If I could tell an aspiring innkeeper one thing it would be...

[gillumhouse]

Keep your domain name short & sweet and then write it down and READ IT! Does it say something you do not want it to say?.

You are now up to two things.
.

Yes, but there is soooo much thre are not enough of us to limit to one.

 

[The Farmers Daughter]

That it ain't just makin' muffins and not to let the bad guests get to you.
(I know that's 2, but both true)

 

[EmptyNest]

Have innkeepers quarters including office, laundry room, extra storage, freezer and extra refrig all on the 1st floor.

Have innkeepers quarters including office, laundry room, extra storage, freezer and extra refrig all on the 1st floor

I have to add to this one....Make sure you have total private space for YOU. ANd I don't mean just a bedroom. Be able to LOCK out the guests and enjoy YOUR SPACE!

 

[gillumhouse]

Sice there where more than one
You have to be a "morning person" to seem happy at 6AM when you went to bed at 2AM...
Same as before: Have enough $$$$$$$ to run it and don't expect the "if I build it they will come" attitude unless it had been a very successfull BnB in the past...
Ok enough..too many to count.

If I build it they will come is true ONLY if you TELL them it is there. It was a great scene at the end of Field of Dreams with all those cars coming to the ball field but people forget that was in the script - Marketing, marketing, and more marketing plus a lot of advertising is required. People will come if they know it is there. The problem is figuring out which are the people who will come.

 

[Breakfast Diva]

Ohhhh.....I'm laughing hysterically! When I started this thread, I just knew most of us could not just keep it to one thing!!!!
There's great info here! I now officially open the topic up to more topics! Keep 'em coming.

 

[JeannineIrish]

Have innkeepers quarters including office, laundry room, extra storage, freezer and extra refrig all on the 1st floor.

Have innkeepers quarters including office, laundry room, extra storage, freezer and extra refrig all on the 1st floor

I have to add to this one....Make sure you have total private space for YOU. ANd I don't mean just a bedroom. Be able to LOCK out the guests and enjoy YOUR SPACE!
.

Have innkeepers quarters including office, laundry room, extra storage, freezer and extra refrig all on the 1st floor

I have to add to this one....Make sure you have total private space for YOU. ANd I don't mean just a bedroom. Be able to LOCK out the guests and enjoy YOUR SPACE!

That is so true. That is why we kept all the doors leading into the kitchen and when we added a sitting room on the 1st floor for us it has doors and ceiling to floor lined drapes.

 

[EmptyNest]

Sice there where more than one
You have to be a "morning person" to seem happy at 6AM when you went to bed at 2AM...
Same as before: Have enough $$$$$$$ to run it and don't expect the "if I build it they will come" attitude unless it had been a very successfull BnB in the past...
Ok enough..too many to count.

If I build it they will come is true ONLY if you TELL them it is there. It was a great scene at the end of Field of Dreams with all those cars coming to the ball field but people forget that was in the script - Marketing, marketing, and more marketing plus a lot of advertising is required. People will come if they know it is there. The problem is figuring out which are the people who will come.
.

Yes, that is the thing...marketing, marketing and marketing is critical and finding that special niche. It has to be targeted and not just haphazard. There has to be a plan as I said earlier.
I have always been a "location,location,location" person...but I understand that it is possible for someone in Podunk....as you refer to it To be successful if you know the market going into it and how to promote it.

 

[Samster]

Wait! The title and question are two different questions...
The question in the first thread:
"What ONE thing do you wish you had been told before you became an innkeeper?"
My answer to that would be:
"THE TRUTH".

That's why I said, "have a lot of money" NO ONE ever told me that!

