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James Barrett

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Hello,
I'm a young naive inspiring Innkeeper looking to get into the biz. I joined this website about a week ago and have found it to be a wealth of knowledge. I've posted a couple of questions and so many people have been more than generous with their time sharing their knowledge. I really do appreciate all the advise, however 90% of the feedback I receive is horror story after horror story of getting into this business. I'm starting to wonder my project is unrealistic.
First off it's always been my dream to run my own B&B one day, but I'll be honest I've never worked in the business. I have stayed at a countless number of B&B's and hotels all over the world and have a pretty good feel for what works and what doesn't work. I've always had a knack for understanding what it is that appeals to people. I think the concept I have in mind is pretty unique and God willing if I can find funding will definitely succeed! I do realize that there's a great idea under every rock, but actually financing and getting through the bureaucracy is the real battle.
Here's where I stand... I'm looking to build a 4000-4500sq ft German style home with a restaurant/cafe somewhere along the out East, most likely in VA or NC. I work in Europe, I have a 6 figure income and $80,000 dollars in liquid cash. My plan was to have this place built... Take a few months off work and help my wife and a friend get it going. I would return to work to keep a positive cash flow, and return once I saw that the B&B could sustain itself.
I'm just starting to wonder if this is realistic because I haven't seen a single positive thing for up and coming innkeepers on this website.
 
As you say, this is a business project. Treat it as such, make a solid business plan, meet owners to discuss your plans, do some market research, visit b&b & hotels blogs and forums...
Do not trust national statistics, be warned that a few miles can make a huge difference on the occupation rate and ensure not to be blinded by your dream.
Once you feel confident, deduct 30% from your planned turnover for the first few years. Then you will know if it is realistic or not.
It is a great life project. Make sure it turns good.
 
I am always positive! And in fact here is my positive comment: "Now that the rose colored glasses have been stepped on, now you are ready to go!"
The reason you had those sort of answers is because you didn't even do step 1, that we knew of anyway. Step one, like in building any house or anything else is to get the zoning and the rest sorted out. You can't take someone's word for it. You can't just build it and think they will allow you to do what you want.
And no, it is not really that realistic, to your last comment. $80,000 will not prove to a bank that the place is their's should you default. And btw you know there are many many many defaulted properties, homes, businesses sitting out there right now. Even harder, going from one location to another, not purchasing an existing inn/restaurant with a proven track record of revenue. I speak this to you from where I came, we were told the same thing.
But anything is possible if you want it bad enough!
Zip up the armor and forge ahead...
thumbs_up.gif
 
Goodness,there are many positives. None of us want you to go into this blind (or wearing rose-colored glasses - same thing) because then you will have invested your life savings, discover it is not all greetings and ka-ching, and be stuck and miserable which makes for a bad innkeeper and unhappy guests.
IF you know all the pitfalls in advance and STILL want to do it, we say welcome aboard and what do you want to know.
I know nothing of financing. We paid cash for our house and started up with our own money. Did not get into debt until we put siding on the house and created a bathroom after we ran out of our own money (DH has a habit of draining the financial pond with medical crap) so got to know the world of 5 cents in my pocket again.
All I know about restaurants is that they are a lot of work and a lot of regulations I do not want to deal with (the work either) but if run correctly CAN be profitable. I also know we could not live on the income of our 3 rooms nor could we live comfortably without the income of the 3 rooms. These 3 rooms also bring the world to US which is necessary since DH can no longer travel.
If you have the finances and the desire, getting a snapshot of reality here and still are interested - GO FOR IT!!! Just get all rules and regs in WRITING and still hold your breath for another interpretation of what is written. Looking forward to hearing the name of your inn.
 
This can be a tough crowd. Don't let it bother you. Once you have a spot in mind the regulations/permits start to fall into place. Pretty hard to research one without the other. I think financing might be the biggest hurdle in that you are looking at a big purchase and build with 5-20% down depending on lots of things. Do you have some cost per square foot to work with? Then land costs? Etc. Spreadsheet it out and you will know in short order if you are too skinny on the down.
 
