Starting A Bed And Breakfast

Starting A Bed And Breakfast - Background Info:

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Bed and breakfast is a popular small business amongst retirees for example, because many parents wind up with their kids growing up and moving out and, rather than sell their large home with its empty rooms, they opt to invest in that empty space.

What exactly is a bed and breakfast? It's a sort of hybrid between a luxury hotel and a private home, embodying the best of both worlds. A B&B is generally a small establishment with four to 10 guest rooms instead of the 50 to 100 or more found at most hotels. The owners live on-site and interact with travelers as if they were invited guests rather than anonymous temporary room numbers. And guests are treated to lost of little deluxe touches like chocolates on their pillows, turn-down service, and baskets of bath and beauty products set out on Jacuzzi tubs.

And, of course, there's the "breakfast" in bed and breakfast, a sumptuous home-cooked repast that comes with the price of the room and is served each morning in a communal dining room or in the guest's own quarters. B&Bs also tend to feature frosty glasses of iced tea or lemonade on the porch on hot summer afternoons; cups of cocoa after sleigh rides on wintry afternoons; plates of cookies in the kitchen; and wine and cheese in the parlor on dusky evenings--all a part of the room rate

If you already have a home with a bunch of empty rooms taking up space, your bed and breakfast startup costs will be relatively low.

On the other hand, if you're looking to invest in buying a new home for your bed and breakfast, you may wind up resorting to taking out a loan or dipping into your savings.

Depending on the area and the economy (we can't reasonably predict what the housing market will be by the time you read this), you may wind up putting a pretty heavy financial investment into your bed and breakfast. Luckily, you're also investing in a home for yourself, which you will have to yourself when the tourism season ends.

Which brings us to another point. In terms of risk involved in running a bed and breakfast, this varies quite a bit. If you're living a big city, you can probably expect to do quite a bit of business, especially if your bed and breakfast is near bus stops, car rental services, airports, and other travel services.

On the other hand, if you set your bed and breakfast up small town or an area that receives very little tourist activity, your bed and breakfast will have to be a bit more of a hobby and a way to make an extra buck here and there.

The primary motivation for operating your own bed and breakfast should be this: Giving weary travelers a bed for the night and breakfast in the morning. If this describes your goals, a bed and breakfast business can be quite rewarding.

This is a business, however, that you'll need to go into with your eyes wide open. If you're not a people person committed to working 24/7, running a B&B may be more like a recurring nightmare.

If you're absolutely serious about running a bed and breakfast, then there should be nothing keeping you from moving to a bigger city to run a more successful bed and breakfast.

Not only the ability to get along with others, but a sincere curiosity about people from other places will really go a long way in making the whole thing more pleasurable for yourself and for your bed and breakfast clients.

When your tenants leave, they should have a positive story about bed and breakfast and the people there, as such, they can recommend your little corner of the world to other travelers passing through the area.

And of course, you'll want to be a good cook. It's not a bed and go-get-some-donuts-from-the-bakery, it's a bed and breakfast! A great meal can work wonders in turning a good bed and breakfast experience into a great one.

Starting A Bed And Breakfast - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running a Bed and Breakfast:

• General Bookkeeping
• Payroll
• Pay bills
• General office
• Reservations
• Scheduling

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate a Bed and Breakfast:

• Household cleaning including kitchen, living areas, bedrooms, and baths.
• Laundering of sheets, towels, tableclothes, and other linens
• Ordering of supplies and food
• Prepare and make meals
• Provide entertainment such as a living area with television, stereo
• Keep patio/yard areas tidy and welcoming

Starting A Bed And Breakfast - Approximate Daily Hours Needed:

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

Hours Needed to Prepare - Before Opening and After Hours Activities - The majority of the work before and after hours include food planning and preparation, cleaning, and laundry.

Number of Employees Needed To Run A Bed and Breakfast:

Minimum Number of Employees -During the Start Up Phase: You can start this business yourself on a full-time basis, although it is more feasible to run with at least two people.

Number of Employees - Once Your Business is Up and Running Successfully:

• Website maintenance
• Record/Bookkeeping
• General office
• Customer Service
• Cook
• Housekeeper
• Maid
• Transportation
• Yard Maintenance

Here some of the skills necessary to run this type of business other than the necessary business skills:

• People-person; ability to make people feel welcome and at home
• Good organizational skills
• Patience is a plus
• Flexibility to perform different tasks on request or as needed
• Cooking talent and meal planning
• Previous experience in the hospitality industry helpful

Licenses:

Determine how many guests you can and want to accommodate. Some B&Bs limit themselves to just a few guests, others take in 20 and more. Investigate how this will be impacted by the building codes; B&Bs with more than five rooms must comply with the Americans with Disabilities Act (ADA.gov).

