Operating Budget

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04/11/2014

Hello,

 

My name is Shane.  I live in Central Florida and I am looking to potentially launch a bed and breakfast.  I was wondering if anyone knows of where to find a sample operating budget for a bed and breakfast?  I am trying to put together a realistic budget but cannot find any samples.  Also, is anyone here from Florida or Central Florida?

 

Thank you!

 

 

Sincerely,

 

 

 

Shane Carman

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Joined:
01/12/2013

Hi Shane,

I seem to recall before I got started that there were a couple of forms in two books I bought "So-You Want To Be An Innkeeper" and "Bed & Breakfast for Dummies" that would give you a very rough estimate of what to expect in regard to expenses.  As the others said, there are SO many variables, but you might find some guidelines in those books.  Some year when I get bored, I am going to pull out my old paperwork from before I opened and have myself a good laugh at what I was expecting to pay and what I actually paid.  I know insurance costs were WAY higher than expected, and most of that is because I'm on the Gulf Coast.  Electricity costs were WAY higher also.  You will probably have the same issue, being in Florida.  Food costs were about what was anticipated, but I'm very careful with my food and other supply purchases.  Some may even call me cheap, but the guests don't see it, so who cares Smiling

Good Luck with your search.  Those books were an eye opener for me, coming from no hospitality/business ownership background. I would suggest them, and also an innkeeping seminar, if you are able.

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Joined:
04/11/2014

Thank you for the information.  I am in Orlando.  Any idea as to why there are virtually no inns here?

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Joined:
05/22/2008

Probably because of all the hotels. Maybe you had better check with local zoning..that could be a reason. And that is the first thing you should do anyway before you make any plans.

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Joined:
01/12/2013

I'm on the Gulf Coast of Texas, not Florida.  I don't know why there aren't any (or few) there.  I know we have a Floridian innkeeper on here, but I can't remember the name.

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Joined:
04/11/2014

Gotcha.  Thanks

Joey Camb's picture
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04/02/2010

how to operate a financially successful bed and brealfast by Arduser and Brown is good for the financial nitty gritty (UK speak for small details)

also Start and Sun bed and breakfast - by Monica and Richard Taylor - this is the best volume ive found for how to actually pick out a property and properly assess whether there is enough business to support you and so on.

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Joined:
04/11/2014

Thank you!

OnTheShore's picture
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08/28/2011

Another way to approach the problem might be to start from the revenue side. Take into account how many rooms and projected occupancy rates (try a couple different scenarios!) and the calculate the range of revenue you might expect.

Then you could sort through your expense categories as to which are fixed versus which depend on occupancy rates.

One recommendation is to budget between 5 and 10% of your projected revenue for marketing and advertising costs (perhaps more in the start-up phase).

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"where even time relaxes...."

 

Joey Camb's picture
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04/02/2010

and what I call the S~~~t happens rule - things just turn up and hit you when you are least expecting it ie think it was flower was hit with twits that didn't report a leaking toilet and now is faced with a large hole in the ceiling!

gillumhouse's picture
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Joined:
05/22/2008

Not meaning this to be funny because it is true - I have been operating a B & B since 1996 and I am still looking for an operating budget. Just when I think all is well the washer dies, the roof leaks, I get hit with a permit that did not exist before..... Or I get sucked in to running an ad.... I truly wish I knew budget other than as a word in the dictionary.

Breakfast Diva's picture
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Joined:
05/26/2009

Shane, you're having a tough time because there are so many variables! It's not like many other businesses with typical fixed expenses. A b&b operating budget depends on how many room, where the location is, etc. Simple things like insurance varies wildly depending on your location, age of building, acreage, city or rural, etc.

If you're in a tourist area, your advertising costs could be significantly lower than a place in the middle of nowhere. Some b&bs can spend $5-$7 per person for breakfast foods, but if you're doing a gourmet breakfast, your costs will increase. Will there be afternoon refreshments? Believe me, it all adds up.

Sorry I can't get more specific.

 

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