Michigan State University Extension
Tourism Educational Materials - 33420037
06/06/02

Business Management and Marketing: Bed and Breakfast

List of files and visuals associated with this text.

Source: West Virginia University
Extension Service
Morgantown, WV 26506

ID: R. D. No. 767

Authors: Edward L. Smith; Ann K. Smith

Edward L. Smith is a district specialist, natural
resources, and assistant professor, Ohio State University
Cooperative Extension Service at Caldwell, Ohio. He has a
B.S. and M.S. degrees from West Virginia University.

Ann K. Smith is a county extension agent, home economics,
and assistant professor, Ohio State University Cooperative
Extension Service at Zanesville, Ohio. She has a B.A.
degree from West Virginia University, a M.A. degree from
Marshall University, and a Ph.D. from Ohio State
University.

Editors:
William N. Grafton, extension wildlife specialist and
associate professor of forestry at West Virginia
University.

Anthony Ferrise, extension rural development specialist and
professor at West Virginia University.

Acknowledgments:
We wish to acknowledge the following organizations for
their support.

Manuscript editing, layout and design was provided by the
Information and Educational Technology extension faculty
and staff at West Virginia University. The publication was
printed by the Printing Services at West Virginia
University.

This material is based upon work supported by the Northeast
Regional Center for Rural Development.

Contents:
Authors and Editors
Acknowledgments
Introduction

Starting a Bed and Breakfast
Edward L. and Ann K. Smith

Abstract

Introduction
What is a Bed and Breakfast?
History of B&Bs
What Types of People Own B&Bs?
Why Open a B&B?
Personal
Financial
Consulting With Professionals

Marketing
Concept/Service
Market Research
Pricing
Promotion
Sales

Complying with the Law: Zoning, Licenses, Permits,
Registration
Zoning, Licenses, Permits
Zoning
Building Codes
Fire Codes
Health Regulations
Vendor's License
Motel/Hotel License
Registration
Other

Business Organization
Planning for Your Business
Selecting a Name
Business Structure
Taxpayer Identification Number
Records
Taxes
Insurance

Financial Planning
Start-Up Costs
Income and Expenses
Financing
Hospitality Management
Hosting Skills
House Rules
Management Practices
Food Service

Conclusion
Appendix A - Checklist (Vis. 1)
Literature Cited

Other Publications Available


Introduction

The First Eastern U.S. Conference on Income Opportunities
for the Private Landowner Through Management of Natural
Resources and Recreational Access, held in Wheeling, W.Va.
(April 1989) was a milestone in a long series of rural
development activities of the West Virginia University
Extension Service and Agricultural and Forestry Experiment
Station along with West Virginia Farm Bureau and the U.S.
Department of Agriculture's Extension Service. It
represented the culmination of efforts by many people
throughout the nation who promote activities for
diversifying and increasing income opportunities for rural
landowners, encourage them to meet the recreational needs
of urban residents, and support the conservation and
utilization of renewable natural resources. The conference
also represented the beginning of a focused endeavor to
develop a comprehensive, interdisciplinary and coordinated
approach for research, educational and service efforts.

The purpose of the conference was to discuss and evaluate
alternatives for farmers, woodlot owners, rural landowners,
businesses and communities to increase profits by providing
and marketing non-traditional products and services based
on renewable natural resources.

The dilemma facing Americans concerned with the
sustainability and productivity of the nation's natural
resources, while allowing people to use them, is that
growing human population and its needs for goods and
services are reducing the available natural resource base.
The public's desire for access to and use of natural
resources for outdoor recreational opportunities continues
to grow and change over time because of changing social,
economic and cultural factors and individual interests.

Public lands, as vast as they may seem, cannot meet all
future needs for public recreation and in many cases cannot
supply the quality of experience desired by large numbers
of people. Many private landowners have the capability to
help meet these remaining needs and have an opportunity to
meet specialized demands for products and service. To meet
the needs of the landowner and the public, the following
must take place.

1. Creation of incentive structures. Supplying access to
high quality resources involves costs. If private
landowners are to manage their resources for the public
good, then ways must be found to make the benefits outweigh
the costs. Incentives can be supplied in many ways
including fees for access, payment for goods and services,
tax exemptions, reduced liability and private sector
financing.

2. Focus of efforts. Agency personnel, conservation and
other interest groups, community leaders and educators need
to think and act in a concerted manner that directs their
efforts toward total resource management. This will require
significant changes; it stresses diversification and
interdisciplinary programming to develop research,
technology transfer, educational and technical assistance
programs that address needs.

3. Cooperation and coordination among leaders in the field.
Universities, state and federal agencies and agricultural,
conservation, business and trade organizations must develop
joint programs to assist private landowners. The nation
depends on this base to provide goods and services at
prices people are willing to pay and producers are wiling
to accept for managing and sustaining natural resources.
Multi disciplinary programs for promoting rural economic
development opportunities are the essential means of
generating an applied research information base to
effectively transfer information to landowners, managers
and other users.

Universities, state and federal agencies, as well as
agricultural, conservation, business and trade
organizations, must develop joint programs to inform
landowners about alternative enterprises that can be
blended with typical agriculture and timber operations.
Information is needed on cost-effective production and
marketing systems and the development of goods and
services. This is one in a series of extension publications
dealing with natural resources management and income
opportunities. These publications provide information to
landowners and to private consultants and agency personnel
who give technical management, marketing and legal advice
to landowners.

Increased demand for recreational access to private lands
offers the potential for rural landowners to increase
income. However, private landowners need to be aware of
their potential liability in order to make better informed
decisions regarding the use of their land. This publication
deals with some of the concerns that private landowners
must consider in deciding to allow others to use their land
for private recreational purposes.

Starting a Bed & Breakfast

Edward L. Smith
Assistant Professor and District Specialist, Natural
Resources Ohio Cooperative Extension Service The Ohio State
University, Caldwell, Ohio and Ann K. Smith, Ph.D.
Assistant Professor and County Extension Agent, Home
Economics Ohio Cooperative Extension Service
The Ohio State University Zanesville, Ohio

Abstract

Travel and tourism is big business in the United States.
Bed and breakfasts have gained in popularity as an
alternative to conventional lodging. Many individuals are
interested in starting their own bed and breakfast. Before
opening a bed and breakfast enterprise, the potential small
business operator needs to consider marketing-including
location, customer, and amenities, complying with the law
(zoning, permits, licenses and registration), business
organization and finances, and hospitality management. A
careful review and analysis of these considerations
prepares an individual to make an intelligent decision on
whether or not to proceed with this small business
enterprise.

Introduction

What Is a Bed and Breakfast?

A bed and breakfast (B&B) establishment is generally
defined as a private residence where a guest is provided a
bed for the night and a breakfast before departing the
following morning. Along with the bed and breakfast, a
bathroom is provided. In many cases, the bathroom is shared
with the family. The cost of the breakfast is normally
included with the price of the room. A B&B provided in a
home is often referred to as a "homestay."

In addition to the private residence, there are
establishments referred to as "bed and breakfast inns." The
same concept applies in these inns, i.e., a bedroom, bath
and a meal are provided. The major difference is that these
inns may have several rooms instead of the one to three
normally found in a B&B home. In many cases, it is not
unusual to find these inns providing additional meals and
services beyond what is found in the private residences
(Zander, 1986).

