You arrived at this site to find out about a Bed and Breakfast Business Plan but I hope to give you much more than just that!
Remember that there are over 61,000 business bankruptcies annually in the United States! That's 61,000 plus businesses that started with a dream and plenty of passion! That's 61,000 plus businesses that crashed and burned! Don't be another statistic! Not only do you lose your dream but you become one of the unemployed at the same time!
No matter what the goal is it must first start with a plan! Not just any plan, but a well thought out plan that anticipates the obstacles and overcomes them.
Whether you are planning to climb Mr. Everest, take an NFL team to the Super Bowl, or just going to the grocery store you should have a plan! The better the plan the better the chances are of being successful!
If it's a Bed and Breakfast that you're wanting to start then you better have a great Bed and Breakfast Business Plan that will get you off on the right foot! Don't wait until you invest every dime of your life savings and find out your forgot to plan for oxygen when climbing Mt. Everest!
So, let's get down to it!
Let's think through our Bed and Breakfast Business Plan!
What is the most important thing we will need to make your Bed and Breakfast successful?
Not fancy furnishings!
Not fantastic food!
Not a friendly atmosphere!
Not a romantic environment!
Although these are all very great and important things to have, they won't matter a bit without this one other most important thing!
That's right! Customers!
If no one ever comes to your amazing Bed and Breakfast then it won't matter what else you do or have!
How are you going to get people to enjoy what you hope to be the very best Bed and Breakfast there is in the area?
This is no time to start guessing!
Just like the Hotel Business a Bed and Breakfast must continually market their establishment to attract new clients! This is a major part of a successful Bed and Breakfast Business Plan!
So how are you going to attract clients?
Let me ask you first what type of Bed and Breakfast are you
going to provide?
Is it focused on couples?
Is it focused on business retreats?
Is it focused on families?
Is it focused on hunters?
Is it very luxurious?
Once you know the type of Bed and Breakfast you will be providing then you will know what type of person you are trying to attract! Where are these types of people located? How will you get them to your place? Are they close by or will they have to travel great distances?
On top of networking with travel agencies, chamber of commerce's, wedding planners, state and city visitor centers, you may need to look to foreign countries, i.e., Europe, Japan, Israel, etc.
The United States Census Bureau website offers a lot of great information also to locate where your type of client may be in a city, state, or the country. If you're looking for married couples then you can find out where and how many married couples there are in certain locations. Same thing for families! The best thing about the website is that it is free.
Another very important piece of your Bed and Breakfast Business Plan is to understand who your competition is and how are you different!
Once you determine how you are different this will become your sales and marketing plan!
Again, don't guess at what is different make sure you understand exactly why you are different!
This may mean that you stay at your competitions Bed and Breakfast! The best way to beat your competition is to know what you're up against! Stay there with a critical eye so that you know what works and what doesn't!
Again, hotels have sales teams selling rooms and banquet events. You may need to consider having a sales person on your staff. Think of a sales person to a hospitality business like an executive chef is to the restaurant business. A bad executive chef can ruin a business just like a bad sales person can ruin a Bed and Breakfast business. On the other hand, a good or great one can make it enormously successful.
If you're telling yourself that you can't afford one you better reconsider! Don't show up at a gun fight without a gun!
Within your Bed and Breakfast business plan you will need to make many various types of assumptions all dealing with numbers!
This is where it can get interesting!
Don't make the mistake and plug in numbers that make your potential Bed and Breakfast business look like it will blow the socks off your competition!
All your assumptions should be based on reality! If you assume that every room will be filled every night though out the year, you are mistaken! It's nice to dream but you better come back to reality! The best places in the world never realize this! Even an occupancy rate of eight to ninety percent is good!
Have you seriously thought through all your fixed and variable expenses well enough to make some assumptions on them?
Will you have employees?
What will you pay them?
Will you offer benefits?
Have you checked into Workers Compensation?
Will you be laundering the linen or will it be done off site?
Have you considered the poundage of that linen and what size machines you will need?
Have you considered the rate that you will need to replace that linen?
Have you considered the environmental laws (EPA) that may be associated with doing your own laundry?
As you can see there are a lot of things to consider and many assumptions that you must make as you are laying out your Bed and Breakfast Business Plan.
There is one thing for sure and that is that Business Plan Pro is the best business plan software that I know of. In fact, it has been named the best business plan software for more than ten years and has the endorsement of many reputable businesses like the Wall Street Journal. Business Plan Pro is the business plan software that I use and believe in.
What I like about Business Plan Pro is not only does it help you layout your Bed and Breakfast Business Plan in the right format but the financial models are fantastic.
As I mentioned above about assumptions, Business Plan Pro's financial forecasting tools are the best in the business. All the various categories are tied together so that if you change an assumption in one element of your Bed and Breakfast Business Plan it will carry it through the entire plan.
I know that you're excited about getting started but remember that a great plan will keep you going in the long run! A plan that bases its assumptions on merely guessing will fail miserably.
Don't be one of the 61,000 business bankruptcies next year!
