How to Open a Bed and Breakfast Business



How to Open a Bed and Breakfast Business

The bed and breakfast industry is worth about $3.4 billion, according to data from the Professional Association of Innkeepers International. While this type of business has been a viable one for years, recent innovations in the travel industry, like the launch of Airbnb and similar apps, offer even more opportunities for those seeking to open a bed and breakfast.

Steps to Open a Bed and Breakfast

Bed and Breakfast Business



If you’re interested in starting your own B&B, here are some essential steps you can use to get up and running.

Evaluate the Market

Before you actually set up your bed and breakfast, it’s a good idea to look at your area or the area where you plan to set up shop and determine whether it can support such a business. Is it a popular area with tourists? What other lodging options are available? Will you be offering something that travelers can’t find with those other options?

Marcus Smith, owner of Chez Vous, Chez Nous writes, “Starting a B&B in a location with minimal hotels and accommodations would be the best idea as competition would be less compared to an area flooded with the same. Therefore, you need to do some home work and especially remember that the mere fact there are many hotels in an area does not necessarily mean they offer B&B.”

Secure a Location

Once you’ve chosen a general location that you think will work for your business, it’s time to secure an actual property. Aside from the basics like price and the ability to accommodate your ideal number of guests, you’ll also need to check with your local zoning board to make sure that any location you consider is zoned for commercial use.


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Develop a Unique Concept and Branding

Creating a unique concept and branding for your B&B is crucial in setting it apart from competitors. Start by developing a theme that reflects the character of your location and resonates with your target market.

Consider the local culture, history, or natural features as inspiration. Your B&B’s name, logo, and overall brand story should reflect this theme and create a memorable impression on potential guests.

Bed and Breakfast Business

Understanding and Complying with Legal Requirements

Understanding and complying with legal requirements is essential. Familiarize yourself with local zoning laws, health and safety standards, and employment laws. Ensure your property meets these requirements and obtain all necessary permits and licenses.



This might include food service permits, a liquor license if you plan to serve alcohol, and a general business license.

Customize the Space

People who are looking for a generic hotel room to crash in don’t often stay in B&Bs. So your target customers probably expect more of a unique experience, which should extend to the design and decor of your space as well.

Many B&Bs offer some kind of theme, like country cottage for rural properties or a nautical theme for houses in beach communities.

But even if you don’t choose an outright theme, it is important to have a layout that’s conducive to receiving guests and setting up breakfast each morning, along with an aesthetically pleasing vibe.



Designing Guest Rooms and Common Areas

When designing guest rooms and common areas, focus on comfort, functionality, and aesthetic appeal. Each guest room should offer a unique experience while maintaining a high standard of comfort. Common areas should invite relaxation and social interaction.

Consider elements like room layout, color schemes, furnishings, and decor that align with your B&B’s theme.

Create a Daily Tasks List

Once the actual property is up and running, you need to be prepared to actually run the day-to-day operations. This can be a fair amount of work, so it helps to be organized beforehand.

Susan Poole of The B&B Coach says in a post for BedandBreakfast.com “In order to stay on top of everything, I have a daily to-do list that includes 15 daily tasks that take 15 minutes or more to complete.”



The most time consuming tasks on her list include preparing breakfast, cleaning rooms and making sure rooms are booked.

Setting Up Efficient Operations

Efficient operations are key to the smooth running of your B&B. Implement systems for housekeeping, maintenance, and guest services. Consider using software solutions for reservations and guest management to streamline processes. Regular staff training ensures high service standards and guest satisfaction.

Bed and Breakfast Business

Calculate Finances

Take a look at your books to determine the investment required to get up and running and then what your operational costs are likely to be. This can help you determine what you need to charge per night in order to keep your business going strong.



Crafting a Marketing and Promotion Plan

Develop a marketing plan to promote your B&B effectively. This should include a mix of online and offline marketing strategies. Build a professional website, engage with potential guests on social media, and consider email marketing. Local networking and partnerships with tourism boards can also enhance visibility.

List Your Rooms

From there, you should be about ready to accept guests. But first, you need to allow people to actually find your business online. You can list rooms on your own website. But especially when you’re just getting started, it’s important that you also list on popular travel sites that people are more likely to be familiar with, including Airbnb and Kayak.

Fostering a Positive Guest Experience

Guest experience is paramount. Train your staff to provide exceptional service and consider personal touches like welcome gifts or custom local activity recommendations. Regularly seek guest feedback to continually improve their experience.

Encourage Customer Reviews

Customer reviews are becoming increasingly important for all businesses. But they’re especially relevant in the travel industry, since consumers want to ensure their safety and happiness while in another location. Sites like TripAdvisor can make a major impression on potential visitors, especially when you have a business that’s relatively unknown.



