The Business end

This is where the it all happens and where you, as the new owners, can have a great impact. A B&B will utilize your talents, skills, marketing savvy, thrift, salesmanship, experience, imagination and hard work and return the favor in kind.

This page presents the costs, expenses, income and resulting gross profits on how we have run the business. You may want to add or subtract from what we do. You may wish to add more weddings, reunions and events, cater to local businesses, add a dinner menu, host murder mystery nights, scrap booking, ladies retreats or other special interests. We chose to run the Inn as a Boutique Hotel, romantic, charming and relaxing.

The number below are 3 to 10 year averages. They include every penny we spent to operate the Inn, except the mortgage. that amount is normally not included because your mortgage may very different from ours. We bought when the interest rate for Small Business Loans was at its peak in the last decade (9%).. it is now at its lowest at only 4.25%!! Lucky you.

Operation Costs include: Property Taxes, Heating, Electricity, Waste, Water, Card Processing Fees, Monthly Leases.
Expenses Include: Food, Cleaning supplies, Decorating, Repairs, Printing, Ads
Wages: We have a staff, of 3 cleaners in high season and 1 in low plus one desk receptionist all year round (weekends only)

Mortgage:

I have looked into a Small Business loan @ $700K for 20 years at 4.25% = $4,335/mo or $52,000/yr

Based on this, if you ran the business just like we do, you would Net about $31,000 per year!. That's pretty good because you need to consider that he Inn pays for for all your living expenses (and breakfast!)... That alone is worth at least another $30-40K.

The Economy:

2009 is not an average year. it has not been for a vast majority of people. But in 2008, we were posting an 18% gain over the previous year (until October when the sky fell). It does say that this business can gross over $220,000k when things are good. I am sure you have ideas that will grow it even more.

The Business Plan

You will need a business plan to get an SBA loan. I can help. I still have my detailed plan that I will be glad to give you and help you update. Believe me, this is a big help. I spent many many hours on this and you can not get an loan without one.

Please, if you have any questions about the business or these numbers,do not hesitate to give me a call.