 

[Samster]

Funny that so many mention having lots of money in the bank. We didn't, we barely had enough for a down payment and to buy some furniture.
If we had waited until we had lots of money in the bank, we would have never gotten around to it. Of course, ours was a small start-up and so did not have the overhead of a larger place. Because of our limited funds, we were forced into this niche....and it has worked perfectly for us. I never regretted not being able to buy an established Inn. I was worried anyway that if we did buy an expensive established Inn, and hated it, that we would be stuck doing it forever or end up losing the house if things didn't work out and we couldn't sell it.
I think it's very important for aspirings to talk to innkeepers at all different sizes and types of Inns before they decide what they want to do. After talking to several different 'keepers, you may decide that the type of Inn you thought you wanted is not going to work for you. The "romantic stay" gingerbread dripping victorian with demanding guests and period furnishings might be more than you care to deal with! The viewpoints are vastly different....length of tenure, size and style of Inn and location makes for some very different opinions and advice.
I wish this forum had been around back when we were researching and when we first started out!.

Why are you selling then?

 

[wendydk]

Funny that so many mention having lots of money in the bank. We didn't, we barely had enough for a down payment and to buy some furniture.
If we had waited until we had lots of money in the bank, we would have never gotten around to it. Of course, ours was a small start-up and so did not have the overhead of a larger place. Because of our limited funds, we were forced into this niche....and it has worked perfectly for us. I never regretted not being able to buy an established Inn. I was worried anyway that if we did buy an expensive established Inn, and hated it, that we would be stuck doing it forever or end up losing the house if things didn't work out and we couldn't sell it.
I think it's very important for aspirings to talk to innkeepers at all different sizes and types of Inns before they decide what they want to do. After talking to several different 'keepers, you may decide that the type of Inn you thought you wanted is not going to work for you. The "romantic stay" gingerbread dripping victorian with demanding guests and period furnishings might be more than you care to deal with! The viewpoints are vastly different....length of tenure, size and style of Inn and location makes for some very different opinions and advice.
I wish this forum had been around back when we were researching and when we first started out!.

Why are you selling then?
.

I have described in other threads the problems that my family is dealing with right now, I won't rehash them here.

 

[Samster]

Funny that so many mention having lots of money in the bank. We didn't, we barely had enough for a down payment and to buy some furniture.
If we had waited until we had lots of money in the bank, we would have never gotten around to it. Of course, ours was a small start-up and so did not have the overhead of a larger place. Because of our limited funds, we were forced into this niche....and it has worked perfectly for us. I never regretted not being able to buy an established Inn. I was worried anyway that if we did buy an expensive established Inn, and hated it, that we would be stuck doing it forever or end up losing the house if things didn't work out and we couldn't sell it.
I think it's very important for aspirings to talk to innkeepers at all different sizes and types of Inns before they decide what they want to do. After talking to several different 'keepers, you may decide that the type of Inn you thought you wanted is not going to work for you. The "romantic stay" gingerbread dripping victorian with demanding guests and period furnishings might be more than you care to deal with! The viewpoints are vastly different....length of tenure, size and style of Inn and location makes for some very different opinions and advice.
I wish this forum had been around back when we were researching and when we first started out!.

Why are you selling then?
.

I have described in other threads the problems that my family is dealing with right now, I won't rehash them here.
.

Oh, sorry....I forgot that there were personal reasons.

 

[Proud Texan]

Wait! The title and question are two different questions...
The question in the first thread:
"What ONE thing do you wish you had been told before you became an innkeeper?"
My answer to that would be:
"THE TRUTH".

That's why I said, "have a lot of money" NO ONE ever told me that!
.

That's why I said, "have a lot of money" NO ONE ever told me that!

In our case, we borrowed a lot of money. We were lucky though in that we didn't have any other debts. The B&B has been productive enough so that it has nearly paid back the original loan. Yay!
Let me add for aspiring MARRIED COUPLES....talk to each other. Delineate responsibilities upfront and there will be fewer conflicts later. This is not worth screwing up your marriage.
Make sure you have a good business plan in place before you ever open your doors.

 

[EmptyNest]

Wait! The title and question are two different questions...
The question in the first thread:
"What ONE thing do you wish you had been told before you became an innkeeper?"
My answer to that would be:
"THE TRUTH".

That's why I said, "have a lot of money" NO ONE ever told me that!
.

That's why I said, "have a lot of money" NO ONE ever told me that!

