"Bentleyville" A California Coastal Bed and Breakfast

 MoonGoddess Cafe

Preface

It is impossible to detail the process of developing a piece of property into the Bed and Breakfast/Cafe that Dianna and I envision without knowing what the initial parameters of the property are. Thus, this proposal is more of a scenario than a business plan. We believe this venture works best starting with a piece of property that is not currently in use as a Bed and Breakfast, allowing for the greatest increase in equity by developing it into a profitable, saleable business. Ideally, at the conclusion of the initial development period, it would become possible for Dianna and I to submit a satisfactory offer to purchase the business.

Objective

My Wife Dianna and I are seeking to acquire a part-ownership in a Bed and Breakfast/Cafe via 'sweat-equity' earned through our participation in the creation/launch/on-going management of the property.  Ideally, the property would be located in or near a beach community along the California Coast, including such venues as Capitola, Santa Cruz, Monterey, etc. Preferably, the property would not currently be in use as a Bed and Breakfast, and, as such, could be developed into what we imagine it can become.

The potential of any such property is limited somewhat by its baseline condition, thus there are parameters which are desirous for the greatest success  in this venture.

• The house itself should be in generally good repair, and have at minimum 5 rooms which can be converted into guest quarters. An additional room is required to provide us with modest living quarters.

• The kitchen should preferably be plumbed for gas, either natural or propane.  An electric kitchen will suffice for the initial phase of the Bed and Breakfast, but any foray into the Cafe arena will require a gas kitchen.  If a conversion is necessary later, there must exist sufficient space for the installation of a propane tank, or an inexpensive way to tap into existing natural gas lines. More about the Cafe later in this proposal.

• There should be ample dining space for at least the projected maximum number of guests. Once again, if the property is to become a Cafe at some point, the more dining space, the better.  Based on what we'd like the MoonGoddess Cafe to become, we envision the nominal seating required to be 30 or so. Based on the California climate, some of the peak-season dining space can be outside, in a patio area or such.  

Obstacle

The obvious one is money.  If we could afford to do this on our own, you wouldn't be reading this. On the other hand, we're not looking for a "free-ride", or charity. We work hard at whatever we do, and will give this project our utmost and complete attention and energy. 

Our Qualifications

Dianna and I established and ran "Geeks Restaurant" in Bentleyville, Pennsylvania for 3 1/2 years, from October, 1999 - April, 2003. We started out with a vacant block building, which had most recently (three years prior), been a Pizzeria. It had originally been designed and built as a Convenience Store. We redesigned the interior, cleared out the kitchen, painted, decorated, and acquired all the equipment we needed, mostly at local auctions or on eBay, including:

 

• a 10 burner, two oven range

• Stainless Steel ventilation hood w/ansul system

• Warming Drawer, Cuisinart, Kitchen Aid Mixer, Smallwares, Food Prep tools

• Insinger Commander Dishwasher w/Booster

• 2 22 Cubic Ft. Freezers, 1 44 cubic ft. Refrigerator, 2 Stainless Steel refrigerated Prep Tables

• 500 Gallon Propane Tank

• Pots, Pans, 3 bowl Stainless Steel sink, Stainless Steel Work Tables, Dishes, Flatware, Dining Room Tables

• 5 Burner Bunn Coffee Brewer, Roll-top Chafers, etc.

Our total costs to open the doors, including our initial provisioning, was under $30K. While these specifics might not seem important, we like to stress that one of our primary objectives in any business venture is to contain costs wherever possible.  We also kept costs down by doing the vast majority of the day to day activities ourselves, including provisioning, cleaning, napkin folding, menu design and printing, Service Area setup, etc. 

Dianna was our Hostess, and on many nights, our server. She did a remarkable job of running the front room, and guests genuinely enjoyed visiting with us. She remembered almost everyone's name, their preferences, who had first recommended them, what their interests and occupations were, and other details too astounding to list.  She'd keep track of anniversaries, birthdays and such so that she'd be able to convey her well-wishes when our patrons showed up for their special occasions.   When she was able, she'd have a salad or cup of soup with a patron dining alone who seemed to need company.   Many guests invited her to join them during their meals.  She turned Geeks into more than just another restaurant, making our slogan "There are no strangers here... only friends you haven't yet met" a reality.  It was her attention to detail that prompted our Pennsylvania Department of Agriculture Food Sanitarian to comment that we were "the cleanest place"  he inspected.

