Equipment & Supply Expenses

$66

$1,200

Retail Business Expenses

$1,250

$11,650

Inventory Expenses

$350

$14,750

Advertising & Marketing Costs

$75

$9,636

Software Expenses

$0

$425

Website Costs

$13

$215

Total Startup Costs

$1,754

$37,876

Makerere University

mak.ac.ug

34,423

Playbill

playbill.com

58,520

GORDON

gordon.edu

126,553

Global Student Accommodation and Housing

universityliving.com

136,843

LIBA – In Pursuit of Excellence with Ethics

liba.edu

413,829

Kndrd

kndrd.io

719,705

Murang'a University of Technology

mut.ac.ke

862,291

Oxfordcaps

oxfordcaps.com

978,142

Lahore Hostel

lahorehostel.com

2,959,848

Cincinnati Youth Collaborative

cycyouth.org

3,634,517

The Ash hostel Antwerp

ash-antwerp.com

5,104,437

Rewarding work

Starting a student hostel business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Meaningful business connections

You never know who you will meet as a student hostel business. This could be the start of an incredible business opportunity!

Daily physical activity

Student Hostel Business's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.

Amazing perks and discounts

Working in the student hostel business comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.

You are your own boss!

With starting a student hostel business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!

Local Community

One of the best parts of starting a student hostel business is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.

Crowded Space

Competition is high when it comes to your student hostel business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

Finding The Right Supplier

Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Low margins

The gross margins for your student hostel business are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the student hostel business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Taxes

As a student hostel business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.