Whether you want to start a B&B to escape the rat race, to supplement your income, to create a business out of a historic home that you love, or to indulge your love of being a host or hostess, you’ll want to know the profit factor. What revenues can you expect as a bed and breakfast host?The answer varies a great deal, depending on the number of guest rooms in your B&B, the seasonal (or not) nature of your locale, the length of time you’re in operation, how creatively you promote your business, and how hard you want to work.
Keep in mind, however, that the bed and breakfast is not a high-income industry. “This is not a business you go into to make a lot of money,” cautions Nancy Sandstrom, a former lecturer on B&B startups and now in her sixth year as an innkeeper. “You can make a profit, and many of your personal expenses are semi-covered. But it’s a lifestyle decision. You’ll make your real profit when you sell.”
The more guest rooms you have, the more gross income you’ll earn. Which makes sense–two rooms at $100 each is $200 per day, while 10 rooms at the same rate at full occupancy brings in $1,000 per day. Which is great. But it also follows that the more rooms you have, the more expenses and the more work you have as well.
Photo by tuce.
Melissa Whearty on January 29th, 2008 at 3:43 am
Please can you give me information on how to start up a B&B