Do you love to entertain at home? Are you naturally hospitable and enjoy offering a pleasant and cordial environment for guests? If so, then starting a bed and breakfast business from your home, could suit you perfectly.
Many travelers seek the comfort of a personalized experience a bed and breakfast offers, rather than a generic hotel that doesn’t reflect the true local atmosphere of the area. A bed and breakfast inn offers travelers a homey and cozy atmosphere at typically the same or slightly lower cost as a comparable hotel.
The major requirements to start a bed and breakfast is simply to have an extra bedroom, keep a tidy and welcoming home, and enjoy preparing and presenting breakfast to your guests in the morning. Of course guests would enjoy coversing with you and your family and guidance about local activities, locations and events they would enjoy while visting in your town.
The Professional Association of Innkeepers International averages three possible income scenarios for potential bed and breakfast inn owners to consider; 1-4 rooms at a 44 percent occupancy rate will generate a gross income of approximately $42,000 ; 5-8 rooms at a 46 percent occupancy rate will generate a gross income of approximately $111,000; 9-12 rooms at a 51 percent occupancy rate will generate a gross income of approximately $245,000. Of course how much you can charge and your occupancy rate will vary depending on what part of the country you live in. Bed and Breakfasts that are opened in towns known as popular tourist destinations will fare much better than one that may open in a quiet town, no one is familiar with.
If you genuinely have a flair for cooking, an outgoing personality and a true enjoyment of tending to the comforts of others — you could be very happy and successful with a bed and breakfast inn business.
Starting a Bed and Breakfast business can be fun, exciting and very rewarding. If you are considering starting your own Bed and Breakfast business, be sure to read the following advice so that you can shorten your learning curve, minimize your risk, and start generating income quickly.
Read on to learn how to start your own Bed and Breakfast business in 10 easy steps.
1. Write A Business Plan.
Writing a business plan for your small business is key in getting your new Bed and Breakfast Service venture off to the its best start. Lenders won’t even consider your request for a loan without a written business plan in hand. Also, the process of preparing a business plan forces you as an entrepreneur to consider every aspect of the company’s operations. Don’t skimp on this crucial step.
2. Choose A Company Name.
When choosing a company name, pick a name that easily fits into a web address or domain name. Your web address should be easy to type, simple but catchy. Every business has an internet presence nowadays. You must be sure that your Bed and Breakfast business is on the internet as well. Once you pick a company name for your Bed and Breakfast business, make sure to register the domain name quickly, before someone else does. You may also want to get not only the .com version of the name, but the .biz and .info versions as well, so that competitors don’t encroach on your business by grabbing your domain with a different extension. You may regret not having these additional domains when your company grows and becomes successful.
3. Incorporate Your Business.
One of the primary advantages to incorporating your Bed and Breakfast business is the fact that you can then enjoy limited liability. As a sole proprietorship, of a Bed and Breakfast business owner, you assume all the liability of the company. Your personal assets, such as your house and car can be seized to pay the debts of your business.
When you incorporate your Bed and Breakfast business, you become a shareholder in the corporation. As a shareholder in the corporation, you can’t be held responsible for the debts of the corporation. Your liability as an individual shareholder of the Bed and Breakfast business is limited to the amount you have invested in the company. In today’s litigious society, it is best to protect yourself, and separate your personal assets from the Bed and Breakfast’s company assets.
4. File For A Tax Identification Number.
There are several types of tax id numbers:
*A Federal EIN Number – The Federal Tax Identification Number is used to identify a business entity and is required for employers and corporations as well as partnerships.
*A State Sales Tax Id – Sales tax id number or sales tax exemption certificate is a legal document issued by the state. This certificate of authority gives your business the authority to collect the required sales and use taxes, and to issue appropriate sales tax exemption documents, including resale certificates used for purchasing inventory
*A State EIN Number – A state specific Tax Identification Number. Check your state regulations to see if it is required.
5. Examine Your Competition.
Examine your competition in the Bed and Breakfast industry – your clients will. Compare your business ideas against your competitors. Determine what are your strengths and weaknesses are. Compare them and determine how to strengthen your weaknesses and how to emphasize your strengths. Your clients will compare your Bed and Breakfast services with others before choosing – so make sure you offer your clients a service they can’t refuse.
6. Calculate Your Fees.
Since you will be working on your own you will need to determine your wages. Keep in mind that you will need to pay for self-employment taxes, insurances, supplies and education. Make sure when calculating your fee to include all of your expenses and what you need to make a profit. Make sure your rates are competitive or you can justify why you are charging more than your competitors. Remember, your potential clients aren’t always looking for the cheapest Bed and Breakfast business. They want dependability, relaibility and genuine quality service from a skilled and professional Bed and Breakfast.
7. Get A Logo.
A logo is also a very important element for your Bed and Breakfast business. A logo clearly sets the tone and presents a graphic representation of your business and it’s value – providing your Bed and Breakfast business with an extra level of professional presence. You need to provide your clients with a sense of legitimacy, as they will be entrusting you with their Bed and Breakfast business needs.
A great logo should be eye catching and visually appealing, without being too garish or flashy. Hiring a professional to design your Bed and Breakfast company logo is a wise choice, because a logo is often the first impression a potential client will get of your Bed and Breakfast services. So it is best to have a professional design it, who can create a timeless and balanced look that can stand as your business identity for years to come.
8. Create A Website.
Hire a website developer or use one of the many do-it-yourself online companies that offer you an assortment of website templates, where you can enter your own content. Be sure to choose a template that relates to the Bed and Breakfast industry.
Keep your website simple and to the point. Start with a home page, which describes your business and the services you offer. Then include a page that provides your professional biography and credentials as well as a photo. A web form that allows potential clients to enter their information for quote by phone is a nice feature. Don’t forget a page that provides your contact information. Include a payment form where clients can pay for your services using a credit card or electronic check, if advance payment or a deposit for your services is required.
9. Find Clients.
You will need to advertise, market and promote your Bed and Breakfast business in order to attract clients. Make sure to prepare a budget for maintaining your a website, getting business cards, ordering fliers, and sending out a press releases. Offering a special incentive to your first clients could help speed up your client acquisition process.
10. Keep Learning.
Stay current within your field of Bed and Breakfast. Sign up for free newsletters and subscribe to magazines and newspapers designed for those in the Bed and Breakfast industry. This will help you stay in touch with the newest trends in the Bed and Breakfast business world. The more knowledgeable you are about Bed and Breakfast, the more likely to you are to succeed.
If you would like to know how to start your very own Bed and Breakfast business, then you have come to the right place.
There are many industry specific things to know about starting a Bed and Breakfast business.
Before you start a Bed and Breakfast business from, you need to ask yourself – “What exactly do I need to do to start my own Bed and Breakfast business?”.
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