Special Series: Baguni Guy's Hostel Startup Diary 05

TL;DR

A first-time hostel founder walks through writing a business plan—not for investors, but as a survival tool. It's your compass, your journal, and the best way to test your own assumptions.

05. Writing Your Business Plan

by Im Kwang-pil, Founder, Baguni Hostel

"I'm just a regular office worker. I'm not a successful hostel mogul. I'm definitely not an expert. I'm writing this as if I could take a time machine back three years to advise my past self—the one about to start a hostel. If you have questions or feedback on this series, let's connect via my blog (http://blog.naver.com/lightfly73)."

This time, let's talk about how to write a business plan. Your business plan is your compass. You wouldn't explore uncharted territory without one. In the wild terrain of entrepreneurship—where danger lurks around every corner—your business plan isn't optional. It's survival gear.

Sure, you need it for bank loans, government grants, and investor pitches. But the real value is in the process itself: reflecting on your business, researching it, and seeing it through objective eyes. That requires conviction—and a willingness to interrogate your own assumptions.

A business plan is never finished. It's always a work in progress. Keep refining it. Add to it. Revise it. Look at it at least once a day to keep yourself oriented. Treat it like a journal—don't delete old versions, save them chronologically. You'll be able to watch your business take shape over time. Those earlier drafts become fertile ground for better ideas.

If you've been keeping a startup notebook (like I suggested earlier), your business plan is essentially a polished summary of that notebook. The easiest way to do this? Structure your notebook from day one using a standard business plan outline.

So how do you actually write one?

1. Read books on business plan writing.

Fastest, clearest route. You'll find them at any bookstore or library. Two books should be enough. There are also tons of templates and guides online—use them.

2. There's no one-size-fits-all format.

PowerPoint, Word, Google Docs—doesn't matter. What matters is that your business vision and direction come through clearly.

3. Must-have sections: company overview, business overview, market analysis, operations plan, financial projections.

Plan for at least 3–5 years out.

4. Start with the big picture, then fill in details. Here's a rough example:

1) Background: Travel trends are shifting toward X and Y. According to [credible sources], travelers now prioritize Z. Existing accommodation options aren't keeping up—they have strengths and weaknesses, but there's a gap in the market for something new that fits this emerging behavior.

2) Method: We're going to build a next-gen accommodation that nails this trend. We'll differentiate through A, B, and C. Our operations will be lean and effective, we'll hit revenue targets, and we'll even boost the local economy. Plus, I'm uniquely positioned to pull this off.

3) Proposal: To make this happen, we need to build (or renovate) a property, furnish it, handle interiors, landscaping, etc.—all of which requires capital. But if we operate well, we'll service debt easily and recover principal quickly.

Once you have the logical flow nailed, arrange it into a standard business plan structure.

5. Back up your Background section with credible data.

Use sources like the national statistics office, tourism boards, research firms. Of course, cherry-pick the stats that support your case.

6. You must be able to summarize it on one page.

If you can't, it's not a good plan. Every key element should fit into a single-page executive summary with a clear logical flow. Put that page first—it's your opener.

Investors and bankers review dozens of plans a day. You spent months on yours, but to them it's just another item in the queue. A clean, sharp one-pager makes a strong first impression. It also forces you to clarify your own thinking.

7. Define your purpose clearly.

The primary goal of a business plan is self-reflection—understanding your own venture inside and out. Secondary goals include securing loans, permits, and investment. I ended up writing two versions: a detailed one for my own strategic review, and a streamlined one for external stakeholders.

For investors, emphasize vision, differentiation, and strategy. For banks, emphasize financials—collateral, payback period, ROI. Banks care more about numbers than narrative. You may need to polish the numbers a bit to make them shine. Just don't fool yourself in the process.

8. Write in concise, bullet-driven language.

Cut the fluff. No flowery adjectives. Keep a consistent tone throughout.

9. Learn SWOT analysis—and apply it rigorously.

I can't cover SWOT fully here, but most business plan books will. It's critical. Your plan should reflect your real strengths, weaknesses, opportunities, and threats. If you ignore this step, you're flying blind.

10. Use charts, graphs, and infographics to clarify key points.

11. Share your draft and ask for feedback.

Tap your network. Get honest input from people who understand your industry—or at least understand business. If you want, email me at lightfly73@naver.com—I'll review it if I can.

#Baguni Guy's Recommended Reading

Next installment of 'Baguni Guy's Hostel Startup Diary' (January 2018): 'Building a Bulletproof Financial Plan'

"Baguni Guy's Hostel Startup Diary" is a 10-part series. See the full schedule below:

2017. 08 Are You a Hostel Entrepreneur?
2017. 09 Smart Research & Keeping a Startup Notebook
2017. 10 Make-or-Break Decisions: Target Audience & Site Selection
2017. 11 The Order of Operations
2017. 12 Writing Your Business Plan
2018. 01 Building a Bulletproof Financial Plan
2018. 02 Building a Brand That's Yours Alone
2018. 03 Hiring Architects and Contractors
2018. 04 Interiors That Reflect Your Taste
2018. 05 Marketing Like Your Life Depends On It