Three Questions Everyone Who Wants to Own a Bed and ... · Three Questions Everyone Who Wants to Own a Bed ... They feel like they are slaves to their business and it ... A counselor

Three Questions Everyone Who Wants to Own a Bed and Breakfast Asks – or Should

Take the Guesswork Out of Owning a Bed and Breakfast www.BandBCoach.com Page 2

TABLE OF CONTENTS

INTRODUCTION 3

HOW MUCH MONEY CAN I MAKE? 8

EXERCISE: How Much Money Do I Need? 10

EXERCISE: Calculating Potential Revenue 11

CAN I RUN A B&B AND STILL HAVE A LIFE? 12

EXERCISE: I AM…Self-Assessment 15

HOW DO I GET PEOPLE TO COME? 16

EXERCISE: Who do I Want as My Guest? 17

CONCLUSION 19



INTRODUCTION

Do you dream of owning a bed and breakfast? Are you wondering…

How much money can I make? Will I be able to run the B&B and still have a life? How

will I get people to stay?

Every day people send me e-mails asking those very questions.

Owning a B&B isn’t as simple as it looks. People who already own a B&B also contact

me; they tell me they are working themselves to the bone every day, just to make ends

meet. They rant about how terrible their guests are.

They feel like they are slaves to their business and it looks nothing like the vision they

had when they threw open their doors.

Did you know that?

...in Canada, 70% of B&Bs earn less than $30,000 in gross annual revenue?!

...in the US, the average net income is only $15,000?

Hardly something to dream about, is it?

If you don’t want to risk you’re your entire life savings…

If you don’t want to have to work so much that you don’t get to have a personal life…

If you don’t want to have guests staying with you who make you feel like you are a

servant…

…then this e-book can save you a lot of heartache.

Here’s why

You will find the 3 questions you MUST ask yourself before you do anything else –

and they aren’t the ones listed above. They can help you make sure that owning a B&B

will be the dream you are hoping for – and not the nightmare others are trapped in.



There are exercises that will get you exploring the answers based on YOUR wants and

needs – not cookie cutter, generic answers that don’t reflect your personal situation.

And finally, you’ll find some suggestions on how to move forward and start making your

dream a reality!

Let me take a moment to introduce myself – I’m Susan Poole and known as The B&B

Coach.

I burnt myself out in the corporate world not once – but twice.

A counselor told me while I was very good at what I did, I was going to kill myself with

the stress I put myself under. (And since I came from a family with a terrible history of

heart problems, that really got my attention!)

When she asked me to list 16 things I had I ever wished I could do and get paid for, it was like a light bulb went off! I could do a lot of those things as part of owning a B&B!

And that was the start of my five-year journey to open my own bed and breakfast.

Why five years? I wasn’t in a real rush as my boys need to finish school, and I wanted to research that this was a good idea for me. (Hindsight is 20/20 as they say – I actually needed all that time!)

The first couple of years I read books, attended courses and got more and more frustrated because no matter what I tried, I still couldn’t find the information I needed. Things that would give me the reassurance that I could make enough money to enjoy the lifestyle I wanted. Then, I would be able to decide whether this was a good idea.

I was a single woman in my 50s who would be rising every penny of my saving and pension, and get a bank loan in order to pull it off. I was really scared I would lose everything I had.

If you’ve read a book or two, they tell you that you need between three and eight rooms

in order to make a living. OK… But how would I know how many I needed? This was

going to be a big gamble for me. It’s not like I had a partner who could bail me out. And

– I wasn’t even sure that I could run an eight room B&B!

Then I started taking courses offered by B&B owners. They were really nice people, but

the courses were based on the premise that I had already made the decision to open

a B&B and they wanted to teach me how to run one.



When I started asking them my questions, it was like reading the books…”Well, it

depends…” but no one could tell me what it depended on! I needed concrete

information so I could apply it to my personal situation.

