Costly Mistakes: Keys to Successful Entrepreneurship in Hospitality
Article #1 in the “Reserved for Leaders” series: a section by Zeus Rivas Martín for Estepona Info on mindset, strategy, and hospitality industry development on the Costa del Sol.
Trying to start a business and succeed in the hospitality industry? Then this article is for you.
Good morning.
For those who don't know me yet, my name is Zeus Rivas Martín, better known as Z.R. Martin. I've dedicated over two decades to the hospitality industry, a passion I've complemented over time with training, gastronomic consulting, business coaching, and, more recently, writing.
Today, I want to talk to you about something crucial: the most common mistakes made when starting a business, especially in the hospitality world, although these lessons are also applicable to many other sectors.
More than just pointing out problems, the goal of this article is to offer you concrete solutions, practical advice, and a boost of motivation. Let's get started.
1. Lack of Planning
One of the most common mistakes when starting a project is jumping in without a solid plan. Enthusiasm and drive are necessary, but they are no substitute for a well-structured action plan.
Many entrepreneurs believe that having a good idea or a great product is enough to succeed. The reality, however, is much more demanding.
Typical mistakes:
Not conducting market research.
Not analyzing the competition.
Being unaware of local consumer habits.
Choosing a poor location.
Failing to anticipate a complete financial plan.
🔧 How to fix it?
Conduct detailed market research: identify opportunities, threats, competition, and customer needs. Analyze foot traffic, the profile of residents or workers in the area, and ease of access.
Additionally, build a realistic financial plan that includes all expenses—not just the initial investment—and a contingency fund for unforeseen events.
2. Not Defining the Target Customer
Trying to reach "everyone" is a frequent and dangerous mistake. In reality, a business that tries to please everyone rarely connects deeply with anyone.
Every project must be very clear about who it is aimed at: Age? Lifestyle? Income level? Tastes?
Example: Setting up a bar for university students is not the same as opening a signature cuisine restaurant for discerning couples.
🔧 How to fix it?
Define your ideal customer in as much detail as possible and tailor your entire offering to them: the menu, prices, ambiance, communication, and customer service. Remember: you don't need to appeal to everyone, just win over the right ones.
3. Lack of Experience and Training
Opening a restaurant, bar, or café isn't just about serving good food. It requires leadership, cost control, team management, and real-time problem-solving. A lack of experience can lead you to make costly and avoidable mistakes.
Furthermore, nowadays, skills like social media management, basic marketing knowledge, or speaking other languages can make a huge difference.
🔧 How to fix it?
Start a business in a field you know well. If you lack experience, surround yourself with professionals and learn from them. Train continuously. The more prepared you are, the better equipped you'll be to make sound decisions and sustain your business successfully in the long run.
4. Poor Choice of Location
This is a mistake that still happens frequently: choosing a location solely based on price, because it's close to home, or because "I like how it looks," without considering if it's suitable for the target audience and type of business.
A nice or cheap spot will be useless if it doesn't have enough foot traffic, if it's surrounded by strong competitors, or if the customer profile in the area doesn't match your offering.
🔧 How to fix it?
Before deciding, analyze the area: foot traffic, nearby businesses, profile of residents or workers, accessibility, competition, and gaps in the existing offerings. Look for a location with potential, not just charm.
5. Absence of Marketing and Visibility
Many believe that if their product is good, customers will just show up. Wrong. In a saturated market, simply opening your doors isn't enough: you need to communicate and connect.
Incredible businesses fail simply because nobody knows about them. Today more than ever, if you're not on social media, you practically don't exist.
🔧 How to fix it?
Include marketing in your business plan from the very beginning. You don't need huge investments, but you do need a clear and consistent strategy. My recommendation: trust professionals. Hire an agency, a community manager, a designer. Take care of your image. Remember that marketing is not an expense, it's an investment.
🔚 Conclusion
If you're about to start a business, remember: success doesn't just depend on your idea, but on how you prepare it, how you communicate it, and how you adapt to the market.
📌 Plan, get trained, define your audience, choose your location wisely, and make yourself visible.
These are the first steps towards a solid and lasting business.
I encourage you to pursue your venture with passion, yes, but also with strategy. The path won't always be easy, but believe me: if you build on solid foundations, the chances of creating something great and enduring are much closer than you imagine.