What is a bed and breakfast business plan?

A business plan is essentially a road map for how you will start your bed and breakfast, and then address how you will run it for the first couple of years.

When you mention to people that you are thinking of opening a b & b, what are the questions that they ask you? After the initial enthusiasm for the idea, do they generally ask you things like:

  • Where are you going to open it?
  • Have you got the property yet?
  • What’s the bed and breakfast going to be like?
  • What’s there to do in _________ (location)?
  • What are you going to serve for breakfast?

I will bet you that they don’t ask “Do you have your bed and breakfast business plan drawn up yet?” However, if you can answer some of the earlier questions, you are well on your way to getting a bed and breakfast business plan in place.

 

 

What is a bed and breakfast business plan?

A business plan is essentially a road map for how you will start your bed and breakfast, and then address how you will run it for the first couple of years.

It has a similar layout and covers the same topics as almost any other business, except the focus and research is different.

It is also a marker for you to compare your original ideas with:

  • the current reality of the market
  • who your customer is, and
  • what those customers are looking for.

The main components of any bed and breakfast business plan will include:

Business Description – including short and long-term objectives for your bed and breakfast business, a description of your B&B and what your “key to success” is – what will set you apart from other accommodation in the area, and make people choose your b and b over others.

Marketplace – provides an overview of the research you have done on: the location for your bed and breakfast, including what will bring people to stay at your b and b/the area, a description of your potential guests and bed and breakfast industry and travel trends, what the regulatory requirements are, and who your competition is.

Sales and Marketing – reviews who your target audience is, how you will position your bed and breakfast to stand out from the others, what tools you will use to let people know you are open for business,  and an estimate of what the budget for marketing your bed and breakfast business will be the first few years.

Business Operations – tells how the business will be run – who will be responsible for what tasks, how you will continue to improve your business over the first few years, a summary of your business viewed through a SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis, including critical issues and contingency plans.

Financial Information – including resources required for starting your bed and breakfast, sales projections and cash flows for the first three years.

Besides providing a road map for running your business, a business plan is crucial for applying for funding.

Do you have a question for me?  Leave a comment below and as always, I will personally answer you!

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