When I opened my B&B in Champagne in 2001, I had no clue about business or how to run one. I thought that my love of meeting people, entertaining and keeping a lovely clean home would be enough, and that people would flock to my door. Well, why wouldn’t they? They didn’t. It took me years, a knock on the door from the bailiffs and a complete change of approach before the B&B became a business that supported my family: €51,195 in nine months, then €103,495 the following year, with four rooms and no booking sites.
Since 2014 I’ve coached owners with anything from two rooms to twenty-two, in the UK, the USA, Canada, Australia, New Zealand, France, Spain and beyond, and I see the same pattern everywhere. So here is how to run a bed and breakfast successfully, in three parts: the four stages every B&B goes through, the four big mistakes I made, and the four areas that turn things around.
The 4 stages of running a B&B (which one are you in?)
This is the subject of my most-watched video, and I’ll give you the truth about each stage, so you can move forward with confidence.
Stage 1: Everything is new and exciting
You’ve just opened. Your dream has finally come true, guests are coming and saying wonderful things, and you’re wondering why you didn’t do this years ago. You decided not to get help with the laundry or cleaning until you’d made enough money to hire someone, so you’re very busy doing everything, but you’re loving it.
The truth about stage one: it tends not to last very long. I can’t tell you when you’ll realise you’re worn out by the endless laundry and cleaning, but I can tell you it will happen. So if you’re running a business you depend on, rather than a hobby you do for fun, get some help right now. Don’t wait and see how it goes. Start as you mean to go on.
Stage 2: Still loving it, but it’s not so easy any more
You have a steady stream of guests, you still haven’t hired help, and the daily workload is starting to overwhelm you. You’re not sure when the next booking is coming, and the figures make you a little anxious. So you list with the online travel agents, because that’s what everyone else seems to do. There’s an uptake in bookings and you relax. The commissions are a nuisance, the guests aren’t quite the ones you’d choose and there are a few more last-minute cancellations, but you just have to roll with it, right?
The truth about stage two: you have more bookings, but you’re paying for every one of them. If roughly 30% or more of your bookings come through the booking sites, make no mistake, they’ve got you, and they have all the power. The way out is the same as in stage one: get help, so you have time to learn your real job, which is getting in front of the people who would love to book with you directly.
Stage 3: The wilderness
You can’t go on like this. You’re still doing most of the cleaning and laundry because you’ve convinced yourself good help is impossible to find. More than half your guests come through the booking sites, you can’t relate to them, cancellations are up and the thought of a negative review keeps you awake at night. Each season is a repeat of the last. You’ve become cynical, resentful, maybe fearful, and you hardly recognise yourself. At this point many owners decide to sell or give up and put it down to experience.
Hello? There is a way out of this, if you’re willing to listen, learn and take action. I promise you there is, and it comes down to four areas, which I’ll get to below. I spent a long time in the wilderness myself. If you suspect you’re there too, my post on why B&B owners need to get help is the place to start.
Stage 4: Running like you want it to
Help in place, guests you enjoy welcoming who found you directly, rates that reflect your value, and time off. Every owner I’ve seen reach this stage did so by working on the same four areas.
The 4 big mistakes I made (and how to avoid them)
First the mistakes, because I made every one of them and they’re why most owners get stuck in stages two and three.
Mistake 1: Thinking a lovely B&B markets itself
It’s not enough to be brilliant at hospitality. The best-kept garden, kitchen and bedrooms are wasted unless people know about you. I’d go so far as to say the marketing matters more than the product. The good news is that once you find the two or three things that actually bring you guests, it becomes addictive. My tip: dedicate yourself to upskilling in marketing for a while, and leave the services alone.
Mistake 2: Not knowing who my guests were
I printed a gazillion leaflets and distributed them locally, when my market was international. An Englishwoman in France telling the French about their own country? I don’t think so. Once I understood who I could best serve, I went online, found them, and built relationships with them. The leaflets were expensive and brought me nothing. Think about where your guests actually come from and focus only on those channels.
Mistake 3: Spending on the product instead of the experience
I spent too much on the rooms, the accessories and the little touches, when what guests really want is an experience. They won’t remember the toiletries, the flowers or the chocolates as much as the feeling they had while they were with you. If there’s any trace of resentment or annoyance while you’re with your guests, they’ll feel it. So focus on your own attitude and energy, and on creating an atmosphere of warmth, kindness and laughter. That is inside work, and it’s very overlooked in hospitality.
Mistake 4: Over-delivering without charging for it
An extra bottle of champagne here, extra breakfast supplies there, and yes, I’ll be your taxi because you don’t want to drink and drive. It was lovely, and I wasn’t charging for any of it. So I put my prices up. As my confidence and my sense of my own value grew with each increase, I kept going until the balance between what I charged and what I delivered was clear. Then I could give a great service and the books balanced too. My post on how to double your rates goes into how.
The 4 areas that turn a B&B around
Here is the framework that worked for me and for the owners I’ve coached since. It’s the backbone of my book, and the order matters.
1. Strategy: who, why and what
Decide WHO exactly you most want to welcome, WHY they would choose you and WHAT unique experience you offer them. This moves you out of the commodity end of the market, where everyone is scratching around for bookings and price is the only lever, into the specialist end, where the air is clear and the market is far less crowded. For me that meant the hidden gems of Champagne for international visitors, out of more than 300 B&Bs in my area.
2. Structure: your team, your numbers, yourself
Structure means delivering on the promise you make online, every single time. You’ll need a team to do that, however small you think you are. You’ll need to be on top of your numbers: tracking your income, bookings, occupancy and cash flow, week by week. If you’ve never done that, my free B&B Income Calculator is a simple place to begin, and it will show you what your rooms could make at different rates and occupancy levels. And you’ll need to take great care of yourself, because you are the most important person in your business.
3. Systems: the engine
Three systems need to be bulletproof: a system to attract guests without relying on third-party booking sites, a system to invite booked-in guests to buy more from you before they arrive, and a system to bring past guests back with offers they’re delighted to accept. Most owners, to this day, have none of these in place, and then wonder why they can’t fill rooms in the low season.
4. Scale: more of what lights you up
Only once the first three are working do you add more: retreats, group gatherings, an online shop, a book. This is the fun part.
Where to go next
If you recognised yourself in stage two or three, you’re exactly who I wrote my book for. How to Start, Run and Grow a B&B Business that You and Your Guests Love takes each of the four areas and breaks it into bite-sized steps, and it has its own built-in AI assistant so you can ask it about your own situation. Or, if you’d rather talk, book a free 15-minute call and tell me where you are. I’ve been there, and there is a way out.
Frequently asked questions
What is the biggest mistake new B&B owners make?
Believing that a lovely property, good beds and a great breakfast will bring guests on their own. They won’t. Marketing, and knowing exactly who you’re marketing to, is the skill that decides whether you succeed.
Should I hire a cleaner when I’m just starting out?
Yes, from day one if you’re running a business rather than a hobby. Every owner I’ve seen burn out was still doing the cleaning and laundry themselves. Help gives you the time to do the work that brings bookings.
How much of my business should come through Booking dot com and Airbnb?
As little as you can manage. In my experience, once roughly 30% of your bookings come through the sites, they hold the power over your prices and your guests. Build your own direct bookings and treat the sites as a top-up at most.
How do I know which stage my B&B is in?
Tired but happy and doing everything yourself: stage one. The booking sites have crept in and the guests aren’t quite yours: stage two. Every season repeats and you’ve thought about selling: stage three. The way forward from each is the same: help, strategy, structure and systems, in that order.