We’re living in the time of uncertainty, and it will be a while from now before we’re able to revive to complete normality. To an extent, lockdown measures may soon lift across certain parts of the world, so you could be possibly reopening your hotel doors sooner than you’d think.
However, reports indicate that this doesn’t mean hospitality business to be as usual. As your hotels get a green light to open up again, you can expect to get instructed and be following social distancing’s strict guidelines, cleaning & disinfecting protocols, and generally operating your hotel business on a minimal basis.
And while you may be probably getting ready to reopen your hotel enterprise in the near future, you’ll need to get ready across all your business aspects to deliver, and to prepare for it now is the perfect time.
Let’s outline one of the best way you can use your time amid COVID Lockdown wisely to improve your business for the future.
Make the Most of Your Time
Much like when your hotel is open – promoting business, budget planning, and running your business accounts is time-consuming in itself.
But at the moment, it is likely that you’ve ample of free time on your desk than usual: lowered number of guests, less socializing, less commuting, and less time for your hotel maintenance.
So – make the most of it in re-evaluating your finances, besides sanitizing and disinfecting your hotel rooms & premises! COVID-19 must have hit your hotel economy hard, and as a result, you’ll likely to experience recession in the upcoming year.
While focusing to pivot your business in delivering digital hospitality experiences, financial planning also becomes crucial to plan for future and move forward.
Experts advice hoteliers to navigate through 3 primary financial statements, so they can easily understand their business and avoid financial pitfalls.
1. The balance sheet
2. Profit and loss statement
3. The Cash flow statement
These three statements becomes imperative in letting you get the pulse of your finances and you’ll be able to see where it needs adjustments for the better future.
When broken down, all the aforementioned statements are quite simple to understand, so let’s have a quick walkthrough:
A balance sheet is nothing but an overview of how your hotel business is performing currently. It revolves around of what you owe, what you own, and anything left over. On the whole, this statement shows your hotel business’s overall growth.
Coming to the profit and loss statement, it outlines what your hotel business earns vs. its spending, while highlighting what amount your business generates in a particular month.
Finally, the cash flow statement. It is identical to your profit and loss statements, but actually includes other hotel expenses, including staff wages and tax payments.
At the moment, everything looks different from how it in fact did at the year starting.
You’ll need to adjust your future targets, restructure your hotel staff & management, consolidate accounts, and even negotiate any applicable leases your hotel may have to maximize the revenue. And you got to do this very sooner rather than later, so as to ensure you’re prepared.
Besides, also seek support for the damage already happened, the US government is providing financial support for the businesses with financial aid to help them survive through these tough economic times. Checkout SBA website for more info!