However, as these two terms are commonly used in the B&B
industry to distinguish the difference between a "homestay"
and an "inn" no two "homestays" or "inns" are alike.
Indeed, they vary considerably within the same geographic
area of the county and more so across the United States.
This is one of the reasons why B&Bs are so popular. Each
B&B tends to take on its own personality. Generally, the
B&B is not the reason the tourist is visiting the area, but
is viewed as an alternative to the typical lodge, motel or
hotel facility available. The recreational cultural or
historical attractions are usually what draws the tourist
to the area, and the B&B is there to provide the tourist
with a different experience or alternative lodging
facility.

History of B&Bs

A review of the literature on B&Bs indicates that this
concept probably has been in existence in some form or
another since the beginning of mankind. It is well
documented that the monks in the eleventh century used B&Bs
on their travels to visit with the pope in Rome.

It is also quite evident that the Europeans have been
providing B&Bs to the traveling public or tourist for many
years. In England, Scotland and Ireland the terminology B&B
is used, whereas in non-English speaking countries, words
like paradors, pensions, gasthaus, minskukus, shukukos,
pousados and estalagems are used.

In the United States, B&Bs have been present since the time
of early settlers. The literature indicates many homeowners
located along trails and roads provided B&Bs to the
traveling pioneer. During the Great Depression, many
Americans opened their homes to travelers to generate a
source of revenue. Terminology such as "guest house" or
"boardinghouse" was quite frequently in use during this
period. After the depression, the popularity of these types
of lodging facilities tended to decline (Roundback and
Kramer, 1986). In a fairly recent time, because of the
number of Americans visiting abroad and staying in B&Bs and
because of the influx of foreign visitors using these types
of facilities, there has been a resurging interest in B&Bs.
Today more than 20,000 B&Bs are reported to be in the
United States. The State of Massachusetts is reported to
have more than 1,300 such establishments (Lacey, 1986)!

Today the B&Bs are no longer necessarily viewed as cheap
lodging facilities, but are viewed by many as an
alternative to stereotype surroundings and furnishings of
the typical commercial hotels and motels. In many,
particularly in the chain motels/hotels, the decor and
layout is the same from coast to coast or from one facility
to another.

What Types of People Own B&Bs?

It would be very difficult to stereotype or describe the
typical person who opens a B&B from a professional or
occupational background. Artists, craft persons, marketing
representatives, farmers, insurance agents and other people
from all walks of life have opened and operated successful
B&Bs.

Furthermore, single people, couples and families have been
involved with B&Bs. Generally, people who open B&Bs have an
extra room in their house for a number of reasons. The
children might have grown up and are away at college or
have moved away from home. Some families have homes with
more rooms than are necessary for family purposes. Widowed
or divorced individuals have been involved with B&Bs. While
B&Bs are operated for a source of income, many individuals
who operate them are not solely dependent on the B&Bs'
income to provide for their livelihood. People retired from
another occupation or professionals, farmers and others who
have a primary source of income typically operate B&Bs.

However, all successful B&Bs have one trait in common among
all the people involved in them. This trait is a social
one, i.e., the B&B owners like people and like to entertain
people in their homes. Many of these people like to cook
and show off their culinary skills. Also, many people have
a home featuring some architectural period of a historical
or cultural significance that they like to show.

Anyone seriously considering opening a B&B must like people
and be able to deal with all types of people. To be
successful in the B&B business, the people involved must be
committed and be willing to sacrifice a part of their
personal life since their customers will be residing with
them in their personal quarters. A pleasing personality and
the ability to get along with people is the primary
prerequisite for opening a B&B.

Why Open a B&B?

Starting a B&B may be appealing to many entrepreneurs. It
can be rewarding both personally and financially, However,
a B&B is not for everyone. Before starting a B&B, it would
pay to analyze personal and financial considerations and to
consult with professionals.

Personal

A B&B business is not unlike a number of other home-based
businesses.

Whether the business will be successful benefits. Many
people with a B&B cite or not depends upon the personal
traits or qualities of the individual and the family. You
and/or the family should possess a number of traits or
qualities to be successful as a B&B operator. Some of these
are:
- like people
- like to entertain
- self-starter/discipline
- personal commitment
- good organizational abilities
- good decision maker
- willing to keep records

Operating a B&B must be a family decision because the
entire family will be affected. Family is defined hereto
mean anyone who will be residing in the home. The operation
of the B&B will infringe upon the family privacy, use of
telephone, television, recreation room, kitchen and overall
use of the home. Many times the family activities will have
to be curtailed, eliminated or postponed due to B&B guests
being in the home.

While there are some things a family might have to give up
in order to have a B&B, there are also a number of positive
benefits. Younger family members are provided an early
opportunity to learn lifetime skills such as making
reservations, dealing with the public, serving meals and
answering the phone. Having a business in the home may
strengthen the family since all members have to work
together.

Like many small businesses, a B&B takes a real personal
commitment. While operating a B&B may provide for more
flexible working hours, it also requires that you be a
self-starter. There is no one there to tell you when the
beds should be changed, for example. Most B&B operators
have to perform all the managerial and maintenance tasks
that would be done by the staff in a motel.

Financial

Operating a business such as a B&B in your home can provide
financial benefits as one reason for starting. These
benefits can be to help subsidize the annual operating
expenses or to qualify for certain capital costs related to
the rehabilitation of historic properties.

The Internal Revenue Service allows B&B owners to deduct
certain costs of maintaining the portion of the home which
is used exclusively and regularly in the business. Certain
business expenses such as water and sewer, electricity,
mortgage interest and real estate taxes may be deducted as
a percentage of the house you use for business. For further
information, consult IRS publication 587, "Business Use of
Your Home."

Consulting with Professionals

It is important before starting your B&B to consult with a
number of professionals to obtain sound business advice.
Begin by obtaining literature on how to start a B&B from
your local bookstore, library and county Cooperative
Extension Service office. Next, visit a number of B&Bs and
discuss your proposed B&B with them. Some B&Bs offer an
apprentice program where you are offered an opportunity to
learn how to operate a B&B.

Once you have decided to proceed with starting a B&B, there
are a number of professionals you may want to retain. Some
of these include:
- lawyer - legal advice
- CPA/accountant - financial advice
- architect/building contractor building/safety codes
- interior designer - decorating advice
- public relations firm - advertising advice

Generally, it is important to retain only those
professionals who have experience in small business and
B&Bs.

Marketing

Prior to starting any business, you should analyze very
carefully its marketing potential. Marketing initially
starts with the concept of developing a product or service
and then proceeds to market research, pricing research,
pricing, promotion and sales.

In the case of a B&B, you are talking about providing a
service to the traveling public. This service in the B&B
industry usually consists of providing an overnight
accommodation and a meal the following morning. Many B&Bs
provide additional services beyond the bed and breakfast.

Concept/Service

What type of B&B are you going to provide? Will it be a
Victorian B&B inn or a vacation farm? What are you going to
provide besides the bed and breakfast? Do you own the
property now or are you going to purchase it?

Generally, a good way to develop the concept of your B&B is
to visit a number of B&Bs that have the same or similar
theme as yours. As the concept is being developed, it will
be necessary to constantly modify it due to regulatory
requirements, availability of money, time and the type of
property available.

