There is more to buying a B&B than how much money the inn makes or what the occupancy rate is. Your dream should be supported, your goals honored, and your personal situation considered. The business and lifestyle of B&B innkeeping is complex so your search should be comprehensive, not superficial. Pay attention to at least these issues so you can make the wisest decision possible. Your heart and your brain both need to be involved in this process.
Kit Cassingham
Defining B&Bs
In typical “Yankee” fashion, Americans have taken the British bed and breakfast concept and grown it into a widely diversified industry. You’ll find every conceivable style of inn varying in size, architecture, business style, attitude, culture, cost, and location. There are Manhattan apartments, boats (ocean, lake and river), Kansas farm houses, mountain chalets, urban mansions and townhouses, as well as country inns. I have seen churches, schools, jails, and firehouses used for B&Bs. The house styles I’ve seen usued for B&Bs include Victorian, modern, log, adobe, plantation, farmhouse, and even beehive. B&Bs have been found underground, in high-rises, in trees, in townhouses, and underwater. Along with different styles of structure you will find different styles of environment ranging from casual to elegant, eclectic to period furnishings, garage-sale to designer decor, shared baths to luxury private baths, and low- to high-touch. These characteristics influence the B&B classifications.
Questions to Ask When Buying a B&B, Part 3
Here’s the final third of my questions you should ask yourself before you buy a bed and breakfast. Though this is the end of my proposed questions, on this topic, I hope you’ll continue pondering your concept. I hope you’ll also challenge every idea you have to learn its pros and cons. And continue educating yourself to make sure you take the right path and create the best B&B you can.
Questions to Ask When Buying a B&B, Part 2
Conducting a thorough investigation into the B&B lifestyle and career is important if you want a happy and successful career. The first 10 questions in my collection of 30 questions you should ask yourself before you buy a bed and breakfast were in Questions to Ask, Part 1.
Questions to Ask When Buying a B&B, Part 1
The self-examination you should do before proceeding with an inn purchase is best done through educational opportunities like seminars, consulting, conferences, books and eBooks. You can’t really do too much exploration and contemplating before getting into the B&B industry. It’s a fantastic career and lifestyle, but it’s not for everyone. And some people that would be great innkeepers don’t have the resources to do it “properly”. Lots of education will help you determine if innkeeping is the right career and lifestyle for your situation.
The State of B&B Lending
As I have spoken with B&B Brokers and appraisers across the country lately I’ve gathered lending to the bed and breakfast industry has gone from challenging to difficult. It would seem lenders are increasingly edgy about financing and money so are making things challenging at the very least and being more particular about the mortgage loans they write.
Benefit Selling
Benefit selling is excerpted from my ebook on B&B Marketing. Some people talk about selling to the guests’ benefit, but the concept isn’t always discussed in enough detail for people to translate how it applies to them. I’m hoping to make that connection for you here.
The Inn Experience
Think of your B&B inn as “hospitality pie”. The aspects of the inn are wedges of the pie. Let’s look at the pie graphically to see what it is composed of.
Operation Manual for Your Bed and Breakfast
As a manager of several inns I was hampered by the lack of an Operations Manual. Creating the Job Descriptions and Checklists at my first B&B job was as the closest we came to an Operations Manual there. It’s a good thing the owners had so many well-trained, loyal employees to help in case of emergency.
Income Projections for Your B&B
The steps you need to take to project income for your B&B include setting your room rates, projecting occupancy rates, and calculating income — monthly and annual. These steps require you to do your homework. Here are some pointers in attaining those numbers.
The B&B Business Model
Do you ever wonder about the difference between B&Bs and other types of lodging? Why are some people “B&B people” while others are “non-B&B people”? Here is my explanation of what I see is the difference. This will help you better understand the importance of your role as an innkeeper and the guest experience you create for your market niche.
Branding Your B&B For Success
Let me share some examples of market niche, as provided by the restaurant industry which does it so well. You have Denny’s on one end of the spectrum, an establishment that provides basic food quickly. Or you have restaurants that offer specialties of seafood, steak, Greek, Chinese, Italian, or Brazilian. But if you are going to be an Italian restaurant will you be generally Italian, northern Italian, southern Italian, Tuscan, Roman, or Venetian? Focusing on one Italian cuisine will garner you a stronger, clearer brand — especially if you are thorough with the presentation by having not only the food but also ensure the wine, tablecloths, music and decorations are authentic. I have known of B&Bs with market niches of poetry, writers, cat and chocolate lovers, farm and ranch experiences, and healing.
B&B Cash Flow
Cash flow is the movement of money through your business. At its basic level, it is your gross income (money actually received) and your expenses, fixed and variable. Depreciation, amortization, sales tax and unpaid debts are not part of your cash flow. The “bottom line” is your net income.
