Bed and Breakfast Business Plan Template

Bed and Breakfast Business Plan

You’ve come to the right place to create your Bed and Breakfast business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Bed and Breakfast companies.

Below is a template to help you create each section of your Bed and Breakfast business plan.

Executive Summary

Business Overview

Walton House is a new bed and breakfast business located just outside of Omaha, Nebraska. It is a charming two-story rustic farmhouse that contains several rooms for guests to enjoy. Every room is decorated with pictures, adornments, and knick-knacks that transport guests to a simpler, more rustic time. The bed and breakfast will offer daily housekeeping, high-speed wifi, cable, and complimentary breakfast every morning.

Walton House is run and owned by Mary Walton. She inherited the house from her grandparents and decided to renovate it and run it as a bed and breakfast. Though Mary has never run a bed and breakfast before, she holds an MBA and has worked in upper management of several other small businesses. Therefore, she has an in-depth knowledge of the operations, marketing, and management sides of running a business.

 

Services

Walton House will offer all of the standard bed and breakfast services, including daily room cleaning, cable TV, a free wireless network, and various other amenities. Additionally, the bed and breakfast will include complimentary breakfast every morning as well as free snacks all day long in the common areas.

 

Customer Focus

Walton House will primarily serve leisure travelers who seek comfort, basic amenities, and simplicity of services. We will target both Omaha residents who need a short getaway and travelers who are coming to Omaha for a short stay.

 

Management Team

Walton House is run and owned by Mary Walton. Before Mary took ownership of the house, it belonged to her grandparents and was transferred down through generations. Due to its rustic charm, Mary realized the house offered a great atmosphere that guests loved. Therefore, she decided to renovate the home and turn it into a bed and breakfast.

Though Mary has never run a bed and breakfast before, she holds an MBA and has worked in upper management of several other small businesses. Therefore, she has an in-depth knowledge of the operations, marketing, and management sides of running a business.

 

Success Factors

Walton House will be able to achieve success by offering the following competitive advantages:

  • Location: Walton House’s location on the outskirts of Omaha adds to the rustic, rural feel that guests will enjoy. However, the city is still close enough to easily access the airport, tourist attractions, downtown, shopping, and restaurants.
  • Business Amenities: Wi-fi throughout the bed and breakfast will make working remotely simple for business visitors.
  • Management: Our management team has years of business and marketing experience that allows us to market and serve customers in the same manner as our most sophisticated competitors.
  • Relationships: Having visited the community for a number of years, Mary Walton knows many of the local leaders, newspapers, and other influencers. As such, it will be relatively easy for us to build the brand and awareness of the bed and breakfast.


Financial Highlights

Walton House is seeking $300,000 in debt financing to launch the bed and breakfast. The funding will primarily be used to pay for renovations. Funding will also be dedicated toward three months of overhead costs, including payroll and utilities. The breakout of the funding is below:

  • Renovations: $150,000
  • Three months of overhead expenses (payroll, utilities): $50,000
  • Marketing costs: $50,000
  • Working capital: $50,000

The following graph below outlines the pro forma financial projections for Walton House.

 

Company Overview

Who is Walton House?

Walton House is a new bed and breakfast business located just outside of Omaha, Nebraska. It is a charming two-story rustic farmhouse that contains several rooms for guests to enjoy. Every room is decorated with pictures, adornments, and knick-knacks that transport guests to a simpler, more rustic time. The bed and breakfast will offer daily housekeeping, high-speed wifi, cable, and complimentary breakfast every morning.


Walton House is run and owned by Mary Walton. She inherited the house from her grandparents and decided to renovate it and run it as a bed and breakfast. Though Mary has never run a bed and breakfast before, she holds an MBA and has worked in upper management of several other small businesses. Therefore, she has an in-depth knowledge of the operations, marketing, and management sides of running a business.

 

Walton House History

Mary Walton incorporated Walton House as an S-Corporation on November, 202X. The bed and breakfast development operations are currently being run out of Mary Walton’s home office. Once the renovations are finished, all operations will run from Walton House.