It is extremely important for any B&B entrepreneur
contemplating purchasing a property to carefully analyze
the market potential and be aware of the regulatory
requirements involved with starting a B&B. Several
entrepreneurs have purchased property only to find out
zoning precludes the operation of a B&B or renovation costs
to meet building codes are prohibitive. In many situations,
it would be wise to take an option on the property until
all of the questions regarding its potential use can be
resolved.

Market Research

This phase of marketing involves analyzing why travelers
come to your community, who they are in terms of age,
income and educational levels, and who your competitors
are.

People travel for a variety of reasons. Some of the more
common reasons are to visit recreational, cultural and
historical attractions, visit relatives in medical
facilities, visit students in college and travel for
business. Some of the most successful B&Bs are located in
those communities which attract a variety of travelers or
tourists.

B&Bs are not usually the ultimate destination. People are
traveling to the area for another reason, and the B&B
provides for an alternative form of lodging.

Changing demographics are now reflected in the way people
travel. Due to two income families, people are traveling as
much as before, but the pattern has changed. The
traditional two to three week vacations are now being
replaced more and more by people taking three to four day
vacations over a weekend. In the travel industry, this is
referred to as a "Get-Away-Weekend."

Another significant segment of the market is the older
population. This age group tends to have more disposable
income and the time to travel.

The B&B appeals to the two income families and the older
population as well as other segments of the tourism market.
B&Bs are in a growth phase in many states.

Who are your competitors in the lodging industry? Are there
other B&Bs in your community? What are they charging for a
night's stay and what types of services or amenities do
they provide? B&Bs generally are not in competition with
hotels and motels since advance reservations are normally
required at B&Bs.

Pricing

What kind of price are you going to charge? It surprises
many people to find out B&Bs are not necessarily less
expensive than hotels or motels. In 1988, the average price
for a double occupied B&B room in Ohio was $46 (Smith
1988). At this same time, several of the chain motels were
charging considerably less for the same type of
accommodations.

The price should be a function of the indirect and direct
costs plus an amount for profit. It normally pays to survey
what your competitors are charging and be somewhat in line
with their rates. The more you have to offer in terms of
services and amenities, the more you should be able to
charge.

Promotion

How are you going to promote your B&B? Promotion involves
advertising, personal contact and publicity. In the B&B
business, you are selling more than just a room and a meal.
People are coming to your B&B for the experience of staying
in an old home or some other experience. Decide what your
B&B will do for people and then use this theme in your
promotion.

Deciding what form of promotion to use is one of the
hardest decisions facing beginning B&B operators. The form
of promotion should be decided by the image you want to
project. Professionally printed materials versus
handwritten will convey different messages. Most beginning
operators will need to choose several ways to promote their
B&B.

Word-of-Mouth. This is by far the most popular way that
customers find out about your B&B. Surveys have documented
that word-of-mouth is the number one way that guests have
heard about B&Bs (Smith, 1988). One of the major advantages
of word-of-mouth advertising is that it is free. Be sure to
take care of your guests. Beginning B&B operators, however,
cannot just depend on word-of-mouth advertising.

Brochures. An attractive brochure can be a fairly
inexpensive way to promote your B&B. Brochures are the
number one way B&Bs advertise (Smith, 1988). Brochures
should be designed according to their intended use. Many
print shops can help in the layout, text and lettering.
Many B&Bs develop a logo. This logo should be on all
printed material.

Business Cards. These can be used in many ways to promote
the B&B. The card should be professionally printed with
your logo. Include name, address, telephone number and
other appropriate information. Consider using the back of
the card for a map to the B&B.

Telephone Book. Some B&Bs who accept customers without
advance reservations advertise in the yellow pages. The
major benefit of advertising in the yellow pages is to
attract walk-in customers. It is fairly expensive to
advertise in the yellow pages. Many B&Bs list in the white
pages.

Magazine Ads. Many specialized magazines are directed
toward B&B clientele. These may be local, regional or
national. Placing an ad in the right magazine may be all
you will ever need to do.

Guide Books. These are specialized B&B guide books. These
are normally purchased at a book store. There is a charge
to be included in the guide book. These may be local,
regional or national. To be in some guide books the B&B
must meet certain standards.

Reservation Service Organization (RSOs). This is a private
business that handles making the reservation for your B&B.
The RSO charges a fee for each reservation it makes. There
may be an annual or one time membership fee charged to
belong to the RSO. The RSO generally is involved in
marketing all of its B&Bs. Some RSOs have standards that
B&Bs have to meet.

Newspaper Ads. There are two types of ads, display and
classified. Generally newspaper ads are not used on a
frequent basis by most B&B operators due to cost. A good
way to use the newspaper is with your B&B start up. Ask the
paper to do a feature story.

Direct Mail. To use direct mail, you have to know your
market. This technique can be quite good if you have the
right mailing list. Keep and maintain a list of your
guests. Frequently send your former guests a newsletter,
Christmas card or some information about the B&B.

Letterhead and Envelopes. Professionally printed letterhead
and envelopes project a certain image to your customers.
Use the same logo on your stationery that you use on your
business card and brochure.

B&B Directories. Many states now have statewide or regional
B&B associations. Many of these associations publish a
directory. A membership in these associations often will
get your B&B in the directory. There are also national B&B
associations which publish directories.

Travel and Tourist Agencies. There are state, regional and
local travel and tourism organizations. These are all in
the business of promoting travel and tourism. There may be
a membership fee to belong to these organizations. Some
states have travel and tourism hot lines where people can
call in for travel and tourism information.

This list of ways to promote your B&B should not be viewed
as being all inclusive. Check with other B&Bs in your state
and local area to see how they advertise.

In advertising, keep in mind such things as reach,
frequency and costs. Reach is how many people receive the
material or how many people have heard or seen it.
Frequency has to do with the number of times it appears.
Most B&B operators will constantly need to be evaluating
the reach and frequency of any media in relationship to its
cost. For example, it might cost $400 per year to advertise
in a national magazine which is published 12 times a year
and reaches 3 million households versus $200 to produce
5,000 brochures.

Sales

The ultimate objective of any marketing program is to
produce sales. In the B&B industry, business success is
measured by the number of room reservations per year.


Complying with the Law: Zoning, Licenses, Permits,
Registration

Zoning, Licenses, Permits

One of the first steps to undertake when contemplating
starting a B&B is to review the various laws governing
their operations. It can be very confusing and frustrating
trying to determine which laws may apply to your B&B. Many
states do not have specific legislation that apply to B&Bs
so that officials may interpret existing laws that apply to
similar facilities such as boarding houses or tourist
homes.

Many states now have established agencies such as the one
in Ohio called the One Stop Business Permit Center. The
function of this office is to assist entrepreneurs starting
their businesses by providing all the necessary forms,
permit applications and other information at one location.
The purpose of these agencies is to make it easier for
entrepreneurs to start their business. To find out whether
your state has a state or local agency such as the Ohio One
Stop Business Permit Center, contact your local economic
development center, chamber of commerce, county Cooperative
Extension Service office, small business development
center, or local community or technical school.