In our case, we borrowed a lot of money. We were lucky though in that we didn't have any other debts. The B&B has been productive enough so that it has nearly paid back the original loan. Yay!
Let me add for aspiring MARRIED COUPLES....talk to each other. Delineate responsibilities upfront and there will be fewer conflicts later. This is not worth screwing up your marriage.
Make sure you have a good business plan in place before you ever open your doors.
.

DOUBLE YAY FOR YOU!!! You are very fortunate to be in nearly paid back situation We planned for our place and saved and saved and we stuck to our MAX $$$ for a purchase. I told my husband I will not retire to go into debt.
And we had a plan when we chose this place for the next potential owner as well. We could continue to live here as a private residence..which we are...or it can be sold in the future as either a private residence or as a B & B if someone is interested in doing that here again.

 

[wendydk]

Wait! The title and question are two different questions...
The question in the first thread:
"What ONE thing do you wish you had been told before you became an innkeeper?"
My answer to that would be:
"THE TRUTH".

That's why I said, "have a lot of money" NO ONE ever told me that!
.

That's why I said, "have a lot of money" NO ONE ever told me that!

In our case, we borrowed a lot of money. We were lucky though in that we didn't have any other debts. The B&B has been productive enough so that it has nearly paid back the original loan. Yay!
Let me add for aspiring MARRIED COUPLES....talk to each other. Delineate responsibilities upfront and there will be fewer conflicts later. This is not worth screwing up your marriage.
Make sure you have a good business plan in place before you ever open your doors.
.

Was your loan residential or commercial? As a three room Inn (even one that does impressive revenues), I can't find anyone that will finance us....not even as a residential refinance as long as that sign is out front. Our credit is flawless, and the Inn pays for itself...but because the deductions on the tax return show a break even, a commercial loan is out of the question.
We are still working from the residential mortgage we took out when we bought the house...thank god the terms were good.

 

[gillumhouse]

Wait! The title and question are two different questions...
The question in the first thread:
"What ONE thing do you wish you had been told before you became an innkeeper?"
My answer to that would be:
"THE TRUTH".

That's why I said, "have a lot of money" NO ONE ever told me that!
.

That's why I said, "have a lot of money" NO ONE ever told me that!

In our case, we borrowed a lot of money. We were lucky though in that we didn't have any other debts. The B&B has been productive enough so that it has nearly paid back the original loan. Yay!
Let me add for aspiring MARRIED COUPLES....talk to each other. Delineate responsibilities upfront and there will be fewer conflicts later. This is not worth screwing up your marriage.
Make sure you have a good business plan in place before you ever open your doors.
.

Was your loan residential or commercial? As a three room Inn (even one that does impressive revenues), I can't find anyone that will finance us....not even as a residential refinance as long as that sign is out front. Our credit is flawless, and the Inn pays for itself...but because the deductions on the tax return show a break even, a commercial loan is out of the question.
We are still working from the residential mortgage we took out when we bought the house...thank god the terms were good.
.

Bite the bullet on taxes and do not claim all of your deductions. That will show a profit. My tax person tells me I must (and do) claim every penny of income, but you do not need to claim ALL of your deductions. Showing a little bit of profit has benefits.

 

[muirford]

Wait! The title and question are two different questions...
The question in the first thread:
"What ONE thing do you wish you had been told before you became an innkeeper?"
My answer to that would be:
"THE TRUTH".

That's why I said, "have a lot of money" NO ONE ever told me that!
.

That's why I said, "have a lot of money" NO ONE ever told me that!

In our case, we borrowed a lot of money. We were lucky though in that we didn't have any other debts. The B&B has been productive enough so that it has nearly paid back the original loan. Yay!
Let me add for aspiring MARRIED COUPLES....talk to each other. Delineate responsibilities upfront and there will be fewer conflicts later. This is not worth screwing up your marriage.
Make sure you have a good business plan in place before you ever open your doors.
.

Was your loan residential or commercial? As a three room Inn (even one that does impressive revenues), I can't find anyone that will finance us....not even as a residential refinance as long as that sign is out front. Our credit is flawless, and the Inn pays for itself...but because the deductions on the tax return show a break even, a commercial loan is out of the question.
We are still working from the residential mortgage we took out when we bought the house...thank god the terms were good.
.