Since incorporation, the company has achieved the following milestones:

  • Developed the company’s name, logo, and website
  • Found contractors to help renovate the home
  • Taking bids from construction crews and electrical engineering firms
  • Determined equipment leasing and financing requirements
  • Began recruiting key employees with customer service or bed and breakfast experience

 

Walton House Services

Walton House will offer all of the standard bed and breakfast services, including daily room cleaning, cable TV, a free wireless network, and various other amenities. Additionally, the bed and breakfast will include complimentary breakfast every morning as well as free snacks all day long in the common areas.

 

Industry Analysis

The bed and breakfast industry has grown substantially over the past decade and is expected to continue that growth over the next several years.

This growth is due to several factors. First of all, when cities are flooded with tourists for special events, hotels often can’t keep up with demand. When hotels are out of rooms, travelers have to look elsewhere, with many heading to bed and breakfasts. Bed and breakfasts are a great option when hotels cannot accommodate an influx of tourists.

Secondly, hotels, Airbnbs, and other accommodations are becoming increasingly expensive, which prices out most travelers. Most travelers expect extra services if they are forced to pay higher prices, but this is a rare occurrence in hotels. Bed and breakfasts are moderately priced and offer more services and atmosphere than most hotels can provide.

Finally, many travelers don’t want to sit in a bland hotel room throughout their stay. They want an accommodation with more atmosphere, personality, and charm. Very few hotels offer this. However, this is exactly what makes bed and breakfasts unique. Every bed and breakfast location offers a unique charm and atmosphere that makes it a more enjoyable and personable experience for guests.

All of these factors have helped the bed and breakfast industry boom. With hotel and Airbnb prices continuing to rise and travelers wanting a more enjoyable and unique experience, bed and breakfasts will only continue to increase in demand.


Customer Analysis

Demographic Profile of Target Market

Walton House will primarily serve leisure travelers who seek comfort, necessary amenities, and simplicity of services. We will target both Omaha residents who need a short getaway and travelers from other locations that are coming to Omaha for a short stay.

In general, the market for the bed and breakfast segment tends to be relatively affluent and well-educated. The single largest segment which uses bed and breakfasts are guests on vacations/pleasure trips. These tend to be short weekend breaks to relieve work-related stress. Special events, such as weddings, are important revenue drivers. Therefore, we expect many of our customers to be travelers who are on vacation or coming to Omaha for a special event.

 

Customer Segmentation

We will primarily target the following three market segments:

  • Locals looking for a simple getaway
  • Leisure travelers
  • Business travelers


Competitive Analysis

Direct and Indirect Competitors

Walton House will face competition from other companies with similar business profiles. A description of each competitor company is below.

The Omaha Concourse Bed and Breakfast

The Omaha Concourse Bed and Breakfast is Omaha’s leading bed and breakfast and has been in business for 20 years. The bed and breakfast offers a wide array of services and amenities that you typically find at a bed and breakfast.

The Omaha Concourse also offers luxury amenities, many of which are not necessary for travelers, and charges a high price for those amenities ($200-300 per night). Additionally, this bed and breakfast does not offer wireless internet in sleeping rooms.

The Edgewater Bed and Breakfast

The Edgewater Bed and Breakfast has been in business for 15 years. The Edgewater Bed and Breakfast offers a variety of services and amenities, all typical of the bed and breakfast and hospitality industry. However, Edgewater is highly priced due to its waterfront location. Furthermore, Edgewater’s rooms are aging and in desperate need of renovation.

Doubletree Bed and Breakfast Omaha

Doubletree Bed and Breakfast Omaha has been in business for the past ten years and is part of the Hilton family of bed and breakfasts. This allows it to use centralized booking with Hilton and the Hilton loyalty points system. However, the Doubletree is not located in a convenient location, nor does it have nearly as many amenities and services as Walton House. Travelers will get more atmosphere and bang for their buck when they book with us.


