How to Open a Financially Successful Bed & Breakfast or Small Hotel

by Fullen, Sharon L.

• ISBN13: 9780910627306
• ISBN10: 0910627304
• Edition: CD
• Format: Paperback
• Copyright: 2004-05-30
• Publisher: Atlantic Pub Co

Summary

This comprehensive handbook with companion CD ROM will clearly demonstrate how to set up, operate and manage a financially successful bed-and-breakfast or small hotel. Whatever your reason for wanting to open a bed and breakfast, keep in mind that at it takes more than dreams and rooms to achieve success, it is a business that must show a profit. This book will separate the romantic notions of owning a B&B from the business end. While providing detailed instruction and examples, the author leads you through finding a location that will bring success, learn how to draw up a winning business plan (The Companion CD Rom has the actual business plan you can use in MS Word tm.), how to buy and (sell) a B&B, basic cost control systems, profitable menu planning, Reservation Systems, successful kitchen management, equipment layout and planning, food safety & HACCP, housekeeping, successful beverage management, reservation networks, legal concerns, sales and marketing techniques, room rate formulas, arrival, billing, departure, learn how to set up computer systems to save time and money, learn how to hire & keep a qualified professional staff, brand new IRS tip reporting requirements, managing and training employees, generate high profile public relations and publicity, learn low cost internal marketing ideas, low and no cost ways to satisfy customers and build sales, learn how to keep bringing customers back, accounting & bookkeeping procedures, auditing, successful budgeting and profit planning development, as well as thousands of great tips and useful guidelines. There are literally hundreds of innovative ways demonstrated to streamline your business. Learn new ways to make the kitchen, bars, dining room, and front office run smoother and increase performance. Shut down waste, reduce costs, and increase profits. In addition operators will appreciate this valuable resource and reference in their daily activities and as a source of ready-to-use forms, web sites, operating and cost cutting ideas, and mathematical formulas that can be easily applied to their operations. The Companion Cd Rom contains all the forms in the book as well as a sample business plan you can adapt for your own use.

