How to Write a Bed and Breakfast Business Plan

How to Write a Bed and Breakfast Business Plan or Template

The bed-and-breakfast industry is anticipated to grow substantially over the next several years.  The substantial growth expectations are based on several factors. 

The recent global pandemic has significantly impacted travel patterns, increasing demand for vacations and getaways. This surge in demand is expected to benefit the bed-and-breakfast industry as people seek unique and personalized accommodation options. Additionally, the rising popularity of short-term rental platforms like Airbnb has expanded the range of choices available to travelers, including bed-and-breakfast establishments.

As the bed-and-breakfast industry prepares for growth, new and existing businesses must be well-prepared. New competitors will likely enter the market, while established bed-and-breakfast businesses may explore expansion opportunities. A professionally crafted bed-and-breakfast business plan can provide a solid foundation for entrepreneurial ventures in this industry.

Our experienced business plan writers can help you develop a comprehensive and tailored bed-and-breakfast business plan that showcases your unique offerings, market positioning, and growth strategies. Whether you are a new entrant or an established player in the industry, we can assist you in capturing the attention of investors, lenders, and potential customers. Contact us today to discuss how our services can support your bed-and-breakfast venture (9/23).


Executive Summary for a Bed and Breakfast Business Plan or Template.

The executive summary section of a bed-and-breakfast business plan plays a crucial role in capturing the attention of potential investors and stakeholders. One effective way to start the executive summary is by presenting a compelling problem statement.

In the problem statement, it is essential to highlight why travelers and vacationers choose a bed-and-breakfast establishment over traditional hotels or short-term rentals. For instance, emphasize the unique and intimate ambiance that a boutique-style bed-and-breakfast offers, creating a personalized and memorable experience for guests. Additionally, highlight the advantageous location of your bed-and-breakfast, showcasing its proximity to popular tourist attractions, beaches, or other points of interest.

By succinctly documenting the problem your bed-and-breakfast aims to solve, you can engage readers and demonstrate the value proposition of your business. Our experienced business plan writers can assist you in crafting a compelling problem statement that effectively communicates the benefits and advantages of choosing your bed-and-breakfast establishment. Contact us today to learn more about our business plan writing services and how we can help your bed-and-breakfast business thrive (6/23).

Company Information and Location.

The company information section is crucial to a bed-and-breakfast business plan or business plan template. It provides an overview of the critical details about the bed-and-breakfast establishment that investors and stakeholders need to know. In the first summary paragraph of this section, it is essential to include specific business information that helps paint a clear picture of the bed-and-breakfast.

Start by mentioning the location of the bed-and-breakfast, highlighting its appeal and proximity to popular attractions or destinations. Next, introduce the unique theme or ambiance of the bed-and-breakfast, showcasing its distinctive character and setting it apart from competitors. Additionally, please provide details on the number of rooms available for rental, emphasizing the capacity of the establishment and its potential for accommodating guests.

Our experienced bed-and-breakfast business plan writers also recommend summarizing the types of rooms available in this section. Describe the range of options, such as one-bedroom or two-bedroom suites or room sizes and amenities variations. This gives the reader an understanding of the different offerings and helps establish the bed-and-breakfast's competitive advantage.

You can provide a comprehensive overview of your bed-and-breakfast business by including these specific details in the company information section. Our skilled business plan writers can assist you in crafting a compelling and informative company information section tailored to the unique aspects of your bed and breakfast. Contact us today to learn more about our business plan writing services and how we can help your bed-and-breakfast succeed.

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Service Description and Competitive Advantages

The service description section of a bed-and-breakfast business plan is an opportunity to showcase the unique amenities and offerings that set your establishment apart. To create an engaging and informative service description, it is essential to highlight the amenities provided at your bed-and-breakfast.

Begin by outlining popular amenities guests seek, such as a swimming pool, convenient proximity to a beach or local attractions, complimentary Wi-Fi, and a delicious complimentary breakfast. These amenities contribute to the overall experience and value that guests can expect when staying at your bed-and-breakfast.

You can effectively differentiate your bed-and-breakfast from competitors in the area by providing detailed descriptions of each amenity in the service description section. Capture the essence and benefits of each amenity, emphasizing how they enhance guests' comfort, convenience, and enjoyment.

Our experienced bed-and-breakfast business plan writers understand the importance of highlighting amenities to help business owners visualize the unique offerings of their bed-and-breakfast. Whether you are just starting up or planning an expansion, a well-crafted service description can paint a vivid picture of the guest experience and attract potential customers.

