Bed & Breakfasts represent one approach to making "home" an active partner in a real estate owner's financial security. The book, To B&B or Not To B&B: The Fun and Facts of Operating a Bed and Breakfast, takes the guess work out of deciding whether this home-based enterprise is right for you.

Owning a B&B could be the realization of a dream or a living nightmare -- the difference may lie in how well you do your homework.

Bed & Breakfasts offer opportunity on many levels, but the complexities attached to gaining these benefits can be a challenge. People searching for an active lifestyle that combines what they love about living in an interesting neighbourhood with the pleasure they receive from meeting people from different countries and walks of life, often consider operating a B&B. These businesses have the added benefits of:

• income earning

• tax advantages to enable renovation and counterbalance income

• opportunities to indulge a love of cooking, interior decorating, gardening or antique collecting

• business ownership and a role building the community

• investing in a business and real estate which may later be sold for a profit

• financial and time savings from living and working under the same roof

• additional income to finance an otherwise unaffordable real estate purchase or a renovation.

However, achieving these benefits and advantages requires special skills, business acumen and a lot of determination according to To B&B authors Bruce and Mary Jaffary, B&B owners with a depth of experience that makes their advice, encouragement and cautions useful for evaluating the fit between what you hope to achieve and what these businesses can offer.

Over the years, The Jaffrays have renovated and owned four B&Bs, each in a different community, as they satisfied their personal quest for fresh challenges and new places. Out of this accumulation of experience and knowledge, and twenty years in the hospitality industry, grew their seminars for prospective B&Bers, consulting to existing properties, the regularly-updated book and, in February 2008, an online seminar. The fifteen chapters in To B&B or Not to B&B explore the range of choices involved in creating an clear, strong individualized statement of ownership and management. Here are a few key issues to consider:

• "A B&B is not a 24-hour service but it can be."

  There can be one, two, three or more rooms dedicated to the enterprise, depending on local by-laws. Usually B&Bs with four or more rooms are called inns and may have very different licensing requirements.

• "With higher prices there is always an expectation of high quality and service."

  Research is essential to establish prices that drive your business, but keep visitors knocking on your door. Among the factors to consider are commissions of 4 to 15 percent paid to reservation agencies, travel agents, tour operators and online booking services. Some B&Bs also offer seniors discounts.

• "Can we make a living from our B&B?"

  The Jaffrays usually answer 'no' if new owners want to depend entirely on B&B income, particularly if they only have one or two rooms. "With an excellent three room operation, it is possible to make enough to live on ... . It will also depend greatly on how good an operator you are and how much money you are willing or able to put into marketing. With aggressive marketing, we have been able to nearly double our revenue in the second year of all our B& Bs."

The Jaffarys originally retired from operating a B&B after seven years spent running three British Columbia enterprises. Then after five years away from B&B ownership, they were back. Admittedly hooked on the lifestyle, the couple opened The Miner's Rest in Lillooet, BC, which is mile 0 on the original gold rush trail to the Cariboo. Now a well-established addition to its community, this venture, as does every successful B&B, reflects its owners' love of their home and enthusiasm for their unique enterprise.

When asked about the challenge of starting a B&B in the "at par" economic condition, which has some tourism at risk, Jaffary emailed: "Border statistics do show that the numbers of U.S. visitors have been declining for several years. However, most of the B&Bs we are in contact with say that their American visitors have not declined. We think the effect of the confusion over the new passport regulations has probably had more effect than our higher dollar. We have had hundreds of Americans stay with us over the years and we have never had one say they specifically came to Canada because our dollar was low."

Published: October 23, 2007

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Strategist and Futurist is The Catalyst -- intent on "Helping The Best Get Better." An internationally-recognized "new retirement" authority, PJ's research, writing and speaking programs focus on decisions Baby Boomers face to achieve a successful future. Author of 6 books, PJ knows that, since home is headquarters for the "new retirement," professionals and consumers need relevant knowledge and insights, along with solid decision-making skills, to protect and enhance this private oasis. As The Catalyst, PJ provides strategic communication, client appreciation and advanced education services to the financial, tourism, lifestyle and service sectors -- and the clients they serve. A frequently quoted financial and business commentator, PJ is a thought-provoking strategic speaker who offers practical, real-life suggestions on leaving "the box" behind and embracing Forward Thinking -- a talent she regularly demonstrates in this column. For more, visit TheCatalyst.com.