Start up requirements for a small Bed and Breakfast

rockpool007 · 18-10-2011 10:50pm #1

Starting up a small bed and breakfast, I will register the business, but it will initially only have two bed rooms which will cator for a capacitity of 5people and when I get the last bedroom up and running it will then be able to accommodate 7persons in total. it is a very moderate house which by the way does not have en suite rooms but wash and toilet facilities are next door. Anyway my questions are what is required of me, so I need to pay rates etc. even though my house is a small house in a housing estate. my concerns are that this business idea may not be at all viable. if i could have any concerns illiviated I would be most greatfull. Thank you!

antoinolachtnai · 18-10-2011 11:05pm

I think the regulations are quite light. I do not think you have to pay rates for up to three bedrooms, but you should check with the rates office.

This is a really tough business to be in at this stage of the game. Hotels are just too cheap and there are too many hostels.

You need to work out whether you will really make enough money for it to be worth your while staying at home to run the business. You might be better off on a minimum wage job. If you can combine it with some other paying work, that might be better.

rockpool007 · 19-10-2011 1:05pm

That is good news about the small rate and pretty light costs, could you ellaborate on this for me please, do you have experience in this area, I by the way was brought up in this business and know it well but my parents ran it and so I don't know the business financial side, i will be offering a very affordable rate of €20 pps, also I will hopefully be claiming an additional enterprise allowance which is the only way I could afford to do this, if I am not successful on this scheme then I will as you reccommend try and get work and run it part time. I would like to know your own background, are you in the business. I'm just quite nervous about it, but I have to do something. thank you.

MyBusinez.com · 19-10-2011 1:30pm

Hi rockpool007,
Do you think €20 pps might be a little cheap? Don't get me wrong, as soon as I find out where your B&B is I'll be down to stay the night

, but what I would be worried about is if you don't get the business (and I hope you will get a LOT of business) will €20 pps be enough to cover your costs? You should have a look around and see what your competitors are charging before you set a price. Make sure you filter in ALL of your costs for the night and don't leave yourself short.

Some people will see €20 as too cheap to be a good B&B. Others will see it as a great price and you may get a lot of business from it. So it is difficult to know what is right. Some businesses would compete on price and others will compete on the service they provide. If you do any sales and marketing course they will tell you to charge the highest price the market will bare then compete on your excellent service. But if you don't have the funding to have a fantastic service you will have to compete on price.

I would recommend asking visitors to write a short review or questionnaire once they have stayed. This will help you with your market research and also if the reviews/ questionnaires are good you can put them on your website to help increase business. Make sure you ask the visitors before using their review.

When I started my business I was charging lower rates but I wasn't covering my costs. I ended up making a loss. The only reason I kept going was because I love doing what I do.

I know I've probably given you more questions to ask yourself about the business but there is a lot in starting any business. I would also recommend doing a Start your own business course, Book keeping course, Marketing course and any other courses you can as they will help you out a lot. I wish you all the best in your venture and I hope you do very well.

rockpool007 · 19-10-2011 2:28pm

Thank you for your comments, I do indeed have a degree in business management and marketing, and financial accounting, unable to secure work is what has led me to this, I also live and breath hospitality and I have grown up in a B&B, so I am very self sufficient when it comes to this side of the business, the reason for my price is due to the recession, what the existing competitive market price is in this area already and this is reflected in the price, I will be offering a very friendly service and a very clean and comfortable accommodation experience. but I am not concerned with any of those questions because I have already considered them all. My questions are to do with start up costs such as house rates, water rates, imro rates? if any, and insurance public liability. because the house is only three bedrooms I wonder am I excempt from any? I am happy with the product and it is ready to go, just wondering about the rates or if there are any hidden costs and overheads I may not be familiar with. Oh, and thank you for your very kind reply,I appreciate it

antoinolachtnai · 19-10-2011 2:54pm

Some relations of mine were in the business, and they know plenty of other people in it. In Dublin, the business has evaporated, because there are just too many hotels and they are too cheap.

20 euros is not a lot. Can you pay for ingredients and turn a room around and deal with a customer in that? Unlike hotels, you have no benefit of scale.

It is very hard to do part-time. You have to be able to be around the house to greet guests.

Start up costs are different from running costs. For starting up, you will certainly have to spruce the house up and this costs a good bit. Then you have to have a marketing strategy. Easiest and best value way is to be approved by one of the groups and pay your yearly subscription. But this does cost money and takes time.

If you have relatives in the business, you should talk to them about it. I strongly suggest you speak personally to someone in the business before incurring any further costs.

