Running an Airbnb business in the UK can fetch you over £6,000, which is a large sum that can only be guaranteed when you run your business effectively with a business plan. Owning a well-constructed Airbnb business plan is the best way to set your business up for success. In this guide, you will find free basic tips on what you need to know about the Airbnb business, and the process of starting an Airbnb plan, In addition to that, you will get to use our free template, either in PDF or Doc format, to create a business plan yourself.
If you are feeling overwhelmed already, then why not settle for our pre-made Airbnb Business Plan, to escape the stress of creating one by yourself?
What is Airbnb’s Business Plan?
An Airbnb business plan is a living document that creates a snapshot of your Airbnb business and then lays out a growth pattern that will be used to achieve those goals. An Airbnb typically outlines your business goals, operation plans and the timeline it would take you to achieve them. It can also serve as a road map that can guide you till success is ensured.Â
Whichever way it appears is valid as long as it’s solving your problem and leading your business to fame. Having known this, let’s then analyse how you can create your Airbnb business plan using our template, which comes in both PDF and doc format, below.
How to Write Up an Airbnb Business Plan?
Before starting an Airbnb business, you will need to create a professional business plan using this template, which can be accessed in PDF or Doc format. It is also important that you take note of these crucial steps and ensure they are included in your plan. Let’s take a look at our list.
#1. Executive Summary
While starting an Airbnb business plan, your executive summary should be the first section to appear in your plan. Although it is the first section to appear in a business plan, it is written last. When your readers access this section of your business plan, they should be able to understand your whole business idea and what it is all about. This section should also be a preamble of your business, because most of the time, your readers won’t have the luxury of going through your whole plan.
A proper executive summary should cover what your Airbnb business is, who it is for, why it is unique and where it is located, among others.
#2. Company Overview
Your company overview or summary should be in-depth detailed data about your Airbnb company. The main focus should be on the business itself. This is where you get to mention how and where you started, how the experience has been, what the business hopes to achieve and the kind of services the company offers.
Identify the unique selling points that make your guests patronise your services and how you aim to maintain and improve whatever makes your company stand out. You also mention your company’s goals and objectives in this section.
#3. Market Analysis
Your market analysis is another important section of your business plan that requires thorough research and understanding before it is even written down in your business plan document. The essence of your market analysis is to understand your Airbnb industry, identify your ideal clients, and determine how best to serve them with your services. Once you understand the industry you are getting into, then you should pay closer attention to your ideal guests, because without them you won’t make money.
You can diversify some strategies that can help you get close, including having a buyer persona. Your Airbnb business should be structured according to their needs and what they like.
#4. Competitive Analysis
Yes, competitor research is essential while creating a business plan. During your target analysis, you might have figured out who your competitors are. This is where you will focus on them. Take a quick scan of your direct competitors, discover their strengths and weaknesses, pick some positive impacts and build your Airbnb to be far better than theirs.
While conducting your research, you should observe what your competitors charge pre-night, the quality of their accommodation, the nature of their pick-up services, the housekeeping services, and a host of others.
#5. Sales and Marketing Plan
In your sales and marketing plan section, the reader expects to see how you intend to create awareness for your brand and also offer your services to clients that reach out to you.
What are the strategies you will employ when targeting your key markets to achieve bookings? Will you be using online or offline marketing strategies or both? What about inbound campaigns and promotions? Do you have an online presence? These questions and more should be covered for an effective sales and marketing plan.
#6. Operational Plan
You have been constantly making plans that your business will carry out, but how do you intend to carry them out without an operational plan? Your operational plan explains how you will swiftly carry out all your goals. You can choose to hire employees to help carry them out.
#7. Financial Plan
When it comes to your financial plan, it should be built upon how you intend to finance your business. Would you prefer to handle it yourself or seek a loan or financial assistance from an investor? Your response should affect the structure of your financial plan. Your financials should include a clear analysis of your estimates of expenditure and projected income for the first five years of your business. You can also include a balance sheet, cash flow statement, and income statement.
How do I Start an Airbnb Business?
Starting an Airbnb business is not as stressful as it looks, even with the presence of a plan. The process of starting an Airbnb business is a straightforward process that even a toddler can understand. Let’s look at these basic steps that can also serve as a template checklist when starting your business.