If you need assistance crafting a compelling service description for your bed-and-breakfast business plan, our skilled writers are here to help. Contact us today to learn more about our business plan writing services and how we can support the success of your bed-and-breakfast venture.

Target Market for a Bed and Breakfast Business Plan

The target market for a bed-and-breakfast business is usually vacationers in an area.  However, what sets vacationers apart is why they may visit your area.  For example, a bed-and-breakfast entity in the Orlando, Florida, area may draw visitors due to the number of theme parks in the region.  As a result, identifying, in detail, the reason for vacationers is a crucial starting point for the target market section of the business plan.  Once the vacationing reasoning is documented appropriately, provide details showing why vacationers may select your locale based on vacationers’ wants and needs.

Industry Research for a Bed and Breakfast Business Plan

A business plan or template's bed-and-breakfast industry research section should start with reviewing industry trends and other happenings.  For example, a current bed-and-breakfast industry statistic would be revenues generated by competitors, which was about $1.8 billion in the last year.  The revenue growth for the bed-and-breakfast industry was -7% in the same timeframe.  However, industry experts anticipate the bed-and-breakfast industry to grow at a 5% annual rate for several years.  By providing these basic statistics in your bed-and-breakfast business plan, the business plan writer can show a concrete understanding of the industry as a whole.  From this foundation, the bed-and-breakfast business plan writer may explore other industry-related topics such as average profits, competitor saturation, etc.

Owner and Management Section

In the owner and management section of the bed-and-breakfast business plan, first, introduce and briefly discuss the owner or parent company of the organization.  Next, provide a detailed list of the positions that may be utilized in your bed-and-breakfast business plan.  For example, common job positions in a bed-and-breakfast business may include housekeeping, front desk, manager, assistant manager, and maintenance.  Finally, close out this section with a summary job description for each position in vision.  In following the strategy, the business writer can help the document reader understand the owner and show a working knowledge of the various positions offered within the company.

Funding Request for a Bed and Breakfast Business Plan

The funding request section for a bed and breakfast business plan should start with specifically stating the dollar amount needed to start your business.  Once a dollar amount needed to start your bed-and-breakfast organization is identified, then follow up this specific dollar amount with categories showing how the funds will be divvied up.  For example, if your organization will build a bed and breakfast, common categories may include working capital, construction costs, advertising, budget for purchasing land, building materials, and other relevant costs.  Once these categories are identified and dollar amounts allocated, show the total for startup costs at the bottom of the bulleted list.  Also, ensure the total dollar amount needed for startup operations is the same as the top-line dollar amount.  In making this bed and breakfast, entrepreneurs can show explicitly the dollar amount needed to start the organization upfront.  However, by breaking the funding into categories, the business owner can have some wiggle room and startup cost allocation.

Also, a bed-and-breakfast funding request should break down where the funding will come from.  For example, state this dollar amount if the business owner provides $50,000 in equity financing.  Also, if borrowing from a lending institution is in the cards, then disclose this fact and disclose a range of interest rates anticipated.  In doing this, the bed-and-breakfast entrepreneur can set the reader’s expectations regarding the company’s future capital structure.

Financials and Pro Forma Financial Projections for a Bed and Breakfast Business Plan

The financial projection section of the bed-and-breakfast business plan starts with identifying your occupancy rate.  In most instances, a bed-and-breakfast financial model will start with an occupancy rate of approximately 50% to 55%.  Next, identify the total number of rooms available nightly in your financial model.  Once this is done, multiply the nightly rooms available by your occupancy rate.  This will be your average number of rooms rented nightly.  Once this is identified, multiply your average number of rooms rented nightly by an average nightly rate.  This will give you your net revenues daily.  Subtract the average variable cost for your bed-and-breakfast from your net revenues, and the total will be your gross profits.  Once your gross profits are noted, deduct your fixed costs for your bed-and-breakfast, like interest payments, labor, utilities, and marketing.  Once this is done, you have a basic net profit that you can use and apply growth estimates to construct the rest of your financial model.

Hopefully, these insightful tips and tricks for writing a business plan were helpful.  If you need help with a business plan or financial projections, email or call us. 

Author: Paul Borosky, Doctoral Candidate, MBA., Author

Owner of: Quality Business Plan and Quality Business Consultant.

Date: 9/25/2023