Tourism Business Ideas

Like any planning, tourism planning is goal-oriented, striving to achieve certain objectives by matching available resources and programs with the needs and wants of people. Related with my interest, i decided to start up a tourism business as I can see, tourism industry is an important and growing industry. It is becoming increasingly sophisticated, as evidenced by the varied segments and products that comprise the industry.


According to the nation's tourism minister, tourism in Malaysia contributes about 7 percent of the country's gross domestic product. The money generated from the rise in tourism also significantly reduces the country's deficit.


As i mentioned earlier, I am intended to open up my own business related with tourism industry but unfortunately the constrain of I am facing right now is about generating running capital to start up my business. My business consultant asked me to propose five ideas on how can I generate RM 1 million as a business capital. Finally after some research and brainstorming activities, I am manage to come up with five ideas :


Self finance. Most entrepreneurs and small business owners these days have come to the realization that they will have to self-fund (also know as “boot-strapping”) their projects for a significant amount of time until more formal funding opportunities become realistic. There are many ways to accomplish this from savings accounts and zero interest credit cards to leveraging other personal assets. If we believe in our vision and have an absolute refusal to accept failure as an option, we should feel comfortable investing our own money into the business. In turn, this will make potential investors more comfortable knowing we have skin in the game.
Friends and family. Funding from friends and family is a very popular and effective way to round up some initial capital for a business. Those closest to us are more likely than anyone to believe not only in our vision, but our ability to make that vision a reality. One downside of course is that we are potentially risking personal relationships should the business fail and your agreement not be structured properly. Borrow just enough to launch the business into operations, build a website, or develop some additional pitch material.
Small business loans. Banks are more stringent than ever about giving out loans and if we don’t have any credit, how can we possibly consider this route? According to Mike Kevitch, COO of All Business Loans, “Startups seeking money from banks need a good business plan, profitable projections and some of their own money in the game.” Seeking any type of capital can be a full time job in itself which is why companies like All Business Loans can be a great way to take the leg work out of it. Another reason to pursue debt financing is that we aren’t giving away a piece of your business.
Angel investors. This path is close to my heart because mostly many people have achieved enormous success in raising money this way. That being said, much of it has to do with timing and leveraging the right contacts. A large amount of trust can be built by giving our early stage investor his or her money back plus interest. When raising money from angels or VC’s we have to keep in mind that they will own a piece of the business and we then have a fiduciary responsibility to act in the best interests of the business and its shareholders. Attracting angel investors is a tricky business, and no matter how exciting and positive the initial conversations may be, the devil is always in the details. Know our business plan, be transparent, back up the valuation with real projections , and build a relationship based on trust.


5. Line of Credit loans.For startups, a line of credit can help get your business off the ground, as many new businesses have limited capital needs, and a loan can quickly eat into your profits. For example, some business owners will offer their customers and suppliers better payment terms in order to gain a competitive advantage, or others may buy inventory when it’s cheaper, or invest in advertising to attract more customers. As with any other financing solution, credit lines come in different varieties, each having advantages and disadvantages. The major difference is that a business loan is drawn once, usually for a specific purpose. A line of credit, on the other hand, can be used multiple times. As a result, business loans are usually used to borrow higher amounts, and often for one-time purposes, such as buying out a competitor.Credit lines are often used for day-to-day activities. Another difference is that loan repayments are fixed and paid on a monthly basis, while a credit line can be repaid at any point in time, and if your balance is zero, your payment is zero


With all these ideas, i believe i will successfully manage to get a 1 million of fund to start up my business. Next step is, I am going to propose another five ways to increase my business revenues from 1 million to 5 million to expand my business to the next level.


1. Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people, typically via the internet.[1] One early-stage equity expert described it as “the practice of raising funds from two or more people over the internet towards a common Service, Project, Product, Investment, Cause, and Experience, or SPPICE.”


The crowd funding model is fuelled by three types of actors: the project initiator who proposes the idea and/or project to be funded; individuals or groups who support the idea; and a moderating organization (the "platform") that brings the parties together to launch the idea.


2.Start a side business – The next step would be to start a side business that is subscription based. In other words, you need a side business that continually generates monthly recurring revenue for you to build from.





3.Venture capitalists


For start up business beyond the startup phase and already have revenues coming in, a venture-capital investment may be appropriate. Fast-growth companies with an exit strategy already in place can gain up to tens of millions of dollars that can be used to invest, network and grow their company quickly.


"The benefit of venture-capital investors to a startup is that they can help them get the money and provide them with professional management expertise," said Brian Haughey, assistant professor of finance and director of the investment center at Marist College. "Because venture capitalists focus on specific industries, they can generally offer advice to the entrepreneur on whether the product is going to fly or what they need to do to bring it to market."


However, venture capitalists have a short leash when it comes to company loyalty and often look to recover their investment within a three- to five-year time window.


"They have to make a return and usually have a five-year time horizon," Haughey said. "If you have a product that is taking longer than that to get to market, then venture-capital investors may not be very interested in you."
4.Winning a contest


Other times, businesses can benefit from a bit of luck. That was the case for Roberto Torres and Luis Montanez, who funded a portion of their startup costs for apparel company Black & Denim with winnings from a business-plan competition.


"We utilized the funds to purchase manufacturing equipment that allowed us to scale our products and meet demand," the owners said. "This advantage gave us the opportunity to increase our production and get into bigger players like Stein Mart and Walt Disney World. The competition also gave us access to business experts that asked us the tough questions while allowing us to retain our equity — a perk that would have been very difficult to obtain otherwise."


5. Strategic investors


Strategic investing is more for a large company that identifies promising technologies," Haughey said. "For whatever reason, that company may not want to build up the research-and-development department in-house to produce that product, so they buy a percentage of the company. It is a cheap investment.





However, those using strategic investing must also think about the restrictions the investing companies may place on them. For instance, investors may cancel the business relationship at any time.