Do you have what it
takes to own and operate a motel/hotel?
Most people looking at owning and
operating a motel have personal fortitude, business skills,
experiences and knowledge that they believe supports their ability to
invest in and profitably operate a motel/hotel. BUT, when questioned
by Lenders or others they are sometimes uncertain about the
foundation of their skills and exactly what the right answers to the
questions should be in order to show their qualifications.
The "dreaded lender questions":
1) Can you prove to our bank you are able
to run a motel/hotel?,
2) Do you have any experience owning or
operating a motel/hotel?,
3) Have you owned a business or
motel/hotel before?
These are the 'killer questions" asked by
lenders to see what you say and how you handle these test questions
about your abilities. Most people do not answer these questions very
well; but you can be better prepared.
REALIZE: That Lenders ask these same
questions of all business loan applicants and be prepared. Realize
Lenders do not have "Skills Check List" that they use to screen
applicants for every different business they finance. Lenders have a
broad and general idea of most business operations and know it takes
multiple talents, skills and life experiences to "round out" a person
for owning a business. (In over 55+ years of helping people buy
motels/hotels we have never seen a Lender present a skill check
list.)
FACTS: Most first time motel/hotel owners
buying motels under 40-50 units in size have not owned a motel/hotel
or business before. Most have never operated or worked in a
motel/hotel. They come to motel ownership by bringing "transferable
business skills" with them. Valuable skills and experiences learned
in other jobs or by education that are the same skills used in many
businesses. Over our 55+ years of selling motels/hotels we have sold
most motels/hotels to first time buyers. Few people fail in the
motel/hotel business because: "owning and operating a motel/hotel is
not rocket science".
Successful and qualified people bring
"transferable business skills and talents" with them and that makes
them qualified to run a motel/hotel. On the contrary side imagine if
all motel/hotel owners only ever worked in motels before they owned a
motel. . . .they would not have the broader, more diverse and
exceptional skills acquired from having had other business
experiences and occupations. Those other experiences and traits are
most often more valuable than just knowing how to run a motel/hotel.
Such inbreeding would lead to a lack of talent in areas like
budgeting, personnel management, sales, maintenance, bookkeeping,
public relations, perspective and innovation, etc. (Have fun, ask the
banker if he always worked in a bank? Does he think his other
business experiences are helpful to him/her in their current
profession?)
The right answers to the above
questions:
1) "My proof is my ability that I (we)
have shown in handling our personal and business affairs properly for
____ years. In addition we have $________ that we will invest in this
motel/hotel which represents proof we can handle our
investments."
2) "All our experience in running a
motel/hotel has been acquired indirectly by educating ourselves
broadly. I (we) have strong skills and experience with: (list off 5-6
of your strongest talents and skills)"
3) "From what we know most first time
motel/hotel owners buying motels under 40-50 units in size have not
owned a motel/hotel or business before. Most have never operated or
worked in a motel/hotel. We come to motel ownership by bringing
"transferable business skills" with us. Valuable skills and
experiences learned in our other jobs or by education that are the
same skills used in the motel/hotel businesses."
Here a two internet sites we have reviewed
that have some business skills assessment information; although they
are very general and of limited help as to motel/hotel ownership.
CLICK on these links:
The U.S. Small Business Administration
Loan Guarantee page:
University of Nebraska Cooperative
Extension Program:
Here is a Business Skills Check List that
we have assembled over the years at MOTELS BY GUDIM. It is useful and
probably the most specific to motel/hotel ownership check list we
know of for your use. Review the page and use it for your own
personal assessment. CLICK on this link:
Good luck and
good motel hunting. . . . .
Motels by
Gudim - Since 1945