Plan your work and work your plan!
Thank you and may God bless you!
Without a Bed and Breakfast Business Plan you may become another one of the over sixty-one thousand business bankruptcies filed each year!
That's over sixty-one thousand dreams going up in smoke!
That's over sixty-one thousand people joining the world of unemployment!
If you want to ensure you join that group try starting any business without doing the research first!
There are very few things we do in life successfully without first laying out a plan.
Let's first take a look at your competition in the area. This may help you determine if this is the right area for you!
Who is your competition?
Why are they your competition?
What services do they offer that are unique to the industry?
What services do they offer that are standard to the industry? Who do they cater to?
Families, Couples, Young, Old, Romantic, Private, Open, Activities, Peaceful, Luxury, Affordable, etc.?
Who are their customers and where do they come from?
Your Bed and Breakfast Business Plan should help you to sort out exactly what type of Bed and Breakfast you should have based on the others you are in competition with.
If you wanted to open up a Restaurant that was very close to another, it would be wise to offer something different so that customers had a choice! There are exceptions to this rule, but generally speaking it works out better if you offer a different menu or experience of some kind.
As an example, you may use antique type furnishings while your competition uses modern contemporary. You may use a large claw tub while your competition uses a modern whirlpool.
A bed and breakfast are all about the experience! What experience are you going to provide your customer that is different or better than your competition?
It may cost you a bit of money but it may be well worth spending a night in any Bed and Breakfast that you consider your toughest competition. What can you offer that is different? This will be the best way to really understand what your competition is offering and what you must offer!
The next part of your Bed and Breakfast Business Plan should identify your customer!
We talked a little bit about it above, but who is your customer, where are they located, and how are you going to get them to stay at your Bed and Breakfast?
One of the best sources to get detailed information is from the United States Census Bureau.
Based on who I have identified as my customer I can obtain the data I need right from their website!
For example, if I am targeting a young married couple with no children from a certain income group, I can pull that data out without any problems from the area that I determine. All I have to plug into the search would be area. This type of information is priceless for your Bed and Breakfast Business Plan.
Once you know who the customer is and where they are located you can concentrate on a Marketing Plan to bring them to your Bed and Breakfast!
Most Business Plan Software Programs, like Business Plan Pro, are designed to make you determine all the necessary information you will need to guide you to success. I mention Business Plan Pro only because it is my choice and the one, I use.
You're Marketing Plan must include more than just an idea! Let me tell you after spending years in the Hospitality Business you must dedicate time and resources to marketing your product, which in this case is a Bed and Breakfast!
Are you marketing only to the local metropolitan area, or should you consider branching out to ones that are a few states away? Once you have decided that, will you reach out through a website or other form of advertising? Are you going to team up with the local Chamber of Commerce? Are you going to work with instate and out of state travel agencies? Your options are only limited by your imagination!
Let's talk money!
One of the oldest and wisest questions known is "Have you really counted up the cost?"-
Before you take one step towards starting up a small business like a Bed and Breakfast you better know how much it will really cost to do so!
Your Bed and Breakfast Business Plan Software will require you to do just that!
If you're not honest with yourself on this part of your business planning, get ready for that line!
What line you ask? The line for Bankruptcy Court and Unemployment!
There is a lot more that goes into starting up a Bed and Breakfast than just buying a building and supplying it with beautiful amenities.
I am no rocket scientist but I can tell you from all the businesses I have started up that it will take more money than you originally thought. There will always be something you did not plan on! Always!
The other thing that rarely ever works out like your Bed and Breakfast Business Plan projects is sales! You may be one of the lucky ones that get it right, but my guess is that you are more hopeful than what truly reality will be. You're Marketing Plan and the research you do on determining who your customer is, where they are located, and how you will get them to your location will make a difference here.
My point is that you better have some cash flow to pay your bills, your salary, payroll if any, and any other items until things really begin to work out. A wise person would consider at least six months to a year before things really get off the ground!
The final piece of your Bed and Breakfast Business Plan is information about your management team! Now that may be a team of one or two, i.e., you and your spouse!
What makes you qualified to run a Bed and Breakfast?
If the extent of that answer is that it has been a lifelong dream, then rethink your whole plan!
Dreams are nice but they will not make you successful!
I can dream all day long about how I want to play on a NFL Football Team, but the reality is that I would be killed doing so!
In order for you to be successful you must know how to run a business, and in this case a Bed and Breakfast!
If you don't you better learn how first before you invest your life savings into one! It can be overwhelming for someone that has no management experience!
Speaking of myself for a moment, I have over thirty-five years of management experience. I can tell, you everything there is to know about running a business, including a Bed and Breakfast! Even with that experience I would never enter it without a Bed and Breakfast Business Plan that includes every aspect necessary. My Business Plan Software of choice is Business Plan Pro. I know that if I approach it in an honest and well researched way I will most likely be successful.
Now of course at the end of the day if the Business Plan numbers are indicating that you are not going to be successful, better scrap the whole idea and start again!
Thank you and may God bless you!