Everything You Need to Know to Start a bed and breakfast in Ontario -

Opening a bed and breakfast can be an extremely rewarding venture. Not only can running a B&B allow you to work from home and be your own boss, but it also lets you meet interesting travelers from around the world. If you’ve always dreamed of operating a charming, cozy inn, Ontario is a wonderful place to start.

With its vibrant small towns, stunning natural scenery, and major cities like Toronto, Ontario attracts tourists from across Canada and beyond. The province’s B&B scene is thriving, though competition can be fierce in hot spots like Niagara-on-the-Lake. Even still, opening a unique B&B in Ontario remains an attainable goal with proper planning and preparation.

This article will walk you through everything you need to know to start a successful bed and breakfast in Ontario. With dedication and smart decision making as you set up your business, your dream of owning an inviting Ontario B&B can become a reality. Let’s get started!

Key Takeaways

Understanding the bed and breakfast industry is essential before starting a business.
Developing a solid business plan is crucial for success.
Deciding on the type of bed and breakfast and legal considerations are important steps to take.

1. Understand the Bed and Breakfast Industry

Starting a bed and breakfast in Ontario can be a profitable and rewarding business venture. However, before you begin, it’s important to have a good understanding of the industry.

Bed and breakfasts are typically small, independently owned establishments that offer overnight accommodations and breakfast to guests. They are often located in residential areas or historic homes and offer a more personalized experience than traditional hotels.

The B&B industry in Canada is growing and there is a lot of competition, so it’s important to differentiate your B&B from others in the area.

One way to stand out is by offering unique amenities or experiences, such as cooking classes or guided tours of the local area. Another way is by providing exceptional customer service and creating a welcoming atmosphere for your guests.

When starting a B&B, it’s important to research the local regulations and zoning laws that apply to your business. You may also need to obtain permits or licenses, such as a food handling permit or a liquor license, depending on the services you offer.

In addition, you’ll need to consider the costs associated with starting a B&B, such as property renovations, furnishings, and marketing expenses. It’s important to create a detailed business plan and budget to ensure that you’re prepared for these costs.

By understanding the bed and breakfast industry and taking the necessary steps to differentiate your business, you can create a successful and profitable B&B in Ontario.

2. Develop a Business Plan

A well-written business plan is essential for any successful venture. Here are some key components to consider when developing your bed and breakfast business plan.

Define Your Target Market

Before you start your bed and breakfast business, it is important to have a clear understanding of your target market. Who are your potential guests? What are their preferences and needs? What are the demographics of your target market? By answering these questions, you can tailor your services and amenities to meet the needs of your guests.

Services and Amenities Offered

Your bed and breakfast business plan should outline the services and amenities you will offer to your guests. This may include breakfast, room service, laundry facilities, and other amenities. It is important to consider what your guests will expect from your bed and breakfast and how you can exceed their expectations.

Marketing Strategies

Your marketing plan should outline how you will promote your bed and breakfast to your target market. This may include online advertising, social media marketing, and other promotional activities. It is important to consider how you will differentiate your bed and breakfast from your competitors and how you will attract guests to your establishment.

Financial Projections

Your financial plan should include projected income and expenses for your bed and breakfast business. This may include startup costs, operating expenses, and revenue projections. It is important to have a realistic understanding of your financial projections to ensure that your bed and breakfast is financially viable.

Operational Plan

Your operational plan should outline how you will manage your bed and breakfast business on a day-to-day basis. This may include staffing, inventory management, and other operational activities. It is important to consider how you will ensure that your bed and breakfast runs smoothly and efficiently.

3. Decide on the Type of Bed and Breakfast

Starting a bed and breakfast in Ontario requires careful planning and decision-making. One of the key decisions you need to make is the type of B&B you want to run. This decision will depend on your interests, skills, and budget.

Choose a Niche and Theme

Choosing a niche and theme for your B&B is a great way to differentiate yourself from competitors and appeal to a specific target market. For example, you could specialize in eco-tourism, adventure tourism, or culinary tourism. Your theme could be based on the local history, culture, or architecture of your area. There are some pro and cons of targeting niche market, so make sure it aligns with your personal interests and passions.