The purpose of checking on the various legal requirements
is to determine whether it is legal to operate a B&B in
your community or to find out if it is feasible to renovate
a property to meet code requirements. There have been
several cases in which people have purchased property with
the idea of using it for a B&B only to find out later that
it is illegal or not permitted. In other cases, people have
renovated a property without checking the codes only to
find out when the work was done that the property did not
meet code requirements and would not be permitted to open.

Zoning

One of the first items to find out about the community
where the B&B is to be located is zoning. Zoning in most
states is a locally enacted law that regulates and controls
the use of private property. Not all local communities have
enacted zoning. Also, the zoning laws will differ from one
community to another.

Any existing or prospective property owner contemplating
converting a private residence into a B&B needs to check
the status of zoning with the local community. Depending
upon the state where the property is located, it will be
necessary to discuss zoning matters with township,
municipal and/or county officials. If the community is not
zoned, the property owner should be allowed to implement
the proposed change in use. However, if the community has
adopted zoning, a review of the zoning law must be
undertaken to determine whether the establishment of a B&B
is a permitted use.

In those cases where the B&B is not a permitted use,
sometimes a property owner can apply for a variance. A
variance is a type of appeal in which the property owner
must first go to the zoning inspectors with an application
for a zoning permit. In most states the Board of Zoning
Appeals will determine whether or not to grant the
variance.

In some communities, the zoning law has provisions for
conditional use permits. Applications for conditional use
permits go directly from the home owner to the Board of
Zoning Appeals. Conditional uses possess unique or specific
characteristics relating to size, traffic generation,
method of operation, location and design. Each use is
considered on an individual basis. The zoning law normally
contains both general and specific standards for
conditional uses.

Beyond the appeal, variance and/or conditional use, the
only recourse to zoning change is to amend the law. Any
entrepreneur contemplating a B&B in a community where it is
not permitted by zoning should realize that attempts to
amend the zoning law are very time consuming, will need
broad base support and will require competent legal
assistance.

Building Codes

Most states have enacted building codes that generally
prescribe standards for construction of new facilities,
renovations and changes in use. Many states have adopted
national codes. These codes set the standards for the
structural conditions, plumbing and electrical
requirements. Along with state building codes, many local
communities will also have building codes. In most states,
the local building codes must meet the minimum state
standards and may exceed them. In many states, there will
be a local building department certified by the state
agency which administers the code enforcement. In some
cases, the ad-ministration of the codes may have been
delegated to nongovernmental agencies.

It is imperative for anyone starting a B&B to be aware of
the building codes. There are numerous examples of people
purchasing property and making renovations without
complying to the codes. In many cases, these renovations
have had to be done over to comply with the codes at a
considerable additional expense.

Normally, a building permit must be secured before any new
construction, alteration, repairs and/or change in use can
be initiated. Converting a private home or other structure
into a B&B normally constitutes a change in use. In Ohio
for example, one-, two- and three-family dwellings with not
more than five lodgers or boarders are exempt from the
requirements of the Ohio Basic Building Code (Brant, 1988).
However, the requirements of any existing local building
codes would be applicable. With more than five lodgers or
boarders, the Ohio Basic Building Code would be applicable
as either transient (use group R-1) or non-transient (use
group R-2) residential buildings. Transient lodgers make
use of the facility for a period of less than 30 days.

The importance of checking on building codes before
purchasing a property and/or before spending funds on
renovations is obvious from this Ohio example. It is highly
recommended that professional advice be sought from an
architect or building contractor experienced in your state
and local building codes before purchasing a property
and/or before hiring a contractor to make renovations.

Fire Codes

In most states, your B&B will be subject to an inspection
from the local fire department and/or state fire marshal's
office. These inspections are conducted to see if the
facility conforms to the applicable fire safety codes.

In Ohio the local fire department has jurisdiction to
inspect all B&Bs which have four or less bedrooms hired out
to the transient public for sleeping accommodations. All
B&Bs which have five or more bedrooms hired out are subject
to inspection by the state fire marshal's office (Ohio
Revised Code, 1988).

Again, an architect or building contractor experienced with
state fire codes would be an invaluable person to help in
evaluation of your facility or a proposed facility to see
if it meets the codes.

Health Regulations (Food Service License)

In order to serve food, it may be necessary to secure a
food service license. Providing safe and wholesome food is
AN IMPORTANT TASK. Modern storage and cooking methods
simplify this. Government inspection and strict standards
within the food industry also make a difference. In most
states, you will need to contact the local or state
department of health (agency for food preparation and
handling) for information on how to obtain a food service
license.

In Ohio the laws and rules for food service operations
indicate that B&B occupance with five or fewer persons may
serve either a continental or full breakfast without a food
service license (Ohio Revised Code, 1988). If occupance of
a B&B accommodates more than five persons, the B&B must
secure a food service license or limit the menu to a
continental breakfast. This kind of breakfast usually
includes hot tea or coffee, fruit juice and sweet rolls,
muffins or biscuits. Hot beverages should be freshly
brewed, fruit juices freshly squeezed or a top quality
variety and the bread (whatever kinds) of high quality.
Keep in mind both the rules and regulations of food service
operations as well as meal planning. Both are vital to the
B&B business. For more information, contact your local
health department and your local Cooperative Extension
Service office.

Vendor's License

In many states, you must obtain a vendor's license if you
are required to collect sales taxes either on your food
and/or lodging accommodations. Depending upon where you
live, these taxes may be state, county and local. Consult
with your state tax commissioner (state agency responsible
for collecting taxes) for information in your state.

In Ohio all B&B operators are required to purchase a
vendor's license from the local county auditor's office.
The fee for this license is $25 for the first year with a
$10 renewal. In Ohio where the B&B has four or less
bedrooms held out for hire, sales tax must be collected
only on the food. In the cases where one set price is
charged for the breakfast and the room, the operator has to
make an allocation for the food portion ad collect taxes
accordingly. The other option is to collect sales taxes on
the total bill. When the B&B has five or more bedrooms held
out for hire, sales taxes have to be collected on the
total. Some counties in Ohio have been permitted to levy
additional taxes on rooms to help fund travel and
convention bureaus. This is often referred to as a bed tax.
In those communities where the bed tax has been approved,
this only has to be collected when there are five or more
rooms held out for hire (Henshaw, 1988).

Motel/Hotel License

In some states, your B&B may have to purchase a hotel/motel
license. In Ohio, any B&B that has five ore more bedrooms
held out for hire must purchase a motel license. The
purpose of this license in Ohio is to make sure that any
lodgings with five or more bedrooms comply with the state
fire marshall requirements for safety. Check with your
state fire marshal's office to see if a motel license is
required for a B&B.

Registration

In many states, there may be a requirement for you to
register the name of your B&B. This may be a local, county
and/or state requirement. Generally, this is for the
purpose of government agencies knowing that you are in
business. In some cases, such as in Ohio, it is a state law
that you register a trade name, fictitious name and name of
a corporation. Usually there are fees associated with
registering the name of the B&B.

Other

This section has covered many of the licenses and permits
that you are likely to encounter when starting a B&B. You
will need to contact the appropriate local, county or state
agency in your state for the particular requirements. There
may also be other licenses or permits not covered in this
paper that you might be required to comply with before
starting a B&B.

