Everyone wants to earn additional income, and one way is by running a homestay business. If you're interested in trying it, you can take advantage of the profits from investing in Fixed Income Mutual Funds (RDPT) as initial capital.
So, what is the business' prospect? As quoted from Bangkapos.com, Devi Valeriani, a lecturer at the Faculty of Economics, University of Bangka Belitung, said that a homestay business is very promising as long as you are smart in handling it.
The success of this business depends on the selection and implementation of structured and planned strategies. The room rates should be competitive (below hotel room rates), and digital media promotions should also be implemented.
Tips for Raising Business Capital Through Fixed Income Mutual Funds
Building a homestay business is not as easy as imagined, but it doesn't mean it's impossible. As long as there is capital, you can start this business. Investing in RDPT can be a solution to raise business capital.
To ensure that the investment runs smoothly as expected, the right investment steps are necessary. Here are some tips for preparing homestay business capital through investment in Mutual Funds.
- Plan the Investment Term
The first thing to consider is determining the right investment term. To decide, you need to think about when the homestay business will start.
If there is still time, it is advisable to invest in the medium term (around 1 to 3 years). Fixed Income Mutual Funds investment in the medium term is relatively safe and low-risk, but the potential returns are not as high as Equity Mutual Funds. If you need a large capital in a short time, you need to invest a significant amount in RDPT. This way, the potential profit generated in less than 3 years can be used for business operational needs.
- Understand Risk Profile
Before making an investment, you also need to understand the meaning of a risk profile. Each investor has a different risk profile, requiring different investment strategies and steps. Investors who have been involved in the investment world for a long time generally dare to take risks.
Such people usually have an aggressive risk profile. On the contrary, those who are new to investing generally do not dare to take too high risks. These individuals usually have a conservative risk profile and are very cautious in determining investment steps.
Meanwhile, those who have some understanding of investment can tolerate significant losses but are still cautious. People in this category fall under the moderate risk profile.
- Choose the Right Mutual Fund
How do you choose the right Mutual Fund to raise business capital? Actually, choosing a Mutual Fund is easy if you already recognize your own risk profile.
Owners of aggressive risk profiles are more advised to invest in Equity Mutual Funds because the potential for profit is higher, although the risk level is also higher.
Meanwhile, owners of conservative risk profiles are advised to choose Money Market Mutual Funds and the best Fixed Income Mutual Funds. Both offer lower risk than Equity Mutual Funds. For owners of moderate risk profiles, they can choose Balanced Mutual Funds.
- Diversify Investments
In making investments, no one can predict what will happen in the future. There is a possibility that the Investment Manager will experience significant losses, affecting the performance of the Mutual Fund.
To prepare for this possibility, it is advisable to diversify investments. Spreading funds across several Mutual Fund products will help minimize the risk of significant losses.
How to Start a Homestay Business
After successfully gaining profits from Mutual Fund investments, you can then plan the framework for the homestay business you want to run. If you want a well-planned business, you need to apply the following tips:
- Choose the Location Carefully
The selection of the homestay's location must be considered because it is one of the main factors in determining the success of the business. Ensure that the location has easy access for two-wheeled and four-wheeled vehicles.
If possible, look for a place close to tourist attractions, culinary spots, and shopping centers. It doesn't matter if the land/building price is higher as long as it can increase the chances of a more positive business.
- Define the Target Market
You must have a specific target market to make it easier to determine the direction of the business and the right homestay concept. If you choose a target market from the backpacker segment, you need to prepare a minimalist room concept with affordable rates.
- Use a Unique Concept and Design
Each homestay must have its own distinctive features. To create a prominent characteristic, you can apply a unique and different room concept and design from competitors. Try to find inspiration from accommodations abroad to explore more innovative ideas.
- Manage Business Licensing
In running any business, legality is an important aspect that must be prioritized. Managing business permits must be done well in advance before the business opens. Besides dealing with business legality in the relevant department, you also need to seek approval from the local community.
- Implement Digital Marketing Strategies
Success in the homestay business is not only influenced by the location and room rates. There are several other essential things to support business performance, one of which is marketing. Here are digital marketing strategies that must be done in the accommodation business:
- Register your homestay on online accommodation platforms to reach a wider audience.
- Promote it through social media to build more awareness.
- Build branding by creating a unique and easily recognizable name and logo.
By implementing digital marketing strategies, the homestay business will be more quickly recognized by the wider community. At the opening, don't forget to offer special room rates to attract the attention of tourists and the local community.
DBS Treasures Priority Banking, Safe and Reliable Investment Partner
Raising business capital through investment is not as easy as imagined, especially with the rise of illegal investment platforms. DBS Treasures priority banking is one of the investment partners that offers various advantages.
You will be supported by curated market analysis from a team of financial experts who will communicate it. Seize the latest opportunities that have been tailored to your risk profile and portfolio needs, driven by Artificial Intelligence/Machine Learning (AI-ML). This insight is equipped with curated solutions related to investment (Grow) and insurance (Protect), so you can quickly and confidently invest through your preferred media.
In addition to supporting insight to determine investment steps, you can also easily diversify funds into several instruments. This is because DBS Treasures provides various types of investment assets managed by professional Investment Managers. The process of buying and selling Fixed Income Mutual Funds can also be done conveniently through the digibank by DBS Application.
Interested in investing in RDPT? Register and join as a DBS Treasures priority banking Client! For more information, click here.