John Prebble, owner of German Village Guest House in Ohio, says in a post on the Hotelogix blog, “Our brand is likely unfamiliar to our potential guests, especially as we compete against large international flags and million dollar marketing budgets, so for more than 9 in 10 of them, an online review is almost as valid as a personal recommendation.”

Financial Planning and Management

Proper financial planning and management are crucial. Determine your pricing strategy and keep track of your expenses and income. Budget for both high and low seasons, and always have a contingency plan for unexpected expenses.

Promoting Your Bed and Breakfast: Building a Stellar Reputation

Bed and Breakfast Business

The bed and breakfast industry, valued at approximately $3.4 billion, continues to thrive, presenting lucrative opportunities for aspiring entrepreneurs.



However, with the advent of game-changing innovations like Airbnb, establishing a standout B&B requires strategic planning and a focus on building a strong reputation in the competitive travel market. Here are essential steps to promote and enhance the reputation of your bed and breakfast:

  • Create a Captivating Online Presence: In the digital age, a compelling online presence is a non-negotiable aspect of marketing your B&B. Design an attractive website that showcases your unique offerings, location, and amenities. Engage with potential guests on social media platforms and post visually appealing content to entice visitors. Utilize professional photography to highlight the ambiance and charm of your property.
  • Leverage Online Booking Platforms: To maximize visibility and reach a broader audience, list your rooms on popular online booking platforms such as Airbnb, Kayak, and Booking.com. These platforms have vast user bases actively searching for accommodation options, providing excellent exposure for your B&B.
  • Optimize Customer Reviews: In the travel industry, customer reviews carry significant weight, influencing potential guests’ decision-making process. Encourage guests to leave positive reviews on platforms like TripAdvisor, Google, and Yelp. Address any negative feedback professionally and promptly to demonstrate your commitment to guest satisfaction.
  • Offer Personalized Experiences: Stand out from generic lodging options by providing personalized experiences tailored to your guests’ preferences. Understand your guests’ interests and offer local recommendations, such as popular attractions, hidden gems, and dining options, to enrich their stay.
  • Host Memorable Events and Activities: Organize unique events and activities for your guests, such as wine tastings, cooking classes, or guided tours of local landmarks. These experiences create lasting memories and encourage positive word-of-mouth referrals.
  • Collaborate with Local Businesses: Build strong relationships with neighboring businesses, such as restaurants, tour operators, and event organizers. Partnering with local establishments not only enhances your guests’ experiences but also boosts your B&B’s visibility within the community.
  • Highlight Special Offers and Packages: Attract potential guests with exclusive deals and packages tailored to specific occasions or themes. Promote seasonal offers, discounts for extended stays, or romantic getaway packages to appeal to different traveler segments.
  • Invest in Guest Comfort and Amenities: Ensure your B&B provides a comfortable and welcoming atmosphere. Pay attention to the quality of amenities, bedding, and decor. Offering amenities like complimentary breakfast, Wi-Fi, and concierge services can also elevate the guest experience.
  • Engage with Influencers: Partner with travel influencers and bloggers who can showcase your B&B to their followers. Influencer collaborations can significantly increase your B&B’s visibility and attract potential guests seeking authentic and trustworthy recommendations.
  • Respond to Inquiries Promptly: Timely responses to guest inquiries, whether through email or phone, demonstrate professionalism and attentiveness. Swift communication can be the deciding factor for potential guests choosing your B&B over competitors.
StepDescription
Create a Captivating Online PresenceEstablish a compelling online presence by designing an attractive website showcasing unique offerings, location, and amenities. Engage with potential guests on social media with visually appealing content. Utilize professional photography to highlight the property.
Leverage Online Booking PlatformsIncrease visibility by listing rooms on popular booking platforms like Airbnb, Kayak, and Booking.com. Tap into vast user bases actively searching for accommodations, ensuring excellent exposure for the B&B.
Optimize Customer ReviewsInfluence potential guests' decisions through positive customer reviews on platforms like TripAdvisor, Google, and Yelp. Encourage guests to leave feedback and address negative reviews professionally and promptly to demonstrate commitment to guest satisfaction.
Offer Personalized ExperiencesStand out by providing personalized experiences tailored to guests' preferences. Offer local recommendations, such as attractions and dining options, enriching the stay and ensuring a memorable visit.
Host Memorable Events and ActivitiesOrganize unique events and activities, such as wine tastings, cooking classes, or guided tours, to create lasting memories for guests. Encourage positive word-of-mouth referrals and enhance the B&B's reputation.
Collaborate with Local BusinessesStrengthen ties with neighboring businesses, including restaurants and tour operators, to enhance guest experiences. Such collaborations also boost the B&B's visibility and integration within the local community.
Highlight Special Offers and PackagesAttract potential guests with exclusive deals and packages tailored to specific occasions or themes. Promote seasonal offers, discounts for extended stays, and romantic getaway packages to appeal to diverse traveler segments.
Invest in Guest Comfort and AmenitiesEnsure a comfortable and welcoming atmosphere with attention to amenities, bedding, and decor. Offer complimentary breakfast, Wi-Fi, and concierge services to elevate the overall guest experience.
Engage with InfluencersPartner with travel influencers and bloggers to showcase the B&B to their followers. Leverage their influence to increase visibility and attract potential guests seeking authentic and trustworthy recommendations.
Respond to Inquiries PromptlyDemonstrate professionalism and attentiveness by providing swift responses to guest inquiries through email or phone. Timely communication can be a decisive factor for potential guests in choosing the B&B over competitors.

