Anybody run a B&B?
Discussion
My g/f announced at the weekend that she's tired of working for somebody else, wants to live on the coast and that we should consider buying a B&B in Cornwall.
I was not that enthusiastic about it - primarily because it's hardly going to happen in the near future - we've only been going out together for 7 months, both have properties, both have day jobs, haven't even lived together etc. etc.
But - all that aside - I also hate working for other people and would much prefer to be my own boss (although I'm a realist, and realise that technically every customer you have is "your boss"). And I'd rather live in Cornwall than where I do now!
I've always assumed that a B&B was a LOT of work, for relatively little disposable income. Anybody run a B&B and can convince me I'm wrong (or right?)
I was not that enthusiastic about it - primarily because it's hardly going to happen in the near future - we've only been going out together for 7 months, both have properties, both have day jobs, haven't even lived together etc. etc.
But - all that aside - I also hate working for other people and would much prefer to be my own boss (although I'm a realist, and realise that technically every customer you have is "your boss"). And I'd rather live in Cornwall than where I do now!
I've always assumed that a B&B was a LOT of work, for relatively little disposable income. Anybody run a B&B and can convince me I'm wrong (or right?)
Why a B&B and not something like air B&B? Or air b&b plus 1 or 2 part time jobs. Someone I know earns £10k plus renting her house out via air B&B while she sleeps in a granny annex which seems A very decent income for very little work. Traditional B&B would be a lot of work your always on call up early cooking breakfast etc...
All comes down to the property though. Get saving.
All comes down to the property though. Get saving.
No, you're right. It's very hard work and for most people in the B&B game its more of a lifestyle choice.
A much better plan would be to find something else you can do from home (maybe in Cornwall, although I suggest renting a place for a month in the winter to see if you really like it first!)
A much better plan would be to find something else you can do from home (maybe in Cornwall, although I suggest renting a place for a month in the winter to see if you really like it first!)
I own one in Scarborough!
It can be hard work and will be to begin with until you get used to it. It doesn’t have to be though and we’re constantly making changes for it to suit us better. We’ve not been here 2 years yet so still consider ourselves newbies!
Prior to this we lived the other side of the country with completely different jobs with no real hospitality experience. We’ve also got a nipper and 3 dogs so plenty going on.
If you’ve any specific questions fire away, I’m always happy to help give my perspective on it, alternatively message me!
It can be hard work and will be to begin with until you get used to it. It doesn’t have to be though and we’re constantly making changes for it to suit us better. We’ve not been here 2 years yet so still consider ourselves newbies!
Prior to this we lived the other side of the country with completely different jobs with no real hospitality experience. We’ve also got a nipper and 3 dogs so plenty going on.
If you’ve any specific questions fire away, I’m always happy to help give my perspective on it, alternatively message me!
ADogg said:
GT03ROB said:
Always struck me as very hard work, limited down time, little privacy & all for not a lot.
From my experience it’s what you make it! Easy? No. Better than my previous “working for the man life”? Yes.
A few questions if i may?
My wife and I have been giving this idea some thought.....
I read that to buy a B and B one needs about 30 to 40% deposit.
So assuming you have the deposit, is the loan based on the business plan/income of the business or just on the asset i.e the bricks and mortar?
I also see that some businesses deliberately run below the VAT threshold, is this managed or just poor turnover/occupancy?
Some agents advertise plenty of these for sale stating that improvements could be made in occupancy or that they are run as 'lifestyle businesses'
Is this code for its turnover is poor and dont expect to see big figures in the accounts.?
How negotiable are the prices?
I think the true value of the business must be quite difficult to quantify
My wife and I have been giving this idea some thought.....
I read that to buy a B and B one needs about 30 to 40% deposit.
So assuming you have the deposit, is the loan based on the business plan/income of the business or just on the asset i.e the bricks and mortar?
I also see that some businesses deliberately run below the VAT threshold, is this managed or just poor turnover/occupancy?
Some agents advertise plenty of these for sale stating that improvements could be made in occupancy or that they are run as 'lifestyle businesses'
Is this code for its turnover is poor and dont expect to see big figures in the accounts.?
How negotiable are the prices?
I think the true value of the business must be quite difficult to quantify
bristolracer said:
A few questions if i may?
My wife and I have been giving this idea some thought.....
I read that to buy a B and B one needs about 30 to 40% deposit.
So assuming you have the deposit, is the loan based on the business plan/income of the business or just on the asset i.e the bricks and mortar?
I also see that some businesses deliberately run below the VAT threshold, is this managed or just poor turnover/occupancy?
Some agents advertise plenty of these for sale stating that improvements could be made in occupancy or that they are run as 'lifestyle businesses'
Is this code for its turnover is poor and dont expect to see big figures in the accounts.?
How negotiable are the prices?
I think the true value of the business must be quite difficult to quantify
I’ll gladly answer these for you!My wife and I have been giving this idea some thought.....
