One of the first books to recognize the impending popularity of B&Bs was Jan Stankus’s classic ‘How To Open and Operate A Bed & Breakfast Home’. Now in its ninth edition, the information she conveys is essential information for aspiring as well as experienced innkeepers.
Among the sections that stand out is one on expenses. Our B&B was already doing well when I purchased a second home – a fixer-upper – and soon had to face the fact that I hadn’t calculated the actual costs involved in bringing it up to speed. I had only looked at the sales price of the home and so, in the end, added expenses plus a sour economy cost me a bundle.
The same is true for bed and breakfasts. Even more so. I can tell you from experience that the passion to own and operate a B&B can easily lead to tunnel vision where you consider nothing but the sales price and can only envision yourself sitting on the porch with your guests, watching the fireflies flicker about the yard.
A DREAM COMES TRUE – BUT AT WHAT COST?
As Stankus so perfectly points out, you MUST account for the extra expenses involved in either converting a private home into a bed and breakfast or taking on the responsibility of operating and up-and-going B&B.
Like a traveler who wishes they had brought twice as much money and half as many clothes, every innkeeper will tell you that the expense of stocking a B&B is will amaze you; whether it’s buying duplicate linens, a warehouse of groceries, putting in a new lawn, or facing an endless series of touch-up painting and repairs there are always things to do and buy.
If you’re converting a home, Stankus points out just a few of the new items you’ll need to get started:
- • Beds
- • Mattresses
- • Sheets
- • Pillows
- • Towels
- • Towel racks
- • Rugs
- • Bedside tables
- • Lamps
- • Televisions
- • DVD players
- • Ice buckets
- • Serving trays
- • Silverware
- • Plates
- • Locks
- • Nightlights
- • Clocks
- • Furniture
- • Web design
- • Web hosting
- • Paint
- • Insurance
- • Legal advice
- • Smoke detectors
- • Membership fees
So NOW how much would you pay? If you thought the home’s sales price got you off the hook because it was such a bargain, add tens of thousands of dollars more to take care of these pre-opening items.
AND THE BEAT GOES ON…
Rest assured that after you do open your doors of your inn, the expenses don’t stop. Granted, you should be generating income to offset some expenses but you’ll always have to account for day-to-day costs which will include:
- • Food
- • Beverages
- • Coffee
- • Snacks
- • Soap
- • Lotion
- • Shampoo
- • Tissue
- • Utilities
- • Cleaning help
- • Cleaning supplies
And more. Always more.
If your dream is to own and operate a B&B, I hope it comes true and there are many ways it can happen. But after seeing several innkeepers launch their dream inn and then fail because they had overestimated their chance to succeed by not accounting for upfront and ongoing expenses, I’d hate to see the same thing happen to you.
Before you let your passion get you in a fix, do the math. Face up to your financial exposure and decide if your decision will pay off.
If not, you won’t own a bed and breakfast.
The bed and breakfast will own you.
For more information on educating yourself before buying a bed and breakfast, refer to