Check local zoning codes by calling the zoning board at your town hall to ask about the process for getting approval for a B&B. Be aware that some areas prohibit them. If you plan to renovate an existing building, have a contractor confirm compliance with local building codes. Find out whether there are any restrictions on the types of food that can be served, such as a full breakfast versus just coffee and muffins.

Approximate Minimum Start up Cost:

Bare essential: - The average startup cost is $10,000 - $400,000.

Minimal exposure - Advertising can be pretty cheap for a bed and breakfast. Most bus stations and the like will allow you to post fliers for your bed and breakfast free, and travel journals and classified ads can be cheap, if not also free.

Necessary Equipment Necessary to Run this Business:

Necessary Start-Up Equipment & Supplies:

• Computer
• Printer
• Cell phone
• Website
• Cooking 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:

• Wifi or internet access for guests
• Separate guest phone
• Toll-free number and service
• Big screen television, entertainment center
• Intercom system throughout the home and grounds
• Van for transporting guest

Monthly Expenses To Consider:

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

Special Requirements and Considerations For This Business:

• Find out all you can about the trends in the industry. Know your competition, in particular, their strengths and weaknesses. This will help you identify your competitive advantage. In other words, this will help you figure out what you can give your customers that they’re not getting from the other businesses. And keep from emulating the competition’s strategy. Instead, make the most of your own advantage points.
• You will also need to be just a bit of a neat freak. Most bed and breakfast tenants tend to be polite and will clean up after themselves, but dishes, sheets, towels, cleaning the bathroom, vacuuming, these will be the owner's responsibility, and cleaning up after dozens of people coming and going is a little more high maintenance than taking care of a single family.
• Consider security. Most bed and breakfast tenants will be peaceful, but in this day and age, it's hard to recommend that you trust literally everyone.
• Make sure you have a lock on your door, and possibly some means of self defense such as pepper spray. You need to be careful. If you get bad vibes from a potential renter, it may be wise to tell them you're all booked up for the night.
• Set guest policies and house rules regarding check-in and -out schedules, cancellations and late arrivals, as well as whether pets, children and smoking are permitted.
• Subscribe to a reservation service agency in order to reach a broader market, reduce your workload, and turn over the financial dealings to the experts. Turning over reservation and payment arrangements may negate the need for a merchant credit card account, too. However, there is an annual fee and a commission to be paid for each reservation handled. B&B Midwest Reservations (bandbmidwest.com), for example, charges a $75 setup fee and takes 25 percent of each reservation made on a member's behalf.
• Evaluate whether you have the personality and interest to host guests in your house night and day, season after season. Being outgoing and friendly is part of the job whether or not you feel like it.
• Decide where you'd like to live and work. Locations close to tourist draws are generally the most popular, although out-of-theway accommodations can be just as popular if there is something distinctive and alluring about the place or its surroundings.
• Hire qualified staff to keep things running smoothly. A housecleaner is vital; a cook, dishwasher, bartender, waiter and groundskeeper may be helpful additions during the high season and as the business grows.

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 the country, if not the world
• You can create a niche fairly easily based on the history of the home or area as well as being known for catering to business people or honeymooners.
• The business is normally conducted in your home.
• It can be fun decorating.
• Offers the opportunity to expose culinary skills and start another venture, such as baking cookies and cakes or selling homemade sauces, marinades, etc.

The Cons of Running a Bed and Breakfast Business:

• You can have less-than-desirable guests
• You may work all year around and time off may be hard to come by
• You could have difficulty making a profit; costs to run may easily eat away profits
• You may find it hard to 'find good help'
• It can be difficult to compete against local hotels and motel

Type of Customers You Need to Attract:

Network with fellow B&B owners, visitors bureaus, tourism offices and chambers of commerce to increase awareness of your business. Join national trade associations like ABBA.

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

Many guests now expect private baths, but you may not be able to provide a private bath for each room. In many cases a guest won't object to this as long as you've made adequate arrangements for sharing of a bathroom. But remember that if you wind up sharing a bathroom with strangers, you'll be losing some privacy in your own home and may even have to wait in line at some time. The best solution is to, at a minimum, make sure the innkeeper, family and any staff have a private bathroom not used by any guests.

Bed and Breakfast Business Statistics:

Bed and breakfast inns continue to spring up all over the country, and the
number is rising.  In 1975, there were only 400 bed and breakfast inns in the United States.  That number is over 15,000 today.  The Professional Association of Innkeepers International foresees a doubling of bed and breakfast inns in the next century. 

Revenue:

What a bed and breakfast inn offers customers is a homey, cozy atmosphere at typically the same or slightly lower cost as a comparable hotel. Prices per night could range from a low of $25 to $100 or more. The basic appeal of a Bed and Breakfast Inn for travelers and tourists alike is the fact that it is a quiet "home-style" place to stay.