Hi James-
The stories here are NOT posted to destroy your dreams, but to give you a healthy reality check. These people KNOW. They have heard "your" story before, and it is not unique.
We are also aspiring innkeepers, we bought a place which needs restoration/rehab to become a b&b. I went through all the feedback here, and we forged ahead.
Everything they say is TRUE. I thought I had everything figured out and planned for. We had the business plan, we had the cash, the local inspectors were supportive. Lets just say things have NOT gone smoothly.
We are two years in, and still not open as a B&B. DH works a consulting business from home. We also have a motel on the property which is up and running. We hope to finally be open sometime this year as a b&b, but I am not promoting it.
We also have friends in the area who improved an existing restaurant.. the kitchen rehab alone was over 100k..that is another horrible set of stories, that makes me want to stay far from that business, although we have the facilities and demand.
The burden on your wife and friend will be huge. It will stress your relationship. You will be stressed being not able to be there to help, yet needing to support the project with your income. This is how we live.
We don't ever expect it to support us fully, but that is our choice. We hope for more a balance. We are older and have no children (or elderly parents) to worry about. Not really regretting our choice, but it WAS harder than we thought.
I just ask you to think THREE times about doing this. You really need to know what you are getting into and the risks involved....financially and emotionally. Discuss all this with your wife, and let her read this forum.
As a final note, I would suggest with the downturn in real estate prices that you may find an existing place more cheaply that building. With all the natural disasters, building material prices have skyrocketed. I would look long and hard at the excellent values on the market and see if any of those might fit into your dreams.
Good Luck
 
white pine said:
Hi James-
The stories here are NOT posted to destroy your dreams, but to give you a healthy reality check. These people KNOW. They have heard "your" story before, and it is not unique.
We are also aspiring innkeepers, we bought a place which needs restoration/rehab to become a b&b. I went through all the feedback here, and we forged ahead.
Everything they say is TRUE. I thought I had everything figured out and planned for. We had the business plan, we had the cash, the local inspectors were supportive. Lets just say things have NOT gone smoothly.
We are two years in, and still not open as a B&B. DH works a consulting business from home. We also have a motel on the property which is up and running. We hope to finally be open sometime this year as a b&b, but I am not promoting it.
We also have friends in the area who improved an existing restaurant.. the kitchen rehab alone was over 100k..that is another horrible set of stories, that makes me want to stay far from that business, although we have the facilities and demand.
The burden on your wife and friend will be huge. It will stress your relationship. You will be stressed being not able to be there to help, yet needing to support the project with your income. This is how we live.
We don't ever expect it to support us fully, but that is our choice. We hope for more a balance. We are older and have no children (or elderly parents) to worry about. Not really regretting our choice, but it WAS harder than we thought.
I just ask you to think THREE times about doing this. You really need to know what you are getting into and the risks involved....financially and emotionally. Discuss all this with your wife, and let her read this forum.
As a final note, I would suggest with the downturn in real estate prices that you may find an existing place more cheaply that building. With all the natural disasters, building material prices have skyrocketed. I would look long and hard at the excellent values on the market and see if any of those might fit into your dreams.
Good Luck.
Click to expand...
white pine said:
As a final note, I would suggest with the downturn in real estate prices that you may find an existing place more cheaply that building. With all the natural disasters, building material prices have skyrocketed. I would look long and hard at the excellent values on the market and see if any of those might fit into your dreams.
Good Luck
Click to expand...
I quoted this as I fully agree with it. The quick equity is in the turn around projects at the moment. Cost per square foot is crazy low on some properties.
 
partly the reason we are harsh is for your own good! we want you to ask all the awful permit and zoning questions and not end up like the chap in the article i mentioned - got the whole place built and ready to go on a - im sure the zoning will go through basis - and it didn't - he lost his shirt! - you don't want that to be you!
If I had a $1 for every person who says it must be lovely you just do breakfast and then have the rest of the day off - and the marketing, cleaning, wages, taxes, book keeping, shopping and checking in of guests just happens on its own?
Where I am there are 253 places to eat in the town center - many fail in 6 months - you know why? great chef - but doesn't do any book keeping so has no idea if he or she is actually making any money - another case was they failed their food hygine inspection because the chef the owners hired couldn't be bothered with doing any of the required paperwork - food was good but they were shut down and so it goes on
For myself i wouldn't be wanting to build something when there are so many ready made places in existence with so many desperate to sell - you would already have a steady income coming in - though you would likely have to pay more for it.
Do however unless you have 100% occupancy 3 rooms is a bit low unless you have a lot of land and intend to expand later on as funds become available.
we get soo many people on here all tied up in the tiny details such as what sheets to use and what brand of toilet paper - totally missing the fact that you have to have some finance and a solid business plan to have a chance.
Ive been in the industry in various forms for the past 20 years and love it - but i do appreciate it is not for everyone - bed and breakfast isn't a job you can't put it away at the end of the day - its a lifestyle
 