As you can see from the example of the Ohio legislation,
there are many inconsistencies in the laws. Food service
and building codes relate to the number of boarders; other
licenses relate to the number of rooms.

Business Organization

Once a decision has been made to start a B&B, a number of
business organizational matters need to be considered. Many
are of either a legal and/or a financial concern. It is
important to understand the ramifications of the various
legal and financial options.

Planning for Your Business

Every B&B begins with an idea and/or concept of what it
wants to provide either as a B&B home or a B&B inn. An
important tool to help the B&B get started is the business
plan. This is where you take your vision or dream and
develop a way to implement it. The plan is your road map to
success. To succeed, you must know what is involved and how
you are going to get there. Many of the items discussed
should be in your business plan (Schindler, 1987).

A number of organizations have publications on how to
prepare a business plan, such as the U.S. Small Business
Administration or local Small Business Development Center.
Contact your local chamber of commerce or Small Business
Development Center for The Business Plan for Home Based
Business. Also, there is North Central Regional Extension
Publication 273, Developing a Bed and Breakfast Business
Plan. It can be ordered from the University of Illinois, Ag
Publication Office, 54 Mumford Hall, 1301 West Gregory
Drive, Urbana, Illinois 61801. It is especially good as it
is tailored to B&B.

Selecting a Name

What are you going to call your B&B? There are any number
of ways to select a name. It can be named after a famous
person such as George Washington Inn or to reflect a time
in history such as the 1890 Inn. It is important to select
the name very carefully as it can help identify your B&B.

Another item to pay very careful attention to when
selecting the name is to comply with state laws. Many
states will require you to register the name of your B&B
with a state agency. In most states, it is the
responsibility of the Secretary of State and/or a similar
titled agency to perform this function.

In many states, you will have the option to register the
name of your B&B as a trade name, fictitious name and/or
corporate name. In most states, there will be a charge to
register the name. It is important then to check with the
Secretary of State and register the name of your B&B
properly.

Fictitious Name. Any business name that is not registered
as either a corporate name or trade name and that does not
fully identify the owner(s) of the business must be
registered as a fictitious name. The fictitious name
registration does not prevent a corporate or trade name
registrant from taking legal action against anyone using a
registered trade or corporate name without consent of the
owner of the name. It is simply a means to identify the
owner(s) of a business.

Trade Name. A trade name is a name used in business or
trade to designate the business of the user and to which
the user asserts a right to exclusive use.

Corporate Name. Any corporate name approved by the
Secretary of State is protected from use by others in the
same manner as a trade name once the approval is granted.

Business Structure

Three business structures are permitted for B&Bs-sole
proprietorship, partnership and corporation. There are
examples of B&Bs operating under each of these legal
structures with the sole proprietorship being the most
common. If you are not familiar with these structures, you
may want to contact legal/financial advice. A good
reference is the IRS Tax Guide for Small Business.

Sole Proprietorship. A sole proprietorship is a business
owned and operated generally by one person. This person
realizes the full profit from the business but is also
responsible for all the debts and assumes all the risks and
liabilities. It is the simplest to organize and start.

General Partnership. A partnership is an association of two
or more persons with the purpose of forming and operating a
business. The partnership provides a pool of talent, skill
and capital for the business. The risk is shared among the
partners. You may be required to register the partnership
agreement.

Corporations. A corporation is a legal structure which
exists separately from the people who create it. An
advantage of incorporating is that it limits an
individual's liability should the business fail or be sued
for any reason. A disadvantage is the double taxation,
i.e., corporate taxes and taxes on dividends. Corporations
must generally be registered with the Secretary of State.
You may want to check with your legal/financial advisor
about a sub chapter S corporation. This type of corporation
has liability protection of a regular corporation but has
the tax advantage of a sole proprietorship.

Taxpayer Identification Number

Corporations (including S corporations), partnerships and
sole proprietorships with employees must have a Federal
Identification Number (Employer Identification Number). To
apply, use Internal Revenue Service Form SS-4, Application
for Employer Identification Number. This number must be
used in the proper tax form. The application form can be
obtained from IRS.

Records

A B&B is a small business. It will be necessary to maintain
proper records in order to analyze your business operation
and to pay appropriate taxes. The law does not necessarily
require you to keep your records in any particular format.
It is important that your records are accurate, permanent,
complete and clearly establish your income, deductions,
credits and employee information (Cotton, 1988).

Accounting Method and Tax Year. For most B&Bs, the cash
accounting method will be used with the tax year being the
calendar year (January-December).

Bookkeeping System. The two basic bookkeeping systems are
single- or double-entry. The single-entry is the simplest
and is probably adequate for most beginning B&B operators.
The advantage of the double-entry system is that it has
built-in checks and balances to assure accuracy and
control. There are any number of bookkeeping systems, such
as the One-Write System, available from any office supply
store that should be adequate to meet the needs of most
B&Bs.

Record Keeping. The B&Bs should have its own separate bank
account and checkbook. All payments should be made by
check. It is appropriate to have a petty cash fund to pay
for small expenses supported by receipts.

It is important that your record keeping system supports
your entries. It is important that you have evidence, i.e.,
canceled checks, paid bills and duplicate deposit slips.

Your record keeping system should be divided into accounts
such as income, expenses, assets, liabilities and equity
(net worth). It is very important to keep your records as
they may be needed in the administration of any Internal
Revenue law.

Taxes

As mentioned previously, the B&B is a small business. It
will be required to pay taxes. There may be federal, state
and local taxes. The following checklist outlines
information on federal taxes.

Federal. A checklist is included in Appendix A (Vis. 1) of
some of the possible federal taxes that a B&B might have to
pay along with the appropriate form and due date (Tax Guide
for Small Business, Publication 334, 1989).

State and Local. There are any number of state and local
taxes that might apply to B&Bs. You will need to check with
the local and state authorities (Smith, 1988). Some of the
common ones that you might expect to pay are:
- Payroll Tax (unemployment compensation benefits
- Worker's Compensation (work-related injury)
- Income
- Real Estate
- Personal Property
- Sales

Insurance

Operating a business will expose you to additional
liability. Insurance will help you to protect your B&B from
losses from fire, illness and injury. Talk with an
insurance representative about your business needs.

In many cases, your existing insurance company may no
longer provide you with coverage. Depending upon the scale
of the proposed operation, you may be able to increase the
coverage on your homeowners policy.

In addition to a homeowners policy (personal plan), you may
need a commercial policy for fire protection and/or a
supplemental policy to provide additional liability
protection. Discuss these possible needs with your agent:

- Product liability-to protect you inc case your product
causes injury to the user.

- Auto liability and non-owned auto liability insurance-if
a car is ever used to support the business in any way.

- Medical payment insurance-payable if someone is injured
in your home whether or not it was your fault.

- Worker's Compensation-if you have employees. In some
states, you pay a percentage of your payroll.

- Disability income protection-a form of health insurance
in case you become disabled.

In some cases where a B&B belongs to a reservation service
organization, it is possible to obtain insurance at a group
rate. Also by being a member of a state B&B association you
might be able to get a group rate. Make sure you understand
exactly what you are covered for and the limits of your
policy. You should evaluate the business insurance needs on
a periodic basis with your insurance agent.