Task To-Do Lists
Your job as innkeeper is to keep the inn running smoothly. As the “manager” you have to oversee all tasks so you can’t get too entrenched, as it were, in any one shift task — the trenches. On the other hand, you must be comfortable with each shift task so that you can jump in and do the job if necessary, both so that you can train others to do that job, and so that you know if the job is being done right.
Answer Resources
There are so many answer resources I feel I can’t even begin to cover them all in a short article, much less in a long conference. So let me strive to cast some seeds of ideas about and let your imagination expand the list from there.
Topics to Research
There are generally so many details to research as you buy or build you bed and breakfast. Here is a list of the areas you want to research, some obvious topics and some surprises. Not all of these research topics will apply to you, but most will one way or another.
Business Plan Basics for the B&B
>A business plan describes your business. It must answer all the basic questions of how you will implement your inn dream and open your business. It answers all the money questions. Your business plan will describe your efforts and results. It is like an energy map. Your business plan, for your inn as well as for any venture you undertake, is a unique personal document of what you are about to do and who you are at the time. The answers to the questions you and others pose will further clarify your dream, for yourself and your investors. It is the beginning of the bridge from your dream to reality. Different lenders request different formats for their business plan in so use this as a guideline for the general content and concepts.
Organizational Structure For Your B&B Inn
When I first started learning about innkeeping I was shown that the typical organizational structure was like a triangle. The boss is at the top, employees and vendors are in the middle and the clients are at the bottom; you know, it all flows down hill. But the innkeeping organizational structure was an inverted triangle, with the guests at the top and the innkeeper at the bottom. As I taught my early students about the innkeeping structure I realized that was one big reason innkeepers burned out so readily; they were trying to keep a top-heavy structure balanced and they had the weight of the world on their shoulders.
Is Bed and Breakfast Innkeeping For You
This questionnaire I developed for an aspiring innkeeper workshop is designed to help you think through the burning question of whether innkeeping is the right career and lifestyle for you. The questionnaire came about because telling people about innkeeping’s intensity didn’t adequately convey the message of how much work is involved in running an inn.
Entrepreneur B&B Market Niche Process
A few weeks ago I wrote about characteristics of the entrepreneur as far as the bed and breakfast world goes. By now you should know, understand, and work with your personality strengths and weaknesses. Support your weaknesses either through the systems you develop or the staff you hire -— or both. Capitalize on your strengths. Be aware of your guests’, employees’, and vendors’ personalities to help you manage your environment and strive to keep everything on even keel.
Buying Acquisition Hurdles
Through my years of being a B&B consultant and Inn Broker I have experienced a variety of people come through my consulting; the individual dreams, the different personalities and backgrounds, and various financial abilities have been amazing to watch — and learn from. Most people don’t meet all the lender’s requirements for giving a loan, though some come close. And sadly many people don’t have much of what it takes to get a loan to make their dream turn into reality. The two areas I see most people lacking are their business/professional background and their financial capability.
Managing the Daily Operations of Your Bed and Breakfast
Learning how to manage the daily operations of your B&B is an ongoing challenge. But it starts with some basics that I’ll share with you today. You can get the full presentation in my Daily Operations ebook.
Marketing 102
The previous article on marketing activities set out some basic terms and concepts, as well as reminding you of the need for a sharply-focused image or brand. This article continues by sharing some image building concepts, advertising, and public relations. This is the second installment of the two-part series on marketing.
Marketing 101
Marketing your B&B is a big key of success, closely following your customer service as the best marketing tool you have. The focus of this marketing discussion is the basics of the activity you take to get the word out about your bed and breakfast. This is the first installment of a two-part series.
Interview Questions For Your Bed and Breakfast Research
Insufficient research is one major contributor to business failure. Your B&B dream is only the first step toward your business. You need to conduct lots of research before putting any significant money into a B&B. The information you learn will help you understand the ups and downs, see what government regulations will apply, understand your customers’ profile, find professionals and suppliers, and spark marketing ideas. Conduct your research near and far. I have seen many innkeepers go bankrupt, losing their inns and retirement nest eggs, because of their failure to do adequate research before diving into the business.
Buying a B&B: Beginning Your Homework and Search
The first thing you want to do is take at least one class to find out about the business. There are numerous classes across the country. Taking classes also looks good on your “Innkeeper Resume”.
Characteristics of a B&B Entrepreneur
This is an excerpt from my ebook — Building a Good Foundation — So You Don’t Find Yourself in a Hole.
If you were as smart today as you will be after you open your inn, you possibly would never start your inn. Being able to anticipate all the problems you will face would be the deterrent in any dream pursuit. However, just as you underestimate your project’s roadblocks, you will also underestimate your ability to overcome those hurdles. Let your creative juices flow. During the course of your B&B research you will gain see the most common industry hurdles and prepare yourself for the unforeseen, and get the tools you need to deal with everything you’ll face. Once you are aware of what is required, either you are confirmed, can adapt, or turn away. Whatever you do, don’t ever ignore reality. Risk takers fall into three general groups: non-risk takers, calculated-risk takers, and speculators/gamblers. Which are you?
