JunieBJones (JBJ) said:
If you were looking at purchasing a Bed and Breakfast, what reports would you appreciate having upfront?
Example: Month by month room rentals and income. Add ons and special events. Tax Returns for 3 years. Expenses broken down annually or month by month (ie cable tv, utilities, taxes, fees etc)
Looking from an aspiring point of view:
They should do a financial analysis of the place with following content/points.
Reconstruction Profit & Loss for at least 3 years.
Everyone who was doing some research on the B&B business should know it
is unlikely you will find a B&B who is doing a big profit. It’s clear; you try to push as much costs towards the business as possible.
Occupancy and Revenue figures for at least 3 year.
yearly or even better monthly (part of the table below)
If your ave. occupancy is over the ave. occupancy rate from the PAII study for your area I would mention it. If it’s below I wouldn’t. Let them figure out on there own.
Base on this information they can make a projection for the 1st year.
Here is a table with the costs split in different categories as well as the revenue and occupancy. If you can provide this figures by month its totally great and any aspiring should be really happy to get it for calculations.
Sales & Occupancy
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Rooms available
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Room Nights Available
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Room Nights Sold
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Occupancy %
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Average Daily Rate (ADR)
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Revenue
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Rooms
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Other Income
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Total Revenue
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Cost of Goods/Services
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Salary & Wages
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Employee Benefits & Taxes
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Towels & Linens
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Room & Housekeeping supplies
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Total Cost of Goods Sold
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Gross Profit
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Other Operating Expenses
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Advertising & Promotion
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Bank Fees
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Business Taxes & Licenses
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Dues & Subscriptions
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F & B Breakfast
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Insurance
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Legal & Accounting
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Miscellaneous
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Office Supplies & Postage
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Outside Services
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Repairs & Maintenance
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Telephone
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Utilities
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Total Operating Expenses
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Total Expenses
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Net Operating Income (Loss)
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Also part of the financial analysis and a job for the aspiring are
Market/Location Analysis
Competitors Analysis
So this are the information’s / figures I want to see. Based on this they can start to make a general Business Analysis like break even, split of fixed and variable costs, marginal return and so on.
JunieBJones (JBJ) said:
After you signed the contract/agreement - what reports would you find handy?
A list of all directories, a referral report from those directories with search words for google, when taxes come due (this was huge for us, we never had them all come due in DEC!! We were unprepared for that when we bought this place), etc Directories that did not pan out - ie lanier bb.
Anything else you can think of? When we sell this B&B we want it to succeed and want to arm the new owners with as much useful and helpful info as we can. Thanks all.
Coming from the Marketing side I would like to know something of your guest database.
How many guest do you have in the database
Do you have CRM information’s like mailing address and email
How many repeat guests do you have
As well as available which type of guests do you have.
Vacation guests (stay one week or longer)
Business traveler/guests
Weekend guests
Perhaps also some reporting/tracking from your website.
Ok i guess this is enough.