The third course I attended, the bed and breakfast owner provided me with recipes he

used, demonstrated how to set the table and told me horror stories about some of his

guests.

I knew I wasn’t going to get the answers to my questions through that route.

I was plagued by thoughts like:

• What if no one came to stay?

• What was I going to do with the people that did come?

• Was I going to make enough money to pay the mortgage?

• Could I handle all the work on my own – and what would I do if I couldn’t?

• Was I still going to have a personal life and be available to help my aging

parents?

• Was I ever going to have enough money and time to travel again?

THAT’S WHEN I HAD MY AH-HA MOMENT

I realized my reasons for wanting a B&B were personal. But, I needed to be able to

make money to make them happen!

I needed to:

Know how much money I needed so I could have the lifestyle I wanted

Get clear on how much time I wanted to spend on those personal pursuits to achieve my balanced lifestyle

(There was a third one, but it took me three years to find out what it was!)

Once I started focusing on those questions, I didn’t have the same anxieties because I

had a clear idea of what I wanted to do, and what I had to do to make it happen – or so I

thought.



When I opened 40 Bay Street Bed & Breakfast in June 2006, it was already six weeks

into the season. By the end of the year, I had made as much – or even more – money

than the other, larger and established B&Bs.

There was one very important questions that I hadn’t asked. “Who did I want as my

guests?” By not asking – and getting clear on the answer, I calculate I wasted three

years and almost $100,000 figuring it out.

Now my three suite B&BB is incredibly successful from both my guests’ point of view

and my own expectations. It’s rated as the best place to stay in town on TripAdvisor.

Even though I am located in a seasonal tourist town I make enough money in five

months to live on comfortably throughout the year.

Once I did get open, I was surprised at the number of my guests and others who

mentioned they were interested in owning a B&B, but had no concept of the reality of it.

I became The B&B Coach after five years of running my own B&B because the

questions people were still asking the same questions I had had– and finding how to get

the right answers is almost impossible!

I had to figure It out the hard way, but it has definitely been worth it! Now, I want to

share those lessons with you.

TAKE THE GUESSWORK OUT OF OWNING B&B

The following pages address the questions that people just like you ask – they are

wondering if owning a bed and breakfast will provide them with the income and personal

fulfillment they are seeking.

This e-book will help you a way to turn your questions into a more powerful ones to

assess if owning a bed and breakfast can be the dream you envision - before you

make any investment.



HOW MUCH MONEY CAN YOU MAKE?

ASK INSTEAD: HOW MUCH MONEY DO I NEED?

Are you looking for someone who will tell you how much money you can make, so you

can just take it from there? The second question requires you to consider all the things

you need to pay for – both personally as well as the business.

When people ask me “How much money can I make?” I understand why those B&B

owners I spoke with would say “Well…it depends…”

Because it does depend - on many things! The main ones are:

Location

The size of your property.

How much you charge

What the annual occupancy rate is

There is nothing like a bed and breakfast that entwines your personal and

professional life. The first question ignores your personal needs.

By expanding your thinking, you will make sure that you can have the life you want, not

just doing things you can afford to do with the leftover money.

. To get a handle on how much money is required, you need to consider:

Will you have some additional income coming in? A pension or investment income? Will you or your partner continue to work outside of the B&B?

How much are the things that aren’t related to the business going to cost? Think vacations, golf/gym/club memberships, hobbies, etc

Do you plan to save for retirement? Help kids with school costs? Buy that new car you’ve been promising yourself?

Do you want to be able to take a few months off?



When you start asking these questions, you can see why it is impossible for anyone

else to provide you with answers - there are just too many variables.

EXERCISE: How Much Money Do I NEED?

On the next page is a table of typical expenses that you can use as a basis for your

calculations.

Although this is only a rough calculation, it allows you to determine you what your

current expenses are and how much money you will need in order to live the life you

want.

PS. If you live in a major urban centre and plan to move into a smaller, more rural area,

don’t make the mistake I did. Don’t assume your utilities, insurance costs, etc will

decrease. With fewer people to help cover the cost, it is generally just as expensive, if

not more!