Above all, practice risk management and try to prevent any
claim by operating you B&B in a safe prudential manner.
There are a number of companies writing B&Bs, so it would
pay to secure several quotations.

Financial Planning

Financial planning is an important consideration when
starting a B&B. While making a living from the B&B may not
be the primary objective for starting, most entrepreneurs
will want to recover their costs or make a modest profit.
Meeting people was the number one reason B&B operators in
Ohio started their B&B and making money was number two
(Smith, 1988). A major reason for most business failures
has been attributed to the lack of financial planning.

Start-Up Costs

The place to begin financial planning is with estimating
the start-up costs of the B&B. Start by listing all of the
fees associated with starting a business. These include
permits, office supplies, fixtures and equipment, signs,
brochures, business cards, stationery, linens, decorating
and remodeling fees, licenses, installation of fixtures and
equipment, and professional fees.

The amount of working capital you will need will depend
upon a number of items. The amount will vary from one B&B
entrepreneur to the next depending upon the type of B&B,
number of rooms, services provided and whether this is to
be a year-round or seasonal business. Also, how much time
and money does the entrepreneur have to invest? Estimate
whether you expect to make a profit in six months or a
year. Many experts would then advise you to double this
time period and be ready to operate without a profit. This
is to give you a cushion and take into account those
unanticipated expenses or delays. Consult with other B&B
operators and ask them how long it took them to make a
profit. This is also a good time to consult with your
financial advisor.

Many B&B homes have been started for a very modest
investment of $2,000 or less. Major expenditures have
included cost of a brochure, sign, new linens and fix-up
costs of papering or painting. Some B&Bs have started with
one room and then expanded as demand and funds would allow.
Other B&B entrepreneurs have spent in excess of $100,000
for the purchase of a property and renovation work.

Income and Expenses

Along with your start-up costs, it will be necessary to
estimate the operating expenses. These expenses normally
include electric, telephone, heating and cooling, wages or
salaries, interest, advertising fees, maintenance costs,
taxes, insurance, membership fees, professional fees,
office supplies and other materials or supplies. Again, it
is a good idea to talk with other B&B operators of similar
size to get information on their operating expenses. The
purpose of estimating all of these expenses is to determine
the amount of working capital needed to operate for a given
period.

In addition to the business operating capital, it will be
necessary to plan for a reserve fund to cover personal
expenses. Many B&B entrepreneurs do not consider these
expenses since their spouse is working at another job or
they are receiving a pension that covers their normal
living expenses. Personal expenses include food, car
payments, rent or mortgage, medical costs, clothing,
entertainment, taxes and household expenses.

To determine the amount of working capital, it will be
necessary to add the start-up costs, operating expenses and
personal expenses. Once these three items have been added,
you will have the amount needed for working capital. At
this time, if your funds are adequate, you may proceed to
pursue opening your B&B. However, if your funds are not
adequate to provide sufficient working capital, you will
need to think about where you can borrow funds (Waymon,
1986).

Financing

A B&B could be financed any number of ways. Friends or
family members may have funds to loan. Bank loans are a
possibility. Check with your local or state economic
development agency for a source of funds. It is a good
possibility, if you have to seek funds from anyone other
than friends and family, that a business plan will be
required.

Hospitality Management

B&B owners enjoy meeting people and serving as a host or
hostess to persons who frequent their business enterprise.
In recent surveys (Smith, 1988; Dawson and Brown, 1987),
owners reported these to be the main reasons for opening a
bed and breakfast. The unique lifestyle, interests and
personality of each B&B operator create an individuality to
each operation that can be one of the strongest marketing
features to bring persons again and again to that B&B. The
personal contact with the guest combined with good
management and business skills comprise hospitality
management.

Tourists are attracted to bed and breakfasts because of the
opportunity for personal contact with the B&B operator.
Persons who frequent B&Bs become better acquainted with the
cultural flavor of an area through the contact with a B&B
host or hostess. Many times, lasting friendships develop
between a B&B owner and his/her guests.

A major difference between a B&B and other lodging
accommodations is the amount of personal time the B&B owner
spends in hosting and in hospitality management (Stankus,
1987). The B&B operator performs the role of owner or
manager, of reservation service in some cases, of sales
clerk, of front desk clerk, of maid, of cook, of bus
person, of dishwasher, of tour guide and of promoter of
local tourist attractions and restaurants. In some B&Bs,
these tasks may be shared with family members and/or
employees. Thus, the aspect of hosting/hospitality
management has generally been recognized as a major reason
why tourists are attracted to a bed and breakfast versus
other lodging accommodations.

Hosting Skills

Initial impressions are lasting impressions. In greeting
guests for the first time, take time to set the scene
(Smith, 1987). The first room they enter should be
welcoming. A neat clean living room or entrance hall sets
the scene. If there is a fireplace and the weather is cool,
consider the welcome of a crackling, warm fire and fresh
fruit displayed on a coffee table. Remember that guests may
have been on the road several hours before arriving at the
B&B. They may appreciate the offer of hot coffee/tea or
iced tea/fruit drink. Prepare ahead to make this available.

Plan, if at all possible, to be at home when guests arrive.
Greet them at the door with enthusiasm and a smile. After
introductions, offer guests that beverage or inquire
whether they would like to freshen up before discussing
house rules, meals and other considerations. Some B&B
operators take care of the business of collecting money,
signing the guest book and giving a receipt within the
first 20 minutes of a guest's arrival (Chenoweth, 1987).
Give guests a tour of their accommodations and of the B&B
pointing out where light switches are located. In the tour,
mention those areas of the home that are especially for the
B&B guests as well as those areas that are off limits to
guests. Take time to answer questions and advise about
local tourist attractions. Have a map available, local
restaurant menus and brochures on local tourist
attractions. Provide a list of the location of churches or
synagogues in the area. Find out what guests prefer to
drink for breakfast and make arrangements for special
dietary needs.

You want guests to be comfortable in your B&B. Assure them
they can ask if there is something they need such as extra
pillows or towels. Consider providing a hair dryer, curling
iron, shampoo, creme rinse, soap or other amenities as
needed. Newspapers, pleasant reading material, a game
corner in a common living area provide interesting ways for
guests to fill time. Include your own interests and hobbies
in the decor of your home and welcome discussing these with
B&B guests.

Consider offering guests the use of an iron, ironing board
or laundry facilities. A guest tray with snacks or fresh
fruit is a nice personal touch. Offer guests the
opportunity to prepare hot coffee or tea or iced tea or
water from the refrigerator.

As a host or hostess, be empathic as to guests' needs. If a
guest prefers privacy and space, sense that and recognize
the guest wants time alone. However, if a guest wants to
spend time talking, let the person get to know you as the
individual you are, share your way of life and especially
your part of the country. Follow through promptly with
requested services and handle these in a professional
manner. Be kink, considerate, thoughtful, attentive,
pleasant and positive. Above all, be a good listener.

House Rules

To insure an enjoyable experience for guests and for the
B&B operator, house rules need to be established for the
B&B business enterprise (Chenoweth, 1987; Stankus, 1987).
The B&B owner needs to carefully think of guidelines that
will insure guests' and owners' rights and privileges.
These house rules can be worked positively and mailed to
guests as reservations are made. Consider some of the
following ideas:

- Will you permit smoking?

