From the net
http://www.naa.co.za/html/soyouwant.htm
SO YOU WANT TO RUN A B&B
We hope this information will provide enough useful information to give you either the incentive to continue if you are already up and running, or an insight to the business if you are considering setting up.
Introduction
This country is custom-made for the B&B/Guesthouse industry. Where else in the world do people own houses of such size and splendour, with magnificent views, swimming pools, staff, beautiful gardens and entertainment areas? It provides the perfect recipe for such a business.
Where else will you find the people so friendly, hospitable and willing to please?
So, there you are, everything in place, all the foundations necessary to open up and go. But, hang on, life is not that perfect is it? There must be a negative in all this positive talk.
Ask yourself, are you a bit strange, do you like welcoming total strangers into your home, are you prepared to treat them better than your own friends and family, will you happily give up your social life at the drop of a hat, will you be able to smile when you really would rather not, are you capable of being a porter, receptionist, counselor, chef, waitron, childminder, nurse, computer boffin, maintenance handyman, bar person, chauffeur, travel guide and know everything, or , if you don’t, know someone who does?
Those that already operate businesses in the hospitality industry will read this and smile to themselves, they will identify with all of the above, they do it every day without even realizing it and do it because they love it. You can be sure that anyone who tried it and didn’t love it left when the opportunity arose.
To summarise, running a B&B/Guesthouse establishment is a great lifestyle, own boss, flexible hours and you get to meet large numbers of lovely, interesting visitors from both near and far, but there is a price to pay personally and your character must fit the job description as with any successful career move.
First Jobs First
Do some market research of the area in which you will operate. How many other such establishments are there in close proximity, are they busy, will another business of its kind flourish with the trade available? Will the majority of guests be corporate, are you situated in a business environment where travelers from companies will need overnight accommodation? Is there a hospital close by, families of patients may need a B&B? Are you close to a holiday resort or tourist attraction e.g. game reserve, etc? Try to think of all the possible reasons a person might need you, this will assist you with evaluating your chances of potential business as well as providing suggested areas in which to advertise.
Does the local council require that you obtain a licence or special consent to operate? If there is a B&B Association locally ask their advice or contact the Town Planning or Licensing Departments of your municipality.
If this is a requirement you must comply with, how long will the process take, what is the procedure and costs involved?
Other Important ‘Musts’
Join the local B&B Association. If one does not exist, encourage other B&Bs around you to join forces and create one to strengthen yours and their position for negotiation with suppliers and your municipality and tourism bodies.
Many associations of this kind have joined together to form provincial associations. They are able to give assurance to their customers that their members are reputable and reliable.
Below are details of provincial associations which form the NAA-SA [National Accommodation Association] – this in turn provides members with a united ‘voice’ as well as an ‘individual voice’ at every level. Contact the appropriate representative in your province for details of local associations to which you may approach for information.
Insurance
Contact insurance companies that offer a customized B&B insurance, complete with public liability [a guest could fall on your property, drown in the pool, get food poisoning – sounds awful but we need to be prepared for all eventualities, cover for theft from a room, an accident in your car collecting them from A to B during their stay, loss of earnings if there is a disaster such as shark attack, bomb or whatever. The important thing to realize is that ordinary domestic house insurance does not cover what you are about to embark upon.
TV Licences
Now that you intend to operate a commercial venture you must comply with the rules with regard to displaying publicly TV programmes. Mnet will consider you as a business and charge you as such, as will SABC and DSTV – you need a licence for every TV on your property. It is as well to declare your intentions to both and pay the correct fees, to do otherwise could make you liable for penalties and fines.
Contact your Mnet provider for further details and a quote.
When you pay your TV licence at the Post Office state on the form the number of TVs you are paying for and keep the receipt for future reference. Discount to members available.
Certificate of Compliance for Food Preparation
This certificate must be obtained from your local Department of Health. Remember if a guest contracts food poisoning you will need the protection of the health inspector. If you apply you will be given six months to put right any wrongs, if you are caught operating without a certificate you will be closed down until compliance is achieved.
Tax
Register for tax as a provisional taxpayer. Keep a set of accounts, register for VAT if you need to, get yourself an accountant. Remember you are running a business and must be seen to be professional. If you start this way you will reap the benefit, know and understand what is and what is not tax deductable.
Liquor Licence
A LIQUOR LICENCE is required if you intend to serve liquor even complimentary drinks. Legislation is by province and not national you should, therefore, approach your provincial councillor for contact information.
Smoking Legislation
Signs must be displayed in areas designated for smoking, no-snoking signs elsewhere. Signs available via KWABABA
Labour Acts
Staff and their contracts and rights – check with the State Library for copies of the legislation applicable to Employment Conditions and Labour Legislation as it applies to the Hotel and Catering Industry [Basic Conditions of Employment Act 1998 or Wage Determinations if they apply to your area]. There is new legislation on the way to replace the existing legislation.
Business Levy
check with your municipality , failure to pay may will make you liable to a fine.
Qustions you must ask yourself
• Am I prepared to abide by the rules, regulations and legislations applicable to the operation of a B&B/Guesthouse/Accommodation establishment?
• Is there a market for my intended business in this area?
• Do I like people, am I tolerant, understanding and sociable?
• Is the venture financially viable for me?
Helpful Hints
• Allow 3 sets of linen for each room [bed sets, towels, bathroom mats]. A combination of three one night bookings plus bad weather can cause headaches with less.
• Style your business in a way that you find works for you, if you are enjoying your day then so will your guests. By all means seek advice from other owners with experience, but then adapt their methods to suit you.
• Get your price right, too low will attract the wrong business, too high and your customers will be disappointed and have expectations that you will be unable to fulfill.