white pine said:
Hi James-
The stories here are NOT posted to destroy your dreams, but to give you a healthy reality check. These people KNOW. They have heard "your" story before, and it is not unique.
We are also aspiring innkeepers, we bought a place which needs restoration/rehab to become a b&b. I went through all the feedback here, and we forged ahead.
Everything they say is TRUE. I thought I had everything figured out and planned for. We had the business plan, we had the cash, the local inspectors were supportive. Lets just say things have NOT gone smoothly.
We are two years in, and still not open as a B&B. DH works a consulting business from home. We also have a motel on the property which is up and running. We hope to finally be open sometime this year as a b&b, but I am not promoting it.
We also have friends in the area who improved an existing restaurant.. the kitchen rehab alone was over 100k..that is another horrible set of stories, that makes me want to stay far from that business, although we have the facilities and demand.
The burden on your wife and friend will be huge. It will stress your relationship. You will be stressed being not able to be there to help, yet needing to support the project with your income. This is how we live.
We don't ever expect it to support us fully, but that is our choice. We hope for more a balance. We are older and have no children (or elderly parents) to worry about. Not really regretting our choice, but it WAS harder than we thought.
I just ask you to think THREE times about doing this. You really need to know what you are getting into and the risks involved....financially and emotionally. Discuss all this with your wife, and let her read this forum.
As a final note, I would suggest with the downturn in real estate prices that you may find an existing place more cheaply that building. With all the natural disasters, building material prices have skyrocketed. I would look long and hard at the excellent values on the market and see if any of those might fit into your dreams.
Good Luck.
Click to expand...
Here here!
 
gillumhouse said:
Goodness,there are many positives. None of us want you to go into this blind (or wearing rose-colored glasses - same thing) because then you will have invested your life savings, discover it is not all greetings and ka-ching, and be stuck and miserable which makes for a bad innkeeper and unhappy guests.
IF you know all the pitfalls in advance and STILL want to do it, we say welcome aboard and what do you want to know.
I know nothing of financing. We paid cash for our house and started up with our own money. Did not get into debt until we put siding on the house and created a bathroom after we ran out of our own money (DH has a habit of draining the financial pond with medical crap) so got to know the world of 5 cents in my pocket again.
All I know about restaurants is that they are a lot of work and a lot of regulations I do not want to deal with (the work either) but if run correctly CAN be profitable. I also know we could not live on the income of our 3 rooms nor could we live comfortably without the income of the 3 rooms. These 3 rooms also bring the world to US which is necessary since DH can no longer travel.
If you have the finances and the desire, getting a snapshot of reality here and still are interested - GO FOR IT!!! Just get all rules and regs in WRITING and still hold your breath for another interpretation of what is written. Looking forward to hearing the name of your inn..
Click to expand...
As gillumhouse says, GET IT IN WRITING. This was our problem, lots of supportive talk, but should have been in an email, which they don't do here in the boonies.
We have had an inspector dragging his heals, and now we have had to hire a person who will "interpret" the code for him at his request. He was thinking of holding us to a hotel code standard. She says we are correct under b&b code, and has put that in writing, so I hope we can finally get going.
P.S. We still love the place, and don't regret our choice.
 
