How to survive the first two years.
Friday, October 12th, 2007If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
So you have taken or are about to take the plunge of opening a Bed & Breakfast business but nobody knows about it apart from family members and friends who have already told you that you are mad and that there is no money in it. Now you get to prove them wrong.
The main task to begin with is twofold; how to get people to notice the business and how to make sure that you are covered for public liability. Taking the first of these, which is essentially marketing, you will need to do a couple of things. Establish a strong internet presence: approximately 80% of my guests come through the internet. The good news is that the cost of membership of sites has dropped considerably over the last few years as more and more accommodation directories have sprung up. Many will offer you a basic advertisement for free and even one with photos of the property need not be more than $80 or $90.
The question is which to choose; well if it’s free you may as well go along for the ride and see if you get any business and then upgrade your advertisement. Some sites look good with flashing pictures and all the bells and whistles but do not seem to pick up internet traffic. I am sure the technical experts on search engines can say why but you are only interested in the outcome of more bookings. The site which has proved most beneficial for my own Bed and Breakfast just South of Brisbane has been http://www.babs.com.au/. They charge $195 AUD per annum and for that they will put up photos of the property, tariffs, description and map and for the same annual fee will maintain your page, change photos and tariff when necessary. I have been more than happy with the service and if you want to see what I get for the money go to www.babs.com.au/jacarandalodge.
You also need to get some professionally produced fliers which you can give out through letterbox drops and visits to local businesses in your area; particularly restaurants and areas of local attraction, also the hospital if you have one close by. People may want to stay so that they can visit a sick relative and I have had the hospital administration ring me for temporary accommodation for doctors who were coming to the area. In short give out as many fliers as you can and always offer them to guests as they leave. A printer will be able to advise on design but have a good photograph, street address, telephone number, email, internet address, tariffs and map on the flyer somewhere.
Other ways to get noticed include putting a Bed & Breakfast board outside the property because the locals start dropping in to see what you are up to and start using you to accommodate aunties and uncles coming up for weddings and family parties. I even had the local police sergeant drive in asking for a look around as he was considering retiring and wanted to open up a Bed & Breakfast. Contact your local college if they have international students coming for short courses of study and offer homestay in one or more of your rooms. Members of different cultures are interesting to relate to and give you practice at having other people in your home plus their different expectations. Homestay is tax free income for up to two students in Australia, therefore it can also help with cashflow in the early years.
You may wonder why I put coverage for public liability as number two. Maybe it is because my younger daughter is studying law and she can present such vivid pictures as to what could happen if someone sued you for anything from falling palm branches to falling in the shower and breaking an ankle. In short you could stand to lose everything if you are not properly covered and of course you have to pay for this under an insurance policy. There are a number of brokers who cover Bed & Breakfast businesses. I use AIB Australia (tel. 07 5409 4600) for an Australian Bed and Breakfast policy which offers $10,000,000 AUD personal liability cover and also coverage of buildings, contents and machinery breakdown. Start with them as I have found them helpful and professional but of course shop around for quotations.