What is a B&B?

A bed and breakfast is generally known as a private home where a guest is provided a place to stay for the night. In some cases, the bathroom provided for the guest is shared with the family or another guest — although the majority of guests now expect (or demand) a private bathroom (usually en suite, or “in the room”). Breakfast is usually included with the price of the room.
A bed and breakfast provided in a private home is sometimes referred to as a homestay.

In addition to converted private residences, some establishments are considered bed and breakfast inns. The same concepts of “room and breakfast” apply. The major difference is that an inn has more rooms available than the usual one to four found in a private home. Inns often provide meals in addition to breakfast, as well as other services not always provided in a private home.

These two terms are used in the industry to distinguish the difference between a stay in a private home and an inn. But remember, no two homes or inns are alike. They vary even within the same geographic area. These differences are part of what attracts people to stay at a B&B home or inn and are a significant part of their popularity. Each one has its own personality.

Generally, a B&B is not the reason for a guest to visit an area, but in some cases B&Bs have done such a masterful marketing job that this has changed. People read articles in a variety of publications and sometimes are attracted by a bed and breakfast and plan to visit the area specifically to stay at that B&B.

Travelers usually are attracted by recreational, cultural or historic sites, or by business they have in a particular area. Business travelers, especially women, sometimes seek out bed and breakfast accommodations as an alternative to the typical lodge, motel or hotel facility available in an area. B&Bs provide the traveler with a different lodging experience as well as what many consider a safer environment.

A Brief History of Bed and Breakfasts

The bed and breakfast concept has existed in one form or another since the beginning of man. Monasteries served as bed and breakfasts for travelers, and in some cases still do.

Bed and breakfasts have been very popular with the traveling public in Europe for years. It was in England, Scotland and Ireland that the term “B&B” first came into use. Tourists will see B&B signs in many windows there. The term “bed and breakfast” is not used in many other countries. Terms such as paradors, pensions, gasthaus, minskukus, shukukos and pousados are used to describe what Americans and English-speaking Europeans think of as a bed and breakfast.

The United States also has a history of bed and breakfasts dating back to the time of early settlers. As the pioneers traveled the trails and roads across this county, they sought a safe refuge in homes, inns and taverns. In fact, some of those historic accommodations now serve as B&Bs.

During the Great Depression, many people opened their homes to travelers to bring in some additional money for the family. The term “boarding house” was used at this time. After the Depression, this type of lodging declined and many people had the idea they were just for low-income travelers or drifters. In the early fifties, people may remember the term “tourist home” being used. This too was essentially a form of bed and breakfast. Once motels were built on the new highways, they were soon forgotten.

In large part because of the number of Americans traveling to Europe in recent years and rediscovering B&Bs, there has been an exponential increase in interest in the U.S. Today, the B&B is not viewed as a low-cost lodging facility but as an attractive alternative to the typical standard chain hotel or motel room. Today, some bed and breakfasts offer amenities not unlike those found at the most upscale hotels in the world.

This series of worksheets and information was originally written by Eleanor Ames, a Certified Family Consumer Sciences professional and a faculty member at Ohio State University for 28 years. With her husband, she runs the Bluemont Bed and Breakfast in Luray, Virginia. Many thanks to Eleanor for her gracious permission to reprint them here. Some content has been edited, and links to related features on this site have been added to Eleanor’s original text.

Writing A Business Plan for Your B&B

A thorough business plan will help you prepare for the life of an innkeeper, hopefully making it an enjoyable and profitable life.
Since everyone in your family will have to live with the decisions, everyone should be involved in making them. The planning process will include a lot of research and study. Be realistic in evaluating what you can offer potential guests. Ask yourself what potential guests want and how you can bring your wants and their wants together.

Don’t hesitate to contact your local or state B&B organization for some pointers. The Professional Association of Innkeepers International also offers resources for aspiring innkeepers.

Plan Outline

Consider each of the following points as they apply to your situation.

You should first prove to yourself that running a B&B will be a worthwhile venture for you and your family. Some elements of the plan will also be useful if you need to borrow money for the business in the future.
Resources

Your bed and breakfast home and grounds — its character, period and/or style, location, facilities, and activities both on the premises and within the community, seasonal or year-round.
Do you have enough time to operate a bed and breakfast?
Family members, B&B-related skills, dispositions, and interests.
Available capital for bed and breakfast startup and ongoing costs.
Goals

Why are you considering opening a B&B? Merely for financial needs?
What is your desired profit (net income) over a pre-determined number of years?
Do your B&B goals mesh with family goals, both long- and short-term?
Modify and re-prioritize your goals after making your first decisions.
Requirements

Learn what’s needed in the way of licenses and permits in your location (local, county, and/or state): zoning, building and housing codes, health regulations, tax collection, etc.
Obtain an estimate on the cost for liability and other insurance.
What are the tax requirements — local, state, federal, etc. — that you’ll need to meet? It may be useful to meet with a CPA or a tax preparation specialist.
What sort of business structure — sole proprietorship, partnership, corporation or other — will work best for you? A consultation with an attorney may be in order.
Market Analysis

