B&B 'for dummies' in Lamoille

Vermont Business Magazine, Dec 01, 2003

If you've always dreamed of running a cute little B&B, Lamoille County could be the place for you. Gail and Gary Blair had been enjoying B&B visits for twenty years, and they wanted to offer their own guests the same warm welcome. After looking at properties for three or four years, they found the perfect spot for Blair Manor on Randolph Road between Stowe and Morrisville.

Neither old nor Victorian, Blair Manor nevertheless seemed like the perfect B&B to Gail the very first time she walked through its doors. Converted from a family home by the previous owner, Blair Manor is well located and quiet, with exceptional views of Mount Mansfield. Cross-country skiing or hiking is just outside, and inside holds a cozy English country manor ambience, complete with library, crackling fires and game tables.

But behind any dream are a host of details - finding that property, being sure that you have all the right permits, getting the money you need to buy it or fix it up, and the network that helps keep you plugged in to the stream of incoming tourists. With her background in finance, Gail Blair knew the value of planning, and she knew how critical it could be to locate in a four-season tourism area like Lamoille County. For now, Gary continues to work an outside job, a strategy that many new innkeepers employ to ease the financial and lifestyle transition.

The first step to turning your dream into reality is to spend some time in Lamoille County. Try it out. Stay in one or more of our local establishments. Talk to the owners and find out what they like and don't like about the lifestyle. Maybe even ask about inns or B&Bs for sale. Talk to Realtors.

Barbara and Bob Fisher did it right when they started the search that eventually landed them at Hob Knob Inn on the Mountain Road in Stowe. Barbara, former schoolteacher, and Bob, a sales executive tired of airports, decided that with their nest empty of grown-up children, the time had come to choose where they wanted to live. They had spent many happy years skiing at Stowe, so they focused their search here. After several months developing their

business plan and working with local Realtors, the Fishers found Hob Knob, a property whose owners were ready to retire.

The next step is to either buy the book... or take the course. Yes, there are classes in running a bed and breakfast, often run onsite and by bed and breakfast owners, designed to help you get an indepth look at what you can expect as an innkeeper. A good course will include an overview of the innkeeper's lifestyle, building a business plan, financing, pitfalls, employees, and a discussion of branding, advertising, and promotion. So, go online and research, research, research. It is not possible to be over-prepared for buying a property that is both business and home.

The Fishers acknowledge that the hours they put into their dream are long, but they were prepared. They knew what they were getting into. Now instead of running through airports, Bob spends his days painting and wallpapering. Barbara just got an orbital sander for her birthday. And, yes, they are having fun.

Here are a few of the many resources that can help you start to live your dream. Once you have found a property, consider the following:

The Small Business Development Center (SBDQ can help you write a business plan and find your way through all the steps to get established. The SBDC is located in the offices of Lamoille Economic Development Corp. (LEDC) in Morrisville. You can be comfortable that your business plan will be handled confidentially, but that you will have access to all the resources of LEDC to improve the competitiveness of your business with respect to workforce training, any modifications to your facilities (and the required permits), and the dollars to finance it all.

Financing is fundamental. Local banks, including (alphabetically) Banknorth Vermont, Chittenden and Union Bank are all well informed about hospitality operations and can work with you effectively. Many bank loans are guaranteed by the federal Small Business Administration (SBA), resulting in lower rates and better deals for you, the borrower. In fiscal 2003, the SBA guaranteed almost $2 million in loans in Lamoille County.

The Vermont Economic Development Authority (VEDA) is a frequent lender to inns and B&Bs. In 2003, VEDA made loans to three inns in Lamoille County, and the Authority has in its portfolio 34 loans totaling over $9 million in the hospitality industry. VEDA can offer very attractive rates, although rates are always variable. For the most recent rates, go to www.veda.org and look at the Subchapter 5 direct loan taxable rate (2.75 percent at this writing). The nontaxable rate generally applies to manufacturers.

If you happen to locate in Stowe, like Bob and Barbara Fisher, you will find the Stowe Area Association offers a broad range of ongoing business support, including a reservations hotline and the newly released www.gostowe.com, among other marketing support. If you locate anywhere in the county, you will find the Lamoille Valley Chamber of Commerce (www.stowesmugglers.org) a valuable source of information, referrals and business ideas.