Black Enterprise - December 1998

Running a Bread and Breakfast

They've already made money in their careers (most proprietors are well traveled, well educated, and middle to upper class) and want to have an independent life," she says. Having a corporate background doesn't help as much as having a small business background, she notes.  It also helps to hear from people who've been there before investing your time and money. Here's what they say you'll need to guide you smoothly into the business.

TAKE THE TIME TO RESEARCH THE INDUSTRY AND YOUR MARKET. Bed-and-Breakfast Reservation Services World Wide, based in San Angelo, Texas, suggests that before diving in headfirst, you visit inns in your area of interest, examine current and pending economic trends. Know the demographics and talk to the local clamber of commerce and convention and visitors bureau about the market.

Four years before Greenwood purchased the Akwaaba Mansion, she visited inns in Cape May, New Jersey, the ``capital of B&Bs." ``I stayed in at least 10 different inns and kept a journal of everything I loved and hatted." Later she attended a week long intensive training conference for aspiring innkeepers. Then, in 1993, when she spotted an unoccupied Victorian mansion near her home, she was prepared for the opportunity. While staying in touch with the owner for two years, she ``studied every inch of that house, collected furniture and decided what would go into the spaces." When all the loose ends were tied up, ``I had all of my furniture bought and was ready to go."

PLAN YOUR STRATEGY. Like Greenwood, you'll have to think about how you envision your business. What clientele will you target? Will your family be involved? Will you quit your full-time job? An excellent way for you to put all of this into perspective is to attend classes and conferences. That will give you a chance to network and hear firsthand what it really takes to pull this. Contact the African American Association of Innkeepers International (800-696-8633; www.AfricanAmericanInns.com) and the Professional Association of Innkeepers International (805-569-1853; www.paii.org) which offer resource materials and sponsor classes and conferences. Get a copy of  So You Want to Be An Innkeeper (Chronicle Books, 1996), a widely recommended text. You'll also need to consider whether you are going to buy a home, an existing inn or use your own home.

DEVELOP YOUR FINANCIAL PLAN. When you've done that due diligence, you'll need to formulate your business plan, including a summary of your goals, a property/business description, a marketing plan, details about operations and management and financial projections. Show this plan to suppliers, business contacts and your banker—this will help you to secure a loan, which worked for Clark. Her bank was willing to loan her 80% of the $232,000 cost. Greenwood, on the other hand, used her own savings and qualified for a $20,000 loan from the local Neighborhood Housing.  Service to help cover the $225,000 price tag. Restoration for the 1860 mansion totaled $100,000. ``We had to work out of our own pockets," recalls Greenwood. Workmen from the local community pitched in with free or discounted services. ``The plumber worked for a quarter of the price," she says. Your neighbors may cut you a break when the time comes to restore or decorate the home.

THOROUGHLY UNDERSTAND LICENSING, ZONING AND PERMITS. You will need to register your business with the state to ensure that no other business is operating with your name and alert the state to expect tax revenue. When you register, ask about other requirements, inducing licenses, permits, and fire, building and health codes. The government can shut you down if you fail to meet any of these prerequisites.

Be prepared to attend a zoning board meeting. You'll need to meet area and state ordinances. ``Every city is different," says Greenwood. ``New York, for example, doesn't spell out what is required, so I had to go to the building department court to get the record straight about what was legal and illegal." One neighbor erroneously complained that her inn was illegally based.

Jumping through the zoning hurdle -- as Clark found can be costly and time-consuming. After she obtained a special permit from the zoning board of appeals to operate the inn, a neighbor objected and filed an appeal. The neighbor even sent Clark a letter suggesting that she ``look for a guest house in Oak Bluffs... where most of the African Americans of the Island reside and visit." After three years of appeals that reached the Supreme Judicial Court of Massachusetts Clark won the case. ``Expect every obstacle that can legally be put together," she warns.

WORK OUT THE DETAILS. You'll have to think about what services your B&B will provide. Will you have whirlpools? Shared baths? What will you charge? How many employees will you have? All of this will go into your daily operating costs. You'll also need to think about your policies on children, pets, smoking and reservations.

Brush up on your bookkeeping skills— you'll need to maintain excellent records. A home computer will help you not only with accounting, but also with reservations, a guest database, inventory and tax records. Contact your potential suppliers (for food, office equipment, sheets and towels) and owners with a similar property for estimates on what they spend per year. If you're purchasing an existing B&B, simply ask the current owners for a breakdown of expenses and their current income statement. You'll also need to be clear on what you'll spend on taxes, which vary from state to state. Typically, your guests will be required to pay a sales tax or a rooms and meals tax. You'll pay taxes on any profit your B&B earns. Your legal structure (sole proprietorship, partnership, etc.) will also affect your taxes.

DEVELOP YOUR UNIQUE STYLE AND FULFILL YOUR DREAM. Samuel Boynes, proprietor of L'Hotel Boynes on St. Thomas in the U.S. Virgin Islands, restored his B&B after Hurricane Marilyn all but destroyed it. He was determined to rebuild it in the style of the original 1785 building. ``The insurance companies thought in terms of replacement, not restoration," he recalls. But sticking to his vision was essential. ``Restoration is my product," he says. ``Its being able to deliver that step-back-in-time experience that I could only get if I made the place as authentic as could be."

Many B&B´s have a Victorian-style decor. Some African American innkeepers are starting to develop an Afrocentric look, with art and antiques that reflect the culture.  Another part of your personal style will be reflected in the breakfast you serve. Some innkeepers will hire a cook to make elaborate spreads, others will serve a continental breakfast in bed. Its up to you. Clark, for example, makes her own homemade granola.

MARKET YOUR BUSINESS. Once you've addressed the details, including securing your property, you'll need to get the word out, even as early as a year before you're ready to open. ``When I was thinking about running a B&B and started looking for houses, I should have gotten a phone number placed in the Yellow Pages," says Clark. ``When my business opened, I was a year behind." Clark advertised in the Black Pages in cities from Boston to Washington, D.C., wrote to all of the national black newspapers and sought out travel guides and other general media outlets. Press releases, open houses and theme weekends, as well as brochures and personalized stationery are other popular marketing tools. Plugs from the local convention and visitors bureaus, chamber of commerce and local guidebooks can also be a boon for business. But nothing has been as cost-effective for Clark as word of mouth and the Internet. ``I used to spend $12,000 a year on advertising," she says. ``Now I spend $700."

Your clientele will depend in part on where you're located. In a tourist area, like New Orleans, you may attract mostly white visitors. If you're in a non-tourist urban area, the majority of guests may be locals looking to get away for a weekend of pampering, like 60% or so of Greenwood's clientele.

Black tourists are becoming more receptive to the idea of staying in a B&B. ``There had been some apprehension about staying in someone's home—not being sure how we'd be received," says Greenwood. But now that black innkeepers are more visible, black clients are more willing to stay in their facilities.

NETWORK WITH OTHER INNKEEPERS — ONE OF YOUR GREATEST RESOURCES. Find a local innkeeper to be your mentor or pay someone to do consulting," says Hardy. ``If you're considering another city, find innkeepers in that city and ask them questions. Offer to take them out to dinner; see how they jumped through the government hoops. Let them be part of your consulting team."

OPEN YOUR DOORS. Finally, keep in mind that you want to give your guests a memorable experience so they'll come back. Fresh linens and towels, clean rooms, attention to detail, a positive attitude and good food are all part of the equation.  ``You have to be friendly, not mind people coming in and out of your house and love to cook and clean," says Clark. ``Love the hard work and have a sense of humor."