Make Money With Bed and Breakfast Services
Are you interested in gaining from bed and breakfast service? Here you can find everything you need to know about opening a bed and breakfast business plan.
According to the research of Santa Barbara, in 1980 there were 1.000 properties as B&B hosting 1 million guests while it rises approximately to 28,000 properties and 50.5 million guests in recent years.
Bed and breakfast or shortly, B&B service is attractive if your house located in a good place and has free spaces for guests. If so, let’s look at what it is, necessities, costs, and profits.
What Is Bed And Breakfast Services?
A B&B is generally a small business with four to 10 guest rooms that can host up to 30 people per night. It carries properties of both luxury hotels and private houses.
The owners of the houses live on-site and deal with them as they are guests instead of customers. In return, guests sacrifice from some luxury services. In general, breakfast includes some home-made food which is more attractive than take-home foods. Most of the establishments also make some small surprises within a day like tea, coffee, lemonade etc. services.
How Does B&B Works?
To run a B&B, there are several things one should invest. For instance, the property should include beds, new mattresses, pillows etc. Moreover, regional laws may require some extra things you should do like installing new kitchen equipment, fire safety fixtures etc.
What do these mean? Actually, there is no accurate answer on how to start a bed and breakfast with no money. More or less, you should invest before hosting your guests.
Start Earning Money With B&B Services
First of all, you should aware of the fact that it is not a no-risk side job. Before starting, you need to make your plans carefully.
Step 1: Analyze the market: Make sure that the location you are living has a consistent demand.
Step 2: Determine your audience: Specify to whom you will serve. You should take this seriously since your plans will be formed on it.
Step 3: Invest: According to your audience, make your investment and upgrade your rooms for your guests. For instance, if you target rich people, you should invest in luxury decorations. If students are at your target, you may invest less in return of gaining less. Don’t forget to take the people needs special care like kids, elderly people, and disabled people.
Step 4: Check Legal Requirements: You should check the requirements of the legal entities to run a B&B service. If you have any deficient, fix them immediately.
Step 5: Advertisement: Take some actions like place an ad to specific websites, preparing brochures, write introduction letter etc. to introduce yourself to potential customers.
Step 6: Ready to host guests
Before thinking about the bed and breakfast profit margin you should complete the steps described above.
The Requirements Of B&B Services
Along with the practical necessities, there are legal requirements mentioned in Step 4. Here is the significant list of legal procedures you may need before running a B&B service.
- Planning permission: You may need to apply for a change of use of your property.
Whether it is necessary, depends on the number of guests you will host and whether you will leave there. Learn more from the legal authority in your region.
- Insurance: You should contact your insurance company. Probably, standard house insurance will not be sufficient. The insurance coverage depends on the size of your establishment and what you will serve.
- Fire regulations: A fire risk assessment is a legal procedure in most of the regions.
- Gas safety: You should contact an expert for gas safe controls and display the certificate you get in a visible place after succeeding in controls.
- TV license: In some regions, putting TVs in guest’s bedrooms may necessitate different license.
- Music license: If you want to play music in the dining room or serve something like karaoke nights, probably you need to get extra licenses.
- Alcohol license: If you are planning to serve alcohol, you need to apply for both a personal and premise alcohol license. In some regions, costs are not only in monetary terms but there are more requirements to serve alcohol. For instance, there may be a minimum distance required from schools.
- Food safety: Even if the breakfast only meals you serve, you need to take regular food and kitchen controls. Experts will visit your property to make necessary controls.
- Smoking regulations: You should make the necessary requirements, based on the regional rules about smoking in public areas.
Since these requirements and permissions affect the cost of starting a bed and breakfast, you should take into account from the beginning.
How Much Time Should I Spend?
Generally, this is seen as a source of extra money. However, since your guest can be at home in 24 hours a day, it is a full-time job. You may work in a shift with your family members or you can hire part-time workers. In any case, the house will serve 7 days a week and 24 hours a day.
What Should Be The Price Of A Room?
Setting the price of a room is the most difficult issue which also determines the average profit margin bed and breakfast service you give. Nowadays, conceptual B&B services are more popular which makes the rooms more expensive than even hotels.
The price you will charge depends on some factors like:
- Type of room
- Type and size of the bed/beds
- Private or shared bath
- Exact location
- Special services
- The average rate of the accommodation in the region
There is one way to understand whether you charge too high or too low. For instance, if you get few reservations while your competitors perform well, it indicates you have a high price.
How Much Money Could I Earn?
Let’s make a practice like a bed and breakfast income calculator.
Suppose you have 4 free rooms to rent available at $80 per night. It is not possible to make a fully operate for all days. According to research, on average B&Bs have an occupancy rate of %50. Under these conditions, you will have $58.400 annual income. To find what you will exactly get, you should reduce expenses and taxes from this amount.
Promote Your B&B Service
You can use several ways to promote your B&B services. Some of them include:
- Your own website
- Travel websites like TripAdvisor, Kayak, Yapta, Which Budget
- Online directories like Bed and Breakfast and BnB Finder
- Google Adwords
- Social media platforms
- Customer reviews