Select an Ideal Location in Ontario

Selecting an ideal location for your B&B is crucial to your success. You want to choose a location that is easily accessible, attractive, and has a high demand for accommodation. Consider the proximity to tourist attractions, transportation hubs, and local amenities. Research the competition in the area to ensure that there is a gap in the market for your B&B.

Determine the Size and Scale of Your B&B

Determining the size and scale of your B&B will depend on your budget, location, and target market. You could start small with just a few rooms and gradually expand as your business grows. Alternatively, you could start big with a large property and offer a range of services and amenities. Consider the cost of renovations, furnishings, and equipment when determining the size and scale of your B&B.

4. Fund Your B&B Business

B&Bs often require substantial property investment, whether purchasing a suitable building or extensively renovating existing property to meet commercial hospitality standards. Historic properties, while charming, may need costly updates for accessibility and safety compliance.

Additionally, &Bs must meet strict health department requirements, fire safety codes, accessibility standards under the Accessibility for Ontarians with Disabilities Act (AODA), and municipal zoning bylaws. These compliance costs can be substantial, including commercial-grade kitchens, fire suppression systems, and accessibility modifications.

Here’s how you can secure funding for your new venture:

Traditional business financing

Commercial mortgages are common for B&B property purchases, though lenders typically require 25-30% down payment and factor in projected hospitality income. Business term loans can cover renovations and equipment. Lines of credit provide flexibility for seasonal cash flow management and unexpected expenses.

Hospitality-specific lenders

Some financial institutions specialize in hospitality financing and understand B&B business models better than general business lenders. They may offer more favorable terms for experienced operators or compelling business plans.

Alternative and specialized funding

Equipment financing for commercial kitchen appliances, furniture, and hospitality systems. Revenue-based financing where repayment is tied to your B&B’s income performance. Some online lenders focus specifically on hospitality businesses.

Creative approaches

Seller financing if purchasing from another B&B owner who’s retiring. Lease-to-own arrangements for equipment. Crowdfunding platforms, particularly if your B&B has a unique concept or community connection.

Government programs

There are many government programs available for the hospitality industry such as:

BDC Small Business Loan: A BDC Small Business Loan is designed to help Canadian entrepreneurs like you fund a wide range of business needs, from purchasing equipment to covering payroll or launching marketing campaigns. You can apply easily online for amounts up to $100,000, with approval subject to review.
BDC Startup Financing: If you’re looking to launch or grow a business in Canada, BDC’s Startup Financing can help get you started with flexible loans up to $150,000. BDC is specifically focused on supporting entrepreneurs and offers advice alongside funding.
Community Futures program: The program delivers a mix of funding, mentorship, and business advisory and could be a key source of support for your small business. This federally funded initiative focuses on building resilient local economies across Canada.
Canada Small Business Financing Program: CSBFP is a federal initiative that aims to make it easier for you to get loans from major banks or credit unions by having the government share part of the risk with your lender.
Commercial Façade Improvement Grant Program: This Program provides funding to commercial property owners and tenants of commercial property in Toronto, to redesign, renovate or restore facades on commercial buildings.
Commercial Space Rehabilitation Grant Program: The Commercial Space Rehabilitation Grant Program offers matching funding of 50 per cent to commercial business operators and owners of storefronts in Toronto that are vacant (or, in certain limited circumstances, at risk of becoming vacant) to undertake interior renovations.
Energy Retrofit Loans: Through the ERL program, the City of Toronto offers fixed, long-term, low-interest financing to enable building owners to invest in low-carbon, energy-efficient capital improvements.
Retail Accelerator Program: This program provides access to retail training, advisory services and mentoring opportunities to retail businesses in Toronto. In addition, it offers a micro grant valued at $10,000 to help retail businesses develop and expand.
Upgrade to Building Code Loan: This program by city of London offers financial support for interior improvements to your building, including upgrades to plumbing, electrical systems, HVAC, mechanical systems, roofing, fire protection systems, and other work required to meet Building Code standards.
Parking reduction agreement: Section 40 of the Planning Act, R.S.O. 1990, c.P.13 allows the municipalities in Waterloo to exempt the owner of a property from the requirement to provide parking, subject to an agreement being registered on title to the lands.
Save on Energy – Retrofit Program: The Save on Energy Retrofit program offers businesses in Ontario incentives to upgrade equipment, reduce energy bills, lower their carbon footprint and increase productivity.
Orillia Area Community Development Corporation Working Capital Loan Fund: Orillia Area CDC offers working capital loans to local businesses in the Tourism, Retail, Service and Construction sectors.

