Most future Innkeepers place too much emphasis on price when building their
acquisition model. While many B&Bs are overpriced, price often is an indication of
quality and viability.
Low prices many indicate a poor business performance. It is likely that it will be
difficult to finance and owners may not be willing or able to participate in the financing.
The result is a high down payment, extensive cash expenditures on the building and
furnishings, heavy marketing costs and a long period of negative cash flow. The end
result at best is going to be a significant cash investment. At worst, it is to be a poor
investment in a non-viable business.
An Inn with a higher initial price tag may, in the long run, require less capital and
provide a profitable future.
As in size, it may be a classic case of more is less!
