B
BlueAlpha1
Guest
After two years of on and off travel to 21 states and 15 countries, I've decided I want to open up a youth hostel with my brother, who is pretty into real estate as it is and very keen on the idea.
I already feel like I have the entrepreneurial gene because at 27 I have made a horrible employee at most jobs I've worked at. I have had trouble finding a career since I quit my 50k job in January 2015. I had two jobs since then and quit in 2 days. I simply am not good at waking up early, faking a smile, and answering to people anymore. On the contrary, I like working independently and on my own time. I like sleeping in and traveling on a whim. And the great experiences I've had meeting fellow travelers has inspired me to make this my next business venture. I've wanted to make a living in the travel industry for some time now.
Curious what you think my startup costs will be and what cities I should consider. Many of the super big cities already have a dozen or more, so it'd make more sense to go a second-tier city that might be a seasonal hotspot. For example I live in Florida. Miami sounds like a logical choice but there are close to a dozen established hostels there. However, Clearwater is 1/4 the size but is a prime spring break attraction (you could make 40% of your fiscal year that week), and there isn't a single youth hostel in the city.
Some estimates online guess as low as $20,000, others as high as $50,000. To start, it wouldn't be anything super fancy nor a very large building. Two stories with 8 dorms tops. We would attempt to rent a building that is already in sound condition that didn't need a lot of up-front maintanence. We would try to give at least 3-star accommodation (by way of nicer mattresses, free breakfast, an interactive experience etc) and attempt to fit in a smaller than average space to reduce costs. Here are some necessary expenses that accompany any good hostel. Feel free to add
1. 30-50 twin size bunks with frames
2. 3-4 desktop computers
3. Security camera system
4. POS computer system (some of them like Backpack are free)
5. Big screen TV in lounge area
6. Pong and pool table
7. Brochure section
8. Bar area with barstools, couches and other basic furniture
9. Snacks and amenities for sale (locks, condoms, toothpaste, towels, chargers)
10. Staff (4 receptionists, 4 housekeepers, 1 bookkeeper, 1 sales manager, 2 security/maintainence, 2 bartenders)
My brother and I have about $70,000 cash in combined cash and investments and still don't feel that's nearly enough yet. Because if it costs 50k we're pretty much strapped on this gamble. We'd like to have a $100,000 combined net worth before taking this leap.
Thoughts anyone?
I already feel like I have the entrepreneurial gene because at 27 I have made a horrible employee at most jobs I've worked at. I have had trouble finding a career since I quit my 50k job in January 2015. I had two jobs since then and quit in 2 days. I simply am not good at waking up early, faking a smile, and answering to people anymore. On the contrary, I like working independently and on my own time. I like sleeping in and traveling on a whim. And the great experiences I've had meeting fellow travelers has inspired me to make this my next business venture. I've wanted to make a living in the travel industry for some time now.
Curious what you think my startup costs will be and what cities I should consider. Many of the super big cities already have a dozen or more, so it'd make more sense to go a second-tier city that might be a seasonal hotspot. For example I live in Florida. Miami sounds like a logical choice but there are close to a dozen established hostels there. However, Clearwater is 1/4 the size but is a prime spring break attraction (you could make 40% of your fiscal year that week), and there isn't a single youth hostel in the city.
Some estimates online guess as low as $20,000, others as high as $50,000. To start, it wouldn't be anything super fancy nor a very large building. Two stories with 8 dorms tops. We would attempt to rent a building that is already in sound condition that didn't need a lot of up-front maintanence. We would try to give at least 3-star accommodation (by way of nicer mattresses, free breakfast, an interactive experience etc) and attempt to fit in a smaller than average space to reduce costs. Here are some necessary expenses that accompany any good hostel. Feel free to add
1. 30-50 twin size bunks with frames
2. 3-4 desktop computers
3. Security camera system
4. POS computer system (some of them like Backpack are free)
5. Big screen TV in lounge area
6. Pong and pool table
7. Brochure section
8. Bar area with barstools, couches and other basic furniture
9. Snacks and amenities for sale (locks, condoms, toothpaste, towels, chargers)
10. Staff (4 receptionists, 4 housekeepers, 1 bookkeeper, 1 sales manager, 2 security/maintainence, 2 bartenders)
My brother and I have about $70,000 cash in combined cash and investments and still don't feel that's nearly enough yet. Because if it costs 50k we're pretty much strapped on this gamble. We'd like to have a $100,000 combined net worth before taking this leap.
Thoughts anyone?
Last edited by a moderator:
