
If you already have a property that you want to list, you can skip this step.
For others, let’s start. Buying your property is the biggest investment you will be making. So it’s important to do it right.
- Set a budget to buy a property, and decide whether you will be paying cash or using a loan.
- Next, choose prime locations in the city. Our research shows that most guests prefer properties that are either closer to important locations or are in a beautiful surrounding with good transport support.
- A well-maintained property in an ideal location will give your Airbnb lodgings an extra edge.
2. Figure out who is your Target Customer.
Figure out what attracts your guests to your city. Are most travellers coming there for business? Is that a place most honeymooners love to visit? Or is that an ideal vacation place for families?
This will help you in buying the right new property or in decorating your existing property. People travelling for business can stay anywhere that is comfortable, and cost-effective. Guest suites and shared rooms can work for them. However, couples will like privacy and will prefer an independent property. Families will look for a big property with amenities.
3. Take a look at the Air-Hosting Market.
Study of the renting market in your city. Take a look at other Airbnb hosts. What are they offering? Who is succeeding and why? Dig dip on the Airbnb website. Look at the reviews by guests to determine what factors they appreciated, or what features keep them coming to a property.
Next, analyze their prices. In a tough market, it is important to offer competitive prices.
At this point, make a rough estimate of what profits you expect to make in the next 1 year, 3 years, and 5 years.
If you think rents seem lower at the moment, don’t worry, as you build your credibility and become a preferred host you can gradually bring the prices up.
4. Make a Management Plan.
Renting your property is the first step, you will have to keep managing it. Guests can choose a place with fewer amenities but not a poorly-maintained place.
At this point, think things like will you be able to maintain your property yourself? Or do you need to hire someone? In any case, you might be needing someone for cleaning and handy jobs.
If you will need some services, or hire someone to manage your Airbnb property, include the costs in your business plan.
5. Finances & Funding.
Once you have a basic layout of what you will need, and what can the expenses look like, now is the time to bring out the budget details. Do you have enough to set up the place, or will you be needing a debt?
We would recommend making sure you will have a smooth cash flow for one year. A business plan will help you figure that out before starting.
Airbnb Business Plan- Final Word:
Making an Airbnb Business Plan will help you both in the short-term and long-term. Once you know what the expenses/investments will look like, you will be more prepared to manage the whole thing smoothly. When it comes to air hosting, having an Airbnb business plan will have many advantages. There may be many surprises in the way, but you will feel more confident to face them when you have a plan. Just like how Airbnb plan’s
Photo Credit: https://fourweekmba.com/digital-business-models/