Business for Sale - B&B/Nelson

[Moorf]

We have just decided not to proceed on a business purchase and thought there might be others on here who would be interested in it.

Fantastic opportunity for a couple to run, near alpine village of St.Arnaud and 1 hr from Nelson. Near to skifield and has package deals with Interislander. Loads of history, beautiful old cob house, 700 acres, un-tamed little golf course for renovation, small craft shop, loads of potential. We didn't proceed because we decided that running accommodation isn't for us - hard decision but had to be realistic. At least we can cross that industry off our list of things we want to do!

Leasehold: $210k

www.tophouse.co.nz (contact owner thru site for info)

Or sale site: http://www.realestate.co.nz/432341

Beautiful, historical B&B + chalets - Tophouse

Situated 9 km from St Arnaud, Nelson Lakes, just over an hours drive from Nelson, Blenheim, or Murchison.

Tophouse is a solid mud (cob) ex-hotel dating back to the 1880s. It has five guest rooms and an open fire which has been continually burning since 1988. The house offers guests dinner, bed and breakfast for $90.00 NZ for an adult, and bed and breakfast only is $60.00 per person.

It is also the closest accommodation to the nearby Rainbow skifield, and is one of the accommodation houses which does a deal with the skifield and Interislander ferries known as the sea-to-ski package. Bookings for sea-to-ski deals can be arranged with the Interislander.

The Cosyview Cottages were added in 1996, and are two bedroom, self contained, with capacities ranging from 4 to 6 people. They offer this for nz$110 per couple, nz$15.00 each additional person, children under 10 free.

All this is situated on a 700 acre (300 hectare) farm, with amazing alpine scenes, heaps of animals.

[bevsere]

We see this place on our way to the Lakes & have even been in for tea and scones. There are some of those huts/cabins that you can stay in , though I wouldn't recommend this for Winter. A good looking old building.
The place has already changed hands once in the two and a half years we have been here , or so we are told . We did see it was on the market again & has been for some time. Since arriving , it does seem to have been on the market most of the time.
I do wonder how busy it does get. It's a bit out of the way, though a really lovely spot. It takes us two hours to comfortably get to the ski field from Nelson.
Most folks coming in overnight to use the ski field or walk the lakes stay at St. Arnauds and there are shuttle buses to and from Rainbow. For that matter there are shuttle buses to and from Nelson.
Not wanting to put anyone off this venture. Just take a good look around at St. Arnauds and drive the distance to Nelson first.
What do the 'books' look like out of interest?
Would one have to supplement the net income to make a reasonable living.

[Moorf]

I'm afraid I can't comment on the books as we have signed a confidentiality agreement, needless to say that it makes a good income for a couple to run if they can buy the biz outright.

Interesting that it has changed hands so often, the lady there at the moment has been there two years and the lease is 3 + 3, negotiable.

We also had tea/scones there and it was lovely, and seemed busy enough (it was a nice day at the weekend).

Basically, it could have worked for us as I could continue to earn from part-time writing and Woz could have given up work and run the place.

[StuckInLA]

What do you mean the leasehold is 210k for 3+3? Does this mean I would have to pay 210k to run the place for 3 years, with a negotiable rate for running the place another 3 years?

[Moorf]

No, you don't pay $$ when you renew the lease length - just at the beginning - and this lease is negotiable to around 6 + 6 - that means you get six years with an automatic right to renewal for another 6, and in that last 6 you negotiate the ongoing lease lengths (hmm did that make sense?)

We've found many businesses that have incredibly short lease lengths which seem ridiculous as you need a few yrs to build up a business and I'd prefer to know I was there for at LEAST 5yrs from the get go...

[Debbie]

We didn't proceed because we decided that running accommodation isn't for us - hard decision but had to be realistic. At least we can cross that industry off our list of things we want to do!

