Lucy Schiel, owner of The Craven House collection in Surrey and south-west London, looks back at the challenges she faced when launching the business.
I started Craven House 10 years ago, and like any new business owner, I faced a wide array of challenges and stresses. As research tell us, whatever business you’re in, there’s risk.
But in the relatively new world of serviced apartments, I quickly found that there were several unique challenges – obstacles that applied exclusively to this new industry. Ten years later I’m now the proud owner of seven luxury serviced apartments – The Craven House Collection. I thought I’d share some of these challenges here.
So, what exactly is a serviced apartment?
This issue was essentially the root of all the others. And it’s hardly surprising – why would anyone know what a serviced apartment was, if the market barely existed?
Typically, when you start a business, advice on who your customers are, where they are, what they want and what they’re willing to spend, is non-existent. But as I quickly realised, if no-one knew what a serviced apartment was, all this information was missing. Joining an industry when it begins is enormously exciting, and potentially very rewarding. But make no mistake, there have been as many ‘ups’ as there have been ‘downs’.
Compliance: what are the rules for a business that hasn’t existed before?
Compliance is a word that no doubt haunts all entrepreneurs in every industry. But what makes it even trickier is when no precedent exists to follow.
I was eager to become compliant in all safety areas, and quickly. But it was clear that I had start from scratch. Ultimately, through building relationships with people I trust, and with plenty of patience, I made it work. Regulatory work isn’t necessarily the most glamorous part of the job, but it’s certainly satisfying when it’s complete and in place.
Marketing: who are our clients, and where are they?
When you have an idea for a business, you also inevitably have an idea of how to market it – the two go hand-in-hand. But again, that becomes less clear if you’re operating in a new industry.
Were my customers weekenders or looking for long-term stays? Tourists or on business? Once I could establish this, I then needed to understand how to reach them. I also needed to think about their digital habits, and on what digital platforms my marketing time was best spent. That was assuming that they spent their time online – an assumption that could have been completely wrong.
Good business marketing is normally a mix of what already works in the industry, but with character and personality thrown in. I felt I had the personality, Craven House was the unique selling point and the customers were there, and when I found them, I knew that I had something that would appeal.
Estate agents
I faced real resistance from estate agents when I first approached them to list my serviced apartments at Craven House. Inevitably, not knowing much about the type of business I was running, they weren’t entirely comfortable and offered commission rates of up to 25 per cent (against a 10 per cent booking fee).
I was and remain passionate about never compromising on quality. My business was about providing the kind of luxury that gave my customers that home-away-from-home feeling – and to be perfectly frank, losing 35 per cent of every booking wasn’t ideal. Fortunately, as the serviced apartment industry has grown, estate agents have started to appreciate its value and potential and I now have many in the local area that support me.
Fancy reading more from Lucy? Visit cravenhouse.net to find out more.</p