5. Legal Considerations

Starting a bed and breakfast in Ontario requires you to comply with various legal considerations. This section will provide you with an overview of the most important legal requirements you need to follow.

Zoning Laws

Before you start your bed and breakfast, you need to check the zoning laws in your area. Zoning laws regulate the use of land in different areas and determine what types of businesses are allowed in each zone. You need to make sure that your property is zoned for bed and breakfast use. Contact your local municipality to find out about the zoning laws in your area.

Health and Safety Regulations

As a bed and breakfast owner, you are responsible for ensuring that your property meets health and safety regulations. You need to make sure that your property is clean, safe, and free from hazards. You also need to provide your guests with safe food and drinking water. Contact your local health department to find out about the health and safety regulations in your area.

Insurance Requirements

You need to have insurance coverage for your bed and breakfast. Insurance policies for bed and breakfasts typically cover liability, property damage, and loss of income. You should consult with an insurance agent to find out about the insurance requirements for your bed and breakfast.

Licenses and Permits

You need to obtain various licenses and permits to operate your bed and breakfast. The licenses and permits you need depend on the location of your bed and breakfast and the services you provide. You may need to obtain a business license, a food service permit, and a liquor license. Contact your local municipality to find out about the licenses and permits you need.

6. Renovating and Decorating Your Property

Starting a bed and breakfast in Ontario requires you to create a welcoming atmosphere. How you decorate and renovate your property will play a significant role in this. Here are some tips to help you create a warm and inviting space for your guests.

Creating a Welcoming Atmosphere

When renovating and decorating your property, consider the following:

Choose a color scheme that is warm and inviting. Earthy tones like beige, brown, and green work well.
Invest in comfortable furniture, such as cozy armchairs and a plush sofa.
Add some personal touches, such as family photos or artwork. This will make your guests feel like they are staying in a home away from home.
Use soft lighting to create a relaxing ambiance. Dimmer switches are a great way to control the lighting in each room.

Ensuring Comfort and Privacy

When it comes to creating a comfortable and private space for your guests, consider the following:

Invest in high-quality mattresses and bedding. This will ensure that your guests get a good night’s sleep.
Provide plenty of pillows and blankets to keep your guests cozy.
Install blackout curtains to ensure that your guests get a good night’s sleep.
Provide amenities such as toiletries, towels, and robes to make your guests feel pampered.

By following these tips, you can create a warm and inviting space for your guests. Remember, the little touches can make a big difference in creating a memorable experience for your guests.

7. Hiring and Managing Staff

When starting a bed and breakfast in Ontario, hiring and managing staff is an important aspect to consider. Here are some tips to help you find and manage the right staff for your B&B:

Hiring Staff

When hiring staff for your bed and breakfast, it is important to look for individuals who are friendly, reliable, and have a passion for hospitality. Here are some roles you may need to fill:

Chef: responsible for preparing breakfast and other meals for guests
Housekeeper: responsible for cleaning and maintaining guest rooms and common areas
Front Desk Staff: responsible for greeting guests, handling reservations, and providing information about the area

When interviewing potential staff members, ask questions that will help you determine if they have the necessary skills and personality to work in a B&B. For example, you may want to ask:

Have you worked in hospitality before?
What do you enjoy about working with people?
How would you handle a difficult guest?

Managing Staff

Once you have hired your staff, it is important to manage them effectively to ensure that your B&B runs smoothly. Here are some tips for managing your staff:

Provide clear job descriptions and expectations for each staff member
Schedule regular meetings to discuss any issues or concerns
Offer training and development opportunities to help your staff improve their skills
Recognize and reward good performance

By hiring the right staff and managing them effectively, you can create a welcoming and comfortable environment for your guests, which will help your B&B thrive. For more information on hiring and managing staff for your B&B, check out this Smart Hiring Guide for Starting a Bed and Breakfast.

