How to Start & Run a B&B BandBED2eBook-1 | Page 103

Part Three: What next?
Chapter Six – add-ons, expansion – and exit
Although your main focus must always be on your strengths and your core business –
the B&B – it is a good habit in any business, once it is up and running, to look for ways
in which you can generate additional revenue over and above the main income stream.
As long as this additional income does not compromise your main business in any way,
and does not require disproportionate effort or management time, it is “incremental”
income which can help to maximize the return on your asset – the property you are
running as a B&B.
The key principles are: keep it simple, don’t invent complex new businesses; and make
sure the “add on” business reinforces and complements your basic B&B business, rather
than distracts from it.
Here your choices depend on the nature of the B&B you are running and its target
market, on the local area, and on your own skills, experience and interests.
We have chosen to become licensed and to sell wines by the glass and bottle. If every
guest had one glass of wine every night, that would increase our sales by 11.2% (a glass
sells at £3.70, so two are £7.40 against our double room rate of £66). At the time of
writing, a guest has just checked out having stayed for two nights, and having spent
about £70 in bar bills on top of his accommodation costs. The gross profit on this is at
least 60%. As you can see, this has the potential of being an excellent new revenue
stream – and one that is very complementary to the B&B accommodation business. See
Chapter 3 for full details about how to become licensed.
Another big area of add-on sales is of course meals – we have dealt with these in
Chapter 4 .
Besides drinks and meals, though, there are other things you can do to gain extra
revenue. Some B&B owners offer guided walks locally for a charge – especially if they
happen to be trained “Blue Badge Guides”. Others use their own interests to create
themed breaks for guests, which then sell for more than their standard room rate.
These vary from bridge classes to flower arranging to wine appreciation (if you are
licensed!) to history to arts & crafts – there is no limit to the subjects. The point is that
you can add value with a theme, event or “masterclass”, and make what you are
offering unique into the bargain. Of course, it does not have to be your own speciality:
you can work with a local expert to set up themed breaks based at your B&B.