Charlie's major function was that of Chef. He had spent over 30 years in the Computer business in a variety of technical and managerial positions for mainframe manufacturers, including IBM, Amdahl and ELXSI. He ran his own consulting business to support ELXSI customers after the firm ceased manufacturing operations in 1989. At GEEKS, he created all his own recipes, running a scratch kitchen, preparing all the food offerings, and doing all his own pot and pan scrubbing. His background in Systems Design and Performance analysis (both cyber and human systems), helped him build a service and preparation model that allowed us to run GEEKS in the real-time preparation mode we did.  He catered weddings for over 200 people, as well as in-home dinner parties for 25 guests (the most intensive included appetizers, 4 entrees, 3 sides, and 3 desserts). Guests at GEEKS thought nothing of coming back to the kitchen to say hello, or leave behind an unfinished bottle of fine wine for him to enjoy after closing.

Proposal:

Neither of us are lawyers, nor does either of us play one on TV. What follows is our hope of how any transaction involving us in this enterprise with an investor would work.

• Investor provides a property suitable for conversion into a bed and breakfast.  We will review the property, and recommend what alterations (painting, accommodation readiness, decorating, etc., need to be performed before the business can be opened. 
• If acceptable, we will prepare a renovation budget for the investor's approval.
• Dianna and I will occupy the premises, and ready the property.  We will design and publish a website to advertise the B&B, and handle all the necessary paperwork and appointments for licensing, inspections, etc.
• Upon opening, Dianna and I will accrue an interest in the business on an annual basis. We would hope for a rate of between 7-8%/year, for a guaranteed period of between 5 and 6 years. During the first year, it will probably be necessary for the investor to provide a minimal stipend for our day to day expenses, including food.  After the first year, we could reach some mutually agreeable terms on whether to continue the stipend, or pro-rate a salary based on performance. Our intention would be to use any early profits to improve the property and establish a licensable kitchen.
• Some or all of the initial income from the Bed and Breakfast needs to be directed toward improvements, including the kitchen. Our hope is to progress through the necessary steps as quickly as possible to  accomplish the following:
  • Offer Bed and Breakfast guests a full, freshly prepared Breakfast.
  • Offer Picnic Lunches
  • Offer Guest Dinners
  • Open MoonGoddess Cafe to the public
  • Offer Catering Services, Meeting Services, Private Parties, especially during the slow or off-seasons.
  • Offer Sunday Brunch
• The basis of the business for determining profit at time of sale/liquidation shall be the value of the property at time of contract, plus any monies invested in renovation prior to opening.
• Business must remain open and operational for the 5-6 years agreed upon. If the investor wishes to sell or otherwise liquidate the property earlier, Dianna and I will have earned the full interest as if we had completed the contract period.
• At the end of the contract period, Dianna and I would meet with the investor and agree on a course of action, be it buy-out, sale, etc.

Summary

As I said, this is just one scenario of what Dianna and I envision as the beginning of a profitable enterprise. We believe, as did Napolean Hill, that a good transaction is one that profits everyone it touches.  We believe that our managing Bentleyville, the Bed and Breakfast we dream about,  will fulfill that requirement.  We believe that we have the Hospitality, Technical, Housekeeping, Organizational and Culinary skills that are required in today's highly competitive marketplace vying for ever-dwindling discretionary funds. We know we can succeed at this venture, and help develop a piece of property into an on-going business venture that will appreciate at a greater rate than just the original property itself. Needless to say, this venture works best for someone who currently owns a property that fits the requirements, though other scenarios work as well.

Thank you for taking the time to read this.  We sincerely hope there is someone out there willing to meet with us to further explore how our passion about this venture can be mutually beneficial.  We can be contacted via email at ca.bbcouple@yahoo.com.   We hope this brief overview will encourage you to take that next step.  Thanks again, and we await hearing from you.