If you are thinking of starting or building a bed and breakfast from scratch, or maybe you are purchasing a bed and breakfast which is already up and running, there are many different expenses and costs to consider and to factor in, to help you determine the feasibility, some of which include:
- Location; purchasing real estate, whether an existing bed and breakfast or a building which you think would make a great one, is a large purchase that requires different types of financing and that will be a significant outlay of money.
- Room furnishings; this cost in terms of the actual monetary amount is entirely dependent on the number of rooms. This cost includes bed frames, mattresses, bedding, sheets, pillows, dressers, chairs, hangers and mirrors, etc. The most basic room should have, at the very least, a bed, some sort of storage for guests and bathroom fixtures. Obviously, to be successful, your rooms and space should have more than this.
- Kitchen costs; from larger and upgraded appliances to extra cutlery, seating and dining furniture, you cannot overlook the cost of creating a kitchen sustainable for cooking and accommodating several guests.
- Insurance; there are different insurance requirements and therefore more various expenses than with traditional home insurance, so getting quotes for the insurance required can help you estimate what you can expect to pay for these types of costs.
- Marketing; setting aside money to market and advertise is essential, especially when you initially start your business, to generate buzz and activity for your bed and breakfast. The amount required will depend on your preferred platform, your target audience and your competition.
- Ad hoc business expenses; these include everything from a stapler to software to help manage reservations and customer service, and these should not be overlooked or underestimated