Create a banquet hall business, I had the idea of organizing my own wedding. After all, it is a business that requires few staff and is a source of passive income. In this article, I am doing the business case study of party rooms.
How did I get interested in the banquet hall business?
Finding our wedding hall was not easy. We had 250 to 300 people to receive in a setting if possible romantic with a budget of 2000 dollars. We got married in August and when we started the research almost a year ago, all the famous rooms were already booked. You realize, 1 year before, the calendar of the rooms was full for the summer period.
What decided me to be interested in this business is an owner who made us visit his room … A large room, with a large parking, professional kitchen but industrial area … This one asked us 4000 dollars for his room. You have of course 4,000 dollars. For this price we had, a room with a capacity of 400 – 500 people.
A banquet hall, a profitable business?
As I say in my article for a business to be profitable, it must generate income even when you’re sick, on vacation. To sum up, a profitable business should not be conditioned to your time. It’s your business that works for you and not the other way around.
A banquet hall exactly matches this definition. A starting investment to rent or buy the room. Furnish it with a professional kitchen, sound equipment, furniture, tables, and chairs. A cell phone to make appointments, a little marketing to start the banquet hall business and go.
In cruising speed you will just have to visit the reception hall, sign the contracts and give/collect the keys. It is an activity that does not take much time at cruising speed and is easily delegated.
This is exactly like a seasonal rental activity with higher rent.
Yes, but if it was so profitable everyone would do it
Of course, when you see a party owner in cruising speed, you think like me: ” But this guy, he’s really not shit … He makes me visit his room, writes the contract, gives me the discount and collecting keys and I’m paying for it … “
But this is only the tip of the iceberg. To achieve this result, this owner took risks and made a considerable investment. He also does a lot of work to make his room known. The beginnings must have been hard … With moments of doubt.
To open a party room you have to do a lot of work, convince banks, obtain administrative authorizations, meet strict criteria of security, accessibility. You have to have a mind of steel and at least 6 months to finally open the party room, then 6 more months to make it known. That’s a year to start having passive income.