The day to day operations will take most of a hotel owner or manager’s time and rightfully so. The more activity going on in the hotel, should mean an increase in the business’ bottom line.
The bottom line however can be improved not just on the hotel floor. Here are five tips to improve hotel’s business financials.
Know the numbers – Successful business owners know their numbers and in particular, the things you should know are:
- How much cost is necessary to operate the business (READ: Want to Increase Profit? Reduce Coast of Goods Sold!)
- At what point is it breaking even
- What your profit margins are
Strengthen your basics – Just because you hired a professional accountant or a bookkeeper doesn’t mean you’re not going to need an intimate understanding of your financials. You should understand what the basic financial fundamentals so you can make sound decisions for your business. You should know how to read income statements, balance sheets, inventory reports, cash flows and make decisions based on them.
Determine your own value – This goes back to knowing your numbers but it’s important to highlight on an individual point. As a business who ‘sells’, it’s important you know how to price your products. You should also know your worth as a business owner and manager, and give yourself a salary. Giving yourself the value you deserve is not on every business owners list and it can back fire pretty quickly. When the business goes down, the business owner is left with nothing.
Seek a professional you can trust – Every business owner can use another expert advice, even if it’s just for a second opinion. Your accountant or bookkeeper can be an invaluable resource as they know your financials and can assist getting your lodgement requirements right, leaving you to focus on your business.
Embrace technology – technology can make your life easier and give you access to more information, and yet one of the issues we find is that the people are becoming more afraid of technology. This shouldn’t be the case. Whilst the older business owners do not want to mess with technology altogether (understandably), it’s with us to stay. Having a know-how in financial or accounting systems can make it faster for you to retrieve records and see trends. There is really no downside in educating yourself. Surround yourself with trusted technology partners as they are invaluable in providing what your business needs and ensuring the technology works.
If we can assist your business, please call your advisor and set a consultation on 07 5413 9300.