What costs?(5 Posts)
I may have lost my marbles but I've got an idea to open a pancake house in my area. I've found a premises and it's only £10,000 per year (which I think is good??)
I have no previous business experience but I've got so many ideas and really think it would be popular here, it's either pubs or old traditional tea rooms. Nothing in the middle for parents with kids, teens and pre-teens or even people in recovery.
I really want to do a realistic financial fire cast but don't know what to put in it?
How long is the lease on the premises would be my first question. If it is five years and you fail after a year how will you pay £10,000 a year for another four years? Also, what is the current usage of the building and do you need planning permission?
You will have staff costs, insurances, accountancy fees, stock, utilities, rates, furnishing and decorating the premises and signage.
You will need to speak to environmental health, trading standards and do a full health and safety risk assessment, both to begin with and ongoing. Your staff will need regular training on this.
Do you have you basic food hygiene training and the certificate? You may even need more than just the basic training if you will be training others.
I haven't run this type of business so that is all I can think of at the moment, but it is a lot to consider. £10,000 just for your premises is a huge commitment. How much will you have to sell in order to cover your costs, let alone make a profit? Is the location somewhere that gets a lot of footfall? Are there enough people or visitors coming to the area to service?
Ok, I would need that training yes. I haven't looked into the term of the lease I just done a quick skim to see what the going rate was, I now do think that rent is quite high. There is definitely enough passing custom I think, it's a seaside town with a weekly market, the whole area has lost its sparkle a bit but a lot of work going into regenerating it and I do think there's a lack of something like this that I want to do. I'm actually not working at the moment so this could just be pipe dreams ☹️ but I'm entitled to help with business planning ect through the New Enterprise scheme so I'll put my plans into paper and all the outgoings that you mentioned and try set up an appointment
One of my clients has a tiny cafe/cake shop. Their rent is slightly less than yours, but the other main expenses are:-
Power £4k, Cleaning £1k, Property/equipment repairs & renewals £2k, insurance £1k, office supplies and telephone £1k, Bank charges £2k, equipment hire £1k, water rates £1k, sundry/other £1k, professional fees £1k. So that's £15k on top of the rent, so in your case, that's £25k of costs per year, not including staffing costs.
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