How to Start a Bed & Breakfast Inn

Starting a bed and breakfast often involves restoring a historic building in a quaint community.

Starting a bed and breakfast inn can be an enjoyable lifestyle change that can get you out of the office and doing the things you enjoy, such as gardening, interior design and preparing exquisite dishes to feed your guests. But like any business, a feasibility analysis, including financials, must be conducted before proceeding. Whether you are converting your own home or restoring a historic building, beginning your B&B will take some seed money. However, return on investment, particularly in this industry, will not come right away.

Things You'll Need

• New mattresses, pillows, sheets, bedding and drapery for each bedroom
• Business license and required municipal permits such as for zoning or parking
• Knowledge of lodging rates in your area and other lodging industry information
• Marketing outlets that reach your target market
• Part-time staff to assist you during peak times

Instructions

1. Decide whether to proceed with your B&B. Identify a source for seed money to convert the house that you either live in currently or intend to acquire for your B&B. Restoration costs, over and above the purchase cost of a historic home, should generally be limited to $35,000 to $50,000 per guest room for larger
   properties, and $20,000 to $40,000 for very small or low-cost operations,
   according to Entrepreneur.com.

   Do not expect to get rich overnight from your B&B. It may take years to break
   even from your start-up costs, but do keep track of costs of maintaining your
   establishment and the profits that come in. Ultimately, profits should be higher
   than costs, of course, but you should decide to proceed not because you will make money, but because you know you will love it.

2. Join hotel or lodging organizations that will keep you abreast of trends in the industry--statewide and nationally as well as within your community. Be aware of current lodging rates, both the luxury rates and the budget rates, and know where your B&B fits in that picture.

3. Conduct some market research to identify your target market for potential customers and find ways of reaching that audience, either through tourist bureaus or through local recreational attractions, such as skiing in the winter and local festivals in the summer. Identify which market groups will most likely be attracted
   to your B&B. They can be tourists, business travelers, a parent visiting a local
   college or university, or extended family of a local resident coming for a family
   reunion or wedding. Get creative in developing events to attract lodgers.

4. Obtain the needed business license and local permits. Be aware of local and state laws regarding your establishment such as with zoning, parking, regulations regarding public amenities (handicap accessibility), food preparation requirement and limits on how long guests can stay (often seven to 14 days).

5. Hire a part-time employee to assist you with tasks that you have a hard time doing yourself while being a gracious host. Despite your busy schedule, take the time to do the things you most enjoy about your B&B, whether it is providing your guests with conversation over breakfast or preparing delectable pastries.

References

• Rob Adams and Terry Adams. "How to Start a Bed and Breakfast," Entrepreneur.com. 2010.
• Bed and Breakfast Profits.com.