Now that the Internet has reached the masses, Ohioans are turning to it for more and more products and services. Oftentimes, this platform enables online companies to minimize their operating costs, which lowers prices for consumers. Although many online companies find success, they also require solid business planning.
Some people who are looking for a place to stay in central Ohio are forgoing traditional hotel rooms, which can be costly. Instead, they’re turning to companies like Airbnb, which enable people to rent out rooms in their homes for as little as $28 a night. About 350,000 people from around the world have used this service, which in many cases benefits both the home or apartment owner and the guest.
Although Airbnb does not pay any of the taxes that traditional hotels do, it is likely that the government will impose these bed taxes some time in the future. Then the companies may have to adjust their business plans to cover this cost. Also, as the number of customers continues to grow, the online companies may have to increase their insurance coverage. Some people who stay with strangers may cause damage to the home, which Airbnb may have to cover.
The Internet is full of opportunities for anyone who has the fortitude to launch a business start-up. With the right business decisions, any great business idea can become successful. Thankfully, people who are starting a business can work with an attorney to ensure that they’re making the best decisions during the business formation process.
Source: NBC4i, “Rooms For Rent, A Growing Business In Central Ohio,” Ted Hart, April 30, 2014