Make notes regarding the socio-economic characteristics of your targeted guests. Consider what you prefer and/or you will most likely attract.
Estimate the number and location of potential guests. How far will they come to stay at your inn? Does your area draw a lot of tourists?
Consider distances and routes to specific targeted areas close to your bed and breakfast.
Look at the anticipated trends in socio-economic status for your region.
Educate yourself about trends in the preferences of B&B guests.
Competition/Comparisons

Study the quantity and quality of similar bed and breakfasts and attractions in your location.
How profitable are other local inns? What are the trends? You might not be able to get this information directly, but talk to the Chamber of Commerce to see whether B&Bs in the area are stable businesses or if they seem to come and go.
Where do your competitors advertise?
Management

Record-keeping for tax purposes, as well as to give yourself plenty of data to analyze as you work to improve your inn.
Start up and maintenance costs (facilities, equipment, supplies and services).
Pricing bed and breakfast facilities and services.
Inventory and depreciation record keeping.
Bed and breakfast standard operating procedures (with assignments).
Marketing

Image building: logo, stationary, signs, etc.
Sales strategy: uniqueness, quality, price, location, etc.
Promotion strategy: type of advertising, agencies and organizations.
Action Plan

Prioritized bed and breakfast goals (most desired results within six months to one year).
List tasks required to accomplish your goals. Set deadlines.
Evaluate needed resources: money, time, labor, etc.
Prepare an action calendar (with task start dates and completion deadlines).
Evaluate your progress periodically and update your plan. No plan is static. Call on professionals for assistance: an attorney, accountant, insurance agent, a bed and breakfast organization director, and others you may know.
Additional Resources

Check out books on the subject of starting a small business, perhaps available from your state government.
Talk to the local chamber of commerce, visitors bureau, etc.
Contact any small business associations in your location.

This series of worksheets and information was originally written by Eleanor Ames, a Certified Family Consumer Sciences professional and a faculty member at Ohio State University for 28 years. With her husband, she runs the Bluemont Bed and Breakfast in Luray, Virginia. Many thanks to Eleanor for her gracious permission to reprint them here. Some content has been edited, and links to related features on this site have been added to Eleanor’s original text.

Family Considerations in Operating a B&B

If you’re thinking about opening a bed and breakfast, some of the first people you’ll want to discuss it with are the members of your immediate family.
Some people may consider becoming an innkeeper the ideal way of having the best of both worlds — family and work — but think again. If your family members aren’t willing to give up or share some of their space with potential guests, you have a problem.

Working in any home-based business becomes a delicate balancing act between work and family. The pressures of business could get the best of you and cause some conflicts in the family. You must put a lot of thought into how your family and the business can function together. Consider these points and discuss as a family before reaching your final decision.

Time Schedules

As a business, bed and breakfasts are dependent on their guests’ schedule and families must manage around them.

How will this type of scheduling affect you and your family?

Do you have young children that need your care and attention?

Do you and family members have commitments or obligations which will interfere or conflict with guests’ needs?
Period of Operation

Some businesses can pick and choose their hours of operation. Bed and breakfasts have some flexibility in this area, but if you want to build up your business, you have to be open.

Can you schedule some time off in order to be with the family?
How much will it hurt the business to shut down for that time?
Will it coincide with the time your family has available?
Amount of Energy Required

Running a bed and breakfast is real work. Your guests expect clean rooms, delicious breakfasts, and service that goes above and beyond. You’ll need to get up early, often go to bed late and — at least in the beginning — you’ll have to do all of the housework, prepare the meals, and manage the business (such as bookkeeping).

Will you be able to handle the tasks required by both your business and family?
Do you have the energy level needed?
Are others willing and able to help?
Use of Space

Your home will be your place of business. Are family members willing to give up some of their space for guests? Have family members take some time to fill out the worksheet below and then discuss it with them.

Friends and Neighbors

Zoning is a concern for some bed and breakfast locations, especially if you’re starting a new one. You also need to consider the reaction of your neighbors.

How will your business affect your neighborhood?
Will neighbors accept and support a bed and breakfast?
Create a Family Use of Space Worksheet

Create a worksheet to find how each family member feels about sharing rooms in your home with guests.

In the left column, list each area and room of your home. Be thorough. Across the top row, list each family member.

Then, using the codes listed below, have each family member indicate how comfortable they are with guests’ use of these rooms.

Space Codes:

A. Any Time
B. Okay at Certain Times
C. Only When Arranged
D. Never
After everyone has finished, determine what space appears acceptable and on what kind of schedule. Now it’s time to talk! Does everyone agree? Are there ways you might be able to negotiate a compromise? If not, you may need to rethink your plans for opening a bed and breakfast in your home.

This series of worksheets and information was originally written by Eleanor Ames, a Certified Family Consumer Sciences professional and a faculty member at Ohio State University for 28 years. With her husband, she runs the Bluemont Bed and Breakfast in Luray, Virginia. Many thanks to Eleanor for her gracious permission to reprint them here. Some content has been edited, and links to related features on this site have been added to Eleanor’s original text.