I read that to buy a B and B one needs about 30 to 40% deposit.
So assuming you have the deposit, is the loan based on the business plan/income of the business or just on the asset i.e the bricks and mortar?
I also see that some businesses deliberately run below the VAT threshold, is this managed or just poor turnover/occupancy?
Some agents advertise plenty of these for sale stating that improvements could be made in occupancy or that they are run as 'lifestyle businesses'
Is this code for its turnover is poor and dont expect to see big figures in the accounts.?
How negotiable are the prices?
I think the true value of the business must be quite difficult to quantify
Our borrowing was based upon the business plan/previous books but I believe a bit of the bricks and mortar too. You can get a (commercial) mortgage from a 30% deposit. Depending on the ratio of rental rooms to private rooms you may be able to get a domestic mortgage too?
Generally speaking I’d interpret “improvements could be made in occupancy” to one of a few things:
1 - The present owners are “Old skool” and don’t do online bookings, be it online travel agents (OTA’s) or at all - it’s surprising the amount of owners that still only rely on telephone/knock on bookings
2 - The current owners pocket a fair proportion of the “cash” bookings
3 - The current owners treat it as a “lifestyle business” where they open when its peak times and then spend the winter elsewhere/shut.
We’re too small a B&B to worry about the VAT threshold but we know some of the bigger B&Bs “manage” the accounts to stay under it.
We negotiated on the asking price.
I hope that helps?
What areas are you looking at? If I can be of anymore use please don’t hesitate to message me!
ADogg said:
What areas are you looking at? If I can be of anymore use please don’t hesitate to message me!
Thanks that’s very useful.We would stay in the South West so Devon/Cornwall/Somerset as we have family ties nearby (I’d reallly love the highlands of Scotland but it would be to far.)
I appreciate its hard work, which i dont mind but we would need to feel confident that the income would cover all of the costs.
While i appreciate that you have to run a broad church and take business wherever it comes from, we were wondering if maybe offering something to walkers or cyclists if you are in those parts of the world, so drying rooms/cages for locking bikes etc would be worth looking at ?
I have to say watching the hotel inspector and 4 in a bed, there some idiots out there running businesses, I am sure we could do better !
bristolracer said:
Thanks that’s very useful.
We would stay in the South West so Devon/Cornwall/Somerset as we have family ties nearby (I’d reallly love the highlands of Scotland but it would be to far.)
I appreciate its hard work, which i dont mind but we would need to feel confident that the income would cover all of the costs.
While i appreciate that you have to run a broad church and take business wherever it comes from, we were wondering if maybe offering something to walkers or cyclists if you are in those parts of the world, so drying rooms/cages for locking bikes etc would be worth looking at ?
I have to say watching the hotel inspector and 4 in a bed, there some idiots out there running businesses, I am sure we could do better !
That’s where I had my heart set on but here I am in the cold north, haha!We would stay in the South West so Devon/Cornwall/Somerset as we have family ties nearby (I’d reallly love the highlands of Scotland but it would be to far.)
I appreciate its hard work, which i dont mind but we would need to feel confident that the income would cover all of the costs.
While i appreciate that you have to run a broad church and take business wherever it comes from, we were wondering if maybe offering something to walkers or cyclists if you are in those parts of the world, so drying rooms/cages for locking bikes etc would be worth looking at ?
I have to say watching the hotel inspector and 4 in a bed, there some idiots out there running businesses, I am sure we could do better !
It can be hard work, but you will fettle things here and there and iron out creases as they arise which makes things easier. We’ve only been here 22 months and are working a fair amount less - there is no right or wrong way and you’ll find your own way.
We have cyclists and walkers stay here, but by far the biggest niche we’ve tapped into is dog owners - we make a big deal of being dog friendly, and it works very well. They’re less hassle than most people and kids from our experience provided you lay down the laws upon check in - no dogs in the dining room, or left on their own etc!
4 in a bed keep asking us, we almost did it, but didn’t and I’m glad we didn’t - we got as far as selecting recording dates when something happened so we had to pull out. My feeling is they match you up to people you’d not get in with!
How far along with it all are you? If you’re on Facebook I can invite you to a Hospitality Group which will provide a bit of an insight into things...
ADogg said:
How far along with it all are you? If you’re on Facebook I can invite you to a Hospitality Group which will provide a bit of an insight into things...
At this stage its only speculation,we are considering a life change,this is one option. We are away in March for a couple of weeks when i think we will discuss the meaning of life then!Its definitely a strong contender
bristolracer said:
At this stage its only speculation,we are considering a life change,this is one option. We are away in March for a couple of weeks when i think we will discuss the meaning of life then!
Its definitely a strong contender
We were in that situation not long ago, so know the feeling! Its definitely a strong contender
Like I said if you or your other half want to ask about our experiences feel free to, our mobile number is on our website www.thebeachesscarborough.co.uk
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