Small town or city hostel

Backpackers, solo travellers, groups of friends, school and sports trips, and visitors in town for events.

Nightly rate per bed or per private room, plus optional extras such as breakfast, laundry, luggage storage or tours. Booking sites bring guests but take a commission.

• Welcoming and good with people
• Organised, with a head for budgets
• Handling bookings and online reviews
• Practical enough to keep a building running

• Planning permission and change of use, check with your local council before taking on a lease
• Fire safety, including a fire risk assessment, alarms and escape routes, and building regulations for sleeping accommodation
• Public liability insurance, buildings and contents cover, and employer's liability once you hire staff
• Registering with the council if you serve food, and an alcohol or music licence if you offer a bar or play music
• Seasonal quiet periods and high fixed costs such as rent and business rates
• Rules can differ between England, Scotland, Wales and Northern Ireland, so check locally

Startup costs are typically around £40,000 to £150,000, depending on the building, lease terms, fit-out and furnishings. These are estimates, and your total will depend on the size and location of the property.

Monthly revenue is typically around £8,000 to £35,000, depending on the number of beds, your prices and how busy you are. These are estimates of revenue rather than profit, and rent and other fixed costs come out of it.

Check planning permission and change of use with your council, and fire safety, including a fire risk assessment and building regulations. Also check insurance, food registration and alcohol or music licences if relevant, and local rules, which can differ across the UK nations.