How would you start a hotel chain focus on eco, sustainability, and veganism without experience/capital? - Seedly
 

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Asked by Hoon Thien Rong

Asked on 17 Oct 2019

How would you start a hotel chain focus on eco, sustainability, and veganism without experience/capital?

I was kinda inspired by the Purpose Hotel in Kickstarter (using painting from people hurt in war, naming each room after an adopted child). I tried asking Knights and Frank, P2P lenders like Minterest and Coasset and was unable to figure a good plan.

The expected capital is high because land prices are expensive and competitive.

Lending is difficult without any track records or too expensive to sustain with earning as capital is mostly used on land and not operations.

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The most straightforward answer I'd suggest is not to do so right off the bat if you have neither experience nor capital.

Entrepreneurship is an incredibly difficult endeavour, and layering sustainability on top of it increases the difficulty by an order of magnitude because of the niche of people who would pay extra to engage in a sustainability-related activity.

Rather than creating a hotel chain which is a capital intensive endeavour, would instead suggest understanding the sustainability landscape and knowing people in the community first. In place of experience, doing research on eco-tourism and understanding key challenges behind doing so (and even visiting a few around the region) would be a good way to build up a mental picture before you decide that it's a good idea to embark on your own.

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Rachel Yeo
Rachel Yeo

21 Oct 2019

I agree!! Thanks for sharing Irsyad! :)
Junus Eu
Junus Eu
Top Contributor

Top Contributor (Oct)

Level 8. Wizard
Answered 4w ago

If you really want to do so and don't have sufficient capital of your own to start, your best bet at this stage might be a consortium of business angels, or the famed F, F & F ;)

FFF: https://www.forbes.com/sites/richwinley/2015/08/21/friends-family-fools-who-will-you-get-to-fund-your-startup/#1b34bf043abb

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Randy Chai
Randy Chai
Level 5. Genius
Updated on 17 Oct 2019

I wouldn’t encourage any entrepreneur to start a business taking a loan. Quoting Mark Cuban’s famous line, “Only morons start a business on a loan”.

Try not to get discouraged by the initial or perceived capital outlay of your business/project. Institutional lenders are providing you with quotations based on historical data and thus, the possible high perceived cost of starting your business/project. (Oftentimes they're quoting you the capital outlay required to build that product X amount of years ago. Which might not be relevant today due to technology advancement and most importantly, innovation)

The best entrepreneurs are able able to innovate and find ways to fight through and solve whatever problems they have in front of them.

Never forget how AirBnB started, their minimal viable product was literally an air-mattress in their living room, charging users $20 per night. Boot-strapped for 2 years before they finally raised their seed round of funding. Look at what they’ve achieved since then.

Hope this helps!

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