Bite the bullet on taxes and do not claim all of your deductions. That will show a profit. My tax person tells me I must (and do) claim every penny of income, but you do not need to claim ALL of your deductions. Showing a little bit of profit has benefits.
.

Bite the bullet on taxes and do not claim all of your deductions. That will show a profit. My tax person tells me I must (and do) claim every penny of income, but you do not need to claim ALL of your deductions. Showing a little bit of profit has benefits.

Most prospective buyers of a property ask to see your Schedule C. I sincerely hope that all costs of running the business would be disclosed to a potential buyer; you may run into problems if those buyers think you are running two sets of books. Since LBH is selling her inn, this may not be the best way to solve the loan problem.

 

[gillumhouse]

Wait! The title and question are two different questions...
The question in the first thread:
"What ONE thing do you wish you had been told before you became an innkeeper?"
My answer to that would be:
"THE TRUTH".

That's why I said, "have a lot of money" NO ONE ever told me that!
.

That's why I said, "have a lot of money" NO ONE ever told me that!

In our case, we borrowed a lot of money. We were lucky though in that we didn't have any other debts. The B&B has been productive enough so that it has nearly paid back the original loan. Yay!
Let me add for aspiring MARRIED COUPLES....talk to each other. Delineate responsibilities upfront and there will be fewer conflicts later. This is not worth screwing up your marriage.
Make sure you have a good business plan in place before you ever open your doors.
.

Was your loan residential or commercial? As a three room Inn (even one that does impressive revenues), I can't find anyone that will finance us....not even as a residential refinance as long as that sign is out front. Our credit is flawless, and the Inn pays for itself...but because the deductions on the tax return show a break even, a commercial loan is out of the question.
We are still working from the residential mortgage we took out when we bought the house...thank god the terms were good.
.

Bite the bullet on taxes and do not claim all of your deductions. That will show a profit. My tax person tells me I must (and do) claim every penny of income, but you do not need to claim ALL of your deductions. Showing a little bit of profit has benefits.
.

Bite the bullet on taxes and do not claim all of your deductions. That will show a profit. My tax person tells me I must (and do) claim every penny of income, but you do not need to claim ALL of your deductions. Showing a little bit of profit has benefits.

Most prospective buyers of a property ask to see your Schedule C. I sincerely hope that all costs of running the business would be disclosed to a potential buyer; you may run into problems if those buyers think you are running two sets of books. Since LBH is selling her inn, this may not be the best way to solve the loan problem.
.

I am not referring to major expenses. I mean things like gas, mileage, etc. And that does not mean not disclosing to a perspective buyer ALL expenses. I was referring to the bank part. I would NEVER hise one dime of expense from a buyer! It does not mean keeping 2 sets of books either. The tax schedule-C is not your books.

 

[muirford]

Wait! The title and question are two different questions...
The question in the first thread:
"What ONE thing do you wish you had been told before you became an innkeeper?"
My answer to that would be:
"THE TRUTH".

That's why I said, "have a lot of money" NO ONE ever told me that!
.

That's why I said, "have a lot of money" NO ONE ever told me that!

In our case, we borrowed a lot of money. We were lucky though in that we didn't have any other debts. The B&B has been productive enough so that it has nearly paid back the original loan. Yay!
Let me add for aspiring MARRIED COUPLES....talk to each other. Delineate responsibilities upfront and there will be fewer conflicts later. This is not worth screwing up your marriage.
Make sure you have a good business plan in place before you ever open your doors.
.

Was your loan residential or commercial? As a three room Inn (even one that does impressive revenues), I can't find anyone that will finance us....not even as a residential refinance as long as that sign is out front. Our credit is flawless, and the Inn pays for itself...but because the deductions on the tax return show a break even, a commercial loan is out of the question.
We are still working from the residential mortgage we took out when we bought the house...thank god the terms were good.
.