I mean this with the greatest respect, but if you do not know anything about the financial side of running a B+B, hotel or bar, there is a whole part of hospitality you do not understand. It takes a lot of skill to match costs with the services and level of care offered, even for a small operation.

rockpool007 · 19-10-2011 3:21pm

appreciate all the replies, however if you read all my posts you will recognise that I am skilled, qualified, experienced and definitely not going in with my eyes closed.

But to answer some of my own questions, I now know the rates which apply to me and the costs of these, although should my circumstances change and new rates and regulations be introduced, then again this will have to be revised. the County Council helped me establish what rates apply to me.ta ta!

cifzz · 19-10-2011 3:34pm

Hi there,

I don't know much about setting up a B&B but my aunt has 3 spare bedrooms so she registered with a local English college who give her students to board with her from anywhere between 2 - 6 weeks, sometimes longer - she gets to choose and can plan around any planned holidays, sometimes she has taken people for 12 weeks. It's a good way of keeping your rooms full!

She gets a weekly rate for each room let out. She gets a little bit extra if she has a tv and ensuite in the rooms but isn't in any way obliged to have them. She also does breakfast and dinner for them too and as they are studying during the day, she has plenty of time to do chores and have a few hours to herself. On the weekends a lot of them have activities planned with friends from the course that take them away for a full day or even a ful night ie: they go to Cliffs of Moher/shopping in Dublin etc.Like you she loves hospitality but has found that this is a perfect way for her to have some sort of work-life balance.

If that does appeal then best of luck to you with your business start-up. as the other poster commented, €20 is quite cheap and you might find you attract the type of customer who doesn't respect your property as much as they aren't paying a lot. A couple of months ago I stayed in a B&B in Kerry for €50 and thought it was good value as most hotels started at €70, only negative was that they didn't supply towels - perhaps it was my own fault to assume but I would give thought to having a survey for guests to complete when staying with you

bigneacy · 19-10-2011 3:52pm

rockpool007 wrote: »

Starting up a small bed and breakfast, I will register the business, but it will initially only have two bed rooms which will cator for a capacitity of 5people and when I get the last bedroom up and running it will then be able to accommodate 7persons in total. it is a very moderate house which by the way does not have en suite rooms but wash and toilet facilities are next door. Anyway my questions are what is required of me, so I need to pay rates etc. even though my house is a small house in a housing estate. my concerns are that this business idea may not be at all viable. if i could have any concerns illiviated I would be most greatfull. Thank you!

Speaking from experience - guests do not like rooms that aren't en-suite. The fact that it is in an estate will also let you down - quiet idyllic locations are much more sought after. These are two things that you really should keep in mind.

Its an extremely tough business and as the economy continues to tighten, the trade becomes less and less profitable. Don't underestimate how scarce travellers and therefore customers are these days - the winter is particularly horrific.

As a B&B owner you constantly have to have a smile and be ready for a chat - 7am on a Monday or 1am on a Saturday night/Sunday morning the guest will always want a chat when it least suits you. Unless you LOVE people and foreign culture this is simply not for you.

Believe it or not - €20 pps is no longer an exceptionally cheap rate - a lot of hotels and B&B's are offering this rate including breakfast in low season and midweek. The low rates, in my experience, don't attract a bad crowd - even decent people like a good deal.

Now, I know you have stated how experienced you are but i'm going to give you the following advice and I promise you will have 75% occupancy, year round if you follow it.

1. Treat every guest as if they are royalty - even if you are having a ****ty day, even if you don't 'like the look of them', even if they are being arseholes. Word of mouth and internet reviews will either make you or destroy you. No matter what they throw at you, always make sure they walk out the door thinking you are the most genuine and decent person they have ever had the fortune of meeting.

2. Don't have animals in the house, don't have clutter in the common areas, don't allow smoking in any rooms of the house, don't allow noisy children run riot, don't have 'closed' times during a day - people don't like not being able to get in, don't do breakfast options - give them whatever they want. Don't curse, get into politics or religion and don't let them ever see mess. Don't have a strict check-in or check-out time - they won't take advantage.

3. Get onto booking.com - it takes time and the patience of a saint, you need a fax machine but believe me when i say this - its incredible!!

4. Keep rates down, Keep the house and the rooms clean, keep the noise down, keep the standard of breakfast high and keep smiling - the reviews will start coming in, high occupancy will follow.