- Will you allow social drinking?

- Will you accept infants and/or children?

- Will you accept guests traveling with pets such as a dog
or cat? Where will pets stay? It is important to inform
other guests that pets are accommodated or even to inform
guests if you have a pet in your home.

- Will you allow guests to bring in other people all hours
of the night?

- Will you permit use of the telephone? How will you
protect yourself against expensive telephone charges?

- Will you allow guests limited use of the kitchen at times
convenient to the family? Can guests prepare a hot beverage
or obtain a cool, refreshing drink of water with ice? Will
you permit one crisper tray in the refrigerator to be used
for items guests want to refrigerate? Will you allow guests
to cook or use the microwave oven?

- Will you provide guests a key to the B&B? Will you charge
a key deposit? If providing a key, consider providing a key
to the regular lock and not to an additional dead bolt
lock.

- Will guests share a bathroom with family members or with
other guests?

- Will you have times set for arrival and for departure?
Will you serve breakfast at a certain time only?

The setting of house rules permits a B&B operator to have
clear guidelines to present verbally or in written form
through advertisement or through confirmation of
reservations.

Management Practices

Good household management practices contribute greatly to
smooth operating procedures for a B&B business enterprise
(Smith, 1987). Some B&B owners only accept guests seeking
accommodations for two days or more. Fresh towels and wash
cloths are provided daily. Bed linens are changed every
third day for guests who remain for a longer time. Each day
when guests are out, the B&B operator cleans and dusts the
guest bedroom and makes the bed. Guest trays, if provided,
are replenished with snacks or amenities. The bathroom is
also cleaned daily making sure that supplies are available
including toilet tissue, hand soap and shampoo. A general
touch-up cleaning daily of shared living areas is
desirable. Some B&B operators will diagonally fold open a
bed in the evening while guests are out and place a mint or
snack on the bed. Laundry must be done as needed depending
on the number of guests and length of occupancy.

Good operating procedures include organizational practices
of purchasing groceries and supplies before guests arrive.
This allows more time for the B&B operator to enjoy guests.
Some meal preparation can be completed ahead of time and be
ready in the freezer to easily accommodate guests on short
notices. Once guests leave, beds are changed and the room
is cleaned and prepared for the next guests.

Each B&B operator works out a routine for household
management that works best in that situation. One owner
prefers to have household maintenance chores completed in
the morning while another works best in the afternoon.
Another works around the guest's plans. The development of
a routine insures smooth operating procedures and
practices.

Food Service

A B&B provides a comfortable night's lodging and breakfast
as well. The breakfast can be a significant part of the
hospitality extended to guests (Smith, 1987). Capitalize on
local favorite breakfast foods typical of your part of the
country and serve foods in season.

It is wise to review state codes concerning the B&B
operation on food service. Also, there may be local
guidelines and restrictions set up through county health
departments. Some states require tax be collected on the
food service and that requires purchase of a vendor's
license through the county auditor's department. It is
important to comply with state and local guidelines set
forth on B&B food service.

Make decisions about breakfast ahead of time. What time
will breakfast be served! Will you eat with guests or will
you allow guests to eat privately? Breakfast can be served
in the dining room, the kitchen, on an outside porch or in
the bedroom through a special tray set just outside the
door at a designated time. Some B&B operators serve
breakfast at the convenience of guests. Clear guidelines
established ahead of time avoid morning confusion.

The B&B operator must be aware of the importance of food
safety. Food left at room temperature for two hours or
longer can accumulate large counts of bacteria that cause
food borne illness. It is important to keep hot foods hot
and cold foods cold. Research surveys have shown that a can
opener can carry a high bacteria count at the area of the
cutting mechanism. The cutting mechanism usually can be
removed and be washed at the sink in hot sudsy water.
Cutting boards should be cleaned thoroughly in hot sudsy
water after cutting each food item. If you cut sausage and
then fruit on the same cutting board without cleaning
between uses, bacteria can multiply and spread. For optimum
refrigerator and freezer storage, the refrigerator should
be maintained at a 40 degree F temperature and the freezer
should be maintained at 0 degree F temperature. At these
temperature ranges, there is little or no bacteria growth.
However, refrigeration and freezing will not destroy
bacteria that is already on the food. Your local
Cooperative Extension Service office has excellent
information on optimum storage time for foods in the
refrigerator, the freezer or the cupboard. Dish towels and
dish cloths can accumulate bacteria; it is best to change
these daily.

The important factor with bed and breakfast food service is
to provide safe, wholesome, healthful food. Consider
dietary guidelines adopted by the United States Senate
Subcommittee. Serve whole grain bread products. Incorporate
fresh fruits or vegetables into menus. Consider reducing
amounts of sodium, sugar, fat and cholesterol in the diet.
Serve a variety of foods from the bread and cereal group,
meat, poultry and fish group, dairy group and fruit and
vegetable group. Consider ahead how you will handle the
need for the special diets. Will you inquire if persons are
on a special diet and obtain information from them about
their diet? Do you plan to accommodate the person on the
special diet? Registered dieticians can share suggestions
for menu selection for those persons with dietary
restrictions.

The breakfast can be a big part of the hospitality of a B&B
business enterprise. Whether you serve a continental
breakfast comprised of roll, toast or doughnut plus coffee
and juice or whether you serve a full breakfast, set an
attractive table and add variety to menu plans. Serve fresh
brewed coffee rather than instant. Provide fruit in season.
Offer a variety of herbal or regular teas. Homemade breads,
muffins, casseroles and egg dishes are good choices. An
attractive table with table cloth or placemats, cloth
napkins, a nice centerpiece, dishes and flatware is a
welcome delight to bed and breakfast guests.

If you have a favorite breakfast recipe, consider printing
that recipe with the B&B name, logo and telephone number to
share with guests. This can be a nice gesture on your part
that serves as a marketing strategy.

Hospitality management is one of the most important aspects
of a bed and breakfast enterprise. It is successful
hospitality management practices that create a warm welcome
and a memorable stay for bed and breakfast guests.

Conclusion

Starting a B&B business can actually be very simple. It is
the matter of securing the various licenses, permits and
registration that are required to start. Successfully
operating the B&B is another matter. This involves the
whole aspect of marketing and hospitality management. It is
very important for the B&B operator to be able to attract
guests, to make them feel comfortable and to have them
return time and time again. B&Bs are not for everyone.
Gather the facts, analyze them very carefully and then
decide if you are the type of person who likes to deal with
the public. You are the best person to determine whether a
B&B enterprise is for you.

APPENDIX A

Checklist

Some of the federal taxes for which a sole proprietor, a
corporation or a partnership may be liable are listed
below. If a due date falls on a Saturday, Sunday or legal
holiday, it is postponed until the next day that is not a
Saturday, Sunday or legal holiday. For more information,
see Publication 509, Tax Calendars for 1990.
(Vis. 1)


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University, East District, Caldwell, Ohio.

Smith, E. (1987). What Is A Bed and Breakfast? History of
B&Bs. What Kinds of People Own B&Bs. B&B Fact Sheet, Ohio
Cooperative Extension Service, The Ohio State University,
East District, Caldwell, Ohio.