Competitive Advantage

Walton House enjoys several advantages over its competitors. These advantages include:

  • Location: Walton House’s location on the outskirts of Omaha adds to the rustic, rural feel that guests will enjoy. However, the city is still close enough to easily access the airport, tourist attractions, downtown, shopping, and restaurants.
  • Business Amenities: Wi-fi throughout the bed and breakfast will make working remotely simple for business visitors.
  • Management: Our management team has years of business and marketing experience that allows us to market and serve customers in the same manner as our most sophisticated competitors.
  • Relationships: Having visited the community for a number of years, Mary Walton knows many of the local leaders, newspapers, and other influencers. As such, it will be relatively easy for us to build the brand and awareness of the bed and breakfast.

 

Marketing Plan

Brand & Value Proposition

The Walton House brand will focus on the company’s unique value proposition:

  • Offering rooms suited for families and business travelers and services
  • Providing a historic and rustic charm
  • Offering an enchanting location on the outskirts of Omaha
  • Providing excellent customer service

 

Promotions Strategy

The promotions strategy for Walton House is as follows:

Social Media

The Walton House will have Instagram, Twitter, and Facebook business profiles where Mary will post frequently about the bed and breakfast. The posts will have pictures of the house and provide information on upcoming special events nearby. The posts will be appealing with professional photographs and will engage customers with discount opportunities and special promotions.

Website & SEO Marketing

Mary will utilize the website and SEO to attract new customers. The website will be easy to navigate and provide all the information and pictures needed to show the house’s charm. The SEO strategy will also be managed to ensure that anyone searching “bed and breakfast near me” or “bed and breakfast Omaha” will see Walton House listed at the top of the Bing or Google search engine.

Advertising

Walton House will initially advertise on travel websites, which are frequently being used these days to book travel due to their ease of use and reviews. These travel websites may offer slight discounts or promotions to further incentivize travelers to book with Walton House.

Pre-Opening Events

Before opening the bed and breakfast, Walton House will organize pre-opening events designed for prospective national customers, local customers, and press contacts. These events will create buzz and awareness for Walton House in the area.

 

Pricing

Walton House’s pricing will fluctuate based on the season and occupancy percentages using a computerized yield management system. However, pricing will always place the Walton House in the mid-range, below luxury offerings, and above bed and breakfasts and motels in the area. Customers will feel they receive great value when patronizing our bed and breakfast.


Operations Plan

Operation Functions:

The following will be the operations plan for Walton House.

  • Mary will be the Owner of Walton House. She will be in charge of much of the operations and management aspects of the business.
  • Mary is assisted by her cousin, Christine Walton. Christine has a background as a marketing manager, so she will be in charge of all the marketing efforts.
  • Mary will also hire a small crew to help with cooking and cleaning the rooms every day.


Milestones:

Walton House expects to achieve the following milestones in the following six months:

11/202X          Hire contractors and start renovations

12/202X          Finish renovations

1/202X            Kickoff promotional campaign

2/202X            Hire and train initial staff

3/202X            Open Walton House

4/202X            Reach break-even

 

Management Team

Walton House is run and owned by Mary Walton. Before Mary took ownership of the house, it belonged to her grandparents and was transferred down through generations. Due to its rustic charm, Mary realized the house offered a great atmosphere that guests loved. Therefore, she decided to renovate the home and turn it into a bed and breakfast.

Though Mary has never run a bed and breakfast before, she holds an MBA and has worked in upper management of several other small businesses. Therefore, she has an in-depth knowledge of the operations, marketing, and management sides of running a business.


Financial Plan

Key Revenue & Costs

The key revenue of Walton House will come from charging nightly rates for each guest that stays with us.

The major costs for the company will be the salaries of the staff and the cost of maintaining the bed and breakfast. In its initial years, the company’s marketing spending will be high as it establishes itself in the market.

