Business Plan Questions!!

[simplyjordan]

I am in the middle of writing up a business plan for a cafe/deli- Just getting down to the financials and I am trying to figure out a break even point.

I am stuck on this at the moment-

Electricity consumption- Does anyone have a ready reconer for the average spend on electricity for a small cafe? Or does anyone on here who already runs a cafe fancy telling me what their quarterly bills are - so I can factor in the costs:tongue_smilie:

Any help appreciated!

 

[profitxchange]

try googling breakeven. Its not difficult. but awkward to explain.

Re electricity why not drop into a local cafe and ask them.

 

[Gouldie0]

Hi SimplyJordan,

What kind of business are you in to? Ooops, you say your looking at starting up a deli. :laugh:

Basically the break even point is when the revenue received on your sales covers the cost of making or selling the items that you have sold. So for each month you would have a break even point, this would include all the added costs (rent, rates etc.) that you're required to pay to produce the products that you intend to sell.

Are you ready to draft your cashflows yet?

Kind Regards

Neil