toddburme said:
white pine said:
Hi James-
The stories here are NOT posted to destroy your dreams, but to give you a healthy reality check. These people KNOW. They have heard "your" story before, and it is not unique.
We are also aspiring innkeepers, we bought a place which needs restoration/rehab to become a b&b. I went through all the feedback here, and we forged ahead.
Everything they say is TRUE. I thought I had everything figured out and planned for. We had the business plan, we had the cash, the local inspectors were supportive. Lets just say things have NOT gone smoothly.
We are two years in, and still not open as a B&B. DH works a consulting business from home. We also have a motel on the property which is up and running. We hope to finally be open sometime this year as a b&b, but I am not promoting it.
We also have friends in the area who improved an existing restaurant.. the kitchen rehab alone was over 100k..that is another horrible set of stories, that makes me want to stay far from that business, although we have the facilities and demand.
The burden on your wife and friend will be huge. It will stress your relationship. You will be stressed being not able to be there to help, yet needing to support the project with your income. This is how we live.
We don't ever expect it to support us fully, but that is our choice. We hope for more a balance. We are older and have no children (or elderly parents) to worry about. Not really regretting our choice, but it WAS harder than we thought.
I just ask you to think THREE times about doing this. You really need to know what you are getting into and the risks involved....financially and emotionally. Discuss all this with your wife, and let her read this forum.
As a final note, I would suggest with the downturn in real estate prices that you may find an existing place more cheaply that building. With all the natural disasters, building material prices have skyrocketed. I would look long and hard at the excellent values on the market and see if any of those might fit into your dreams.
Good Luck.
Click to expand...
white pine said:
As a final note, I would suggest with the downturn in real estate prices that you may find an existing place more cheaply that building. With all the natural disasters, building material prices have skyrocketed. I would look long and hard at the excellent values on the market and see if any of those might fit into your dreams.
Good Luck
Click to expand...
I quoted this as I fully agree with it. The quick equity is in the turn around projects at the moment. Cost per square foot is crazy low on some properties.
.
Click to expand...
I hope you will consider looking at some of the places up for sale. We have a bunch of lovely places in VA with both inn and restaurant. I am sure NC has some as well. You really owe it to yourself to check some of them out before starting from scratch. You will hear their stories and see what they are up against etc. The thought of building from scratch now for both is very scary and think how long it will take too. When there may be a turnkey property out there that will suit your needs and get you running a business a year ahead of schedule or more. Look around..it can't hurt and it sure can open your eyes to the way things are going for these businesses.
I was just talking to a chef friend who bought a house to turn into a restaurant 3 years ago. They have it all remodeled and ready to go except for a kitchen. He had his priorities out of whack as far as I am concerned. The kitchen should have been first. He said he needs $70K just for the equipment. That doesn't include the remodel/addition for the kitchen. Realistically, we don't think he will ever open.
Another friend..a former inn /restaurant owner always told me it wasn't the restaurant that brought in the money..and her's was an upscale successful place..it was putting heads in the beds. She had 12 rooms.
Just some more to think about.
 
James Barrett said:
Hello,
I'm a young naive inspiring Innkeeper looking to get into the biz. .....
I'm just starting to wonder if this is realistic because I haven't seen a single positive thing for up and coming innkeepers on this website.
Click to expand...
Hi James,
I am sorry you feel that the advice given here is harsh. It in fact is reality. People that are speaking on this site have been there, done that and have the stories to back what they say. Getting into this business can be difficult. You must do your homework before purchasing a piece of property or you may have a piece of property that will not work for your dream business. Or will not support your dreams....
A commercial kitchen is very costly as others have mentioned. Plus you have to furnish the entire place after it is built. I am not sure if 4000 sq ft is large enough to support both B&B and restaurant let alone an innkeepers area. Do either of you have a history in the restaurant business? It is a TOUGH business!
There are quite a number of inns for sale in the US, the hard part has been done (zoning, licensing, etc) and the places are ready for turnkey. It may be in your best interests to check into some of them in the areas you are hoping to live. Some may already have a restaurant included or you may ask the realtor to assist you in finding out what would be needed to add one if the location and layout would work.
We do wish for your dreams to happen, but would hate for the dream to end in a terrible nightmare due to lack of planning.
 
Here is a beautiful B&B for sale in Virginia with very lenient regulations, the town is more than willing to allow functions with food served. Also small weddings and other events. It is an hour from VATech (has guests staying for VTech graduation in May, and the town is chockfull of Hokies) :) 20 minutes south of Roanoke. 20 minutes to Smith Mountain Lake. It is a bargain, they have lowered the price to sell!
I know the innkeepers, and maintenance is not deferred, updates and renovations are continual. Here is the Virginia page from BnBfinder (which shows the front view)
 
Joey Bloggs said:
Here is a beautiful B&B for sale in Virginia with very lenient regulations, the town is more than willing to allow functions with food served. Also small weddings and other events. It is an hour from VATech (has guests staying for VTech graduation in May, and the town is chockfull of Hokies) :) 20 minutes south of Roanoke. 20 minutes to Smith Mountain Lake. It is a bargain, they have lowered the price to sell!
I know the innkeepers, and maintenance is not deferred, updates and renovations are continual. Here is the Virginia page from BnBfinder (which shows the front view).
Click to expand...
At James, I have visited this inn and it is a wonderful location that has finally "gotten it" re tourism. the inn is beautiful and large enough to support a family. Believe me when I say that if I did not believe this about a place, I would say nothing. Lest you think it is for sale for bad reasons, let me assure you it is only because it is their time in life to move on to other things. And no, it is not me. I am in West Virginia, have 3 rooms and cannot put my B & B on the market until my husband dies. (everything is set up for his convenience and he does not like change. At 72 I am not going to move him and it would be my luck for it to sell quickly when I would want it to take a while.)
 