EXERCISE: How Much Money Do I NEED? Living Expenses Personal Expenses

Auto Clothing

Insurance Entertainment/meals out

License Gifts

Repairs & maintenance Grooming

Gas Medical expenses

Bank Charges Memberships

Professional Memberships Miscellaneous

Capital House expenses >$200 Personal Loans/credit card

Food & Cleaning supplies Personal savings/investment

House Insurance Other transportation (2nd car)

Mortgage/Line of Credit Vacation

Misc Supplies Other

Professional Fees Subtotal Personal

Accountant

Lawyer

Property tax Subtotal Personal Expenses

Repairs & Maintenance Subtotal Living Expenses

Interior Total Expenses

Exterior LESS

Supplies <$200.00 Additional income e.g. pensions,

annuities, salary, etc

Utilities Total income required to be

generated by B&B

Subtotal Living Expenses



THE POSITIVE SIDE OF B&B FINANCES

The main financial benefits bed and breakfast owners get from their properties are:

The ability to write off a portion of their own living expenses*

The opportunity to live in a property/location they might not be able to afford or justify without using the property to run a business

To preserve the capital (hopefully) in the long term by owning prime real estate

To get a good return on investment when they sell the bed and breakfast business

*The portion of your living expenses that you can deduct on your income taxes (not

personal expenses) will depend on how much space is exclusively reserved for use by

your guests. Once your plans are formalized, an accountant is the best person to help

you determine those percentages.

EXERCISE: Calculating Potential Revenue

To balance off the expenses you just determined, It is only fair to provide you with some

idea of the amount of money your dream B&B could bring generate,

Here is the equation to estimate how much revenue a potential B&B can generate:

Average annual income =

(average room rate* x # rooms**) x 40%***

*Look at 5 – 10 bed and breakfasts that are currently operating in the location you’d like

to be in, and approximate the average price charged per night.

**Multiply the average price per night by the number of rooms you are hoping to have.

***40% is the industry average for annual occupancy.

KEY TAKEAWAY:

It is important to plan for expenses related to the lifestyle you want to enjoy when

owning the B&B. If you don’t determine what those costs are upfront, you can be

in for a rude awakening once the bills start rolling in!



CAN I RUN A B&B AND STILL HAVE A LIFE?

ASK INSTEAD: HOW WILL THE WORK GET DONE?

The need to change this question is similar to the one about making money. Based on

the calculations you did for revenue and expenses, you have some idea of the size of

property required to generate the income you need. Needless to say, the bigger the

property, the more work there will be. How much work are you willing to do, and will that

leave enough time to pursue your personal goals?

Before you decide that it will be too much work, there is some good news!

If you’re anything like me, you may not be all that keen on cleaning…

The good news is that guests notice and comment on how nice and clean the house is.

On top of that, for the first time, people will be paying you to cook, clean and do

laundry!

That definitely puts it in a different perspective.

It may take you a little while to develop a good system, but you will soon figure out how

long each task will take, and the best way to get it done, so you can plan your day

accordingly. You can also hire help, so you can spend more of your time and energy on

your guests – and the things you like to do!

WHEN DOES THE WORK NEEDTO BE DONE?

Unless you are located in a major urban centre and cater to business travelers, most

bed and breakfasts have seasons.

For instance, at a lot of B&Bs:

- slow season can be six or seven months, and you may only have one room - Mid-season can be three or four months, and can average 50% occupancy - Peak season maybe two or three months long and all your rooms will be filled

most of the time



If you knew that you had the time to focus on your personal pursuits for six month, it can

make the busy times much easier to handle – especially when you know the hectic

times are what pay the bills for rest of the year!

Don’t forget – you are now the boss. You can choose to close for specific days – family birthdays, special holidays like Christmas and vacations. If you didn’t want to close while you are away, you can hire an interim innkeeper –

someone who will come in and take over the running of the B&B for you while you are

gone.

