Start & Run a Bed & Breakfast (eBook)

ACKNOWLEDGMENTS ix
INTRODUCTION xi
1. THE BUSINESS OF BED AND BREAKFAST 1
1. What Is Bed and Breakfast? 1
2. Take a Look at Your Competitors 2
3. Who Are the B&B Customers? 3
4. Can You Operate a B&B? 4
5. How Will This Book Help You? 4
2. BECOMING A BED AND BREAKFAST HOST 7
1. Advantages 7
2. Disadvantages 8
3. Skills and Qualities That Best Suit the Job 8
4. Skill Assessment 9
5. Action Plan to Improve Your Skills 10
3. MARKET RESEARCH 15
1. Why Do Market Research? 15
2. Sources of Information 15
3. What Tourist Attractions Are in Your Area? 16
4. Know Your Potential Customers 18
5. Know Your Competition 20
6. Document Your Market Research Costs 24
4. USING YOUR MARKET RESEARCH 26
1. Summarize Your Market Research Surveys 26
2. What Does Your Market Research Summary Tell You? 27
3. Do a Trial Bed and Breakfast Visit 29
4. Establish Start-up Parameters 32
CONTENTS
iv Start & run a bed & breakfast
5. MAKING IT LEGAL 35
1. Sources of Information 35
2. Your Business Structure 36
3. Registering Your Business Name 36
4. Levels of Taxation 37
5. Bylaws and Zoning 38
6. Business Licenses and Inspections 39
7. Insurance 40
8. Document Your Costs 41
6. TIME FOR RENOVATIONS? 43
1. The Renovation Survey 43
2. Guest Bedrooms 45
3. Guest Bathrooms 47
4. Guest Hallways and Stairways 49
5. Common Sitting Area 50
6. Guest Eating Areas 50
7. Exterior Guest Areas 51
8. Private Family Areas 51
9. Document Your Costs 53
7. PLANNING YOUR FOOD SERVICES 55
1. A Good Breakfast — A Good Start to the Day 55
2. “What Time Is Breakfast?” 55
3. “What Kind of Breakfast Do You Serve?” 56
4. “What’s for Breakfast?” 57
5. “Is This the Breakfast Room?” 60
6. Other Food Services 62
7. Handling Food 65
8. Document Your Costs 67
9. Calculating Guest Food Costs 67
8. SETTING YOUR HOUSEKEEPING STANDARDS 72
1. Bedrooms 72
2. Bathrooms 74
3. Eating Area 75
4. Common Sitting Area 76
5. Guest Hallways and Stairways 76
Contents v
6. Food Preparation Areas 77
7. Washing Dishes 77
8. Laundry 78
9. Order of Cleaning 78
10. Exterior Housekeeping 79
11. Pedestrian and Vehicle Access 80
12. Equipment and Supplies 80
13. Document Your Costs 81
9. KEEPING CLIENT RECORDS 84
1. Use Technology Wisely 84
2. Types of Bookings 87
3. Booking Procedures and Forms 88
4. Document Your Costs 95
10. CUSTOMER SERVICE OPTIONS 98
1. Check-in Procedures 98
2. Safety and Security 100
3. Tariff Payment 102
4. Check-out Procedures 105
5. Customer Services 107
6. Problem Customers 110
7. Document Your Costs 113
11. ESTABLISH YOUR FINANCIAL RECORDS 115
1. What Records Do You Need to Keep? 115
2. Business Expenses 116
3. Expense Record Forms 119
4. Revenue Record Forms 122
5. Audits 127
6. Document Your Costs 127
12. ADVERTISING AND PROMOTION 129
1. Word of Mouth 129
2. Business Stationery 130
3. Signage 133
4. Advertising 133
5. Websites and Internet Advertising 134
vi Start & run a bed & breakfast
6. Measuring the Effectiveness of Your Booking Sources 139
7. Document Your Costs 140
13. FORECASTING YOUR BUSINESS SUCCESS 142
1. The First Year 142
2. Subsequent Years’ Forecasts 147
3. Statistics 147
4. Document Your Costs 151
14. FINANCIAL PLANNING 154
1. Calculate Your Start-up Costs 154
2. Review Your Start-up Costs 154
3. Sources of Start-up Capital 155
4. What Is Financial Forecasting? 157
5. Estimating Revenue 157
6. Estimating Expenses 158
7. Cash-Flow Analysis 160
15. YOUR START-UP PROJECT PLAN 165
1. Why Do Project Planning? 165
2. Organizing Your Plan 165
3. Implement Your Start-up Project Plan 168
16. SETTING AND MAINTAINING YOUR LEVEL OF SERVICE 172
1. Setting Your Level of Service 172
2. Maintaining Your Level of Service 173
3. In Conclusion 173
APPENDIXES
1. Free publications 175
1. United States 175
2. Canada 180
2. Worksheets 183
3. Cost Sheets 199
DL CONTENTS 212
Contents vii
SAMPLES
1 Skills assessment 12
2 Skills action plan 13
3 Tourist attraction survey 17
4 Customer survey form 21
5 Competitor survey 23
6 Market research summary 28
7 Hospitality rating form 31
8 Renovation survey 44
9 Food services bulletin 59
10 Food cost analysis 69
11 Start-up equipment and supplies 82
12 Reservation book 90
13 Reservation slip 91
14 Deposit reminder slip 94
15 Booking confirmation slip 94
16 Long distance telephone slip 96
17 House rules 111
18 Calculating business portion of a home (room method) 118
19 Calculating business portion of a home (square-foot method) 118
20 Monthly expense record 121
21 Expense summary 123
22 Monthly revenue record 124
23 Revenue summary 126
24 Business card 132
25 Brochure 132
26 Booking forecast 143
27 Morris B&B advance bookings 148
28 Morris B&B actual bookings 149
29 Morris B&B booking sources 152
30 Financial estimates 159
31 Cash-flow analysis 162
32 Task forms 167
33 Project plan 169