My wife and I are approaching the time to sell our NC business, which is heavily real property oriented. We are exploring new alternatives including Country Inns and have just begun our research. We have a large potential capital gain so, while taxes should never be the primary element in this kind of decision, it will certainly play a meanigful role. Under certain conditions, we can sell our property and buy one of equal or greater value and defer taxes. Needless to say, an Inn might fit the bill but we need to figure out if this business is right for us. We are goinjg to attend a couiple of seminars this fall to find try and figure that out. In the meantime, I just found this great site and thought I would ask a few questions.
We are both workaholics and my wife is great business partner (fortunately she is a lot smarter than I am).
We prefer a business that is heavily seasonal so we can have a break in the year for ourselves.
We are both workaholics and my wife is great business partner (fortunately she is a lot smarter than I am).
We prefer a business that is heavily seasonal so we can have a break in the year for ourselves.
- Country Inns come in many sizes and it seems to me that at a certain number of rooms a manager or assistant manager might be advisable and afforable. If true, where is the size break?
- We should have about a 70/30 debt:equity ratio that we must maintian to qualify for tax deferral. If we cannot get that type of bank financing will owners take back a second (assuming the bank will allow it).
- How do you split duties? I have a strong management and financial background and can do the books,taxes etc. My wife is great with people and terrific with details - nothing gets by her. Is this a good mix of attributes/experience for the business?
- Can someone give me an idea of per room operating costs?
- Is there a better location - resort area, college town etc?
- It seems to me that the restaurant business is a totally different business so it appears that if the Inn has a restaurant, the Innskeeper is really running two different businesses. Restaurants scare me - am I right to be wary or can that be handled by a hired manager?