Do you fancy leaving your nine to five job and opting for a lifestyle business? If so, launching a new bed and breakfast business could be perfect. You just need to understand all the significant costs involved in starting out. Failure to do that could mean you encounter many issues. For instance, you might have trouble paying staff members during the early days. That is because it will take a while until you receive lots of bookings. Whatever you plan to do, use the information on this page to your advantage. It should help to make sure you don’t overlook any material costs when creating your new company.
The first thing you need to consider is the cost of your hotel. In most instances, it won’t make sense to rent your B&B. Indeed, you’ll have to apply for a mortgage and buy the building. However, that means you face even more expenses before you can open your establishment. You’ll have to make sure the building meets all health and safety specifications. You might have to pay for the installation of wheelchair ramps, and extra plumbing. On top of that, your business rates could depend on the size of your B&B. So, that’s something you’ll need to research before taking the next step.
Furniture and Dining Costs
Bed and breakfasts will always have to provide at least one meal for guests. That is why you need to think about all the dining costs you might encounter. Quality napkins for hotels are not going to break the bank, but you need hundreds of them. Likewise, you’ll also want to purchase covers, plates, and cutlery. When it comes to the bedrooms, each will require a double bed and chair at the very least. If you have more than ten rooms on your property, that is going to cost a pretty penny.
Staffing and Security Costs
During the first few months, you aren’t going to fill your B&B every night. That means you might not take as much cash as you’d like. You’ll have to keep a stash of money to ensure you can navigate such instances. Your team members still deserve their wages at the end of the week, and so you should always have reserves. You might even want to pay for staff training at some point. Most bosses will also want to install CCTV and employ a nighttime security guard. It’s possible to handle that task yourself, but it’s a lot of hassle. So, you’re always better to call professionals and use an agency to find your guards.
The only other costs you need to consider relate to food and repairs. Most of your guests will pay in advance, and that’s good news. It means you can use their money to help fund your first few meal purchases. However, you also need to keep an extra fund spare for repairs. In most instances, your insurance will reimburse any money you spend. It’s just that they can take a long time to do that, and so you need a backup supply. Otherwise, people visiting your B&B might have to manage with a broken bed for a couple of weeks.