Aspiring Innkeepers - what's the biggest hurdle that holding you back?

Hi All!
I remember very well making the decision that I wanted to own a bed and breakfast; and the fear that followed me as I made my torturous journey to actually getting my bed and breakfast doors open. It ended up taking me 5 years..two years doing research (and waiting for kids to get big enough to kick them out! - the standing joke in my family is that not only did I sell the family home and leave town, but I rented out their beds too, so they couldn't come back!) and then three years searching for the right property.
My motivations were personal - I had burnt myself out twice in doing work that I truly did love and was very good at; I wanted to find out if I could create and run a business on my own; I wanted a more flexible schedule and the ability to pursue some of my hobbies and other interests. My biggest fear was whether I could make enough money to live on and still run the type of B&B I wanted.
I finally had an ah-ha moment when I realized that even though the motivations were personal, I needed business results to overcome my fears, and I have been OK for the most part since then.
As many innkeepers on this forum will tell you, we all have many guests sitting around our breakfast tables who tell us that they would like to have a B&B one day...but they never do anything about it - it's more like a daydream. But if you have paid to be a member of PAII and seek out learning opportunities, then I would think that you are far more serious than those daydreamers I just mentioned.
So, I go back to the title of this post - what's the biggest hurdle that is holding you back from having your own bed and breakfast?

for us it was money and finding the right property - we wanted somewhere bid enough to support a chamber maid as I am realistic enough to know I don't want to clean toilets every day!

My biggest hurdle is finding the right B&B. I want one that's operational, and that isn't OVERpriced. Too many innkeepers are enamored with their property, house, furniture, etc.
But, it's a business. I hear things like
"well, we don't keep detailed books"
"if we stayed open more during the year, or did this or that, we'd (or you'd) make more money" Sure, but I have to do that work.
"occupancy rates can be higher". Sure again, but they're not
Owners/sellers don't understand that the basic price is a function of
1. Price per room
2. A multiplier times revenues (or profits)
3. The number of rooms

edgehill2014 said:

My biggest hurdle is finding the right B&B. I want one that's operational, and that isn't OVERpriced. Too many innkeepers are enamored with their property, house, furniture, etc.
But, it's a business. I hear things like
"well, we don't keep detailed books"
"if we stayed open more during the year, or did this or that, we'd (or you'd) make more money" Sure, but I have to do that work.
"occupancy rates can be higher". Sure again, but they're not
Owners/sellers don't understand that the basic price is a function of
1. Price per room
2. A multiplier times revenues (or profits)
3. The number of rooms.

Click to expand...

edgehill2014 said:

My biggest hurdle is finding the right B&B. I want one that's operational, and that isn't OVERpriced. Too many innkeepers are enamored with their property, house, furniture, etc.
But, it's a business. I hear things like
"well, we don't keep detailed books"
"if we stayed open more during the year, or did this or that, we'd (or you'd) make more money" Sure, but I have to do that work.
"occupancy rates can be higher". Sure again, but they're not
Owners/sellers don't understand that the basic price is a function of
1. Price per room
2. A multiplier times revenues (or profits)
3. The number of rooms

Click to expand...

and buyers and inn consultants don't give the HOUSE any value whatsoever. With that pricing, we can sell it as a private home for more than a fully operational, turnkey business.
Be careful with innsultants, oops I mean inn consultants. The inns that are feasible will be in the $1.0-2.5 mil range. So you better have a decent 3/4 down payment to cover the mortgage/bank.

edgehill2014 said:

My biggest hurdle is finding the right B&B. I want one that's operational, and that isn't OVERpriced. Too many innkeepers are enamored with their property, house, furniture, etc.
But, it's a business. I hear things like
"well, we don't keep detailed books"
"if we stayed open more during the year, or did this or that, we'd (or you'd) make more money" Sure, but I have to do that work.
"occupancy rates can be higher". Sure again, but they're not
Owners/sellers don't understand that the basic price is a function of
1. Price per room
2. A multiplier times revenues (or profits)
3. The number of rooms.

