--- title: "Special Series: Baguni Guy's Hostel Startup Diary 04" description: "A first-time hostel founder's unfiltered roadmap: concept, funding, permits, construction. Lim Kwang-pil breaks down the startup sequence most Korean hostel operators get wrong." published: 2017-11-03T00:00:00+00:00 author: "ONDA 편집팀" category: "Insights" image: "https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65a9e11ba9262571eecb6622_62e7682443831320844785d0_5e9441681f4c1e2e52684707_ebb094eab5aceb8b88ed98b8ec8aa4ed85945-e1513649153275.jpeg" canonical: https://global.onda.me/en/blog?slug=teugbyeolyeonjae-baguni-gaiyi-hoseutel-cangeobilji-04 locale: en --- # Special Series: Baguni Guy's Hostel Startup Diary 04 #### **04. The Hostel Business Roadmap** ##### **By Lim Kwang-pil, CEO, Baguni Hostel** ![bagunihostel_02](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65a8b231204d9f1cbc5ed05f_62e7682443831390f84785d5_5e8acdacab1cf8bd58a8e5ff_bagunihostel_02.jpeg) "I'm just a regular office worker. Not a successful hostel entrepreneur. Definitely not an expert. I'm writing this series as if I could time-travel back three years and give advice to my past self — the guy about to launch a hostel. If you have questions or thoughts, let's talk on my blog ([http://blog.naver.com/lightfly73](http://blog.naver.com/lightfly73))." ![바구니호스텔.jpg](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65a8b231204d9f1cbc5ed05b_62e76824438313903d4785d2_5e8acdacacdbb520e941f7cd_ebb094eab5aceb8b88ed98b8ec8aa4ed85941.jpeg) Today: the startup sequence. I'm focusing on new construction, but renovations follow a similar path. Don't take this as gospel — think of it as the general flow. ### **[Business Concept Phase]** 80% of your success gets decided here. No one can do this thinking for you. It's your job. Your responsibility. Think hard. Think long. And before that — learn *how* to think. Collect all the data and ideas you can, then filter ruthlessly. Figure out what you *want* to do, what you *can* do, what you *must* do, and — most important — what you *shouldn't* do. Remember: working hard on the wrong thing is the dumbest move you can make. #### **A. Analyze yourself** Is the hostel business actually right for you? Are you chasing a fantasy? What's your real competitive edge? Be brutally honest. #### **B. Define scale and funding** Most first-timers get greedy. Projects balloon. Budgets explode. Overextending doesn't just sink the business — it wrecks your life. Break your funding plan into phases. #### **C. Write a business plan** This is your compass. You'll revise it constantly while running the business. Share it widely. Get feedback. Every critique helps — stay open-minded. Forecast revenue conservatively. Budget costs generously. Even then, actual revenue will disappoint. ### **[Preparation Phase]** You've been dreaming. Now you hit reality. This phase is about hustle — solving problems with your hands and feet, not just your brain. Build a network. Make a list of people who can help. Use every connection. #### **A. Secure funding** For hostels, government support basically means tourism-industry grants under the Tourism Promotion Act. That's it. No startup loan schemes for lodging. Weigh the trade-offs, but seriously consider it. #### **B. Find and buy land** The fastest path to profit? Buy cheap land and make it valuable. There's no shortcut except legwork. #### **C. Hire an architect** A great architect saves you serious money during construction — and brings your vision to life. Find someone who *listens* to your ideas, not someone who lectures you on theirs. ### **[Business Formalization Phase]** #### **A. Project approval** Get sign-off from your city/county/district office. With a solid business plan and architect support, this is straightforward. #### **B. Business registration** Easy if you meet the requirements. #### **C. Building permit** A good architect handles this. But delays here balloon your timeline and costs. Stay meticulous. ### **[Construction Phase]** #### **A. Choose a contractor** Work with your architect. Get detailed cost breakdowns from 3–4 contractors. Don't pick the cheapest — pick the most *reasonable*. Choose someone local. Visit their past projects in person. #### **B. Break ground and build** Your architect and contractor run this. #### **C. Complete construction** #### **D. Building registry and title** ### **[Finishing Phase]** Everyone's on edge now — you, the architect, the contractor, the interior designer. Draw on all the trust and teamwork you've built. This phase is where you win over guests. Always think from the customer's perspective. #### **A. Interior, furniture, fixtures** This is what guests see and touch. Atmosphere matters. Nail the vibe for your target audience. If you create something Instagram-worthy, guests will do your marketing for free. Invest boldly — even if it stretches you. #### **B. Marketing** More on this later. For now: start your blog or social media. Today. #### **C. Build a website** ### **[Licensing Phase]** Just a formality. No major issues. #### A. Tourism accommodation license #### B. Ancillary business permits ### **[Final Stretch]** Congratulations. The hard part begins. #### **A. Soft opening** #### **B. System checks** ![호스텔창업의순서.jpg](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65a8b231204d9f1cbc5ed078_62e768244383131d544785d4_5e8acdab8a0ceee19f85f984_ed98b8ec8aa4ed8594ecb0bdec9785ec9d98ec889cec849c.jpeg) One last thing — a book recommendation. Whether you're running a guesthouse/hostel or planning to launch one, this will help. ### **#BaguniGuy_BookPick** ![사업의철학.jpg](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65a8b231204d9f1cbc5ed063_62e7682443831318124785d3_5e8acdaccce5fbca64b456d1_ec82acec9785ec9d98ecb2a0ed9599.jpeg) **Author: Michael E. Gerber** **Publisher: Lighting House** **Translator: Lee Je-yong** **"Baguni Guy's Hostel Startup Diary runs for 10 episodes. See the schedule below!"** - [**2017. 08** Are you a hostel entrepreneur?](https://onda.me/magazine/8/post/101) - [**2017. 09** Smart research and startup notebooks](https://onda.me/magazine/9/post/38) - [**2017. 10** Make or break: target audience and site selection](https://onda.me/magazine/10/post/32) - **2017. 11 The startup sequence** - **2017. 12** Writing your business plan - **2018. 01** Meticulous financial planning - **2018. 02** Building a one-of-a-kind brand - **2018. 03** Design and construction delegation - **2018. 04** Interior design with personality - **2018. 05** Marketing: your survival depends on it ### [**Read the full magazine edition <<**](http://bit.ly/magazineon11) --- ⚠️ All rights reserved. Cite this piece as 'ONDA (온다)' when quoting.