Starting A Bed And Breakfast

Starting A Bed And Breakfast - Background Info:

Owning a bed and breakfast (B&B) goes well beyond basic cooking and cleaning. A normal day may start very early and consist of preparing meals, cleaning rooms, and taking care of reservations and check-ins. This could become the daily routine if your B&B is successful.

Bed and Breakfast Business Considerations:

There are a few things to consider before starting a B&B. First, decide on a maximum amount of guests. This number can vary depending on the size of your property or building. Small B&Bs may only accommodate three or four guest rooms while larger ones may offer 15 or more. Larger operations may be able to produce more revenue in a day but require much more work.

Deciding on the meals you will serve is also something important to consider.

Traditionally, B&Bs serve only breakfast however, certain establishments have begun serving three meals a day and snacks in between.

Also, decide whether you want to give your B&B a them to liven up the place. Some B&Bs have a western or colonial theme to rooms and have activities throughout the day, while others have no theme at all.

Finally, you may want to consider buying a franchise, such as The Quee's Residence Bed & Breakfast because it is well known and will attract more clientele.

Tasks, Skills, and Issues Needed To Run This Type of Business:

Whether you do all the work yourself, hire, or subcontract, here's a list of tasks, skills, and issues that need attention:
Business Specific Tasks:

Marketing, advertising, networking

People skills: Employees, Customers, Vendors, etc.

Website maintenance and marketing

Money management

Scheduling of rooms and staff

Ordering food and cleaning supplies

Bookkeeping of expenses and room bills

Maintaining licenses and insurance

Industry Specific Tasks:

Household cleaning (kitchen, living areas, bedrooms, and baths)

Laundering of sheets, towels, table clothes, and other linens

Ordering of supplies and food

Preparing meals

Providing entertainment (activities, TV, etc.)

Maintaining indoor and outdoor common areas

Approximate Daily Hours Needed:

General Hours of Operation: - When you have guests (customers), your business is open 24/7, 7 days a week, including holidays.

Hours Needed to Prepare: - The majority of the work before and after hours includes food planning and preparation, cleaning, and laundry.

Employees Needed To Run A Bed And Breakfast:

During the start up phase, you can run this business single-handedly. Once your business is up and running successfully, you may need to hire the following:

Receptionist/Desk Clerk
Bookkeeper
Cook
Server
Housekeeper
Yard Maintenance

Skill Requirements F or This Business:

People skills; ability to make people feel welcome and at home

Good organizational skills

Patience

Flexibility to perform different tasks on request or as needed

Cooking talent and meal planning

Previous experience in the hospitality industry may be helpful

Licenses:

You will need a business license, Federal Employee Identification Number (EIN), insurance, and possibly incorporation paperwork such as an LLC.

You may also need a motel license, food serving license, and (if you plan to serve alcohol) an alcohol license.

Approximate Minimum Start-Up Cost:

This can vary greatly depending on if you already have a property or not. The average startup cost is $10,000 - $400,000 USD. According to an Entrepreneur Magazine article, renovating a guest room may run anywhere between $20,000 -$50,000 USD.

Necessary Equipment To Run This Business:

Necessary Start-Up Equipment & Supplies:

Property

Lodging items (bed, chairs, etc.)

Spare linens

Computer

Printer

Cell phone to keep in touch with clients and staff

Cooking/serving equipment and supplies

Washer and dryer

Cleaning equipment and supplies

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:

Outdoor activities and sitting areas

Wi-Fi or internet access for guests

Separate guest phone

Big screen television/entertainment center

Transportation for guests

Monthly Expenses To Consider:

Wages
Phone/cell phone bill
Internet access
Permits
Advertising/Marketing
Electricity/Gas
Water
Food/drinks/snacks
Rent/mortgage payment
Business and home insurance
Referral fees
Gasoline/fuel

Pros And Cons of Opening A Bed and Breakfast:

The Pros of Running a Bed and Breakfast Business:

You meet new people from all over

Have a dream home, host guests, and get paid for it

The business is generally conducted in your home

Offers the opportunity to expose culinary skills and start another venture, such as catering

The Cons of Running a Bed and Breakfast Business:

You can have difficult guests

Possibly 24/7 job, especially on holidays

It can be difficult to compete against local hotels and motel

Stressful to keep up with all your guests

Type of Customers You Need to Attract:

Your customers will be tourists, newlyweds, travelers, couples celebrating anniversaries, honeymooners, and those who frequent the area on business. One bed and breakfast is famous for catering to pilots and flight attendants during layovers and was busy year around.

Bed and Breakfast Business Statistics:

According to statistics from the Professional Association of Innkeepers International (PAII), in 1980 there were a thousand B&Bs serving about a million people. At the turn of this century, that number grew to 28,000 B&Bs serving over 50 million people.

The PAII continued by saying in a recent four-year span the occupancy of rooms filled on a daily average increased up to 50%.

Revenue:

Revenue for B&Bs can vary greatly depending on if you already own the property or not. However, the same PAII survey said that while occupancy increased, so did the average room price. In the same four-year span, average room prices increased from $103 USD to $121 USD per night.

Bed and Breakfast Business Resources:

Bed and Breakfast Sign

Courses:

Starting a Bed and Breakfast (kit)

Equipment and Supplies:

Blackberry Creek

Forums:

Bed and Breakfasts Forum

INNspiring

Bed and Breakfast

Sage Blossom

Associations:

American Bed and Breakfast Association

Professional Association of Innkeepers International

Business Plan:

Bed and Breakfast Business Plan

Software:

My Inn Reservations

RezOvation

Bed and Breakfast Reservation Software

Businesses To Related to a Bed and Breakfast Business:

Hotel/motel management

Hospitality industry

Chef

Bakery

Tourism

Reservations/Travel industry experience