When I ask people who are interested in running a bed and breakfast why they want to do it, I often get the same answers:
- They like to meet people
- They like to cook and entertain
- They like to decorate and would like to show off their house
However, when I dig deeper, the underlying cause is always the same – to make money.
As I explained in an earlier post How much money can you make owning a bed and breakfast business? only you can answer that question. In that post, I provided a formula based on various costs that could provide you with a rough idea of whether you could break even.
An AH-HA Moment
The other day, I had one of those ah-ha moments! What people really want to know is:
- Am I going to make enough money to pay my bills
- Be able to maintain a certain lifestyle, and
- Be adequately rewarded for our time, investment, effort and inconvenience of having to share my home with strangers?
And that is why no one can answer if you can make enough money owning a bed and breakfast! The amount of money that will reimburse you adequately for the lifestyle and inconvenience of owning a bed and breakfast vary with each and every individual. For instance, I was willing to be on call 24/7 for 5 months in order to have the lifestyle I did. However, that may not be the case for everyone.
The main financial benefits bed and breakfast owners get from their properties are:
- The revenue generated by the bed and breakfast
- The ability to deduct a portion of their own living costs
- The opportunity to live in a property/location they might otherwise not afford to or justify without using the property to run a bed and breakfast business
- To preserve their capital (hopefully) in the long term by owning prime real estate
- See a good return on investment when they sell the bed and breakfast
If you are looking to make a lot of money, in a short term, and want to be able to get your investment back quickly and guarantee your investment, then I can tell you that I would highly recommend that you consider some other type of investment.
The B&B Coach’s 4-step “Design Your Dream Bed and Breakfast System” is designed to help you identify your personal pros and cons of owning a bed and breakfast, along with tools to help you determine if you can generate enough money to make it worthwhile.