Earning A Profit By Running An Inn
Having more space in your home than what you need does not have to be a nuisance. Many individuals, such as “empty nesters” who no longer have children living with them or those that have inherited a large residence, can make a living by lending out this extra space to travelers.
Owning an inn or bed and breakfast is not always an easy task. It is basically like managing a hotel, just on a smaller scale.
Those that want to try their hand at this type of business must really have a good personality and temperament for the hospitality industry. You may find that you have difficult or demanding guests on occasion, and if you are not able to handle them professional and take care of their needs, you may lose business and an income.
It may be unrealistic for some to expect to receive all of their income from owning a B&B. Anyone interested in starting up this type of business will really want to think about the amount of work it necessitates, the possible earnings, and if there is the right market for it in their region.
Some managers may be able to receive tax credits or deductions from the IRS; however, this is not guaranteed. It is easy to calculate your expected income once you decide how many rooms you will have available and how much you decide to charge.
Take the amount that a night’s stay will cost, multiply it by the number of rooms that are available, and multiply that number by seven. That will tell you how much you should expect if each one was occupied seven nights a week.
Then, multiply the number that you gathered by four, because there are four weeks to each month. You can even take this number and multiply it by twelve, indicating how much you should expect each year.
This will be the ideal amount; it indicates how much you could expect to earn if you have one hundred percent full capacity all year. The average inn can keep about fifty percent occupancy; therefore, a more reasonable amount to expect is half of what you originally calculated.
Much of the time, this amount is not reached; therefore, it is important to think through how much business you can expect, due to your location and type of establishment. Deciding on your rates is a very important aspect of opening an inn.
You may feel like setting the rates at a cheaper price will draw in more customers, but this may not always be the case. You may also not get as much as you could have with less bookings.
Charging a reasonable but profitable amount is the best way to have a steady income that covers the bills and keeps the place in operation. Compare with other B&Bs that are near to you and take into consideration the types of accommodations you will be providing.
If the lodging is kept very clean and stylish and you are willing to offer a free breakfast, you can probably charge between sixty and one hundred dollars a night, depending on your location and the type of city or town you live in. Drawing individuals in to your place may be tricky, but it can be done.
Make sure to use proper advertising and marketing; it is probably most important to create a website that is informational and easy to understand. Include pictures of each type of room that is offered, what it includes, and how much it costs per evening.
You should also let visitors to the website know what there is to do in the surrounding area, what kind of amenities your inn has, and what the availability is for each night. Many owners choose to create a calendar and booking system online, so guests with access to a computer can easily log on and find the place they wish to spend their time in.
Create a webpage that is eye catching, including pictures of the establishment and the surrounding environment. Probably the most important part about starting a business in this industry is using your personality and charm to make visitors feel comfortable and have a want to return.
The better you are at tending to the needs of the individuals and being hospitable to them, the more likely they are to come back or to request your bed and breakfast to other individuals that plan to travel nearby. Make sure to think out the process carefully before you decided to become involved in the hospitality industry.
Jack R. Landry has owned several bed and breakfasts since the mid-80s. He has written hundreds of articles about the most comfortable Lenox bed and breakfasts.
Jack R. Landry
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