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Meeting Local Requirements

Many localities may require approval of a board of supervisors or city council. Investigate these regulations early in the planning process. Review your local zoning, fire safety and health regulations. It is important to contact the municipal planning and building departments in your area and inquire about business licensing and operating permit requirements. Consider the following when planning for your B&B:

Zoning problems in rural areas are unlikely but possible. At the local or municipal level, there is a diversity in zoning ordinances from town to town. If you perceive any difficulties, work with zoning administrators and assist them in understanding the type of business you propose. Because your business may be the first B&B in your area, local officials may want to examine zoning guidelines from other towns as examples. Zoning review boards must consider the beneficial or negative impacts a B&B might have on the local area and are concerned about retaining neighborhood values. Visual impacts and changes in traffic and parking will be considered by the board. If it is necessary to obtain a zoning change, be sure to discuss your plans with neighbors and be considerate of their concerns. Remember that obtaining a zoning variance will take time and involve a public meeting. Therefore, it is important to begin this process early in your planning. It may be necessary to consult an attorney to assist you in the zoning change process.

Health regulations vary greatly from area to area, and it is quite likely you will need to meet state and local regulations pertaining to water quality, sewage disposal, and food storage and handling. Meet with health officials early and become familiar with the legal requirements. Request a preliminary examination of your home and discuss any changes in facilities or planned operations that may be required.

Fire safety is another item which requires adherence to state and local codes. In many areas the building codes cover fire safety. Your B&B should have smoke detectors, marked exits and a visible fire extinguisher. Local regulations may also require fire doors, additional exits and storage areas for flammable materials. Be sure to thoroughly review your requirements with local officials.

Developing Policies & Procedures

Prior to accepting your first reservation, it is important to develop basic operating and administrative policies and procedures.

Reservation Requests

Reservation requests usually will be made by telephone or through the mail. Most guests calling for reservations expect to connect on the first or second attempt and few will continue trying; therefore, it is advisable to restrict family use of your reservation telephone line. It may be worthwhile to install an additional telephone line for family and personal needs. Consider the purchase of a telephone answering machine to answer calls during your absence. The best solution to the problem is to ensure telephone lines are kept open and someone is available to provide information and take reservations.

Handling Reservations

Reservation requests should be answered immediately! All inquiries for reservations should be handled in a professional manner. Persons responsible for answering the phone should be able to respond to the customer's needs by providing information, directions, and recommendations if requested. A map indicating your location should always be enclosed with your confirmation. You may also include information about events, attractions and tourist facilities in the area. Local chambers of commerce and/or Virginia visitors' centers (see appendix) can supply this information. Examples of forms which may be used for reservation requests and confirmation notices are located in the appendix and briefly discussed below.

Telephone Reservation Request

This form outlines the types of information required for telephone reservations. Advise callers that reservations will be confirmed after you receive their deposit. Some B&Bs do not require deposits but will take a guaranteed credit card reservation. If you require a deposit, set a date by which the deposit must be received in order to hold the reservation (i.e. within 14 days).

Deposit Receipt/Reservation Confirmation

Once you receive the deposit, prepare a confirmation and forward it to the guest. If the guest has guaranteed the reservations with a credit card, you may assign a number to the confirmation and give it to the caller over the phone. You should follow up with a written confirmation to verify the phone reservation for both you and your guest. Some B&B operators computerize their reservation systems and keep this type of information in an electronic file format. However, most B&B's are not completely computerized and must manually record their reservations. Whether electronic or manual, you must keep a written copy for your records. Make sure the deposit/cancellation/refund policy is clear on this form. Staple your copy to the original reservation request form.

Tracking Reservations

Enter all reservations in a date book or calendar page such as the example in the appendix. Computerized calendar systems can be recorded electronically. Each available room with its type of accommodations must be represented on the calendar. Divide your calendar into the appropriate number of spaces and indicate the type of bedding available in each room. Once a host has committed a room, the visitor's name is entered in pencil in the appropriate space. When you receive a deposit, you should either re-enter the guest's name in ink or place a "D" for deposit beside the guest's name. A month-at-a-glance calendar enables the host to see what rooms are committed or available.

Deposit/Cancellation/Refund Policy

It is standard policy to request one night's deposit at the time the reservation is made. If you choose to accept a credit card, a card number can be given over the phone for a deposit. Confirmation is mailed only upon receipt of the deposit.

You must develop a refund policy which addresses reservation cancellations. Most hotels and motels will refund deposits if cancellations are received up to 48 hours prior to arrival date. In determining your policy, remember your ability to re-rent a canceled reservation significantly decreases the closer you get to the canceled date.

Make sure your policy is understood by all guests by clearly outlining it on your registration confirmation form.

Handling Long Distance Calls

Phone expenses for a small business can become a major expenditure. Hotels, motels, and B&Bs typically require guests to use calling cards to pay for long-distance calls or include the long distance fee with the established lodging rate. Some lodging establishments also charge a telephone fee for local calls. You should research phone services and policies of the local hotels, motels and other B&Bs prior to establishing your policy.

If your budget permits, you may offer a toll-free number for reservations. Depending on the size of your B&B and your marketing strategy, this may be a good return on your investment. Be prudent, however, and incur only those costs which you feel are beneficial to your business and will increase your profits.

Office Equipment and Supplies

Create and print stationery, envelopes and business cards which will identify your B&B business. Maintain a professional, efficient office space with a good supply of stationery items, receipt books, postage stamps, etc. Consider purchasing a typewriter or personal computer to give your correspondence a professional look.

A personal computer can help you handle reservations, maintain financial records and improve the appearance of your correspondence. Numerous computer hardware and software packages are available for your use. Consult local computer stores, small business development centers, or colleges and universities for assistance in determining your computer needs.

Bookkeeping/Accounting

The best time to set up a record keeping system is before you start the business. Experience clearly indicates that the use of an adequate record keeping system increases the chances of business survival. Too often, those entering a business think they must keep records just to satisfy the Internal Revenue Service. However, accurate and dependable record keeping practices will help you monitor the business and make plans for the future using financial history rather than estimates or guesswork.