- Get proper permission from a higher authority
- Identify your Airbnb site
- Set up and furnish your Airbnb property
- Get a business plan
- Set a price
- Create your Airbnb listing
- Hire some employees or the Airbnb team
- Host an Airbnb occasion
How Successful Are Airbnb Owners?
Airbnb owners in the UK are successful because they make an extra income compared to other shared economy workers. They collect commission from every Airbnb host according to the number of clients that book their properties.
What Type of Business is Best for Airbnb?
There are some properties that are more popular and common on Airbnb. This means that travellers often go for that option. Hence, the properties that can offer you the most profit and a healthy return are not limited to:
- Single rooms
- Apartments
- Houses
Can I Airbnb my House if I have a Mortgage?
If you have a mortgage and still want to add your home to Airbnb, then you should seek a form of permission from your mortgage lender. Most of the time, taking decisions like this might breach your contract with the mortgage lender and hence attract penalties from them.
Is Airbnb still Profitable in 2023?
Yes, it is still profitable. In 2023, Airbnb was valued at over 110 billion dollars. So if you are still thinking about getting your property up there, you should hasten up.Â
How do I Attract more Guests on Airbnb?
For any business to grow and yield profits, it needs to make constant sales of the services it offers, and for the sales to take place, a potential customer is needed. This same motion applies to your Airbnb. To attract more guests there, you need to make some tweaks. They are not limited to updating your Airbnb listing, making your listing attractive, periodically adjusting your pricing rates, reaching out to the right audience, and making your services family-friendly among others.
Where Do Airbnb Hosts Make the Most Money?
Most Airbnb hosts make the most money from investing in popular properties that most visitors go for, including single rooms and apartments. You can also make more money if you target the most profitable places, like Dundee, Bath, the City of London, and a host of others.Â
What Percentage Does Airbnb Take?
If you are interested in listing your property on Airbnb, you should know that it does not attract extra charges. It will only see a percentage once a potential client books a stay in your space through Airbnb. You will be charged 3% of the total rental price.
Is Doing Airbnb Worth It?
Taking your properties to Airbnb and renting them through the site can be more profitable and lucrative than renting them to a tenant on a long time basis. Hence, you should also be aware that listing your properties there might attract extra costs because you will need to occasionally pay utilities and maintain your properties.
How Much Do Airbnb Hosts Make Each Month?
An Airbnb host can make up to £670 a month by renting their unoccupied rooms and properties to potential clients that need them. The price can also increase if the host faces abnormal traffic on their properties.
Let Us Develop Your Business Plan for You
Most people won’t tell you this, but creating a business plan can be fun and daunting at the same time, especially when it’s your first time trying.
But because time waits for no man, you have to take the easier route out, and for this reason, we have created a ready-made Airbnb business plan for your convenience.
Over the years, businessyield consult has specialised in creating professional business plans and, so far, has helped millions of businesses stand on their feet, and we are happy to help you too. Get started here.
Final Thoughts
Starting an Airbnb business without making provisions for a business plan is like starting a good business on the wrong foot. How do you plan your activities? What about keeping track of your business? How do you intend to respond to each customer and keep track of every guest without a plan? It is almost impossible. To start your Airbnb business on the right foot, then create that plan using the PDF or doc format of our template, or reach out to us here and allow us to handle the process.
FAQs
How do I start Airbnb with a little money?
Either as a property owner or a non-property owner, you can still open an Airbnb account and start making money from it, with little financial backing. Ways you can do this include, becoming a property manager, using a vacant property you wish to rent out on Airbnb, becoming an affiliate, and also offering Airbnb experiences.
Do you need a licence for Airbnb?
Before starting off as a host on Airbnb, you will need to contact your local authorities for licencing policies, application forms, and any available fees that you should pay. After going through this process, you will wait till it is approved and a licence is issued to you.
Can you make a living owning Airbnb?
Yes, you can. Once you have the right traffic and constant sales from offering your services to potential clients, you will experience a positive return and thus make a living out of it. You can even manage this business as a side hustle if you are too busy to handle it as a full-time gig.