HOW MUCH WORK IS REQUIRED?

Just to give you some idea of the amount of time it takes me:

Cleaning and laundry for each room - 1 hour

Breakfast – 2 hours - one to prepare and the other for serving

Phone calls and e-mails for reservations - as they come in (approximately 10 minutes each) Bookkeeping and grocery shopping – 2 hours each, once a week

Outside maintenance is hard to predict as it will be based on the size of your property.

OTHER CONSIDERATIONS

You also need to think about the impact owning a bed and breakfast will have on the

rest of the people in your life.

It is really important to sit down with these people – your partner, children, extended

family etc. - and have a really good discussion on things like:

What do they think of this idea? Are they willing to support you?

What roles are they willing to undertake in the B&B?

If you get ill, will or can they pick up the slack?



EXERCISE: I AM….Self Assessment

Based on personality traits, some people are better suited for some tasks than others.

To help you think about how the work can be accomplished, there is a list of personality

traits that might describe you.

It’s recommended that you encourage everyone who will be involved in your bed and

breakfast to complete it, then sit down and have a serious discussion.

Don’t worry if you’ve got some statements that you said no for – it’s only natural! Just

remember – if you don’t like to get up early or clean, for the first time in your life,

someone will be paying you to do it!

Talk about some of the areas you identified in the I AM… Self-Assessment, and see if

the others can help out in those areas in particular – or help you come up with potential

solutions. If you are on your own, then ask a really good friend to help with the

brainstorming.

Based on those discussions, you’ll have a pretty good idea of the kind of help and

support you can expect, if you do proceed with the bed and breakfast

Key Takeaway:

It is important to be clear on what your personal priorities are, so you can plan

accordingly. There are a number of ways to manage the workload at a B&B;

utilizing the person(s) most suitable for specific roles is key to enjoying the

experience.



EXERCISE I AM…Self-Assessment

Please indicate whether you agree or disagree with the following statements.

Statement

Yes No

I enjoy getting up early I enjoy preparing meals

I am organized

I can multi-tasks

I enjoy entertaining

I find it easy to get along with people

I am tolerant

I am patient

I am creative

I am a good problem solver

I am comfortable doing physical tasks

I can deal with interruptions

I learn from my mistakes

I am flexible and can change my plans easily

I keep my home neat and tidy at all times I'm cheerful

I like to help people

I enjoy interior decorating

I like to garden and work outside

I am comfortable having strangers in my home

I enjoy serving others

I stay abreast of local events and activities

I am a calm person

People say I am caring

I am comfortable around people who are different than me

Totals



HOW DO I GET PEOPLE TO COME?

ASK INSTEAD: WHO DO I WANT AS MY GUEST?

It can take years to find the property you want to buy (it took me three years) because

you may have some non-negotiable criteria about the specifics of the property… You

might want it located someplace that has access to specific amenities, like restaurants,

art centers or museums or concert halls… maybe you want it to be located in and

around an artistic community. All of those things need to be thought thorough..

When I was getting started, there were three other things I wanted (but hadn’t admitted

even to myself!):

Guest who enjoy the finer things in life and who are willing to pay for those things so I would make enough money.

A location that had activities and events that both my guests and I would like to participate in, so we had something in common.

I wanted my guests to love the B&B I created, because it was going to be a reflection of me.

You more than likely haven’t given a lot of thought to whom you want as a guest - after

all, money is money – right?

It turns out the wrong people can really have a big impact on your business in many

ways!

If you don’t have a lot in common with your guests, then it can be really nerve-wracking

being around them.

Think of the effort you have to put forth trying to guess what you should say, how you can act, and trying not to take offense if their behavior is inappropriate or unexpected.

The wrong guests often want/expect/demand things that you don’t (or can’t) provide. In an effort to keep them happy, it will cost you in both time and money.



