BED AND BREAKFAST: A HOME-STYLE BUSINESS

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We decided to prohibit pets and smoking, too. Now—having had some experience in the matter—we've discovered that most people seeking a B & B lodging tend to be friendly, well-traveled individuals . . . folks who prefer atmosphere to amenities and who practically tiptoe around the house to show their respect.

Getting clear answers to our questions about zoning and insurance matters was more difficult, but we think we've arrived at satisfactory conclusions. It seems that as long as one doesn't attempt to open a fullfledged guest house—complete with three meals a day—most local zoning regulations won't prohibit operating an unlicensed, small-scale bedand-breakfast business. Furthermore, homeowner's policies typically cover liability for paying guests to some degree.

And at least a few of the B & B organizations provide—as a membership fee benefit—additional insurance to cover any guests they refer. My wife and I explored the possibility of adding coverage through our insurance company, but the subject soon began to seem exceedingly complicated (at first, understandably enough, our carrier didn't even know what B & B was). As a result, we decided not to change our insurance, opting instead to simply assume some risk ourselves.

BUSINESS BASICS

We joined two B & B organizations in the late summer of 1981, at a total yearly cost of $65. (The money would have been refunded if no guests had been referred to us.) Now that we look back, we realize that we picked an ideal season to begin our enterprise ... because our "late" start allowed us time to get ready for a moderately active spring and a busy summer.

However, those living near ski resorts or other cold weather vacation centers will possibly find that winter is the busiest season. As we waited (with a mixture of anticipation and nervousness) for our first guests to arrive, an important question came up: What sort of records would we have to keep? My experience as a writer, coupled with the knowledge I picked up during a six-month stint in direct sales, proved useful in helping me set up the necessary paperwork. Basically, we employed a system of tracking income and expenses.

Some of our first-year guests paid directly ... others sent a deposit to the B & B referral service and paid us the balance. (An organization making a referral receives a percentage of that customer's lodging fee . . . in our case, 15% of either $30 per person per day or $35 per couple per day.)

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