You would not believe the amount of people that tell all of us, "When we retire we are going to open a Bed and Breakfast!". Im thinking "REALLY? When you retire?" Someone posted a comment the other day on here about when an Innkeeper retires they can run a fortune 500 company. That says it right there. We are not trying to crush your dreams. But we are not going to sugar coat anything either! This site is full of professional Innkeepers that are giving you the truth about running a Bed and Breakfast. When deciding to own a Inn you want truthful advice. You do not want to get into this business and 6 months in tell yourself. "Oh dear God what have I done?" You want to say "Oh dear God I love what I have done!" This decision will be up to you. The Innkeepers on this forum will help you with any question you might have. Good luck and Welcome!
 
shame you arn't looking in the UK - regs are much easier! in my town there are several turnkeys up for sale, good books, excellent location, marketing in place, room for families and average %65-70% occupancy - there is a building up the street which if I didn't have a place already I would go for in a flash! - it was an office but would make an amazing BB
ill have to take a photo - amazing location, big car parking area, 5 floors including basement - and its huge! roof only 4 years old - and stunning to look at - just needs a loving owner!
 
toddburme said:
This can be a tough crowd. Don't let it bother you. Once you have a spot in mind the regulations/permits start to fall into place. Pretty hard to research one without the other. I think financing might be the biggest hurdle in that you are looking at a big purchase and build with 5-20% down depending on lots of things. Do you have some cost per square foot to work with? Then land costs? Etc. Spreadsheet it out and you will know in short order if you are too skinny on the down..
Click to expand...
You're words are a breath of fresh air :) Every business venture I've pursued has never been as difficult as what people make it out to be. My current job is case and point.
I have a couple different builders looking at my design and floor plan, they were going to get back to me sometime next week. You're right, the construction is going to be the biggest obstacle. Hopefully I'll have a better feel for things next week.
 
Joey Bloggs said:
Here is a beautiful B&B for sale in Virginia with very lenient regulations, the town is more than willing to allow functions with food served. Also small weddings and other events. It is an hour from VATech (has guests staying for VTech graduation in May, and the town is chockfull of Hokies) :) 20 minutes south of Roanoke. 20 minutes to Smith Mountain Lake. It is a bargain, they have lowered the price to sell!
I know the innkeepers, and maintenance is not deferred, updates and renovations are continual. Here is the Virginia page from BnBfinder (which shows the front view).
Click to expand...
I appreciate that Joey, I'll take a look at that link.
 
gillumhouse said:
Joey Bloggs said:
Here is a beautiful B&B for sale in Virginia with very lenient regulations, the town is more than willing to allow functions with food served. Also small weddings and other events. It is an hour from VATech (has guests staying for VTech graduation in May, and the town is chockfull of Hokies) :) 20 minutes south of Roanoke. 20 minutes to Smith Mountain Lake. It is a bargain, they have lowered the price to sell!
I know the innkeepers, and maintenance is not deferred, updates and renovations are continual. Here is the Virginia page from BnBfinder (which shows the front view).
Click to expand...
At James, I have visited this inn and it is a wonderful location that has finally "gotten it" re tourism. the inn is beautiful and large enough to support a family. Believe me when I say that if I did not believe this about a place, I would say nothing. Lest you think it is for sale for bad reasons, let me assure you it is only because it is their time in life to move on to other things. And no, it is not me. I am in West Virginia, have 3 rooms and cannot put my B & B on the market until my husband dies. (everything is set up for his convenience and he does not like change. At 72 I am not going to move him and it would be my luck for it to sell quickly when I would want it to take a while.)
.
Click to expand...
Hello Ma'am,
Do you have some contact info or a link, I'd like to take a look at that.
Thanks!
 
souslechene said:
As you say, this is a business project. Treat it as such, make a solid business plan, meet owners to discuss your plans, do some market research, visit b&b & hotels blogs and forums...
Do not trust national statistics, be warned that a few miles can make a huge difference on the occupation rate and ensure not to be blinded by your dream.
Once you feel confident, deduct 30% from your planned turnover for the first few years. Then you will know if it is realistic or not.
It is a great life project. Make sure it turns good..
Click to expand...
That's the kind of advise I like... straight forward, to the point, and not a bunch of what if's. I don't think people are out to screw you over at every corner. Any pursuit in life requires some intelligence and a lot of homework. I'll always listen to advice but take it with a grain of salt because I've come to trust my instincts more and more with every new venture.
 

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