Unhappy guests can ruin your reputation – even when you didn’t do anything wrong. If they don’t have a good experience, online reviews let them spread the word about everything they didn’t like.

EXERCISE: Who is Your PERFECT Guest?

This exercise is designed to help you determine who your “perfect” guest is.

Step 1: Create two charts and use the same identifiers listed below on both:

Name

Age (or a guesstimate)

Gender

Marital Status

Kids? Ages?

Pets?

Vacations – where do they go? How long do they go for? How do they decide where they want to go?

Hobbies – how do they spend their spare time?

Employment

Income (or a guesstimate)

What I like about this person (try to be as specific as possible)

What I can’t stand about this person….

Step 2: Title one as People I like to spend time with, the other People I prefer not to

spend time around

Step 3: Once the charts are completed, compare the results and identify similarities

and major differences between yourself and the people you listed.

Are there a lot of similarities between those people you liked and yourself? If you are

like most of us, the answer is yes.



It is human nature to be attracted and comfortable around people you can relate

to – and not so comfortable with people who are not like us. Physical characteristics

generally have very little to do with it.

Having the right guest means:

You will feel comfortable and safe around your guests, and vice versa. It won’t feel like you have strangers staying in your home.

They will be happy with the type of accommodation and food you offer.

Happy guests help promote your property by telling their family and friends and leave great online reviews that convince others like them to come and stay!

.

KEY TAKEAWAY

The best way to get people to come and stay is to attract guests that have a lot of

common with you. Those commonalities will ensure you have happy guests who

will help you promote your bed and breakfast in many ways.



CONCLUSION

Owning a bed and breakfast is a great lifestyle – if you are prepared for the

reality of it.

Asking yourself the re-framed questions in this book requires you to focus on the

question “WHY do you want to own a B&B?”

The exercises in this e-book are just the first step in determining whether owning

a bed and breakfast has the potential to bring you the income and personal

fulfillment you are seeking.

Instead of hearing “Well, it depends…” you are on the path to finding out:

how much money you NEED,

how much work will be required, and

who you want as your guest,

… so that you can create a B&B that will provide you with the income and

personal fulfillment you are looking for.

When I opened my B&B, I had to take a leap of faith that it would work out OK

LET ME HELP YOU SIDESTEP THE PITFALLS, EARLY IN THE

PROCESS.

You are not alone in your quest for information – and its questions like yours that

inspired me to create my “Design Your Dream B&B” Mini-course so you can

“think through” more of these initial important questions and concepts.

You will learn how to:

Get really clear on the 5 things you need to understand to have the B&B of your dreams. Why waste years dreaming of owning a B&B – only to find out that it’s not what you thought?



How to make sure the location you want also attracts enough potential guests, so you can generate the money you need – and not worry that you can’t make enough to pay your bills

Attract your perfect guests, so that you can spend time with people you like – and not feel like you are a slave to them or your business. .

Why spend hundreds of thousands of dollars on a property only to find out you

can’t make enough to pay the bills?

Why waste years dreaming of owning a B&B – only to find out it’s not what you

thought?

Why tie yourself down to a job where you spend your days and nights dreading

who is going to walk through the door to stay?

CLICK HERE and let me help you take the guesswork out of owing a B&B.

STOP wasting time, money and energy trying to figure it out on your own and

START getting the answers you need to make sure it’s the right business for you!

Avoid being trapped in the nightmare of not having enough time and money by

focusing your efforts on what is important to you … so you can have the freedom

to live the life that you want.

PS. “Design Your Dream B&B” Mini-course has helped hundreds of people

confirm that they want to continue down the path towards owning a bed and

breakfast – and helped others save time, money and energy by helping them

realize that this isn’t not the path that will help them achieve the personal

fulfillment they are seeking.

http://bandbcoach.com/step1

http://bandbcoach.com/step1

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Three Questions Everyone Who Wants to Own a Bed and ... · Three Questions Everyone Who Wants to Own a Bed ... They feel like they are slaves to their business and it ... A counselor