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Fancy escaping from the rat race, moving to an idyllic country location and setting up your
own business?
1. Be business-like from word go.
This is a business you're running and it needs to be approached as such. Writing up a formal
business plan is an essential first step. It forces you to look at all the eventualities and the
realities of running your own business.
2. Research your market.
Making sure you choose a suitable location is crucial. And whether it is suitable depends
largely on the clientele you want to attract. If you want to appeal to business travellers who
will stay only during the week, leaving your weekends free, it's no good setting up in the middle
of nowhere or slap bang in a tourist hotspot.
3. Make sure you get all the relevant licences and planning permission.
If you want to play any recorded music, say in the breakfast room, you'll need a license
for that too, from the Performing Rights Society.
If you provide evening meals and want to serve alcoholic drinks you'll need a license. Get in touch
with the Clerk to the Justices at your nearest Magistrates' Court for more information.
Even if all you plan to serve is a home-cooked breakfast you should inform your local
environmental health department who may wish to inspect the premises on a regular basis
(under the terms of the Food Safety Act 1990).
And if you provide televisions in the guests' rooms you may find you need a Hotel License from
the TV Licensing Authority.
If your house is a bit short on bedrooms, but you've got plenty of room in the garden,
rather than building an extension, you could consider erecting 'temporary buildings. The beauty
of this is temporary buildings don't usually require planning permission (and can be up and running
in no time).Temporary structures such as wood cabins often escape planning regulations provided
they are under four meters tall, are erected more than five meters from the main house and do not
take up more than half your garden. If in doubt check with your local planning department first.
4. Make sure you're insured.
As well as the usual buildings and contents insurance, there are other insurance policies you'll need to consider too. In this day and age, when everyone is becoming more legally aware of legal issues, Public Liability insurance is a must. If someone spills a scalding hot cup of tea on themselves at breakfast or slips on the bathroom floor you'll have some protection if they decide to sue.
If you employ staff, even casual labour, you have to have Employee Liability cover.
You might also want to think about taking out personal accident or critical illness cover in case you are sick or injured and forced to take time off from running the business. And while you're at it, it's worth considering cancellation insurance to back you up should guests fail to show.
5. Make sure you have enough cash to get the business going.
You'll at least need new bed linen and towels. Then there is crockery, cutlery, glassware and catering-sized packs of coffee, tea bags, cereals, jams and so on.
You'll also need to cover the cost of business rates (rather than Council Tax) for which you'll be liable as a business owner.
6. Think long term.
John says it was a good three years before 'Honeypot Cottage' was truly profit-making. And the experts say you can expect to be counting the pennies for as many as five years when you start a new business from scratch.
7. Don't try to run before you can walk.
John and Hilary agree that it's crucial to take things a step at a time.Eight years ago we had no experience in this area at all, they say.We were complete novices and wonder sometimes how we've made it to where we are.
The trick is to start small and grow with the business. We started out with just two rooms, then as we got more confident we made them en-suite and converted another two rooms. Since then we've converted the stable block into self catering accommodation too.
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