Table of Contents

Chapter 1 Should You Own a B&B?
A Little History	10	(1)
Personality	11	(1)
Warmth	12	(1)
Skills	13	(2)
Getting Your Feet Wet	15	(4)
The B&B Customer	19	(1)
A Day in the Life (a.k.a. Keeping It All Organized)	19	(3)
How Much Can You Expect to Make?	22	(1)
How Much Money Do You Need?	22	(3)
Chapter 2 Selecting the Location
Market Research	25	(1)
Population and Demographics	26	(1)
Other Demographic Information Web Sites	27	(1)
Site Research	28	(3)
Competition	31	(1)
Visiting the Competition	32	(1)
Industry Research	33	(1)
Some Location Considerations	34	(1)
Working with Contractors	35	(3)
Chapter 3 Buying an Existing B&B
Real Estate and Its Value	38	(1)
The Value of Other Assets	39	(1)
Strategies for Buying	40	(3)
Terms, Conditions and Price	43	(3)
Determining Price from a Buyer's Perspective	46	(2)
Initial Investment	48	(2)
Financing	50	(1)
Equity Funds	50	(1)
SBA Financial Programs	51	(1)
SBA Assistance	51	(1)
The 7(a) Loan Guaranty Program	52	(1)
Friends and Relatives	53	(1)
Banks, Credit Unions and Borrowing Money	53	(1)
How to Write a Loan Proposal	53	(1)
How Your Loan Request Will Be Reviewed	54	(1)
Closing the Sale	55	(2)
Chapter 4 The Business Plan
Business Plan Outline	57	(1)
The Business Plan-What It Includes	58	(1)
Description of the Business	59	(1)
The Marketing Plan	60	(1)
Competition	61	(1)
Pricing and Sales	62	(1)
Advertising and Public Relations	63	(1)
The Management Plan	63	(1)
The Financial Management Plan	64	(2)
Legal Forms of Business	66	(4)
Chapter 5 Laws, Regulations and Licenses
State Registration	70	(1)
City Business License	71	(1)
Sales Tax	71	(1)
Health Department License	72	(1)
Fire Department Permit	73	(1)
Building and Construction Permit	73	(1)
Sign Permit	74	(1)
Zoning	74	(1)
Historic Buildings and Historic Districts	75	(1)
State Liquor License	75	(1)
Internal Revenue Registration	76	(1)
Federal Identification Number	76	(1)
State Tax Assistance	77	(2)
Chapter 6 Before You Open
Choosing a Name	79	(1)
Opening the B&B Bank Account	80	(1)
Establishing Room Rates	81	(2)
Insurance	83	(2)
Keeping Records	85	(7)
Reservation Service Agencies (RSAs)	92	(4)
Organizing Pre-Opening Activities	96	(1)
Pre-Opening Promotion	97	(1)
Initially Contacting Purveyors and Suppliers	98	(1)
Payroll	99	(1)
Public Utilities	100	(4)
Locksmith	104	(1)
Fire and Intrusion Alarms	104	(1)
Sanitation Service	105	(1)
Plumber	106	(1)
Electrician	106	(1)
Refrigeration Service	107	(1)
Exterminator	107	(1)
Landscaping	108	(1)
List of Supplies	108	(1)
How Much China and Silverware to Order	109	(1)
Exhaust Hood Cleaning Service	110	(1)
Heating and Air-Conditioning	110	(1)
Music	110	(1)
Music Licensing	111	(4)
Chapter 7 Computers
Computer Systems and the Hospitality Industry	115	(1)
Front-of-the-House Computer Systems	115	(1)
Stand-Alone Software Applications	116	(2)
Online Reservation Systems	118	(2)
For the Kitchen	120	(1)
For Your Employees	121	(1)
Desktop Publishing Applications and Ideas	121	(1)
What Is the Future of Computers in Hospitality Service?	122	(1)
The Effective Use of E-Mail	122	(3)
Chapter 8 Marketing and Marketing Literature
Logo	125	(1)
Business Cards and Brochures	126	(2)
Illustrations	128	(1)
Paper and Color	129	(1)
What to Do with Your Brochures and Business Cards	130	(1)
Guidebooks	130	(1)
Web Site	131	(12)
Public Relations	143	(1)
How to Apply Your PR Plan	144	(3)
Building and Supporting Strong Media Relations	147	(5)
Special Events	152	(1)
Communicating to Your Guests-The Value of Loyalty	153	(2)
Talking to Your Community	155	(2)
Planning for the Unforeseen	157	(2)
Internal Bed and Breakfast Marketing: How to Keep Customers Coming Back	159	(2)
Word-of-Mouth	161	(1)
Tracking Your Marketing Sources	161	(3)
Chapter 9 Decorating and Renovating
Renovations	164	(1)
Furnishing and Decorating Your Rooms	165	(2)
Bedrooms	167	(4)
Wall Coverings	171	(1)
Floor Coverings	171	(1)
Window Coverings	172	(1)
The Bathroom	172	(3)
Chapter 10 guest Services and Policies
Expected Services	175	(1)
Breakfast in Bed	176	(1)
Turndown Service	177	(1)
Business Services	177	(1)
Ghosts	178	(1)
Check-In/Check-Out	178	(2)
Safety	180	(1)
Fire	180	(1)
Accidents	181	(1)
Security	182	(1)
Children	182	(1)
Pets	183	(2)
Smoking	185	(1)
Payment and Deposit Policies	185	(1)
Cancellation Policy	185	(1)
Walk-Ins and One-Night Stays	186	(1)
Phone Policies	187	(1)
House Rules	187	(2)
Chapter 11 Food Services
Inspecting the Dining Room	189	(1)
General Rules for Table Service	190	(2)
Breakfast	192	(2)
Coffee	194	(4)
The Menu	198	(1)
Breakfast Recipes	199	(5)
Presentation	204	(1)
Healthy Trends and Special Diets	205	(2)
Food Allergies	207	(1)
Table Decorations	208	(1)
Dinner Service	208	(2)
How to Establish Your Own Menu	210	(1)
Lunch and Dinner Pricing	211	(2)
Menu Style	213	(6)
Menu-Design Software	219	(2)
Projecting the Actual Average Cost per Customer	221	(2)
Inventory Levels	223	(1)
Cooperative Purchasing	224	(1)
Receiving and Storing	224	(3)
Chapter 12 Housekeeping, Sanitation and Kitchen Safety
Janitorial and Maintenance Service	227	(6)
Sanitation and Food Safety	233	(3)
HACCP's Eight Key Steps of the Food Service Process	236	(12)
A First-Rate Facility	248	(1)
Bacteria	249	(5)
Bugs, Insects and Animal Pests	254	(1)
Kitchen Safety	255	(6)
Chapter 13 Staff
Hiring Bed and Breakfast Employees	261	(2)
Unlawful Pre-Employment Questions	263	(2)
Screening Potential Employees	265	(2)
The Final Selection and Decision	267	(1)
Rejecting Applicants	267	(1)
Employee Handbook/Personnel Policy	268	(1)
Personnel File	269	(1)
Training	270	(1)
Orientation and Instruction	270	(2)
Outside Help in Training	272	(1)
Evaluating Performance	272	(3)
The Decision to Terminate an Employee	275