8. Setting Up Online Presence

To attract guests to your bed and breakfast, having a strong online presence is crucial. This will allow potential guests to find your property, learn more about it, and book their stay. Here are some key steps to setting up your online presence:

Website Development

A website is the centerpiece of your online presence. It should provide all the information guests need to know about your bed and breakfast, including photos, room descriptions, rates, and availability. You can also use your website to showcase your property’s unique features and highlight any special offers or packages.

When developing your website, keep in mind that it should be easy to navigate and optimized for search engines. This will help ensure that potential guests can find your website when searching for accommodations in your area. Consider hiring a professional web developer or using a website builder platform to create a website that is both visually appealing and functional.

If you don’t want to go the hassle of creating your own website, you can use third-party platform such as Airbnb or Vrbo.

Social Media Marketing

Social media is a powerful tool for promoting your bed and breakfast and engaging with potential guests. Platforms like Facebook, Instagram, and Twitter allow you to share photos and updates about your property, respond to guest inquiries, and advertise special offers or events.

To make the most of social media, be sure to post regularly and use relevant hashtags to increase visibility. You can also run targeted ads to reach potential guests in your area or demographic. Consider hiring a social media manager or using social media management tools to help you stay on top of your accounts and engage with your audience effectively.

9. Managing Operations and Guest Experience

Running a bed and breakfast in Ontario requires a lot of attention to detail and a focus on providing excellent guest experiences. Here are some tips to help you manage your operations and ensure your guests have a memorable stay.

Efficient Reservation and Booking Systems

Having an efficient reservation and booking system in place is crucial to ensure that you can manage your occupancy levels and avoid double bookings. Consider using a booking management system such as Little Hotelier or a similar software that allows you to manage reservations, payments, and guest communication from one place. Make sure to keep your availability calendar up to date and respond promptly to guest inquiries.

Streamlining Check-in and Check-out Processes

Make the check-in and check-out process as smooth as possible for your guests. Consider offering self-check-in options or providing a map and clear instructions for guests to find their room. Have a clear process in place for collecting payment, returning keys, and checking the room for damages before guests depart.

Ensuring Cleanliness and Maintenance Standards

Cleanliness and maintenance are essential to providing a comfortable and safe environment for your guests. Develop a cleaning schedule that covers all areas of the property, including guest rooms, common areas, and outdoor spaces. Regularly inspect the property for maintenance issues and have a plan in place to address any problems promptly.

Personalizing the Guest Experience

Personalizing the guest experience can make your bed and breakfast stand out from competitors. Consider offering complimentary snacks or drinks in the room, providing recommendations for local attractions and restaurants, or adding small touches such as fresh flowers or personalized welcome notes.

Handling Guest Complaints and Feedback

No matter how well you plan, there will be times when guests have complaints or feedback. Respond to guest complaints promptly and professionally, and take steps to address any issues. Encourage guests to leave feedback, both positive and negative, and use this feedback to improve your operations and guest experience.

Frequently Asked Questions

There are several grants and funding programs available for starting a B&B in Ontario. You can find hundreds of grants through this searchable database of grants.

Starting a B&B business with no money requires creativity and resourcefulness. One option is to start small and build up the business gradually. You can start by renting out a spare room in your home and reinvesting the profits into the business. Another option is to partner with other local businesses to offer packages or promotions that can help attract customers.

The costs associated with starting a B&B can vary widely depending on factors such as the size of the property, the level of renovations required, and the amount of marketing and advertising needed. Some of the costs to consider include licensing fees, insurance, utilities, furnishings, and marketing expenses.

To obtain a B&B license in Ontario, you must first obtain a zoning certificate from your local municipality. You must also meet certain health and safety requirements, such as having working smoke detectors and providing adequate fire exits.

The profitability of running a B&B can vary widely depending on factors such as the location, the size of the property, and the level of competition in the area. However, many successful B&B owners are able to generate a steady stream of income by offering high-quality accommodations and personalized service to their guests.

The steps to turn your home into a B&B can vary depending on factors such as the size of your property and the level of renovations required. However, some of the general steps to consider include obtaining a zoning certificate, obtaining any necessary licenses and permits, making any required renovations or upgrades, furnishing the property, and marketing the business to potential guests.