You are probably sitting there thinking you knew all of this - 90% of B&B owners in Ireland think they know all this, yet they have empty rooms almost every night. B&B owners need to get out of the "poor me" mindset and start realising once the open a B&B the building is no longer their home - if this doesn't sit right with you, stop now and plan something else. If you think you can do it "your way", as a "side line" or on a "small scale" you will fail

rockpool007 · 19-10-2011 3:52pm

cifzz wrote: »

Hi there,

I don't know much about setting up a B&B but my aunt has 3 spare bedrooms so she registered with a local English college who give her students to board with her from anywhere between 2 - 6 weeks, sometimes longer - she gets to choose and can plan around any planned holidays, sometimes she has taken people for 12 weeks. It's a good way of keeping your rooms full!

She gets a weekly rate for each room let out. She gets a little bit extra if she has a tv and ensuite in the rooms but isn't in any way obliged to have them. She also does breakfast and dinner for them too and as they are studying during the day, she has plenty of time to do chores and have a few hours to herself. On the weekends a lot of them have activities planned with friends from the course that take them away for a full day or even a ful night ie: they go to Cliffs of Moher/shopping in Dublin etc.Like you she loves hospitality but has found that this is a perfect way for her to have some sort of work-life balance.

If that does appeal then best of luck to you with your business start-up. as the other poster commented, €20 is quite cheap and you might find you attract the type of customer who doesn't respect your property as much as they aren't paying a lot. A couple of months ago I stayed in a B&B in Kerry for €50 and thought it was good value as most hotels started at €70, only negative was that they didn't supply towels - perhaps it was my own fault to assume but I would give thought to having a survey for guests to complete when staying with you

Thank you for your input and good idea with school, and all your suggestions are noted and appreciated. I will have my 'Visitors Book' and I will also have a mailing list for all my guests to opt into, and I will have my testimonials page on my website quoting past customers with me. Ta, ta!:)

RATM · 19-10-2011 5:18pm

airbnb.com is a good place to start. I've been on it a year now and am making good money from it with zero advertising or marketing costs, unlike hotels and traditional B&B's.

Also Wimdu.com is a clone along the same lines.

rockpool007 · 19-10-2011 7:10pm

Thank you so much to my Dundalk friend, I appreciate you taking the time to impart your experience and care to share your advice with me. I have grown up living in my Family home run as a b&b for forty years so I know that everything you said is absolutely true, and thankfully I do believe that I have the people skills to deal with it, but indeed I could'nt agree with you more about the fact that there are not any rooms ensuite and the fact that I am located in an estate is most definitely a draw back, but unfortunately for now for me it is a matter of asking myself what are my resources and how can I generate an income, so that is why I am in the place I find myself now. I will aim to change my circumstances asap, but until then Its what do I have and is there anything I can do with that. you've been wonderful with the info you gave me and I will heed all of it. Very Kind Regards

rockpool007 · 19-10-2011 7:34pm

RATM wrote: »

airbnb.com is a good place to start. I've been on it a year now and am making good money from it with zero advertising or marketing costs, unlike hotels and traditional B&B's.

Also Wimdu.com is a clone along the same lines.

Thank you RATM, its great to get this feedback, and the links you gave me, by the way I am located in South Donegal, so anymore good tips will be really appreciated.:)

markymark21 · 19-10-2011 8:42pm

rockpool007 wrote: »

Thank you RATM, its great to get this feedback, and the links you gave me, by the way I am located in South Donegal, so anymore good tips will be really appreciated.:)

What kind of market research have you done? You may be delivering the finest service, cleanest linen and good food but is there enough going on in South Donegal all year round to warrant you opening a B&B? Will you be busy enough is what i'm saying? And at €20 pp your profit margins are going to be very tight. You'd need to be busy nearly all year round (not just in the summer) to make any profit.

I know your parents ran this B&B also but we're living in a different time now, Irish hotels are now the cheapest in Western Europe

http://www.examiner.ie/ireland/irish-hotel-rooms-cheapest-in-europe-130718.html

People used to stay in B&Bs to save on money and to get a real hands on personal service.. Now hotels are fighting for even guest B&B's really are struggling y'know? To be honest I don't see a B&B in an estate doing that well to be honest! But hey, don't let some random guy internet deter you if you are determined.. he who dares wins!

By the way I've got a degree in Culinary Entrepreneurship and work as a bar and restaurant supervisor so I have a bit of knowledge about the industry myself!

Good luck anyway mate!

Tinwhistle* · 21-11-2017 8:46pm

Hi

I know this is an old post, but did you get on with the business?

T*

Start up requirements for a small Bed and Breakfast

Comments