A Road Atlas to Environmental Issues For Travelers: OR Green Living on The Road
>How environmentally active are you in your daily life? Do you take your green habits on the road with you?
Home Environmental Issues: OR Green Living at Home
How environmentally sensitive are you in your daily life? Do you recycle? Is organic food at least part of your diet? What about resource conservation — with energy and water? There may be even more ways you can be environmentally active.
Organic Natural Fiber Towels
Last year I reported on the joys of 100-percent bamboo sheets and met with curiosity and interest. Here a year (and now ten years) later I’m still loving them. My bamboo sheets are all I’ve used during the past year to give them a hard test, and they still look great.
At the same time I bought bamboo sheets I bought natural-fiber and -color (no dyes) towels. What is natural fiber? Fabric made of plant cellulose instead of synthetic fibers.
Bulk Soap and Shampoo
One hotel issue that’s been important to me for years is the use of bulk bathroom amenities. By using quality shampoo, bath gel, conditioner and even lotions in bulk dispensers you not only take care of your guests — your primary responsibility — but also you take care of your budget and the environment. What a great win-win all the way around!
Image Building
For those of you who have taken my seminars or read my ebooks, you have heard about West Point Market in Akron, Ohio. I learned about this grocery store from Inc. Magazine back in 1990. For those of you who haven’t read about West Point Market, it’s a wonderful example of focused and diligent marketing. This market has developed an image of the place to go to buy good food and wine, and all without advertising. That’s not to say the owner doesn’t spend money promoting his store, he just doesn’t invest in traditional advertising. And the store is wildly successful. In the day of large chain groceries that keep customers based on low prices and weekly specials, this grocer is making it on quality products and without weekly specials or discounted prices.
Green Travel and B&Bs
There is so much going on with the greening of the hospitality these days I am both energized and overwhelmed. It’s great! Take a look at Green Lodging News this week to see me profiled — it’s always a kick to see your name in “print”. This is a great weekly ezine promoting the greening of the hotel industry. Subscribe if you have any interest in expanding your environmental or hospitality knowledge.
Sustainable Development for B&Bs
During the Greening of Hospitality Industry conference (GMIC) I attendend in Portland, OR, in February (2007), I was introduced to several high-end hotel properties that are stepping up to being environmentally sound hotels and adopting energy conservation as one of the actions they are taking to preserve the environment, and their budgets.
B&B Kitchen Cookware and Bakeware
I’m in love with the “new” kitchen we created by replacing our pots and pans, cookie sheets, and plastic water bottles with stainless steel, and our mixer too. The added grain mill and bread machine completed the makeover. It’s fantastic because we are cooking more things than ever before but spending less time in the kitchen with the cooking and cleaning than ever before. And the food we are preparing is better for our health. If that’s important to me, a non-innkeeper, just think how important it is to you and your guests! Here’s what we did with the cookware of pots, pans and cookie sheets.
Handy Kitchen Appliances in Your B&B
We’ve just completed a kitchen revolt, of sorts. We decided to pay attention to our health. While we were replacing our beat-up pots, pans and water bottles with stainless steel items, we replaced our mixer too. Then we added a grain mill and bread machine to finish the creation a wonderfully easy-to-use and healthy kitchen. It’s fantastic because we are cooking more things than ever before but spending less time in the kitchen with the cooking and cleaning. And the food we are preparing is healthier and tastier since we are using whole grain wheat. If that’s important to me, a non-innkeeper, just think how important it is to you and your guests! For now, we’ll talk about the kitchen appliances — a mixer, wheat grinder and bread maker.
B&B Flood Insurance
Flood insurance was designed to provide an alternative for disaster assistance. As repair costs escalate, something needed to be done. Communities implementing sound floodplain management have helped reduce the damage caused by floods. And buildings that were constructed in compliance with the National Flood Insurance Program (NFIP) building standards experienced about 80% less damage than those not built in compliance. Further more, for every $3 paid into flood insurance programs, $1 in disaster assistance was saved.
Financial Planning for the B&B Innkeeper
Financial planning is one of the more boring-sounding topics to think of as you go about life, but it’s critical to the well- being of you and your inn. The kind of financial planning I’m talking about goes beyond financial retirement planning and even personal financial planning. Do you have a plan to cover the eventuality you (be that singular or plural) get sick?
Saving Money
In both my residential and bed and breakfast real estate practice, I see Buyers and Sellers choose to not hire professionals so they can “save” money. What both sides of the transaction are thinking is that they will save the commission that would be paid to a REALTOR. There are several fallacies I see in that approach to buying real estate.