What will I be doing?

Bed-and-breakfast (B&B) establishments continue to be a popular home business. Unfortunately, not all such establishments are profitable.

A bed-and-breakfast inn is in the business of serving others. B&Bs offer private room rentals catering to overnight and longer stays, especially weekend travelers. Most serve some food to guests. Typically, B&B operators are owners of a large house, often one that embodies a sense of history in some way, whether it’s in the actually history of the home, in architectural style or in the surrounding attractions. The home must have separate rooms or apartments that can be rented out to guests who typically stay a few nights or for a vacation. Running a B&B requires a lot of work—from housekeeping, preparing and serving breakfast to answering questions about local sites and attractions.

What will I need to start?

The key to a successful bed and breakfast inn is not necessarily the house itself, but the location. Popular B&Bs are usually located in resort or destination areas, or historic districts in a major city. A classic B&B in an industrial town may be unprofitable while a simple unit in a popular resort may be booked-up into the next century.

Besides location, B&B guests seek ambiance and charm. Whether it’s a Victorian dollhouse, an elegant English manor or a rustic mountain retreat, your customers demand more comfort and character than they would find at the nearby budget motel. Your rates will be set accordingly.

In addition, you will need some experience or knowledge of the hospitality industry. Your guests may sleep in each morning, but you won’t be able to. Be prepared for lots of cleaning and cooking—remember the “breakfast” part of bed-and-breakfast! Depending on what type of B&B you establish, you may offer simple pastries purchased locally or prepare a full country breakfast from scratch.

Who will my customers be?

Most people who stay at a bed-and-breakfast inn are destination travelers. They have come to your town for recreation and relaxation. They don’t want a traditional motel. They would prefer staying with a local family or couple. That’s you.

How can you find customers? Be one. If you now live in a big city, visit B&B’s in the historic neighborhoods or look at the resorts in your area. If you live in a resort, consider the cities that it serves. Find resort guides and other publications on the area that advertise B&Bs. Study them. Visit them. Find out what’s successful, then do it.

How much should I charge?

Rates for B&Bs vary widely from less than $100 to $300 a night and more. Much depends on where your B&B is, what area motels are getting and what additional ambiance and services you provide. Many B&Bs start with a rate that is double the typical local motel rate. Of course, your rate will vary depending upon the high and low travel season in your area.

How much will I make?

A small B&B can earn the owners a profit (including salary) of $40,000 to $100,000 a year for full-time efforts. You can hire help or, as many B&B managers do, hire your family. You will also profit from a zero-commute time.

Living where you work can also be a liability, keeping you from getting out and enjoying your resort town and area attractions. Some B&B operators trade time with those who own units in other resorts. Kind of a busman’s holiday.

How can I get started?

The “perfect” home business requires a large investment in a house, so you will need lots of money and/or credit to start a successful B&B. Sometimes you can buy or even lease a unit from someone who is tired of the business. In any case, get experience in the hospitality field, especially with B&Bs if you can.

In addition, consider joining trade associations where you can learn from the successes and mistakes of others. Three worth considering are: American Bed-and-Breakfast Association (800-769-2468); Professional Association of Innkeepers International (805-569-1853) and National Bed-and-Breakfast Association (203-847-6196).

The SIC code for bed-and-breakfast inns is 7011-07.

How can I use computers to increase profits?

Bed-and-breakfast businesses are based on service. Computers and software can enhance service by keeping track of reservations. They are also useful for managing the checkbook for income and expenses. In addition, desktop publishing programs can help you produce great looking brochures, breakfast menus, place cards, business cards, and many other promotional materials.