 

Funding Requirements and Use of Funds

Walton House is seeking $300,000 in debt financing to launch the bed and breakfast. The funding will primarily be used to pay for renovations. Funding will also be dedicated toward three months of overhead costs, including payroll and utilities. The breakout of the funding is below:

  • Renovations: $150,000
  • Three months of overhead expenses (payroll, utilities): $50,000
  • Marketing costs: $50,000
  • Working capital: $50,000


Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Number of guests per month: 20
  • Annual overhead costs: $20,000
  • Average nightly rate: $100

 

Financial Projections

Income Statement
  FY 1FY 2FY 3FY 4FY 5
Revenues
Total Revenues$360,000$793,728$875,006$964,606$1,063,382
Expenses & Costs
Cost of goods sold$64,800$142,871$157,501$173,629$191,409
Lease$50,000$51,250$52,531$53,845$55,191
Marketing$10,000$8,000$8,000$8,000$8,000
Salaries$157,015$214,030$235,968$247,766$260,155
Initial expenditure$10,000$0$0$0$0
Total Expenses & Costs$291,815$416,151$454,000$483,240$514,754
EBITDA$68,185 $377,577 $421,005 $481,366 $548,628
Depreciation$27,160$27,160 $27,160 $27,160 $27,160
EBIT$41,025 $350,417 $393,845$454,206$521,468
Interest$23,462$20,529 $17,596 $14,664 $11,731
PRETAX INCOME$17,563 $329,888 $376,249 $439,543 $509,737
Net Operating Loss$0$0$0$0$0
Use of Net Operating Loss$0$0$0$0$0
Taxable Income$17,563$329,888$376,249$439,543$509,737
Income Tax Expense$6,147$115,461$131,687$153,840$178,408
NET INCOME$11,416 $214,427 $244,562 $285,703 $331,329
Balance Sheet
  FY 1FY 2FY 3FY 4FY 5
ASSETS
Cash$154,257$348,760$573,195$838,550$1,149,286
Accounts receivable$0$0$0$0$0
Inventory$30,000$33,072$36,459$40,192$44,308
Total Current Assets$184,257$381,832$609,654$878,742$1,193,594
Fixed assets$180,950$180,950$180,950$180,950$180,950
Depreciation$27,160$54,320$81,480$108,640 $135,800
Net fixed assets$153,790 $126,630 $99,470 $72,310 $45,150
TOTAL ASSETS$338,047$508,462$709,124$951,052$1,238,744
LIABILITIES & EQUITY
Debt$315,831$270,713$225,594$180,475 $135,356
Accounts payable$10,800$11,906$13,125$14,469 $15,951
Total Liability$326,631 $282,618 $238,719 $194,944 $151,307
Share Capital$0$0$0$0$0
Retained earnings$11,416 $225,843 $470,405 $756,108$1,087,437
Total Equity$11,416$225,843$470,405$756,108$1,087,437
TOTAL LIABILITIES & EQUITY$338,047$508,462$709,124$951,052$1,238,744
Cash Flow Statement
  FY 1FY 2FY 3FY 4FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)$11,416 $214,427 $244,562 $285,703$331,329
Change in working capital($19,200)($1,966)($2,167)($2,389)($2,634)
Depreciation$27,160 $27,160 $27,160 $27,160 $27,160
Net Cash Flow from Operations$19,376 $239,621 $269,554 $310,473 $355,855
CASH FLOW FROM INVESTMENTS
Investment($180,950)$0$0$0$0
Net Cash Flow from Investments($180,950)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow from Financing$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow$154,257$194,502 $224,436 $265,355$310,736
Cash at Beginning of Period$0$154,257$348,760$573,195$838,550
Cash at End of Period$154,257$348,760$573,195$838,550$1,149,286

Bed and Breakfast Business Plan FAQs

A bed and breakfast business plan is a plan to start and/or grow your bed and breakfast business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Bed and Breakfast business plan using our Bed and Breakfast Business Plan Template here.

There are a number of different kinds of bed and breakfast businesses, some examples include: Home Stay, B&B, Country Inn, or Cottage.

Bed and Breakfast businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

Starting a bed and breakfast business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Bed and Breakfast Business Plan - The first step in starting a business is to create a detailed bed and breakfast business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your bed and breakfast business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your bed and breakfast business is in compliance with local laws.

3. Register Your Bed and Breakfast Business - Once you have chosen a legal structure, the next step is to register your bed and breakfast business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your bed and breakfast business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Bed and Breakfast Equipment & Supplies - In order to start your bed and breakfast business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your bed and breakfast business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful bed and breakfast business:

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