Click to expand...

PS YOU can make MORE money depending on what you choose to do. Example we don't do weddings or elopements, I know some B&B's who ONLY do this and make more $ than just room nights. We don't do them, and don't plan on doing them. There are dinners and functions and more. We can only do what we do and what we wanna do.
Potential is a word that every B&B has, we can always increase revenue stream, just depends where our hearts are!
All the best in your search!

Joey Bloggs said:

edgehill2014 said:

My biggest hurdle is finding the right B&B. I want one that's operational, and that isn't OVERpriced. Too many innkeepers are enamored with their property, house, furniture, etc.
But, it's a business. I hear things like
"well, we don't keep detailed books"
"if we stayed open more during the year, or did this or that, we'd (or you'd) make more money" Sure, but I have to do that work.
"occupancy rates can be higher". Sure again, but they're not
Owners/sellers don't understand that the basic price is a function of
1. Price per room
2. A multiplier times revenues (or profits)
3. The number of rooms.

Click to expand...

PS YOU can make MORE money depending on what you choose to do. Example we don't do weddings or elopements, I know some B&B's who ONLY do this and make more $ than just room nights. We don't do them, and don't plan on doing them. There are dinners and functions and more. We can only do what we do and what we wanna do.
Potential is a word that every B&B has, we can always increase revenue stream, just depends where our hearts are!
All the best in your search!
.

Click to expand...

plus in some places doing a bit more marketing - ie round me you could easily make 30% more just by being a bit more on top of things

edgehill2014 said:

My biggest hurdle is finding the right B&B. I want one that's operational, and that isn't OVERpriced. Too many innkeepers are enamored with their property, house, furniture, etc.
But, it's a business. I hear things like
"well, we don't keep detailed books"
"if we stayed open more during the year, or did this or that, we'd (or you'd) make more money" Sure, but I have to do that work.
"occupancy rates can be higher". Sure again, but they're not
Owners/sellers don't understand that the basic price is a function of
1. Price per room
2. A multiplier times revenues (or profits)
3. The number of rooms.

Click to expand...

"Owners don't understand the basic price is a function of:
1. Price per room
2. A multiplier times revenues (or profits)
3. The number of rooms"
Agreed. Many don't. You may have to wait on the property until that reality penetrates their heads. For many who got into this business x years ago, it was as much a lifestyle choice as a business decision. That kind of emotional component to the asking price persists for a lot of properties, even though the economic climate is much harsher now.

edgehill2014 said:

My biggest hurdle is finding the right B&B. I want one that's operational, and that isn't OVERpriced. Too many innkeepers are enamored with their property, house, furniture, etc.
But, it's a business. I hear things like
"well, we don't keep detailed books"
"if we stayed open more during the year, or did this or that, we'd (or you'd) make more money" Sure, but I have to do that work.
"occupancy rates can be higher". Sure again, but they're not
Owners/sellers don't understand that the basic price is a function of
1. Price per room
2. A multiplier times revenues (or profits)
3. The number of rooms.

Click to expand...

edgehill2014 said:

My biggest hurdle is finding the right B&B. I want one that's operational, and that isn't OVERpriced. Too many innkeepers are enamored with their property, house, furniture, etc.
But, it's a business. I hear things like
"well, we don't keep detailed books"
"if we stayed open more during the year, or did this or that, we'd (or you'd) make more money" Sure, but I have to do that work.
"occupancy rates can be higher". Sure again, but they're not
Owners/sellers don't understand that the basic price is a function of
1. Price per room
2. A multiplier times revenues (or profits)
3. The number of rooms

Click to expand...