Bed and Breakfast Business Resources:

Industry-Specific Websites:

Starting A Bed & Breakfast /Farm Vacation Business

INNspiring

BedandBreakfast

Sage Blossom

Courses:

Starting a Bed and Breakfast (kit)

Equipment and Supplies:

Perfect Bed and Breakfast

Blackberry Creek

Forums:

Bed and Breakfasts Forum

INNspiring

Franchises:

The Queen's Residence Bed and Breakfast Inns

Associations:

American Bed and Breakfast Association

Professional Association of Innkeepers International

Books:

Start Your Own Bed and Breakfast Business

Become a Bed and Breakfast Owner

Your Profitable Bed And Breakfast

Software:

Business Accounting Software

Other:

Developing a Bed & Breakfast Business Plan (PDF File)

Get a Business License

Register Your Business Name

Open a Business Bank Account

Small Business Loans

Free Business Insurance Quotes

Easy Payroll Online

Download Business Forms & Templates

Business Phone Systems | Online Fax

Businesses To Related to a Bed and Breakfast Business:

• Hotel/motel management
• Hospitality industry
• Chef
• Baker
• Tourism
• Reservations/Travel industry experience

12 Steps To Starting a Bed and Breakfast

Before You consider a Daycare, see 16 Questions to Consider Before Starting a Business

1. Ensure a Daycare is for You!

You have a choice as to what business you're going to start, so start one that's right for you. Getting into the right business can dramatically increase your success. Get into the wrong business and your success rate drops. Read Five Secrets to Getting into the Right Business for more information.

2. Understand How a Daycare Operates

How can you run a Daycare if you don't know much about the business? What if you run into an issue that you can't or won't deal with? Then what? You're in a business that you hate working in and that's a problem. See Understand How a Business Operates for more information.

3. Make Sure There Is a Profitable Market for Your Business

What's the use of starting a Daycare that is not profitable? You'll be putting all your effort in something that can't support itself or you.  There are a variety of issues when it comes to setting the stage for profitability. See Tips for Identifying a Profitable Market.

4. Create a Business Plan For Your Daycare

A business plan is a must for any size business because it helps you stay focused, see the big picture, and get funding. It's something that you create when you start your business and then update as your Daycare evolves.  Read our free online guide on How to Write a Business Plan

5. Set up Your Business Team

Setting up your team includes finding the right employees and professionals that will help you run your Daycare. 

You don't need to employ everyone you work with, but you will need a team of people you can depend on, which could consist of a lawyer, accountant, banker, and consultant, as well as professionals in your industry. See Creating a Business Team for more on this subject.

6. Get a Small Business Loan if You Don't Have the Money to Start

If you don't have the money to get started, then you'll need the necessary financing or you won't have the opportunity to start your Daycare. This can be done as a small business loan, a personal loan, or other small business financing options.

For more on financing your Daycare see our guide on Financing Your Small Business

7. Legalize Your Daycare

In order to run your Daycare legally you'll need to abide by government rules and regulations on the state and local level.

You'll need to do your research, determine what type of business (sole proprietorship, corporation LLC, etc.) to register, create and register your business name, and register your Daycare with state and local authorities.

To go through the business registration process, see Chapter 6: Making Your Business Legitimate, starting with 6 Easy Steps to a Good Business Name.

8. Get Equipment for Your Daycare

In order to run your Daycare successfully and efficiently you'll need to acquire the right type of equipment. How can you run an online business without a computer? You can't! This is an important issue. See Acquiring Equipment for more on this topic.

9. Set up Your Accounting System

Running a Daycare requires you to collect taxes, and report your earnings. So it's best to set up an accounting system in before you start your Daycare. See Setting Up Your Accounting System for more on this topic.

10. Acquire Customers for your Daycare

In order to exist, every business needs customers. Getting customers is one thing you'll need to be good at. If you can master the tasks of getting customers, it's just like turning on a cash machine almost any time you want. See  Acquiring Customers for more on this topic

11. Prepare To Accept Money

You'll need a way to accept money, you can't depend just on cash or checks. You'll need to accept plastic: Visa, MasterCard, and American Express. To do that you'll need to apply for a merchant account. See Setting Up a Merchant Account for more on this topic.

12. Insure Your Daycare

Make sure you have the proper insurance for your Daycare. Without the right coverage you could lose everything you've worked for. For tips on insuring your Daycare, see our free online guide:  Insuring Your Small Business.

Daycare Issues:

Estimating Startup Costs - Find out if you're forgetting something

Business Location - Choosing A suitable one For Your Daycare

Build or Buy A Business? - Buying an existing Daycare

Business Builders For Your Daycare:

Starting A Business - Free Online Guide

Business cards for Your Daycare

Business Plan for Your Daycare

Business Insurance for Your Daycare

Small Business Loans Finance Your Daycare

Small Business Marketing For Your Daycare

More Business Ideas:

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