Small B&B or guest house with 4 to 8 rooms

Tourists, couples on weekend breaks, wedding and reunion guests, hikers and cyclists, and business travelers staying in the area for a few nights.

Nightly room rates including breakfast, plus extras such as packed lunches, group bookings, small events or midweek and long-stay discounts.

• Hospitality and guest service
• Cooking and managing breakfast service
• Organizing housekeeping and bookings
• Budgeting and basic bookkeeping

• Zoning, building, fire and health department approvals, which differ by city, county and state
• A health department permit may be needed for serving food, and rules differ depending on the size of the property
• Insurance: property, general liability and, once you hire, workers' compensation
• Lodging or occupancy tax registration with state and local authorities
• Accessibility requirements, such as the ADA, may apply, so check with your local building department
• Seasonal demand can leave quiet months, so keep a cash reserve
• Long days and little time off, especially without staff

Startup costs are typically around $20,000 to $100,000, depending on the building's condition, furnishings, kitchen and safety upgrades, and insurance. This assumes you already own or lease a suitable building, not the purchase price.

Monthly revenue is typically around $5,000 to $25,000, depending on room count, nightly rates, season and how often rooms are booked. Demand can be seasonal, so these are estimates and a cash reserve for quiet months is worth planning.

Check zoning, building, fire and health department approvals, which differ by city, county and state. Also check food service permits, insurance, lodging or occupancy tax registration, and accessibility requirements such as the ADA with your local building department.