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START & RUN A BED & BREAKFAST
Introduction
1. The Business Of Bed & Breakfast
1. What Is Bed and Breakfast?
1.1 Private homes
1.2 Family-run operations
1.3 Commercial operations
1.4 Other variations
2. Take a Look at Your Competitors
2.1 Free publications
2.2 Bed-and-breakfast guide books
2.3 Reservation services
2.4 Other sources
3. Who Are the B&B Customers?
4. Can You Operate a B&B?
5. How Will This Book Help You?
Bernhardt’s Victorian Rarebit
2. Becoming A Bed & Breakfast Host
1. Advantages
2. Disadvantages
3. Skills and Qualities That Best Suit the Job
4. Skill Assessment. 4.1 Why do a skill assessment?
4.2 Do your own skill assessment
5. Action Plan to Improve Your Skills. 5.1 Analyzing the skills assessment
5.2 Make your own action plan
Henry Higgins Harvest Muffins
3. Market Research
1. Why Do Market Research?
2. Sources of Information
3. What Tourist Attractions Are in Your Area?
3.1 The tourist attraction survey
3.2 Do your own tourist attraction survey
4. Know Your Potential Customers. 4.1 Who are your potential customers?
4.2 What facilities and services do your customers want?
5. Know Your Competition
5.1 Other B&Bs
5.2 Small, local inns
5.3 Local commercial establishments
5.4 The competitor survey
6. Document Your Market Research Costs
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4. Using Your Market Research
1. Summarize Your Market Research Surveys. 1.1 Choose your start-up customers
1.1a Expense
1.1b Acceptability
1.1c Compatibility
1.2 List your final customer choices
2. What Does Your Market Research Summary Tell You?
3. Do a Trial Bed and Breakfast Visit
3.1 Choosing the home
3.2 Inspecting the home
3.3 Document your costs
4. Establish Start-up Parameters
Bran and Superbran Bread
5. Making It Legal
1. Sources of Information
2. Your Business Structure
3. Registering Your Business Name
4. Levels of Taxation
5. Bylaws and Zoning
6. Business Licenses and Inspections
6.1 Fire inspection
6.2 Building inspection
6.3 Health inspection
7. Insurance
8. Document Your Costs
Oscar’s Wilde Chili Sauce
6. Time For Renovations?
1. The Renovation Survey
2. Guest Bedrooms
2.1 General
2.2 Beds
2.3 Other furniture
2.4 Accessories
3. Guest Bathrooms
3.1 General
3.2 Accessories
4. Guest Hallways and Stairways
4.1 General
4.2 Accessories
5. Common Sitting Area
6. Guest Eating Areas
7. Exterior Guest Areas
8. Private Family Areas
8.1 Privacy versus inaccessibility
8.2 Children
8.3 Your office
8.4 Exterior family areas
9. Document Your Costs
A Scone for All Seasons
7. Planning Your Food Services
1. A Good Breakfast — A Good Start to the Day
2. “What Time Is Breakfast?”
3. “What Kind of Breakfast Do You Serve?”
