Private Hostel Business idea in Nepal(How to start?...earnings,feasibility,benefits)

The Idea of hostel business:

Hostel business is not a new business idea in context of Nepal. The idea behind hostel business is to provide hostel service(food, shared room, water/electricity, internet and other basic things) to students and office workers from different city who wants to work or study on this city and they will pay you on monthly basic for your service.

What problem does Hostel Business solve?

1. Problem of students: There are thousand of students who left their home for higher studies, when they left their home city for studies they have to live in the city where their college lies. All students have two options either they have to take a room or flat for rent and live by managing everything(such as food, water electricity, internet etc.) or they have to live in a private hostel where they will get all basic things needed to live for that they will have to pay certain amount.

2. Problem of office workers: Living in a hostel may be good option for office workers who got transfer from one city to other because you don't have to setup everything that is needed for living as well as living in hostel may save time and cost of buying basic things.

Why students and office workers prefer living in hostel?

1. Living in a hostel saves time which can be used for further career growth.

2. You will get all the basic things such as food, water, electricity, internet, beds etc.

3. Living in hostel may provide community support and there is a change that you get peoples with similar interest.

Opportunity for hostel business

There are thousand of students and office workers who have to leave their home city for study and work. There is always a problem of living outside the home city but living in a flat may be too much overhead to manage everything and in a hotel for long time may be too much expansive.

If managed properly with student's requirement by improving current hostels quality there may be a huge potential of growth in hostels.

Problems of hostel business?

• Choosing the perfect location for hostel.

• The number one challenge of any hostel is to get the students but this problem of getting students can be easily solved if worked smartly then other competitor hostels.

• Managing staffs: Every hostel needs minimum 2 staffs to run the medium sized hostel of capacity around 40 students.

• Food quality management

How much can we earn from hostel business?

If we have a hostel with capacity of 40 students, but hostel may not full at all the time so let's consider we have total 30 students in the hostel. 30 student's will pay total 2.7 lakh per month with an average fee of 9,000. If the total cost of hostel building, water, electricity etc per month is around 1.1 lakh and the cost of staff and food is also 1.1 lakh then the hostel owner can easily earn 50,000 per month without taking account of the admission fee.

How can we make hostel business more profitable?

The only way to make maximum profit from hostel business is to make hostel always full of students. Making hostel full of students may not be that much hard if worked smartly.

• Make your hostel available on internet through facebook pages and websites.

• Provide the best service so past students from hostel will recommend their friends.

• Choose the perfect location for hostel nearby institutes or colleges.

Current situation of hostel industry in Nepal

Current hostel industry is worth more than 2 arab Nepali rupee. There are more than 800 hostels all over Nepal and there are more than 50,000 potential customers for hostels who travels to other cities for study and work.

There are many benefits of living in hostel for students but many of potential customers of hostel prefer living in flats and rooms. If some changes applied to hostel rules and quality of service these potential customers can be attracted towards hostel industry easily.