Podcast Summary
Starting and Growing a Profitable Glamping Business: Starting a glamping business involves wearing multiple hats and facing challenges like creating a hands-off operation, upselling, and marketing for direct bookings. To grow, consider adding amenities and expanding, but be prepared for ongoing learning and challenges.
Running a successful glamping business requires wearing multiple hats, from project management and site construction to marketing and upselling. Eamon Hegarty, co-owner of Corey Retreats, shared his experience of starting the business with his partner Thomas, which has already generated £35,000 in revenue in just 10 weeks. However, they face challenges such as creating a fully hands-off business, upselling products, and marketing to attract more direct bookings. Eamon aims to grow the business to 10 units, fully automated with exceptional reviews, but they are not yet profitable. To achieve this, they plan to add a sauna to the retreat area and potentially add more units. Eamon emphasized the importance of learning from business challenges and encouraged listeners to attend Entrepreneurs University seminars for serious business growth.
Focus on income generation and marketing: Business owners should prioritize income generation and marketing, dedicating 80% of their time to these areas, to grow their business and increase revenue.
Entrepreneurs and business owners should focus on income generation and marketing, spending 80% of their time on these areas, rather than being solely focused on the day-to-day operations of their business. Eamon was discussing various events and opportunities for learning, including property investment, customer acquisition, marketing, and the Entrepreneurs University, which offers video lessons and coaching from James Sinclair for a low monthly fee. The Entrepreneurs University is designed to help businesses grow and offers a free trial. The interviewee, who owns a luxury glamping site, mentioned that they currently use third-party booking agents but aim to increase direct bookings, which allow for more revenue for the business. To achieve this, it's crucial for business owners to adopt a marketing mindset and dedicate most of their time to generating income.
The importance of investing time and having a clear exit strategy in business partnerships: Clear communication, shared vision, trust, complementary skills, exit strategy, and a shareholders agreement are essential for successful business partnerships.
Successful business partnerships require a significant investment of time in income generation, and the benefits of collaboration, such as idea sharing and complementary skill sets, can lead to greater success. However, it's crucial to have a clear exit strategy in place to address potential future disagreements or life changes. The speakers in this discussion, who are partners in a business that involves career retreats at a glamping site, emphasized the importance of having a shared vision and open communication. They also highlighted the value of having a friend as a business partner due to their existing relationship and mutual trust. However, they acknowledged that opposing skill sets can lead to a more effective partnership. The speakers also advised having a shareholders agreement and discussing the exit strategy before significant investments are made.
Establishing a clear exit strategy early on in a partnership: Agreeing on a valuation method and payment terms early on can prevent future conflicts and uncertainties in a business partnership. Consider refinancing or other options to access capital if one partner wants it while the other wants income.
It's essential for business partners to establish a clear exit strategy early on in their partnership to avoid potential conflicts and uncertainties in the future. This strategy could include agreeing on a valuation method, such as a multiple of revenue or profit, and determining the payment terms. It's crucial to have this conversation and come to an agreement while both partners are content with the business, rather than waiting until one partner wants to exit and potentially causing disagreements. Additionally, it's common for one partner to want the income from the business while the other wants the capital. In such cases, considering refinancing or other options to access the capital could be beneficial. Overall, having a well-thought-out exit strategy can save time, money, and friendships in the long run.
Grow business to hire a manager: Aim for a commercially profitable enterprise with enough revenue to hire a manager for a hands-off approach, typically not achievable with a small business of 10 units.
To employ a good manager and team for your business, it may require more scale in terms of number of units or revenue. The entrepreneur and leaders of the business, currently you and Thomas, should aim to grow the business to a level where it becomes an investment with enough revenue to hire a decent manager, allowing for a hands-off approach. This definition of a great business is a commercially profitable enterprise that can operate without the direct involvement of the entrepreneurs. The specific number of units needed to reach this level may vary, but it's suggested that 10 units might be too small. The goal is to achieve a balance between entrepreneurship and management for long-term success.
Think big and create a high barrier to entry: Create a big, profitable business with a high barrier to entry, seen as a trade rather than an investment, for greater impact and financial benefits.
To build a successful and profitable business, it's essential to think big and create as high a barrier to entry as possible. This mindset can lead to bigger results and make your business more attractive to investors. One way to achieve this is by growing your business and then selling or using it as equity to fund the next venture. This approach can lead to a more significant impact and better financial outcomes. Moreover, the business you build should be seen as a trade rather than just an investment. This perspective offers advantages such as lower inheritance tax, capital gains tax benefits, and easier borrowing from banks. Ultimately, the goal is to create a fully hands-off business that can be sold or used as equity to fund larger ventures, creating a snowball effect of growth and profitability.
Maximizing tax advantages and enhancing guest experience: Business owners in hospitality can benefit from Entrepreneurs Relief for tax savings and upselling additional products/services to boost revenue and enhance guest experience. Focusing on experience-based offerings can also attract repeat customers and differentiate the business.
Creating a successful business in the hospitality industry involves maximizing tax advantages, particularly for those who own trade businesses that also own property. Entrepreneurs Relief offers significant tax advantages for business owners, making it more beneficial than individual property ownership for investment purposes. Another key strategy is upselling additional products and services to enhance the guest experience. This could include offering add-ons like wood packs for fire pits, pizza packs, or even unique experiences like craft activities or Segway hire. While it's essential to consider the costs and competition when deciding which upsells to offer, the potential revenue increase can be substantial. Additionally, catering to the growing trend of experience-based travelers can differentiate a business and lead to repeat customers. By focusing on these strategies, business owners can create a high-barrier-to-entry, profitable enterprise that stands out in the competitive hospitality industry.
Create memorable experiences for customers: Investing in unique experiences can lead to positive reviews, repeat business, and a memorable brand.
Offering unique experiences can significantly enhance a business, especially in a digital world where people are constantly seeking authentic and memorable moments. This can be achieved through various means, such as providing mountain bikes for guests to use during their stay or offering creative workshops where guests can engage in hands-on activities. These experiences not only make the business stand out but also create a strong connection with the customers, leading to positive reviews and repeat business. However, it's essential to consider the logistics of offering such experiences, such as maintenance and management of equipment, and marketing to attract customers to these offerings. Overall, the investment in creating unique experiences can lead to a more successful and memorable business.
Defining roles and responsibilities for business partnership success: Separate business development from day-to-day operations, establish a shareholders agreement, build a customer database, focus on direct marketing, hire a manager, and refinance finances for future growth.
Clearly defining roles and responsibilities within a business partnership is crucial for accountability and success. This includes separating business development from day-to-day operations. Additionally, establishing a shareholders agreement early on can help set guidelines for exiting the business. Other key areas for improvement identified include the lack of a marketing strategy and a reliance on booking engines for revenue. Building a customer database and focusing on direct marketing, as well as hiring a manager to run the day-to-day operations, can help create a business that operates independently of the partners. Starting the process of refinancing finances with a commercial broker is also recommended for future growth.
Speak with someone in the business department at a bank for insights and a streamlined mortgage process: Talking to someone in the business department at a bank can provide valuable insights and potentially expedite the mortgage application process for your business
When it comes to securing a mortgage for your business, it's beneficial to speak with someone who has access to the business departments within banks. This individual can provide insights and potentially streamline the process for you. Additionally, if you've found value in this conversation and believe someone else could benefit from it, please share it with them. As a reminder, you can apply to be a guest on James Sinclair's podcast to discuss growing your business. To do so, visit jamesinclair.net, click on the podcast button, and fill out the application form. And, if you enjoy the podcast, please take a moment to rate, review, and subscribe to help spread the word and support the continued growth of businesses.
