DATE: Monday, August 11, 1997               TAG: 9708090638

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

COLUMN: SMALL BUSINESS Q & A 

SOURCE: BY MELISSA GUNDEL, STAFF WRITER 

                                            LENGTH:   61 lines

EASTERN SHORE BED & BREAKFAST TAPS INTO MARKET

When Chris Bannon opened Sea Gate Bed and Breakfast in 1987 on the Eastern Shore, he remembers one local's comment: ``Who in their right mind would pay to come and stay in this town?'' A decade later, six B&Bs stand in the small town of Cape Charles - the largest number per capita in the country, according to Southern Inns and Bed & Breakfast. Bannon, 60, has been in the hospitality industry for 40 years.

What brought you to Cape Charles?

I was living in Hartford, Conn., and I was just tired of winter and looking for a mild climate. I was looking to open a bed and breakfast. Real estate prices were very reasonable on the Eastern Shore. My nephew sent me a foreclosure notice on the property. I flew down and looked at the town. The town was tired, but there is a quaintness. I like the proximity to Norfolk and the big Northern cities.

Why did you want to go into this type of business?

In the mid '80s, the bed and breakfast operations were just starting and my background was in the service industry with food and housing. I traveled in Europe and stayed in guest houses. I liked it. I thought it was much nicer than a hotel. The owner would tell you where to go, where not to go, where to sightsee. . . Some owners would take you on a tour of the city. That was the basic idea. I decided this was a good way to supplement retirement, I enjoy meeting people and I enjoy having people in my house.

What are the benefits of operating a B&B?

It brings tourists into the town. The tourists spend their money at the little shops and the restaurants. I think in Cape Charles' case, the guests are also buying property. About 180 homes have been sold in nine years. Over 100 of those are people who have stayed at my house or their friends'.

What steps did you take to open the business?

Entrepreneuer magazine put out a section on how to start your own business. They would send you a looseleaf binder on how to start a particular business. I also visited B&Bs in Connecticut and in New York. Then I visited a couple on the Eastern Shore and asked them about running a business.

What advice can you offer?

The first thing is, it's a lot harder than throwing out the welcome mat and expecting people to pile money into your pocket. You have to be a people person, you have to worry about cleanliness, you spend long hours working. You are basically married to the B&B. Once you get up in the morning, you are in for a 14- to 15-hour day.

What are the rewards in this business?

I think one of the greatest thrills is to see how happy the people are and saying it was a good, good experience.

What have you learned about running your own business?

You've got to keep your product top notch. It's going to be based on the owners' personality and the owners' ability to interact with the guests. I think that is what builds the business.

What is on top of your agenda right now?

I would never take on another B&B. I'm perfectly content with what I'm doing right now. ILLUSTRATION: [Color Photo]

Chris Bannon runs the Sea Gate Bead and Breakfast on the Eastern

Shore.

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