Posted by Hansie Britz on 30 December 2014



B&B 1                    B&B                B&B 2


Clarify in your own mind the type of establishment you would like to develop.

Decide on your objectives:

  • Is the objective to be host to visitors from abroad?

  • Will local tourist be welcome?

  • Will children be welcome?

  • What kind of accommodation do you intend to offer?

  • Is your objective primarily to make money by taking in guests or are you also interested in the social aspects of the venture?

Factors to be considered:

  • Changes to your daily routine.

  • Intrusion upon your privacy.

  • You will have to be available 24/7.

  • As the entire family will be affected by a business of this nature, canvass the support of family members.

Location of Establishment.

Location is of major significance and factors influencing this include:

  • Proximity to popular tourist attractions, conference facilities etc.

  • Location along tourist routes.

  • Proximity to alternate affordable accommodation.

  • Easy access.

  • Good visibility.


Thorough research should be undertaken before deciding whether to embark on the project. A concise, well formulated feasibility analysis serves a dual purpose –

(1) It marshals the thought and ideals of the developer -:

  • Does the prospective developer have the right temperament to run the enterprise?

  • Were all organizations approached for relevant information?

  • Did the developer carefully consider the cost and other implications of admitting overnight guests to his/her home?

  • Are calculations of expenditure versus envisaged income realistic?

  • Is trained staff readily available or will additional tasks be handled by the developer?

(2) It serves as a document to convince others of the viability of the project:-

  • To obtain financing if necessary.

  • To convince suppliers and possibly a partner/s.

  • To convince the family who will be affected by the enterprise.

The following elements should be included in the feasibility analysis:- (We strongly suggest you approach a small business institute or advisory bureau to assist you)

Competitive Analysis.

  • Do similar facilities exist in the immediate vicinity?

  • Where are they located?

  • At which markets are they targeted?

  • Could there be a market overlap with your envisaged establishment?

  • Is there a market need for your establishment?

  • What percentage of the overall market do you expect to draw?

Financial Analysis.

Clearly determine the objective of the business – project income and expenditure scenarios – investigate the availability of trained staff, if required – approach small business consultants to provide you with advice if at all possible.


After researching all aspects pertaining to your project draw up a working plan and include the following:-

  1. Daily running of the establishment.

  2. Financing the facility.

  3. Legal Matters.

Daily Running of the Establishment.

In the daily running of the establishment acceptable standards should be maintained. Particular attention should be paid to the following:-

  • Staff must be well trained.

  • Neatness is of the utmost importance.

  • Quality equipment – towels, bedding etc must be provided – also consider extras such as special soap, shampoo etc.

  • Furniture, fittings and fixtures must be of good quality and in working order.

  • Building must be well maintained.

  • Rest rooms and other public amenities should be cleaned regularly and kept tidy.

  • Provision must be made for guest parking. This is of utmost importance to the business and self-drive traveler.

  • Bath and toilet facilities must be serviced daily.

Handling of guests.

  • Aspects such as welcoming, friendliness, warmth and hospitality are the cornerstones and key features of the hospitality industry.

  • Cultural differences must be considered.

  • Language proficiency is an advantage.

  • Knowledge of tourist attractions in the immediate vicinity is an important requirement.

  • Telephone numbers of emergency medical services must be readily available to guests.

  • There must be no confusion with regard to meal times, coffee and tea times, provision of keys and other relevant matters.

  • Courtesy and punctuality are very important.

Financing of the facility.

Three possibilities for which financing may be required:-

1. If the property is suitable for the purpose and meets the requirements, only a small capital expenditure may be needed for furnishings and refurbishing, including linen.

2. If the property does not meet the requirements, structural adjustments may be necessary such as outbuildings, outer doors, etc. It may also be necessary to enlarge or improve the kitchen and dining room facilities and to build additional parking facilities.

3. If the property must still be purchased or developed, a large capital expenditure may be required.

Where necessary, provision must be made for:-

  • Transfer fees.

  • Bond fees – registration etc.

  • Attorney fees.

  • Property Valuation Fees.

  • Inspection Fees.

  • Insurance.

  • Issuing Guarantees.

  • Cost of Drawing up contracts.

  • Purchasing furniture, linen and fittings.

Beware of an unprofitable investment. The potential income must be weighed carefully against the interest on the investment, both in the short and long term.



Thinking about setting up a business?

We have the know how to get you going!