Owning a bed and breakfast is a great lifestyle – if you are prepared for the reality of it.
Having realistic expectations will pave the way for a happier experience, for both you and your guests. Here are 5 questions to ask yourself to find out if it will bring you the satisfaction you are hoping for.
Why do you want to own a bed and breakfast?
Do you want to do it because you love to cook, decorate and meet people? Is it because you’ve become an empty nester and have extra space? Or do you want to make money while running the B&B?
These questions do not preclude having fun, or making money out of your hobbies. However, your answer will determine how you will judge whether your B&B is “successful”.
What will success look like for you?
Will you count success by the number of people you have stay with you? The number of nice guest reviews you receive? The amount of revenue you generate?
Can success not be all of those things? Yes, they can.
But having a clear idea of how you will measure success will help you figure out what you need to do, focus on and quantify so you will know for sure – rather than depending on your “gut”. In addition, it will help you stay on course, and pinpoint where you need help if things aren’t going the way you planned.
How much money do you need to make?
A number of new bed and breakfast owners start out by saying that if they re-coup their costs of running the B&B and have fun while doing it, it will be worthwhile. Others want to be able to make a living from their home. Some people need to supplement their current income.
In most places, to be classed as a bed and breakfast, the owner must live on site, and you are limited to the number of guestrooms you can have.
You will face increased costs for things like advertising, insurance and utilities Depending on how you choose to run the B&B, you could be technically on call 24 hours a day – and in peak season, 7 days a week.
You are guaranteed to have to work weekends and holidays – when most of your family will be off work. Is the amount of money you need to make worth that type of time commitment?
What kind of personal support do you have for this venture?
Having the support of family and friends makes owning a bed and breakfast so much easier.
Getting their buy-in for your idea will help you tremendously – from having a shoulder to cry on when you have to deal with difficult people,to a safe place to vent when people complain your prices are too high.
It will be even more important if you are going to be using your existing home. Having guests in your home will change the way your space will be used. It will also impact on how family members can interact and communicate(no more yelling up the stairs), and especially if you expect help from family members.
Are you prepared to be self-employed?
If you’ve never been self-employed before, it is a shock to find out all the ways owning a bed and breakfast impacts your finances. Here are several different things you need to consider:
It is important to be honest with yourself about why you want to own a bed and breakfast. This type of business has a big impact on both your personal life and finances.
Having clarity around your expectations will help you to focus on the things that will bring you satisfaction at the end of the day, and will make for happier guests, too.
- You will be responsible for making the all decisions, and dealing with the outcomes. Not everyone is comfortable making decisions.
- Make sure you have adequate health, disability and life insurance – and be prepared for the cost.
- Without an employer guaranteeing your pay cheque, getting credit becomes much more difficult, and more expensive.
- You want to be able to protect the current assets you own – see a lawyer to determine what type of legal “holding” will work best for your bed and breakfast.
- Talk to an accountant to understand what costs will be income deductable, and how to best set-up your book keeping system
- Speak with your financial advisor to discuss the long-term impact this will have on your future
Susan Poole is the owner of the award winning, 40 Bay Street Bed & Breakfast located in Parry Sound, Ontario Canada, and The B&B Coach. As a success B&B owner, Susan was approached by many people with questions about owning a bed and breakfast.
Remembering her own worries, she created The B&B Coach to help people figure out the answers to the questions they had about their unique situations. Her 3-step system “How to turn your passions into a thriving bed and breakfast business” helps people figure out how to make owning a B&B produce the income and personal fulfillment they envision.
If you are thinking about owning a bed and breakfast, CLICK HERE for Susan’s free recording “3 questions everyone who wants to own a bed and breakfast asks – or should!”
Why not start your bed and breakfast business on the right foot with an all-in-one property and reservation management system like Little Hotelier?