As we have been discussing these past few weeks, there is much to learn when becoming a travel agent and advisor. Last week, we discussed your options. This week, let’s focus on starting that successful business.
Successful businesses typically are well planned. A key question to consider is whether there is a market for what you have to offer. Let’s suppose you have determined you have the skills and personality to work on your own, and there is a market for your services. What’s next? It’s time for a business plan.
A business plan is a summary of what is expected from a commercial effort, including the level of income, benefits, and investment, along with a statement of mid- and long-term goals. It’s important to invest time into developing such a plan. Unfortunately, many small business owners choose to skip this important step.
If you are entertaining the idea of becoming a travel business entrepreneur, having a business plan should be your first step, along with getting the education you need to succeed. As your lifelong learning partner, The Travel Institute offers guidance on business planning in our Introductory program. The TRIPKITSM, designed for new agents, consists of three areas: Travel Agent 101, Geography, and, very importantly, Starting a Business. If you haven’t already done so, be sure to take advantage of the $80 tuition savings through November 30th.
And don’t forget about Preparing for a Travel Career, presented by Patty Noonan, CTC on November 4 at 1:00 pm, in which she provides various tools and information for your first steps into your travel career.
The following are some basic elements and checklist of a business plan taken from the TRIPKIT Program:
- Your expectations. For example, how long do you expect to take to generate income? Do you expect to work part-time or full-time? Do you expect eventually to obtain all your income from this business?
- Your business concept or profile. What is its niche? What is the competition? You may want to specialize in two or three niches to cushion your business for seasonality and unpredicted marketplace changes.
- A mission statement. It should clearly and succinctly communicate your company’s purpose.
- Specific goals and objectives. Based on your expectations, you can identify specific goals that will direct your efforts and help you set priorities for your activities. Your goals should be SMART: Specific, Measurable, Actionable, Realistic, and Time sensitive. Create a 30-, 60-, and 90-day plan of action and identify specific tasks that flow directly from those goals.
- Projections for the business. What income do you project for the first year? For the first three years? What expenses do you project? Do you need outside funding?
- Your name and brand. Choose a name and brand that are descriptive of your business’s focus. For example, “World Diving Cruises and Tours” is much more descriptive than “Suzy’s Travel Shoppe.”
- Legal and accounting requirements. Turn to the experts to help you set up your business properly. It’s critical to find an attorney and an accountant who specialize in small businesses or travel agencies.
- Your office. Setting up your office—particularly if that office is in your home—requires time, effort, planning, and money. The investment is worthwhile for a space that gives you a professional atmosphere and convenient access to the required tools of the trade.
- Your website and social media presence. A website and social media presence are especially important for virtual travel agencies because they lack a physical storefront. You may want to develop a site and social media pages on your own, but many companies specialize in creating, hosting and maintaining websites for travel agencies.
- A possible host agency. If you are an independent contractor, selecting a host agency partner that is a good fit with your business is a key decision. For some helpful tips on this topic, you can find a list of host agencies at The Travel Institute’s website. You also may seek out other resources, such as FindaHostTravelAgency.com.
All of these tips and many others are covered in depth in the TRIPKIT course. Our goal is to help you gain the knowledge and to offer you the unbiased guidance you need to succeed. We look forward to continuing to see you grow!