By following these steps and maintaining a focus on guest satisfaction and memorable experiences, your bed and breakfast can cultivate a stellar reputation and secure a loyal customer base. Building a positive reputation will position your B&B as a preferred destination for travelers seeking unique and unforgettable stays, contributing to the continued success of your venture in the competitive hospitality industry.

Growing and Expanding the Business

As your business matures, consider opportunities for growth. This could involve expanding your property, offering new services, or renovating to maintain attractiveness and competitiveness. Plan carefully to ensure that growth is sustainable and does not compromise the quality of your guest experience.

Navigating Challenges and Setbacks

Prepare for potential challenges such as fluctuating market demand or operational setbacks. Develop strategies to adapt to these challenges while maintaining high service standards. Stay informed about industry trends and adjust your business model accordingly.



Sustainability and Eco-Friendly Practices

Incorporate sustainable and eco-friendly practices into your business operations. This could include using renewable energy sources, reducing waste, and sourcing locally. Not only does this appeal to a growing segment of eco-conscious travelers, but it also helps reduce operational costs in the long run.

Conclusion

The bed and breakfast industry, valued at an impressive $3.4 billion, remains a thriving sector with promising opportunities for aspiring entrepreneurs. Despite the rise of innovative platforms like Airbnb, establishing a standout B&B is still feasible with strategic planning and a dedicated effort to build a strong reputation in the competitive travel market.

The essential steps outlined in this guide provide a comprehensive roadmap for successfully launching and promoting a bed and breakfast business. It all begins with a thorough evaluation of the market, ensuring that the chosen location can support and distinguish your B&B from existing lodging options. Securing a suitable property and obtaining necessary licenses and permits are critical steps in setting up a legitimate operation.



Customization plays a pivotal role in attracting guests to a B&B, and creating a captivating online presence is essential for marketing success. Leveraging popular online booking platforms, optimizing customer reviews, and offering personalized experiences are effective strategies to increase visibility and elevate guest satisfaction.

To create a memorable and delightful guest experience, organizing unique events and activities, collaborating with local businesses, and providing comfort and amenities are key components. Engaging with influencers and promptly responding to inquiries further enhance the reputation of the B&B and foster positive guest interactions.

By diligently following these steps and maintaining a focus on guest satisfaction, a bed and breakfast can cultivate a stellar reputation and secure a loyal customer base. A well-regarded and cherished reputation will position the B&B as a preferred destination for travelers seeking unique and unforgettable stays. As such, the business can flourish in the competitive hospitality industry and continue to be a beacon of hospitality and warmth for years to come.

With a strong foundation built on meticulous planning, a passion for hospitality, and a commitment to creating lasting memories, aspiring B&B entrepreneurs can confidently embark on their journey to success and contribute to the vibrant and thriving bed and breakfast industry.

Photo via Shutterstock


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Annie Pilon Annie Pilon is a Senior Staff Writer for Small Business Trends, covering entrepreneur profiles, interviews, feature stories, community news and in-depth, expert-based guides. When she’s not writing she can be found exploring all that her home state of Michigan has to offer.

6 Reactions
  1. With Airbnb, services like these become even more in demand than before.

  2. Good business alternative if you have a property that does not have any long term tenants then you can certainly try to incorporate this business model to make that property generate income. Thank you for making it look easy!

  3. Annie: Do you know about a special listing for bed and breakfast places in the United States of America?

  4. Hey annie,
    The post was really helpful. Your writing skills are very collective and also i enjoyed reading the post of yours. i will surely share this post.

  5. I’m glad you mentioned that it is important when opening a bed and breakfast that you encourage them to leave reviews because online reviews are important in the travel business. My wife and I travel a lot and we usually stay in bed and breakfasts. We only stay in ones that have good reviews online.

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