How to Open a Bed and Breakfast with Small Business Funding
November 15th 2019 at 4:20pm Published by sharpshooteradmin
Many people dream of starting their own bed and breakfast. Just imagine owning a beautiful cottage in Muskoka in the snowy winter, and creating an idyllic destination for visitors.
If you feel you’re at the stage where you want to follow your passions and run a B&B, the prospect of running one is not far out of reach with the help of our team at SharpShooter funding.
At SharpShooter, we believe every business owner deserves to have adequate funding to realize their potential. That’s why so many businesses turn to us for Canadian business funding. If a bed and breakfast is a serious endeavor for you, we have put together a guide on how you can open one using small business funding.
Are You a Good Fit for Running a B&B?
Before you invest all your time, money, and energy into running a bed and breakfast, you’ll need to know if it’s the right fit for you. While running a B&B may seem like an idyllic career, you must possess strong business knowledge to take on this venture.
To ensure success, a B&B owner will need to know how to plan for cash flow, manage staff, come up with a marketing plan to attract occupants, and possess negotiation skills when communicating with contractors and suppliers.
Even though running a bed and breakfast might seem like a relaxing lifestyle, it does take hard work and can be quite demanding. Usually, these types of establishments are easier to maintain if two people run them. It is ideal if the first person has hospitality knowledge, and the other is business savvy and can handle that aspect of the business.
The First Steps
Before we delve into the funding for your B&B, there are various factors to consider before you start your small business. First, you need to determine the following:
The licenses and regulations that apply to your bed and breakfast.
What you need to do to register or incorporate your business.
Figuring out how to collect HST.
Also, you must look into the municipal requirements and determine what licenses and permits you need. You can contact your local municipality to find out what regulations apply to your B&B specifically, and how it will be classified.
If you require any construction for your B&B, you will need to acquire a building permit. It is also essential to check zoning regulations before you commit to any contracts. If the amount of fees for regulations feels overwhelming, they are a necessary expense for your business. That’s where a short-term business funding comes into play.
Our funding are especially popular with B&B owners because we have exceptional repayment terms. If you find that you’re in a slower season, we offer options that allow businesses to find a payment plan that works with their cash flow schedule.
If you are located in Ontario, you can expect to deal with these licenses, permits, and regulations:
- Food safety and labeling
- Canadian Food Inspection Agency (CFIA)
- Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA)
- Smoke-Free Ontario
- Building and Fire Codes
- Music License
- Travel and Accommodation Services
Once you obtain all the proper licenses and permits, you will need to move into more costs that are necessary for your business, which we will outline in more detail later. Lucky for you, we provide funding programs for small businesses, with up to $250,000 and 5-Year full amortized funds to manage your cash flow. That way, you can plan for your budget and ensure that you can cover all the necessary expenses that go into a bed and breakfast.
Determine Startup Financing
Before you apply for startup financing at SharpShooter, there are some common mistakes with business funding that you should be aware of and avoid making. One of the biggest mistakes you can make is by not putting in enough research. You’ll need to put together a detailed budget to determine how much you will need to invest in the B&B for operational costs. Once you have an idea of these costs, you can calculate how much you will need to charge per night to keep your business afloat.
Many people sell their homes and invest in a new one to start their bed and breakfast. They also use it as both a residence and a source of income. If you don’t own a home and are buying your first property to serve as your B&B, small business funding can get your project going whether you are purchasing a previous establishment, or converting a house into a bed and breakfast.
If you are converting a home into a B&B, you’ll need to consider remodeling costs, as well as accessories like new bedding, appliances, towels, and other interior design elements to create a cohesive theme. You’ll also want to plan for maintenance and emergency costs, as well as upgrades to the home exterior, electrical, and plumbing. Plus, if something goes wrong with any maintenance, you will need to prepare for those types of costs, or you could end up in an operational bind.
When you find yourself needing emergency funds, our short-term business funding would be the ideal fit for you, and are a useful alternative option to term funding. With traditional business funding, the process takes much longer and you are less likely be approved. With short-term funding, all you have to do is apply online to get approval, and then you will be funded shortly thereafter.
If you want to qualify for soft credit, apply online, and you’ll receive approval that same day. As for when you can expect your money, you should receive it between 24- and 72-hours’ time, ensuring that you can cover any immediate business expenses.
If you follow all the necessary steps and put in the hard work, you can run a successful bed and breakfast. At SharpShooter Funding, we want our customers to follow their passions, which is why we offer such flexible solutions. We pride ourselves on helping you grow your business, which is why we don’t rely on collateral, and have no hidden costs or charges.