3.1 Continental
3.2 Hot or cold buffet
3.3 Full or cooked
3.4 Cook-your-own
3.5 Breakfast in bed
4. “What’s for Breakfast?” 4.1 Offer a variety
4.2 Special diets and allergies
4.3 Developing your menu
4.4 Serving hints
5. “Is This the Breakfast Room?” 5.1 Location
5.2 Accessories
5.3 Atmosphere
6. Other Food Services
6.1 Extra meals
6.2 Lunch packs
6.3 Room refreshments
6.4 Special services
7. Handling Food. 7.1 Purchasing
7.2 Storage and spoilage
7.3 Preparation
7.4 Hygiene
7.5 Disposal
7.6 Plan for renovations
8. Document Your Costs
9. Calculating Guest Food Costs
9.1 Item-by-item versus average method
9.2 The food cost analysis
“South Pacific” Banana Muffins
8. Setting Your Housekeeping Standards
1. Bedrooms
2. Bathrooms
3. Eating Area
4. Common Sitting Area
5. Guest Hallways and Stairways
6. Food Preparation Areas
7. Washing Dishes
8. Laundry
9. Order of Cleaning
10. Exterior Housekeeping
11. Pedestrian and Vehicle Access
12. Other “Going Green” Tips
13. Equipment and Supplies
14. Document Your Costs
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9. Keeping Client Records
1. Use Technology Wisely
1.1 Telephones
1.2 Answering machine
1.3 Fax machine
1.4 Typewriter
1.5 Personal computer
2. Types of Bookings
2.1 Advance bookings
2.2 Same-day bookings
3. Booking Procedures and Forms
3.1 Reservation book
3.2 Reservation slips
3.3 Canceled reservations
3.4 Deposit reminder slips
3.5 Booking confirmation slips
3.6 Client address book
3.7 Long-distance telephone slips
3.8 Guest book
4. Document Your Costs
The Importance of Being Pancakes
10. Customer Service Options
1. Check-in Procedures
1.1 Check-in times
1.2 Put your customers at ease
1.3 Orient your customers
2. Safety and Security
2.1 Customer identification
2.2 House security. 2.2a Door locks
2.2b Bedroom security
2.2c Valuables
2.2d Alarm systems
2.2e Exterior
3. Tariff Payment
3.1 Cash
3.2 Foreign currency
3.3 Postal money orders
3.4 Bank drafts
3.5 Travelers’ checks
3.6 Personal checks
3.7 Credit cards
4. Check-out Procedures
4.1 Check-out time
4.2 Keys
4.3 Guest book
4.4 Tariff collection
4.5 Tariff receipts
4.6 Articles left behind
4.7 Tips
5. Customer Services
5.1 Babysitting
5.2 Pet care
5.3 Laundry services
5.4 Pick-up and drop-off service
5.5 Information services
5.6 Reservation services
5.7 Medical aid
5.8 Tax rebates
5.9 Other customer services
6. Problem Customers
6.1 Early arrivals
6.2 Late arrivals
6.3 Late cancellations
6.4 Late check-out
6.5 Breaking your house rules
6.6 Disruptive behavior
7. Document Your Costs
Critics’ Choice Cranberry Relish
11. Establish Your Financial Records
1. What Records Do You Need to Keep?
2. Business Expenses. 2.1 What is a legitimate business expense?
2.1a Direct expenses
2.1b Capital expenses
2.1c Prorated expenses
2.2 Calculating the business portion of your house
2.3 Converting personal items to business use
2.4 Guest food costs
3. Expense Record Forms. 3.1 Keep your receipts
3.2 Monthly expense record
3.3 Expense summary form
4. Revenue Record Forms. 4.1 Keep your reservation slips
4.2 Monthly revenue record
4.3 Revenue summary form
5. Audits
6. Document Your Costs
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12. Advertising And Promotion
1. Word of Mouth
2. Business Stationery. 2.1 Business cards
2.2 Brochures
2.3 Envelopes and letterhead
2.4 Client forms
2.5 Customer follow-up
3. Signage
4. Advertising
4.1 Booking agencies
4.2 Bed and breakfast guide books
4.3 Government publications
4.4 Tourist attraction brochures
4.5 Telephone directory
4.6 Magazines
4.7 Newspapers
5. Websites and Internet Advertising
5.1 General considerations
5.2 How to create a website. 5.2a Hire a professional
5.2b Do it yourself
5.3 Website features
5.3a Descriptive text
5.3b Photographs
5.3c Graphics
5.3d Frequently asked questions (FAQs)
5.3e Additional customer inquiries
5.3f Booking a reservation
5.3g Reservation payments
5.3h Links
5.3i Other features
5.4 Choosing a domain name
5.5 Choosing an Internet Service Provider (ISP)
5.6 Online Advertising
5.6a Search engines
5.6b Social networking
5.6c Email marketing
5.6d Blogs
5.6e Keeping on top of changes
5.7 In conclusion
6. Measuring the Effectiveness of Your Booking Sources
6.1 Cost per booking
6.2 Break-even point
7. Document Your Costs
French Toast À La Comédie Française
13. Forecasting Your Business Success
1. The First Year
1.1 Estimate the available booking days. 1.1a Review your final customer choices
1.1b Review preferred attractions
1.1c Check local booking agencies
1.1d Check the local bed and breakfast association
1.1e Calculate the average booking days available
1.2 Adjust the estimates for market conditions. 1.2a Check the state of the economy
1.2b How aggressive will your advertising be?
