Business Planning for Cafe’s
Nobody likes making a business plan. They are tedious, difficult to do right, and are often outside of the comfort zone of the business owner. Most businesses fail, however. It’s a hard fact that we often don’t like to acknowledge. Some of the most common reasons for failure, such as running out of cash, can be avoided with some planning. There are still no guarantees, but knowing how to plan gives you an element of control over the outcome that you don’t get without one.
Overview and Free Template
As I state in the video, the numbers are NOT meant to reflect your numbers. It’s focused on the dynamics of product margins and cash flow. If you are opening a new business off the ground and need to buy a lot of equipment, you’ll probably need to make another sheet for all your capital investments and add that into the cash flow. I might do that later if enough people want it. In it’s current draft form it’s good for looking at different scenarios to evaluate how you can make your business most profitable.
Part 1 – Introduction to the free template
Use the link below to access the spreadsheet on Google Docs – when you click on the link – CHOOSE ‘Make a Copy’
Part 2 – Calculating Gross Profit Margin as %
LThis video talks about Gross Profit Margin and shows you how you can quickly do a single calculation to work out if any item you’re selling is going to get you to a profit or not. If you don’t have enough of a margin, then by the time you take into account all the other expenses of your business, you’ll find yourself losing money, and not understanding what went wrong.
Structuring a Business Partnership
If you’re going into business with someone then this could be the most important video of the series to watch. People usually don’t know how to formalise their partnership and don’t anticipate the issues that probably lie ahead. Often times partnerships will fall apart with one or both sides being resentful and friendships being destroyed. Fortunately, this can often be avoided by following the advice in this video.