Business Owners - Advice please - looking at buying a cottage resort.

Question

We are considering purchasing a cottage resort in Northern Ontario. My husband and I both loved the country life and community feel and are looking at options that would allow us to move there from the Toronto area. Any advice? Is the hard work worth it? Will we be poor?

Answer 1

Create a Business Plan....... If done properly it will tell you if you have the potential to be successful - from a business point of view. You do not want to purchase the resort just because you like the area, the venture has to be financially feasable.

The key is to know how many people will be likely to use the resort throughout the year and know why the are coming to the area; great fishing, etc. Then estimate your potential Revenue against your Expenses to see if it will be profitable.  

Answer 2

As long as you are good at sales / advertising.

The key is to ALWAYS have people in.  Give discounts if you have to.  A discounted check is better than no check.  

Do some good accounting and figure out what you need to make / charge in order to make your money, and then SELL SELL SELL.  Advertise on craigslist and in all of the real estate places you can think of.

Good luck!

Answer 3

You are talking the boonies! Will have to have SOMETHING to bring people there - deadly cold in winter and not exactly a hot spot in summer. With poor economy even less interest. I would look very carefully at rental registrations for last 5 years. Likely you will have to expect to live on 2 months income of the year. Not a good income prospect. Also, you have to be there ALL the time to care for the place and the people. You will have no other life. The weather is harsh and will result in frequent repairs even if no one is renting. Make sure you check out the sewage system - if that has to be upgraded it is very expensive.

Something like this you pay CASH and have good outside retirement income to live on and make repairs. If you actually rent anything it is extra $. You also better be very marketing savvy including internet to promote the place. Good luck!