There is no one B&B out there with everything. You have to find one where you want to live (very important that you LIKE where you will be spending all of your time).
And, the owners are giving you perspective on how YOU can increase revenue. This is a gift of information. Of course YOU then have to do the work! I've got a list of things the next owner can do. I don't want to do them. They're not my style but they very well could be the right up the next owner's alley. Converting my office into meeting space is one BIG idea I will pass along. Me? I don't want to host meetings and bridal showers and the like but someone else might want to do that.
You can BUY a 100% occ inn and then what? How do you improve that? OTOH, if you buy a place that the present owners are using as a 'lifestyle' B&B you can keep it open year round and make a lot more money. That is not a bad thing.
I would stay away from places with no record keeping. They may also not be licensed.
Obviously you have not found the right property yet. Not everyone selling is 'enamored' of their inn, but many have a right to hold out for a fair and reasonable price. An inn with all the improvements done is worth spending more than a broker says to because the work is done. The clientele are in place.

edgehill2014 said:

My biggest hurdle is finding the right B&B. I want one that's operational, and that isn't OVERpriced. Too many innkeepers are enamored with their property, house, furniture, etc.
But, it's a business. I hear things like
"well, we don't keep detailed books"
"if we stayed open more during the year, or did this or that, we'd (or you'd) make more money" Sure, but I have to do that work.
"occupancy rates can be higher". Sure again, but they're not
Owners/sellers don't understand that the basic price is a function of
1. Price per room
2. A multiplier times revenues (or profits)
3. The number of rooms.

Click to expand...

edgehill2014 said:

My biggest hurdle is finding the right B&B. I want one that's operational, and that isn't OVERpriced. Too many innkeepers are enamored with their property, house, furniture, etc.
But, it's a business. I hear things like
"well, we don't keep detailed books"
"if we stayed open more during the year, or did this or that, we'd (or you'd) make more money" Sure, but I have to do that work.
"occupancy rates can be higher". Sure again, but they're not
Owners/sellers don't understand that the basic price is a function of
1. Price per room
2. A multiplier times revenues (or profits)
3. The number of rooms

Click to expand...

Not all are like that. This is "my baby" that I started from scratch. There is potential because due to getting old and having bad knees, I do not want to do dinners any longer. I am branching out and hoping to do elopements but we will have to see how that turns out. BUT my city NEEDS a B & B. I am planning to sell my B & B for the price of the house - and the furnishings are a bonus. All I am planning to take is my personal stuff (that includes the artwork) and whatever the new owners do not want. I will be turning over a B & B with an excellent reputation that has had publicity nationwide. I cannot put it on the market, however, until DH goes out the door feet first. He does not like change and his crap has to be removed before anyone in their right mind would consider this place. He is in his 70s and I got a wake-up call yesterday at how close I am to it! So it will be a while yet.....
But Maddie is correct - the FIRST thing to consider is - Will I like living here. Will you like living in a small town or medium city or tourist area. Will you like the PEOPLE and will you be able to be accepted by THEM! (Most important in a small town/city.)
DH had never lived anywhere except the burbs of Chicago until moving to my West Virginia. I thought it would be OK for him since the activities he enjoyed were more available in WV than in Illinois. I was right. BUT being accepted here was easier for him because I was from WV - although still an alien since I was not from HERE. We both got involved in the city, me more than him, but he really is a semi-hermit so it has worked out. He has been asked to read poems of Edgar Allen Poe for a program the museum is doing this month. DH has a very deep voice.
These are things to think about REAL hard before deciding on a B & B to purchase. If you find you do not like the area after all, it will be a living hell for you. I did 24 years in Illinois, I know from where I speak.

Madeleine said:

edgehill2014 said:

My biggest hurdle is finding the right B&B. I want one that's operational, and that isn't OVERpriced. Too many innkeepers are enamored with their property, house, furniture, etc.
But, it's a business. I hear things like
"well, we don't keep detailed books"
"if we stayed open more during the year, or did this or that, we'd (or you'd) make more money" Sure, but I have to do that work.
"occupancy rates can be higher". Sure again, but they're not
Owners/sellers don't understand that the basic price is a function of
1. Price per room
2. A multiplier times revenues (or profits)
3. The number of rooms.

