Take care of a financial buffer during the first operational year of your bed & breakfast.
Running a B&B provides a lot of satisfaction, but you have to handle it well from the start. On this blog we frequently publish a golden tip for a good start. This time: put your financials in order before you start!
Feasibility of your B&B-plans
Examine the financial and organisational feasibility of your B&B-plans before executing them. In order to do that, you have to ask yourself a couple of questions. What do you wish to achieve with your bed & breakfast? How much money do you want to invest and what kind of income do you desire? Would you like to make a profit or just cover expenses?
Income from your bed & breakfast
Make an overview of the income and expenses you expect to have every month. Besides off-costs (purchase of the building, equipment, having a website built) you have to deal with many regular costs, such as those for gas/water/light, insurances, administrative costs and taxes. Also keep payment terms, vacations and extra investments in mind.
Now, what is your profit forecast?
Now, what is your profit forecast and turnover forecast for the next two years? Think about how you are going to get through the lead-time, when you have too much expenses and too little income. And, very important: during the first year, make sure you have a financial bridging!
Free information about starting a B&B
Is your financial state well enough to start a bed and breakfast? Go for it! Bedandbreakfast.eu periodically publishes a free newsletter with information about running a B&B that is also interesting for start-ups. Would you like to receive our newsletter? Please let us know by filling out our contact form and adding a remark. You can also check out this blog for more tips from the field and visit our B&B start-up page.
