Consolidating Your Thoughts

By now you’ll know the way you intend to lead your life in the future. You’ll have made up your mind about the type of business you’ll be running and the area you’ll be living in. What do you look out for in the way of property? What sort of facilities do you need? Which are essential and which are ‘nice to have’? How much ground do you want? What should be the layout of the rooms? Do you want outbuildings or a workshop? It will depend on the needs of your business mostly, but personal preference comes into it too.

You will need to obtain planning permission for a ‘change of use’ if you are starting up a new business – for example, if you’re setting up a B & B in what was a private house, or changing a workshop to an art gallery. It’s wise to check first with the local planning authority to see whether they are likely to be amenable.

Let’s move on to the next step now, to consider the range of possibilities available.

Hotels, Guest Houses, B & Bs

If you intend to buy and run a hotel, you’ll be looking at hotels on the commercial property market. Buying an existing business means you’re buying the ‘goodwill’ with the building – and paying extra for it. Studying the accounts should tell you whether the goodwill is worth the price put on it.

Be aware that you will have to comply with fire regulations, health and safety rules and disability legislation. Some of the questions you should be asking yourself and the previous owners are as follows:

• Why are the owners selling?
• Is there another pub or hotel nearby taking away trade?
• Is there any opposition in the area to the present owners or to the hotel generally. If so, why?
• Is there passing trade or would you have to rely solely on advertising?
• Are there enough bedrooms to make it a paying proposition?
• Are the facilities such as bar, dining room, beer garden etc. large and attractive enough?
• Is it close to a town or village that visitors would come to?
• Has it got some feature of the building itself or the area that you could exploit, e.g. an interesting history, resident ghost or national park nearby?
• Is there sufficient parking?
• Will it support an all-year-round business?
• Is there enough accommodation for you as the owner?
• Can you find staff in the area?
• Are there clubs, societies etc. that can be persuaded to meet regularly in the hotel?
• How do you feel about the general ambience of the hotel? Is it welcoming?

Guest houses and B & Bs are a different proposition altogether and much easier to cope with than a hotel if this is an entirely new venture for you. Some of these are purpose built and, of course, if you are buying an established business, you’ll have the advantage of the goodwill. Again, check the accounts to see whether the value put on this ‘asset’ is an accurate one. If business has been bad, you have to feel confident you can turn things around and make a success of the venture.

Establishing The Potential

Don’t look at the furnishings only – though they may well be part of the business you’re taking on, they will not necessarily be to your taste. Many will not have been updated for years and might be a little depressing. See beyond this and look for potential. It means of course that you are paying for these furnishings knowing that you are going to have the added expense of replacing them. This should be a consideration in the price you offer. Some questions to think about are as follows:

• How many bedrooms do you need to make this a viable proposition? Are they of a good size?
• How much work is needed to bring things up to your standards and what will it cost? Bear in mind that en-suite facilities are expected nowadays.
• How many other similar establishments are there in the vicinity?
• Is there business for all or is that why they are selling?
• Is this too remote for visitors? Will they find you if you are off the beaten track?
• If you want passing trade, is there a sign up already? You will need to seek planning permission to erect one otherwise.
• Is the area/road outside too busy and will there be too much noise?
• Will you have private accommodation that can be shut off when necessary?
• Will visitors be passing through the area (in which case there will be mostly one– or two-night lettings) or is it in a place where people will want to stay for a while?

Bear in mind that guest houses and bed and breakfasts have to comply with fire regulations and new disability legislation if they have accommodation for more than six visitors. Check with your local building control officer or planning department.