Many people are curious about the new bed and breakfast concept. B&B concepts are a hybrid between a hotel and a homestay. Well, this is one way to explain it. You will find 4-10 rooms maximum in such small accommodations. The owners also live on-site. The best part about such small accommodations is the inherent hospitality. You will love the interactivity.
Bed and Breakfast are budgets stays, to be exact. They are getting quite popular, especially at offbeat locations. You will not find too many of them in cities and metros. If you plan to enter the hospitality sector, this can be a great stepping stone for you with minimal investment. And, in case you have a small house to spare at the foothills of one of the mountain ranges in the U.S., then it’s an incredible money mechanism for you.
Profit Margin
You can now invest in a B&B to escape the tough competition in the hotel markets in cities and metros. It will be a decent stepping stone for you. If you have some relatives or your parents living in one of the distant places and looking for supplementary income, this could be it. Now, the revenues can vary greatly. It depends on the remoteness of the place. If there are very few accommodations at any particular countryside destination, you could charge a premium. And you can be sure that you will get a steady flow of guests.
Moreover, the decor and interiors of the space you are letting out also matters. Standard rooms are a constant in such places. But do not be misled with promises of high incomes. This business will not make you a millionaire overnight. However, it can add-on some decent income to your family resources. If you do not have your own space, you can always look for one. It is better to get in touch with property agents to procure such property for you. In that case, you would have to pay a retention fee or monthly salary.
Cost
You will have to shell out some decent amount in the beginning. The most crucial facet of starting on your own is insurance. There is insurance for health, business, disability, and just about anything. Insurance is an essential aspect of being self-employed. You should also think about payment methods. Most of the world has turned digital. So, you have to install some Merchant services at the lodge. It makes accepting payments seamless.
You have to keep in mind that there will be a lot of food wastage, as with any food and hotel business. So, you may want to get that wasted food delivered to charity. Apart from feeding the needy, you will also cut down on landfills. Apart from the above, you have to keep some working capital handy for day-to-day wear and tear.
You would also need an online booking system to accept and record bookings. Apart from that, you also need to register yourself on aggregator sites. That is where all the business comes in today. Additionally, you would need some kitchen resources and security surveillance equipment.
Zoning Norms
You would need a trade license. Apart from that, the zoning laws dictate various other aspects of opening a B&B. Zoning rules vary tremendously from one state to another. And they are typically regulated by the county planning commission. You may have to abide by the rules laid down by your county. It may be a cap on the number of rooms you can let out per day or the number of guests you can accept to keep the neighborhood’s environment intact. Some laws even prohibit cooking.
If your neighborhood is not zoned for B&B, you probably have to get a conditional permit. Parking lots are another issue that you need to take care of. You have to keep an arrangement for one car per room. Suggesting public lots for parking for a fee may also be a good option.
Employees
This is another crucial task that you need to accomplish. You can hire fresh graduates to cut costs initially. An experienced manager can oversee the entire operations. Fresh graduates are looking for such options in interning with smaller hotels and B&Bs to get exposure to the sector. You might consider getting an agreement or contract done so that they do not leave all of a sudden for some lucrative five-star opportunity. If you are short on funds, you can get your relatives to manage the space.
These are a few things you need to keep in mind while starting a B&B or any small lodge. You also have to attend to plenty of minor matters daily. Now, you have some pointers ready to help you start and manage one with ease and get a decent income.
