When I wrote and published my first B&B book, How to Open and Operate A Successful Bed & Breakfast Business, in 1990, the U.S. B&B industry was just emerging.
The majority of books available about B&B's at that time were written with the pleasure traveler as the market target. Few went beyond "how to be the perfect host" and none dealt with the feasibility or financial aspects of taking on a project of this magnitude.
As I reread that first small book in preparation for writing the second edition, it became abundantly clear that nothing was available to assist a potential B&B Inn operator to determine the exact market the facility would serve and current and potential B&B operators were missing out on an emerging market - the business traveler.
Studies now show that guests who have discovered the B&B experience while on holiday or vacation desperately want the same experience, albeit with a few minor adjustments and "businessperson amenities," when traveling for their companies.
Other things that are still as true today as they were in 1990 include the erroneous perceptions that:
- Entry into the B&B business is easy,
- A well decorated inn and a great innkeeper personality are the ONLY requirements for success, and
- Cute and charming insure success.
Although the latter two are important, I'd add that a B&B or small inn today must be "decorated" (euphemism for furnished with services and amenities) according to the market in which it will operate. It's very difficult to have a lodging facility that can satisfy everyone.
To take the reader from concept through opening I use a model case study throughout the book and actually include a sample market and feasibility study, a marketing plan, a loan submission package and a business plan.
A recent article in the Wall Street Journal (May 29, 2002) defined the typical Bed and Breakfast Inn as having 25 or fewer rooms. I also discovered that approximately 90% of B&B's are under ten rooms.
In my first book I made a point that in order to be profitable, a B&B or inn should have at least seven rooms. I now know of a B&B that is making money with five rooms. So don't fret over the size of the model.
I chose a ten room B&B/Inn as the prototype model to use throughout the book. As you proceed through the book, (especially if you are considering less than 10 rooms) keep in mind that certain assumptions were used throughout. They include the definition of a B&B Inn, the assumption that the enterprise will be developed and operated by an independent person or couple, that the size of the facility will not be less than 10 rooms, and the reader's project will include either the purchase of an existing B&B Inn, the renovation of an existing structure, or a new construction project. I can state with certainty that the majority of the material in this manual is appropriate for the smallest B&B.
The chapters in this manual apply to a 5 room or a 50 room B&B or inn. The reason behind the hypothetical 10 room model will become clear as you proceed through the process.
In Chapter 1, I demonstrate the margin of operating profit between a 5, 10 and a 20-room facility. I also point out the total cost of development for each of the three sizes.
The terms B&B, Inn, and B&B Inn are used interchangeably throughout the manual. However, the terms are not meant to be synonymous with the "boutique" or "hip boutique" hotels that are in markets such as San Francisco and New York.
The first four chapters deal with the specific areas of development up to and including the opening of your B&B Inn. These chapters are appropriate for properties of between a few to fifty rooms, therefore, it was imperative for the sections to be presented in a chronological order through the early development process.
These chapters provide insight into:
- Testing your project's feasibility,
- Writing your Business Plan
- Writing and implementing your Marketing Plan
- Preparing your loan submission and investor presentation package
Chapter Five is dedicated to operating the B&B Inn. The "art" of innkeeping is not included. I do refer the reader to other books that address "hosting" and "innkeeping." Chapter 5 deals primarily with procedures, standards to provide operational consistency and the disciplines that provide financial controls.
Two additional chapters provide checklists, forms, references and resources. The book culminates in the last chapter dealing with real world situations.
