Bed and breakfast inns have always been a popular alternative to expensive hotels and motels and because there are travellers who prefer a home atmosphere when they’re away from home. A bed and breakfast inn provides overnight accommodation and breakfast. Guests may reserve for longer stays. Some B&B owners also offer lunch boxes and homemade dinners, but the standard offering are a bed and breakfast. Out in the country, bed and breakfast inns may also offer outings and excursions for an additional fee. Some B&Bs are open for business 12 months of the year, some operate only in the summer while others operate in the winter (like B&Bs located near a ski resort).
Capital Required
Medium to High.
It is possible to run a bed and breakfast business with a minimum investment but there are ongoing major expenses that you need to factor in. The rule of thumb is to set aside more money than what you’ve budgeted for.
Capital requirements:
1. The building (some B&B owners use their own homes and probably rent out 2-3 rooms, while others want the B&B to be separate which means acquiring another property. Factor in the mortgage, insurance, décor, utilities and maintenance costs)
2. Food – as the name connotes, bed and breakfast inns serve breakfast. Some customers may even request tea and snacks and even dinner. Giving them the option to have a homemade dinner or going to a restaurant is an added advantage.
3. Licences and permits – check with your city government how much a B&B licence costs. They may also require you to meet certain standards as far as your inn is concerned (this can go into the “unexpected expenses” column).
4. Advertising – on the Net, in newspapers and in tourism and hostel associations. Decide if you want to have brochures and flyers printed and if you need a web site (it is a good idea to have a web site that has been search-engine optimized) to build a client base.
5. Personnel – you will need cleaning, cooking and gardening help.
6. Amenities – these include providing linens and towels, newspapers, sports equipment, picnic lunches, car service, etc.
You will also need fire detectors and extinguishers, road signs, cooking/baking equipment and china. Your guests may ask for a computer and an Internet connection.
Estimated amount of initial start-up capital required (first 2 years): US$17,000. This is a rough estimate as it does not take into account how many rooms and what kind of amenities you will offer, neither does it take into account salaries to be paid.
Skills Required
If you will be operating your B&B yourself, you need the following skills:
a) Culinary skills
b) Chambermaid skills
c) Cleaning and maintenance
d) People skills
Ideal Personality
An outgoing person who loves people. Someone who does not mind welcoming strangers into his/her home. People who open bed and breakfast inns preferably have done some travelling themselves so they have an understanding of what travelers need.
Fees
In North America, B&B owners charge between $50.00 to $120.00 per night. Owners can charge higher if the room has a private bath and toilet, and there are more amenities. It is always a good idea to check with local tourism authorities about fee packages so that you don’t charge too low or too high.
Opportunities
Bed and breakfast owners will be siccessful provided their B&B is accessible (easy to find) from major roads and highways and the service they provide is good. Whether it’s a B&B in the city or out in the country does not matter.
You just need to make sure that you advertise your B&B in all the relevant online and offline media: web sites, automobile associations, tour operators, travel agents, magazines, papers and airline/cruise publications.
Where to Look
Start in your community’s chamber of commerce, and then your state or provincial Department of Tourism.
This web site is the US government Office of Tourism and Travel Industries: http://www.tinet.ita.doc.gov/.
Also visit this web site of the Professional Association of Innkeepers International: www.paii.org
What You Should Do
Speak to B&B operators, read about the business, and calculate your start-up costs and running costs for the next 2-3 years.
Training/Resources
The first things on your to-do list are:
a) Find out about your city government zoning laws
b) Check what kinds of permits/licences you need
c) Make sure your house meets all of your city’s safety codes and standards
d) Find out what steps to take to register your B&B with the relevant bed and breakfast associations in your area.
e) Here is an article from Smart Money that might be of interest: http://www.smartmoney.com/spending/rip-offs/10-things-your-bed-breakfast-wont-tell-you-16080/
f) Read this book: Opening and Operating a Bed & Breakfast in the 21st Century: Your Step-By-Step Guide to Inn Keeping Success with Professional Online Marketing Strategies by Amelia Painter, ISBN: ISBN-10: 1419660578; ISBN-13: 978-1419660573.
Note
Laid off? Unemployed? Retired but still wish to be productive? These business articles are for those who are keen on stimulating their thoughts and actions by undertaking a new venture either alone or with others. Study the other home-based businesses in this section and see where you can channel your talents. Take the road to self-employment or entrepreneurship!
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