Smith, E. (1988). Bed and Breakfast Taxes. B&B Fact Sheet,
Ohio Cooperative Extension Service, The Ohio State
University, East District, Caldwell, Ohio.

Smith, E. (1988). A Summary of the 1988 Bed and Breakfast
Industry in the State of Ohio. B&B Research Summary, Ohio
Cooperative Extension Service, The Ohio State University,
East District, Caldwell, Ohio.

Stankus, J. (1987). How to Open and Operate a Bed and
Breakfast Home. Chester, Connecticut: The Globe Pequot
Press.

Waymon, L. (1986). Starting and Managing a Business from
Your Home (Volume 102). Washington, D.C.: U.S. Small
Business Administration, Office of Business
Development.

Zander, M. (1986). How to Start Your Own Bed and
Breakfast. New York: Golden Hill Press.

Other Publications Available:

The Natural Resources Management and Income Opportunity
Series consists of papers from the First Eastern Conference
on Income Opportunities held in April 1989. Supplementary
information in some papers will provide comprehensive
coverage of the topics. It is hoped that the entire series
of extension publications listed below, will be completed
by the end of 1990. The numbers indicate the papers
included in each publication.

Philosophy and Policy

1. The Future of Access to Private Lands
Laurence R. Jahn
1. Turnips, Carrots and Wetlands: Promoting Private
Sector's Stewardship of a Public Sector Resource
J. Scott Feierabend
2. Challenges and Opportunities for Natural Resource
Programs to Assist Private Landowners
R. Neil Sampson
2. Natural Resources Management Needs for Private
Landowners in the Northeast
Hebert E. Doig
2. Future Trends and Activities
James E. Miller
3. Appreciative Use of Wildlife--The Recreational
Choice of Three Out of Four Americans
M. Rupert Cutler

Research

4. Public Recreation on Private Land: Research Needs and
Considerations
Lawrence W. Libby
5. Research Issues Related to Recreation Enterprises for
the Private Landowner
Dale Colyer and Dennis K. Smith

Alternative Enterprises

6. Evaluating the Feasibility of Alternative Agriculture
and Natural Resource-Based Enterprises
David W. Gross
7. An Urbanizing Perspective: Use of Forest and Woodland
Alternatives
Robert L. Tjaden
7. A Rural Perspective of Agricultural and Small Woodlot
Income Alternatives
Anthony G. Hankins
8. Wildlife Opportunities: Species Having Management and
Income Potential for Landowners in the East
Peter T. Bromley
8. Non-traditional Uses of Range lands for Income Producing
Activities
Larry D. Butler
9. Risk Recreation Activities on Private Lands: Trends,
Issues, Problems and Opportunities
Steve Hollenhorst
10.Income Opportunities on Reclaimed Surface-Mined Lands in
Central Applachia
Carl E. Zipper and Jeff G. Skousen

Resource Management

11. Aquaculture, Fishing and Other Income Opportunities
from Aquatic Systems
Brian L. Nerrie
11. Fee Fishing: Income Opportunities for Rural Areas
Jack Kiely
12. Waterfowl: Income Potential and Problems
Edward C. Soutiere
12. Waterfowl: An Alternative Income Producing Option for
Recreational Access
Isadore Matarese and Linda Matarese Graham
13. Hunting Preserves for Sport or Profit
Edward L. Kozicky
14. Assessing/Evaluating/Improving Your Potential from
Wildlife
James L. Byford
15. Food Security Act of 1985: Impact on Resource
Management and Utilization
Billy M. Teels

Economics

16. Demand for Outdoor Recreation in the United States:
Implications for Private Landowners in the Eastern
United States
Linda L. Langner
17. Toward a Better Understanding of Recreational Access to
the Nation's Private Lands: Supply, Determinants,
Limiting Factors
Brett A. Wright
18. Economic and Social Significance of Recreational Access
for the Rural Community
Tommy L. Brown and Daniel J. Decker

Business Management and Marketing

19. Hunting Clubs: Potential and Problems
W. H. (Bill) Tomlinson, Jr.
19. Clubs: An Income Producing Option for Recreational
Access
Lanier Frantz and Peter T. Bromley
20. Pricing - Costs/Returns of Recreational Access
Don W. Steinbach
20. Stewardship for Profit: Dollars and Cents
Ross (Skip) Shelton III
21. Forms of Business Organizations With Emphasis on
Landowner Cooperatives for Natural Resources
Greg K. Yarrow
21. Taxes, Records and Accounting for Small Businesses
James J. Grippe
22. Marketing: Principles and Practices
Cyril M. Lobar
22. The Forgotten Lesson: The Customer Pays the Bills
William J. Dolan
22. Risks, Capital, Profit and the Entrepreneurial Spirit
Dave Longaberger

Entrepreneur's Philosophies and Experiences

23. Big Game Fee Areas: Income Opportunities on Industry
Lands
Ronnie E. Brenneman
23. Tree Farm
C. W. (Sonny) Newhall
23. Back Roads Adventures: A Private Enterprise Model for
Nature Study on Private and Public Land
Linda Cooper Elkinton
23. Fort Lewis Lodge: A Place for High Quality Outdoor
Recreation
John Cowden and Peter T. Bromley
24. Bed and Breakfast
Edward L. Smith and Anne and Paul Mechling
25. Campgrounds
Howard Campbell

Legal Issues

26. PART ONE: Introduction Basics of Law Relative to
Natural Resource Enterprises
Michael T. Olexa and Steven Mack

PART TWO: Legal Liability Associated With Profitable
Resource-Based Recreation on Private Land
John Becker

PART THREE: Recreational Use on Industrial Forest
Ownership-Problems and Opportunities
Carlton Owen

PART FOUR: Protective Legal Measures and Concerns
Of Private Landowners
John J. Rademacher

PART FIVE: Criteria for Lease Considerations for Profit
Recreational Access
Michael Maccabe

PART SIX: Easements and Rights-of-Way
Brenda Walker and Anthony Ferries

27. Statutory Law Related to Recreational Access in the
Eastern United States
Anita Alt, William Hodgson and Anthony Ferrise

Insurance Issues

28. Insurance Issues Related to Recreational Access to
Private Lands
John Copeland and Earle Dillard

For information on availability and a price list on the
series (except for Campgrounds and Statutory Law Related to
Recreational Access in the Eastern United States) contact:

William N. Grafton
Extension Specialist - Wildlife
West Virginia University
P.O. Box 6125
Morgantown, WV 26506-6125

304-293-4797

Anthony Ferrise
Extension Specialist - Rural Development
West Virginia University
P.O. Box 6108
Morgantown, WV 26506-6108

304-293-3408

Availability and prices for publications #26 and #28 may be
obtained from:

National Center for Agricultural Law Research & Information
Robert L. Leflar Law Center
University of Arkansas
School of Law
Fayetteville, AR 72701

501-575-7646

Programs and activities offered by the West Virginia
University Cooperative Extension Service are available to
all persons without regard to race, color, sex, national
origin, or handicap.

Cooperative Extension Work in Agriculture and Home
Economics, West Virginia University and the United States
Department of Agriculture, Cooperating. Rachel B. Tompkins,
Director, Morgantown, West Virginia. Published in
Furtherance of Acts of Congress of May 8 and June, 1914.

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