Do you want to start a bed and breakfast business? If so, you are in the right place. Here in this article, we provide a complete bed and breakfast plan checklist with licenses, registration, listing approach, setting up, and much more.
People now need a home away from home when they travel, and not hotels or motels anymore. With technology helping us to travel better, staying away is no more an issue, especially with so many registered platforms around. Travelers enjoy staying at a homely place and it’s cheaper as well as convenient.
The best part is, if you have some available rental space, you can rent that property out as a bed and breakfast. You neither need a commercial place nor a huge complex. Even if you have a single room, you can have your own bed and breakfast business making some extra money.
14 Steps to Start a Bed and Breakfast Business
1. Market Research & Location
Before you even start, you need to understand the market first. Who is your target audience and which customers you are going to cater to your place? You need to have a clearer picture of your area and who are the visitors to this place.
Is this a popular tourist destination? How many people visit the area per year? What other lodging options are available in your area? Primarily, the guests can be broadly divided into:
- Tourists
- Business Travelers
- Couples on a romantic getaway
- Locals in need of extra bedrooms
Before you proceed, make sure that you have clearance from the local Zoning Board, and that your location is zoned for commercial use.
2. Create a Business Plan
It is essential to plan properly before venturing into the bed and breakfast business. Writing a business plan, therefore, plays a big role in the success of the business in the short as well as long term.
If you are starting on a smaller scale, a one-page plan document will do but for a larger scale take a more detailed approach. Some of the topics that must be included in your bed and breakfast plan document are the following:
- Executive Summary
- Business Description
- Market Competition
- Target Market
- Management Structure
- Service Offering
- Unique Selling Proposition
- Marketing Strategy
- Financial Plan
3. Name Your Business
A catchy and unique business name goes a long way in developing a successful brand personality. It holds true for the same in the bed and breakfast business. It is no denying the fact, that it is not easy to select a proper name for a bed and breakfast business. Take some time off and research online and offline to find the best name that touches the imagination of the customers.
here we list down some bed and breakfast name ideas and suggestions to consider:
- Cedar Lodge
- Countryside BnB
- Home Away BnB
- Pinnacle Inn
- Mountainside Inn
Suggested Read: How to Name Your Business? Step-By-Step Guidelines
4. Licenses & Permits You Need
As a bed and breakfast business, make sure that your place is legally allowed to rent. Consult a lawyer if you want to and be aware of all the local laws and regulations. This varies from country to country. Some of the states even add an occupancy tax for renting out properties.
Registering your business is a must for running a bed and breakfast business hassle-free. Talk to the local competent authority in your area and select the most appropriate business structure under which you will run your business activities.
For example, if you are from the United States, forming an LLC is a popular business structure as it protects your personal assets and makes annual filing easy.
5. Cost & Investments
The cost will largely depend on the size of the property and location. On average, the investment in opening a bed and breakfast business will be around $1,50,000 to $2,00,000.
6. Arrange Funds
The startup expenses of launching a bed and breakfast business are not low. If you are short on budget, make a plan to source the additional fund requirement.
In the present day, getting a loan from a bank for small business owners with a low credit rating is tough. According to Forbes, most startups are unable to match up with the leading criteria of banks.
The easier way to get finance for starting a bed and breakfast business is to apply for small business loans from alternative lenders. They offer tailor-made loan products and the loan process is also simpler.
Furthermore, check with local authorities regarding the availability of grants for opening a bed and breakfast business n your locality.
7. Customizing Your Bed & Breakfast Place
Users generally book a bed and breakfast instead of a hotel room as it is cheap. Many prefer it over hostels for its local touch. The guests mostly want to enjoy a neighborhood and experience what the locals do.
Make sure your place is comfortable and not situated in any noisy place.
8. Cleaning & Handling
You have to ensure that your property is cleaned properly whenever a guest leaves. Thoroughly cleaning and keeping it prepared well before the guest’s arrival will help you get better reviews. Have a steady staff.
Property maintenance plays an important role in any bed and breakfast business.
Your cleaning and handling tasks will include fresh pillows and sheets, pest control, plumbing, electrical, and appliance repairs.
9. Fixing The Prices
Tourist demand will determine your price. If you are close to a top-visited destination, you can charge high for your bed and breakfast. But in case you are away from any tourist attraction, it’s better to price competitively.
The most sought-after tourist destinations and centrally located sites are always in demand thus, you can keep the prices on the higher side.
You can also choose to price your bed and breakfast according to your investment. Calculate the operational costs and you can charge your customers per night in order to keep your business running.
10. List your Property
You need to click pictures, provide details, and upload them to any of the sites like Airbnb or Bnbfinder. property by submitting photos and descriptions of the space for rent. Once submitted, it will then be approved by the platform. The property will then receive a listing and will be viewed by travelers.
The searches will depend on the parameters like area, availability of dates, price, number of rooms, and more. It is essential to promote your destination along with your property in your bed and breakfast business to be successful.
Do remember that bed and breakfast is an online business. You have to let your listing stand out in the marketplace. If you have anything better to offer, why would even guests choose you? Either you have to price below your competition to attract more customers or offer affordable amenities at a competitive price.
First, check out what other listings in your area offer and what are the prices. Also, make sure that your property is properly listed with the right details and emphasize what unique you offer.
11. Improving Your Bed & Breakfast Online Listing
You have to be on top to get more bookings. For that, you need to improve your rankings. Do remember, that you either spend on sponsoring your property or improving your internet search rankings. The higher the ranking, the more are chances of your property being booked.
The key to the success of a successful bed and breakfast business is honest ratings. Build trust with your guests by offering a great experience for guests with accurate details, references, and genuine reviews.
12. Offer Responsive Services
The best bed and breakfast properties are always found to be the best responsive ones. Your ratings also depend on the service you offer. This will help you to get a higher search rank with increased bookings.
Make sure you attend all the phone calls, if not available, call them back. Follow up with feedback later if everything was on the line or anything else they felt should improve.
13. Take Reviews Seriously
If someone is complaining about something, take that as constructive criticism. You are not a professional hotelier, so you may miss a feature or two. If a guest reports a problem, solve them straight away, and if not immediately, ensure that it’s solved as soon as possible. Make sure you apologize to the guest.
If someone posts a negative review or gives less rating, act upon it, and learn from your mistakes. Respond to all the complaints individually in a professional manner so that other guests exploring your property can have confidence in you.
14. Offer The Best Possible Customer Service
It’s a service industry. The better the service you offer, the higher will be the chances for you to have a successful bed and breakfast business. As a host, provide your guests with the best customer experience possible, and your property will be rewarded with positive reviews and higher search rankings.
Even the platform where your property is listed will start you to list as a top bed and breakfast option in your area.
Frequently Asked Questions
What is a Bed & Breakfast Business?
To start with, it’s definitely not a hotel. In simple words, it’s an independent small property offered for commercial accommodation purposes. You have to offer a place where visitors can stay overnight and with free breakfast in a home-like setting. If compared to a hotel or motel, bed & breakfasts are generally small and have fewer guest rooms.
Is Bed & Breakfast Business Profitable?
As per industry experts, the bed and breakfast industry in the United States is estimated to cross $5 billion in 2022. Most of these businesses are owned by couples, or individual men and women. The salary of bed and breakfast owners vary. The average income of B&B owners is about $60,000 a year.
If you have some available rental space, this is the best business you can do right now. It’s really easy to start a profitable bed and breakfast business if you have spare rooms in a suitable location.

About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.