Small hotel with restaurant and bar

Overnight guests, local diners, and groups booking celebrations, weddings and functions.

Room rates plus food and drink sales. Meals and events can bring in income on nights when rooms are empty.

• Hospitality management and leading a team
• Understanding food costs and menu pricing
• Customer service
• Bookkeeping and staff scheduling

• A premises licence for alcohol and a personal licence holder, check with your local council
• Food business registration, food hygiene standards and allergen rules
• Fire safety for both sleeping and public areas, and a fire risk assessment
• Insurance, including public liability, buildings and employer's liability
• Music and TV licensing if you play music or show TV in public areas
• Staff costs and recruitment can be a major pressure, so plan wages carefully
• Higher costs and long hours, with income affected by seasons and local trade

Startup costs are typically around £80,000 to £400,000, depending on the property, size and fit-out. Monthly revenue is typically estimated at around £15,000 to £70,000, depending on season, local trade, and how busy the rooms and restaurant are.

Check a premises licence for alcohol and a personal licence holder with your local council. Also check food business registration, hygiene and allergen rules, fire safety and risk assessment, insurance, and music and TV licensing for public areas.

You need hospitality management, team leadership, an understanding of food costs and menu pricing, customer service, and bookkeeping and staff scheduling. The estimate is at least around 50 hours a week, and wages need careful planning.