This is the type of thing we are currently considering for in a few yrs time. Time isn't right for us now, but I would be realy interested to hear you thoughts on why you decided against running accomidation. I think when you embark on these major plans it's easy to get swept away on the idea and always good to hear someones objections. A bit like this forum, it gives you the reality you sometimes miss yourself. PM me if don't mind sharing your thoughts.

Good luck in finding your right future business.

Debbie

[Moorf]

Hi Debbie

I had always fancied running a small boutique-type B&B, and we'd absorbed all the "fly on the wall" documentaries in the UK etc about people starting up in business and always thought I could do better (don't we all! )

I'd also taken note of how much hard work it was, to be expected.

We've also travelled a lot and think we know what makes a good place to stay.

But, when push came to shove, and suddenly there was a business ready for us to jump into, we both got cold feet and spent several long nights really really thrashing it out.

We (but mainly me) decided that 5 yrs plus of 7-day-a-week cooking and cleaning and no privacy might not be what we really wanted. We did consider living in the house (of the biz I posted above) and purely renting out the chalets, more of a "give them a key and see them when they leave" type affair, but the house and it's history was why many people stopped off for lunches etc, and to stay in.

So, whereas we haven't ruled out running some self-contained chalet type accommodation, we've decided against the b&b option.

Sure makes life easier when you can rule out something, despite it being a dream, because you just KNOW that the idea is so much better than the reality!

I also think that, because we love where we live at the moment, we're being a lot more "choosey" than if we HAD to find something, or wanted to move quickly.

What sort of business were you looking at running, do you have any experience? Lots of small businesses for sale - dairies, cafes, backpackers, motels (LOADS of motels!) - but I have to say, their books/accounts are disgraceful - at least the ones we've seen are! A couple have been just 1 side of A4!!!

Best,
Moorf

[Debbie]

One of the advantages NZ gave us was that it gave us the financial freedom for OH to leave IT behind and set up on our own. Like you we sit tranfixed by those fly on the wall programs muttering about how silly they are to have made such obviouse errors.

We like the idea of some form of accomidation industry (leaning more toward self contained lodges for the reasons you said). We have no experience, which scares the pant off me and I spend me evenings looking at a multitude of courses wondering which would be of most benefit.

We are at the very early stages of a plan, we know what we want to get out of it and we know some of the things we don't want but are still looking for the right thing. We realy hope that our parents will be joining us in NZ in the next 2-5 yrs so are also looking for a way that we can all live 'together' but most definatly in our own homes. We are looking at large sections we can redevelop but it's a long way off still.

Thanks for your reply, I found it realy usefull.
Debbie

[coyotewildwomen]

I have a friend who runs a B and B in Mexico. She has done so for many years and is now looking to sell. Her strong suggestion is go and manage a B and B type place or do an internship at one before you buy- even for a few months. She has had 4 people who wanted to buy her business, which is quite healthy and profitable, do this before they committed to a purchase of her place. All of them decided not to do it after finding out how much work it was. This may not be the case for you, but it seems to make sense that if you can find out what it is really like, versus the romance of the idea, that you may be happier in the end. I have heard it is a venture for love, not money! We do nightly rentals at our place in Steamboat Springs, Colorado- which is more than enough work without having to cook someone breakfast etc.

Just thought I would pass on the advice-

Wendy

[Crunchmonkey]

I have a friend who runs a B and B in Mexico. She has done so for many years and is now looking to sell. Her strong suggestion is go and manage a B and B type place or do an internship at one before you buy- even for a few months. She has had 4 people who wanted to buy her business, which is quite healthy and profitable, do this before they committed to a purchase of her place. All of them decided not to do it after finding out how much work it was. This may not be the case for you, but it seems to make sense that if you can find out what it is really like, versus the romance of the idea, that you may be happier in the end. I have heard it is a venture for love, not money! We do nightly rentals at our place in Steamboat Springs, Colorado- which is more than enough work without having to cook someone breakfast etc.

Just thought I would pass on the advice-

Wendy

Very wise advice indeed.
Paul