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Absolutely excellent!! An absolute must for those starting out on their own, or running their own bed and breakfast business. We only wish it was around when we first started out as it would have helped us a great....  |
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| Bed and Breakfast Business Overview
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Turn your home into your business and start a Bed and Breakfast (B&B) small business today. If you have the space, renovate your home to include lodging and dining facilities. The typical B&B overnight rate includes a room and breakfast the next day. Offer your guests a quaint lodging experience that also respects their privacy.
Keys To A Successful Bed and Breakfast Business
Location is key to this business. Your Bed and Breakfast needs to be located in an area where people want to stay. Do your research and be realistic before investing in this business. Make sure to differentiate yourself from other B&B's to help with name recognition. Differentiation can come from many different sources including service, room quality, dining experience, location or amenities.
Expanding Your Bed and Breakfast Business
Expand your Bed and Breakfast operations to include other leisure activities such as vineyards, riding stables, mountain climbing, skiing or golfing packages and the like. If you have name recognition, consider expanding your operations and open Bed and Breakfast Inns in other popular destinations. Take your more popular menu items and turn them into a Bed and Breakfast country cookbook.
Bed and Breakfast Expense Averages
The following table lists expense averages for a Bed and Breakfast business. Based on industry averages, you should expect to pay approximately 82% of your gross revenue on expenses. In other words, if your business earns $100,000 in gross revenue, you could expect to pay around $82,000 in expenses. The breakdown of these expenses is found in the chart below.
Expense Category
| Expense Category |
Expense % |
Expense $ |
| Cost of Goods or Services Sold |
24% |
$19,680 |
| Advertising |
2% |
$1,640 |
| Automobile |
2% |
$1,640 |
| Contract Labor |
1% |
$820 |
| Depreciation |
5% |
$4,100 |
| Insurance |
4% |
$3,280 |
| Mortgage Interest |
6% |
$4,920 |
| Interest |
1% |
$820 |
|
Office Supplies |
1% |
$820 |
|
Professional Fees |
1% |
$820 |
|
Non-Equipment Rentals |
4% |
$3,280 |
|
Repairs |
3% |
$2,460 |
|
Salaries |
15% |
$12,300 |
|
General Supplies |
2% |
$1,640 |
|
Taxes |
5% |
$4,100 |
|
Utilities |
8% |
$6,560 |
|
Other |
16% |
$13,120 |
The expense averages above should not be considered financial advice. This data is taken from multiple publicly available data sources including the IRS, Small Business Administration and US Business Census figures. We provide these averages to you only as a starting point in your budget planning process.
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