Click to expand...

edgehill2014 said:

My biggest hurdle is finding the right B&B. I want one that's operational, and that isn't OVERpriced. Too many innkeepers are enamored with their property, house, furniture, etc.
But, it's a business. I hear things like
"well, we don't keep detailed books"
"if we stayed open more during the year, or did this or that, we'd (or you'd) make more money" Sure, but I have to do that work.
"occupancy rates can be higher". Sure again, but they're not
Owners/sellers don't understand that the basic price is a function of
1. Price per room
2. A multiplier times revenues (or profits)
3. The number of rooms

Click to expand...

There is no one B&B out there with everything. You have to find one where you want to live (very important that you LIKE where you will be spending all of your time).
And, the owners are giving you perspective on how YOU can increase revenue. This is a gift of information. Of course YOU then have to do the work! I've got a list of things the next owner can do. I don't want to do them. They're not my style but they very well could be the right up the next owner's alley. Converting my office into meeting space is one BIG idea I will pass along. Me? I don't want to host meetings and bridal showers and the like but someone else might want to do that.
You can BUY a 100% occ inn and then what? How do you improve that? OTOH, if you buy a place that the present owners are using as a 'lifestyle' B&B you can keep it open year round and make a lot more money. That is not a bad thing.
I would stay away from places with no record keeping. They may also not be licensed.
Obviously you have not found the right property yet. Not everyone selling is 'enamored' of their inn, but many have a right to hold out for a fair and reasonable price. An inn with all the improvements done is worth spending more than a broker says to because the work is done. The clientele are in place.
.

Click to expand...

See I don't know that crappy books would put me off - ie we bought our place with no books to really speak off!
we could see from the bones of the building we could add 4 more large bedrooms out of what was the owners quarters and convert the basement into a flat which increased turnover.
Couple were divorcing and basically were spending as little time here as possible (him mainly in the pub)
Décor was shocking carpets and beds were worse, but it had what is the most important thing in our town - location and car parking

Like others, once we'd decided that B&B was what we were going to do, finding the right property was the thing that took the longest. We looked for 2 years at places all over the UK. Wales, couldn't find anything suitable, South West, too short a season, Lake District, too pricey. We wanted an older property so this place was on the "maybe" pile as it was only a couple of years old. The previous owners had done a little B&B, but not much so it was almost a new start.
I'd like to pretend it was a skillful business decision based on lengthy analysis of data we'd gathered. The truth is we had no idea what an ideal location this house is in for B&B and we were very lucky that we started just as the Internet really got going for accommodation booking, so my IT skills were invaluable.

Money. And the right house. I would not be able to live in a dark back room hiding from the guests. So many B&Bs we looked at had tiny, cramped owners' apartments. The one we bought is a five room apartment with ocean views and lots of closets. I can live like that.

Finding the right place for my family that we can afford. We have kids do need lots of space to make it work. We saw one that was just about perfect but the lot was too small and I can't put two kids in a three room apartment. We are actually looking at buying something with room to grow because we can't afford to buy the perfect place so iffy books are not necessarily a deal breaker But not the lady who, when asked about occupancy, said oh, no idea. People just come up sometimes. That is beyond iffy to me.
We have been actively looking for about six months now and are going on a quick two day trip later this month to check out a few more properties.

TheBeachHouse said:

Money. And the right house. I would not be able to live in a dark back room hiding from the guests. So many B&Bs we looked at had tiny, cramped owners' apartments. The one we bought is a five room apartment with ocean views and lots of closets. I can live like that..

Click to expand...

TheBeachHouse said:

Money. And the right house. I would not be able to live in a dark back room hiding from the guests. So many B&Bs we looked at had tiny, cramped owners' apartments. The one we bought is a five room apartment with ocean views and lots of closets. I can live like that.

Click to expand...

Heck, I could live like that, too! We don't have views here but I have a great south-facing wall of windows for sunlight. Like you, that whole basement/back room/corner cupboard thing did not work. I have to have massive amounts of daylight.

