Why Bed And Breakfast Businesses Struggle, Part 4

In Part 4 of this series, we’re going to be discussing a very thorny issue, which I believe is key to the success of our B&Bs…

They don’t set goals, have a plan or keep financial records

Just because we have an accountant, or that we don’t need to submit any books because of the business structure we’ve set up for ourselves, doesn’t mean that we don’t need to keep financial records, set goals and have a plan for ourselves.

There’s a popular saying “if we don’t know where we’re going, all roads lead there”.  This means that if we don’t set up our financials to record everything we take and spend, then how do we know if we’re getting “there”, and more importantly, how do we know where “there” is?  How do we know if we’re making money, spending wisely, investing in the things that bring us the best return and a hundred other things we need to know, otherwise we’re flailing around spinning our wheels and getting nowhere.

Having accurate financial records is one of the best things we can do for our B&B businesses, whether we think we need them or not. After we’ve set them up, it’s such a lot of fun watching the numbers rise compared to last year, last month, or even last week.  What we focus on expands, so focus on the financials and start having more fun.