It goes without saying that when starting up a B&B business, keeping on top of your finances is paramount. In doing so, you’re far more likely to see your establishment grow and develop, and ultimately become a successful business venture. Let’s take a look at some of the most important steps that prospective fledgling B&B owners ought to take in order to minimise the risk of their business failing.
1. Devise a financial plan
First and foremost, arranging that all-important meeting with your accountant or a financial advisor to devise a financial plan for your B&B is highly recommended. Also referred to as a “budget”, this vital document will give you visibility of what measures ought to be taken in order for the business to see continual growth.
For more tips on the financial side of the business, check out eviivo’s guides on Making a Profit. They will give you tips and tools on how to maximise profits and make your B&B business a raging success.
2. Consider start-up costs
It’s easy to overlook the inevitable outlay costs that come with setting up your own small guest house or B&B, however, it’s vital that they are kept in mind and accounted for in the finance section of your bed & breakfast business plan. These may be one-off costs for buying assets, such as furniture, carrying out renovations or investing in business supplies.
3. Seek financial support
There are a number of means of financial support out there that will help to ease the financial strain of setting up your own business. Arrange a meeting with your bank or building society, who will be able to provide you with all the advice you need when it comes to taking out a business loan.
4. Keep an eye on your cash flow
Keeping tabs on your expenditure is fundamental to the success of any business. Monitoring your cash flow on a monthly basis will not only prevent you from overspending and aid you in sticking to your budget, but you can also compare your actual outgoings to those forecasted in your financial plan.
5. Do your research
When it comes to buying items such as food and drink or bathroom supplies, doing some extensive research into suppliers is an important factor to take into consideration. It may well be far quicker and easier to plump for the first supplier that you find, but this could be financially detrimental in the end. For eviivo customers, there is eviivo Marketplace – a platform for buying everything you need to run a guesthouse at discounted rates.
6. Focus on the essentials
While it may be tempting to purchase top-of-the-range TVs for each guest bedroom, or an all-singing-all-dancing coffee machine for the breakfast room, it’s important to remember that these are by no means urgent purchases that need to be made while your B&B is in its infancy. Instead, we suggest concentrating on the essentials first and leaving luxuries until later on.
7. Save, save, save!
Prioritising saving is well worth your while, even before you launch the business. By putting funds aside, you’re safeguarding yourself in case of an emergency or a particularly slow month. After all, you never know when you might need that extra little bit of money to keep you afloat.
Once the bookings come flooding in, you might start to feel overwhelmed trying to stay on top of them all. We’d recommend taking a look at our bed and breakfast booking system and stay on top of those bookings!