Running a bed and breakfast is a lifestyle choice, but one many entrepreneurs love because of its ability to supplement a family's income while allowing the business owner to remain at home for the majority of their day. Learn more about running a bed and breakfast here, with information on where to get more details should the business idea be one that proves interesting.
What Bed and Breakfast Businesses Do
Bed and breakfast owners provide a private space in their own home for overnight visitors. Entrepreneurial owners should expect to wear multiple hats as marketers, concierges, cooks, chefs, maids, tour guides, bookkeepers and hostesses.
Recommended Skills and Experience to Run a Bed and Breakfast
Bed and breakfast business owners need to have exceptional people skills as well as a willingness to allow strangers into almost all aspects of their lives. As well, innkeepers should:
- Be willing to read, network and educate themselves about the bed and breakfast business constantly;
- Have strong communication skills, including talking on the phone and answering emails;
- Understand that hiring contractors is sometimes necessary, and have the skills to hire and/or fire landscapers, managers, cleaners and hostesses;
- Know that sometimes running a B&B is very similar to running a household with children, such as cleaning up after people constantly, ensuring every need and request is taken care of, and that people are warm, fed and content every step of their visit.
Start Up Costs for Running a Bed and Breakfast
The start up costs to run a bed and breakfast are considerably higher than most business start ups, as both property and upgrading are almost always required before opening up for business. Expect to budget for furniture, linens, interior decorating, landscaping, amenities (such as soap and toiletries), food and remodeling (like adding additional bathrooms). A computer, dedicated phone line, fax machine, and printer will also be required, as will reservations software ($250-1,000), a website that accepts online reservations, and the ability to process credit card transactions. Finally, related business organizations and taking part in online B&B business guidebooks will also add to the final start up tally.
How Much Can a Bed and Breakfast Business Make?
Independent bed and breakfast businesses charge anywhere from $45 a night per person to $150 a night or more depending on location, amenities and current, concurrent events. An easy way to determine going rates in the area of interest is perform a market analysis by perusing the local yellow pages and reviewing what other B&B businesses are charging, and what sort of amenities come along with the price. As an example:
- If a B&B charges $80/night and has 2 rooms to rent, they can potentially make $1120 a week, or $58,240 a year.
- Most B&B owners take at least two weeks off a year ($56,000) and only have a 50% occupancy rate at any given time ($28,000).
- Therefore a B&B owner with two rooms available at all times, taking two weeks off a year for vacation time, can expect to earn $28,000 a year. This doesn't include expenses however, which are better calculated by crunching the numbers in a basic business plan financial worksheet.
Where to Get More Information About Starting a Bed and Breakfast
First off, take a peek at a bed and breakfast business plan for a better idea as to what is required to run the business on a day-to-day basis. As well, the following resources should be of assistance:
- Professional Association of Innkeepers International;
- Be An Innkeeper - a fantastic free online resource from About.com;
- Complete Idiot's Guide to Running a Bed and Breakfast, by Susannah Craig and Park Davis;
- Start and Run a Profitable Bed and Breakfast Business, by Monica and Richard Taylor; and
- How To Start and Operate Your Own Bed and Breakfast, by Martha Watson Murphy and Amelia Rockwell Seton.
Bonny Albo - Bonny offers 20 years of writing experience to her readers. CNN, MSNBC, The LA Times and Macleans all reference her for expert advice.
