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 longer 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.
What is a Bed and Breakfast Business?
A bed and breakfast (B&B) business is a type of lodging establishment that provides overnight accommodations and breakfast to guests. Unlike hotels, which are typically larger and offer more extensive amenities, B&Bs are usually smaller, often located in residential properties, and offer a more personalized and intimate experience.
In a B&B, guests typically stay in individual rooms or suites within the owner’s home or a separate guesthouse on the property. The accommodations are often furnished with a mix of antique and modern furnishings, and the décor tends to reflect the personal style of the owner.
One of the defining features of a B&B is the inclusion of breakfast in the room rate. This breakfast service is often a highlight for guests, as it may feature homemade or locally sourced ingredients and provide an opportunity to interact with the hosts and other guests.
14 Steps to Start a Bed and Breakfast Business
1. Market Research and Select a 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. Define your unique selling proposition (USP) and identify the type of experience you want to offer guests (e.g., luxury, budget-friendly, themed).
2. Select a Location
Choose a desirable location that attracts tourists or visitors, such as a scenic area, historic district, or popular tourist destination. Select a property that meets zoning regulations and has sufficient space for guest accommodations, common areas, and amenities. Consider the size, layout, and condition of the property, as well as any renovations or upgrades needed to create a comfortable and inviting atmosphere.
3. 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
4. Name Your Business
A catchy and unique business name goes a long way in developing a successful brand personality. It holds 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
5. Licenses and Permits
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 assets and makes annual filing easy.
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 in your locality.
7. Customizing Your Bed and 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 and 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 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 and 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 it 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 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
Is bed and breakfast business profitable?
As per this report, the bed and breakfast industry is estimated to be worth around $3.4 billion, with roughly 17,000 inns in the United States. The industry is expected to grow in the coming years. However, the profitability of the B&B business will largely depend on the proximity to tourist attractions, accessibility, safety, quality of service, and the local market demand
What is the cost of starting a bed and breakfast business?
The startup costs for opening a B&B can vary depending on several factors factors. It includes the property size, location, renovations, furnishings, marketing expenses, and operating licenses. On average, the cost of opening a bed and breakfast business will be around $1,50,000 to $2,00,000.
What are the benefits of starting a B&B business?
Starting a B&B allows you to turn your property into a profitable venture while sharing your hospitality with guests. It offers flexibility in terms of operating hours, the opportunity to meet new people, and the ability to create unique experiences for guests.
What are the key considerations when choosing a location for a B&B?
When selecting a location for your B&B, consider factors such as proximity to tourist attractions, accessibility, safety, and the local market demand for accommodations. It’s essential to choose a location that aligns with your target market and business goals.
How can I attract guests to my B&B?
To attract guests to your B&B, utilize a combination of marketing strategies, including online advertising, social media promotion, partnerships with local businesses, participation in travel websites and directories, and offering special promotions or discounts.
What are some common challenges faced by B&B owners?
Common challenges faced by B&B owners include managing occupancy rates, maintaining profitability during off-peak seasons, ensuring guest satisfaction, managing online reviews, and keeping up with maintenance and housekeeping tasks.
What are the advantages of owning a B&B compared to other types of lodging businesses?
Owning a B&B offers advantages such as the ability to work from home, flexibility in managing operations, the opportunity to create a unique guest experience, and the potential for higher profit margins compared to traditional rentals or long-term accommodations.
Editorial Team at 99BusinessIdeas is a team of experts led by Rupak Chakrabarty with over 25 years of experience in starting and running small businesses. Started in 2010, 99BusinessIdeas is now one of the largest free small business resources in the industry.