Those of you who are looking, have you considered La nca ster, PA? There are many for sale here...at good prices! The area gets almost 12 million tourists a year. There is a very good CVB, too. If you want more info, message me.
No, I'm not on commission. LOL. I just like to see the old, tired properties brought to life when new innkeepers buy them.

Aussie Innkeeper said:

Those of you who are looking, have you considered La nca ster, PA? There are many for sale here...at good prices! The area gets almost 12 million tourists a year. There is a very good CVB, too. If you want more info, message me.
No, I'm not on commission. LOL. I just like to see the old, tired properties brought to life when new innkeepers buy them..

Click to expand...

Aussie Innkeeper said:

Those of you who are looking, have you considered La nca ster, PA? There are many for sale here...at good prices! The area gets almost 12 million tourists a year. There is a very good CVB, too. If you want more info, message me.
No, I'm not on commission. LOL. I just like to see the old, tired properties brought to life when new innkeepers buy them.

Click to expand...

My wife and I are in the process of purchasing one in Lancaster County ... and hope to "bring it to life!"

Bruce Mac said:

Aussie Innkeeper said:

Those of you who are looking, have you considered La nca ster, PA? There are many for sale here...at good prices! The area gets almost 12 million tourists a year. There is a very good CVB, too. If you want more info, message me.
No, I'm not on commission. LOL. I just like to see the old, tired properties brought to life when new innkeepers buy them..

Click to expand...

Aussie Innkeeper said:

Those of you who are looking, have you considered La nca ster, PA? There are many for sale here...at good prices! The area gets almost 12 million tourists a year. There is a very good CVB, too. If you want more info, message me.
No, I'm not on commission. LOL. I just like to see the old, tired properties brought to life when new innkeepers buy them.

Click to expand...

My wife and I are in the process of purchasing one in Lancaster County ... and hope to "bring it to life!"
.

Click to expand...

Bruce Mac said:

My wife and I are in the process of purchasing one in Lancaster County ... and hope to "bring it to life!"

Click to expand...

Welcome to the neighborhood, Bruce! I am the self-appointed 'welcoming committee' for new innkeepers here.

Welcome Bruce!

Bruce Mac said:

Aussie Innkeeper said:

Those of you who are looking, have you considered La nca ster, PA? There are many for sale here...at good prices! The area gets almost 12 million tourists a year. There is a very good CVB, too. If you want more info, message me.
No, I'm not on commission. LOL. I just like to see the old, tired properties brought to life when new innkeepers buy them..

Click to expand...

Aussie Innkeeper said:

Those of you who are looking, have you considered La nca ster, PA? There are many for sale here...at good prices! The area gets almost 12 million tourists a year. There is a very good CVB, too. If you want more info, message me.
No, I'm not on commission. LOL. I just like to see the old, tired properties brought to life when new innkeepers buy them.

Click to expand...

My wife and I are in the process of purchasing one in Lancaster County ... and hope to "bring it to life!"
.

Click to expand...

Bruce Mac said:

My wife and I are in the process of purchasing one in Lancaster County ... and hope to "bring it to life!"

Click to expand...

:welcome:

Bruce Mac said:

Aussie Innkeeper said:

Those of you who are looking, have you considered La nca ster, PA? There are many for sale here...at good prices! The area gets almost 12 million tourists a year. There is a very good CVB, too. If you want more info, message me.
No, I'm not on commission. LOL. I just like to see the old, tired properties brought to life when new innkeepers buy them..

Click to expand...

Aussie Innkeeper said:

Those of you who are looking, have you considered La nca ster, PA? There are many for sale here...at good prices! The area gets almost 12 million tourists a year. There is a very good CVB, too. If you want more info, message me.
No, I'm not on commission. LOL. I just like to see the old, tired properties brought to life when new innkeepers buy them.

Click to expand...

My wife and I are in the process of purchasing one in Lancaster County ... and hope to "bring it to life!"
.

Click to expand...

WOOHOO!! Welcome.