1.2c How unique are your facilities or services?
1.2d Compare your tariff structure
1.2e Calculate the adjusted booking days available
1.2f Allow time for vacations and days off
1.2g Calculate the booking days available
1.3 Calculate your first-year booking forecast. 1.3a Calculate the maximum room bookings available
1.3b Do a first-year adjustment
1.3c Calculate your booking forecast
2. Subsequent Years’ Forecasts
3. Statistics. 3.1 Advance bookings
3.2 Actual bookings
3.3 Sources of bookings
4. Document Your Costs
“As You Like It” Coddled Eggs
14. Financial Planning
1. Calculate Your Start-up Costs
2. Review Your Start-up Costs
3. Sources of Start-up Capital
3.1 Personal savings
3.2 Personal financing
3.2a Personal loans
3.2b Credit card
3.2c Family or friends
3.3 Business loan
3.4 Private investor
3.5 Government loan
4. What Is Financial Forecasting?
5. Estimating Revenue
5.1 Booking forecast and revenue
5.2 Second- and subsequent-year revenue estimates
6. Estimating Expenses. 6.1 First-year expense estimates
6.2 Second- and subsequent-year expense estimates
7. Cash-Flow Analysis
“Too Good To Be True” Marmalade
15. Your Start-Up Project Plan
1. Why Do Project Planning?
2. Organizing Your Plan. 2.1 Gather your paperwork
2.2 Determine the extent of renovations
2.3 Complete task forms
2.4 Design your start-up plan
3. Implement Your Start-up Project Plan. 3.1 Review your financial planning
3.2 Review your start-up project plan
3.3 Start
Bernard’s Best Buttermilk Biscuits
16. Setting And Maintaining Your Level Of Service
1. Setting Your Level of Service
2. Maintaining Your Level of Service
3. In Conclusion
Epifania’s Apricot Loaf
Appendix 1 — Free Publications
1. United States
2. Canada
Appendix 2 — Bonus Breakfast Recipes. Bernhard Shaw’s Scrambled Eggs
It’s a Wonderful Quiche
An Inspector Calls Frittata
An Inspector Calls Frittata
Mrs. Warren’s Professional Poached Eggs
After the Dance Eggs Benedict
Acknowledgments
About the Authors
Other Titles in the Start & Run Series
Notice to Readers
Self-Counsel Press thanks you for purchasing this ebook
Contents
Have you ever thought about operating your own bed and breakfast? Perhaps you have just taken early retirement and want to run a small business to supplement your pension. Or you may have family obligations that keep you at home and you are looking for a home-based source of income. Maybe you have stayed at a B&B and were attracted to the lifestyle of the owner. If you already live in a tourist area, you are ideally situated to cash in on the passing trade, and if you like talking to people, you probably have the right temperament to become a successful B&B host. If you have a nice home and one or two extra bedrooms, why not give it a try? We did!
We took early retirement and purchased an old Victorian home in a small tourist town. We quickly realized that we were in an ideal spot to open a B&B but we didn’t know how to start. We looked in libraries and bookstores for a how-to book, but there weren’t any. We talked to a few B&B operators, but they all had different points of view. In the end, we opened for business not fully understanding how to proceed, and we were blissfully unaware of the many pitfalls and problems that we would face. We wasted time, energy, and money, and we learned the trade by trial and error. Thank goodness we had forgiving guests that put up with our mistakes, and some of them even offered helpful suggestions and gentle encouragement.
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Potential customers:
• Families who are looking for a home environment that can provide safe and friendly accommodation for their children
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