Bite the bullet on taxes and do not claim all of your deductions. That will show a profit. My tax person tells me I must (and do) claim every penny of income, but you do not need to claim ALL of your deductions. Showing a little bit of profit has benefits.
.

Bite the bullet on taxes and do not claim all of your deductions. That will show a profit. My tax person tells me I must (and do) claim every penny of income, but you do not need to claim ALL of your deductions. Showing a little bit of profit has benefits.

Most prospective buyers of a property ask to see your Schedule C. I sincerely hope that all costs of running the business would be disclosed to a potential buyer; you may run into problems if those buyers think you are running two sets of books. Since LBH is selling her inn, this may not be the best way to solve the loan problem.
.

I am not referring to major expenses. I mean things like gas, mileage, etc. And that does not mean not disclosing to a perspective buyer ALL expenses. I was referring to the bank part. I would NEVER hise one dime of expense from a buyer! It does not mean keeping 2 sets of books either. The tax schedule-C is not your books.
.

The tax schedule-C is not your books.

Most prospective buyers and banks consider the schedule C to be the accurate reflection of the income and expenses of your inn. That is what they ask for. Those are the documents we were given during the buying process and part of the information package we disclose to prospective buyers of our property.
What if your buyer goes to the same bank to get a loan for their purchase of the B&B? They have to show the 'real' information to the bank if they want to get a commercial loan that's not based on false information.
I understand you take the advice of your accountant in this matter. If the reason for not disclosing all of your expenses to the IRS is so that you can continue to take business deductions for the B&B over a number of years (making a profit to take you out of the category of a 'hobby' business) - you might get a different reading on the legality of that from a tax attorney or the IRS. Other innkeepers and aspirings should keep that in mind if they decide to follow your advice.

 

[EmptyNest]

Wait! The title and question are two different questions...
The question in the first thread:
"What ONE thing do you wish you had been told before you became an innkeeper?"
My answer to that would be:
"THE TRUTH".

That's why I said, "have a lot of money" NO ONE ever told me that!
.

That's why I said, "have a lot of money" NO ONE ever told me that!

In our case, we borrowed a lot of money. We were lucky though in that we didn't have any other debts. The B&B has been productive enough so that it has nearly paid back the original loan. Yay!
Let me add for aspiring MARRIED COUPLES....talk to each other. Delineate responsibilities upfront and there will be fewer conflicts later. This is not worth screwing up your marriage.
Make sure you have a good business plan in place before you ever open your doors.
.

Was your loan residential or commercial? As a three room Inn (even one that does impressive revenues), I can't find anyone that will finance us....not even as a residential refinance as long as that sign is out front. Our credit is flawless, and the Inn pays for itself...but because the deductions on the tax return show a break even, a commercial loan is out of the question.
We are still working from the residential mortgage we took out when we bought the house...thank god the terms were good.
.

I have heard from a realtor that no one is making loans to B & B 's these days. Just not willing to take the risk. If the economy turns around some, maybe in the future.

 

[gillumhouse]

OK, before anyone gets the idea that I am advocating hiding any expenses or anything else let me set this straight.
I am a sole proprietor. I show on my schedule-C everything that I claim for the B & B. What I do not claim for the B & B are things that I will be paying taxes on until the cows come home. We have a nasty little tax called personal property tax here. I pay taxes on EVERYTHING in the B & B on July 1 that I have ever claimed on a Schedule-C - linens, silverware, furniture, TV, they take my food expenses for the year and divide by 12 to decide what I had in the cupboards on July 1, etc and this determines how much I will have to pay for personal property for the inn. I claim every Directory fee, ad, ad design, and any other expense that will not bite me. The last person I am going to cross is the tax man. All else goes down as my personal expenses - as in mileage and other things that could easily be business expenses - while doing MABB marketing I put a ton of miles on my car that I did not claim. That is what I mean by not claiming all expenses.
I have never purchased an inn and so far have never sold one. I do know that I just spent about $3000 to upgrade the owner's bathroom and those are expenses I have no intention of ever claiming. When I am ready to put this place on the market - nothing will be held back as far as information requested. I live in a small town no one could hide anything if they wanted to.