planning to open a restaurant or bar? Do you need financial planning to see if it is econimically viable?

Whether you're a working stiff or a business owner yourself, this is the place to discuss all aspects of financing your drinking habit ;-)

NO BUSINESS SALES HERE PLEASE, WE HAVE A SECTION FOR THAT IN THE CLASSIFIEDS.
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truffledog
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planning to open a restaurant or bar? Do you need financial planning to see if it is econimically viable?

Post by truffledog »

As I see many people asking if they should invest in restaurants and bars I would like to offer my help to make a detailled financial plan/budget. It is meant to help people making the right decisions and to make clear if a investment makes any sense or not.

You will get 5 hours of consulting (skype, whatsapp or other) and 4 detailed spreadsheets flled with your personal data including:

revenue budget with estimated operational profits/losses
detailled cost budget with costs of goods sold and labour costs
detailled forecast budget with single expenses budget
pre-opening budget which will show how much cash you need to open up

The first 5 paying will get the package for 50$
The standard price will be 75$ after that

As all my restaurant clients are closed i cant sell my mushroom truffles to anyone now. The complete lockdown of 2 months here in Italy has drained me out so I have to look for new sources of income . I have been CFO for 20 years before deciding to follow my passion of truffle hunting and I still know how to do financial plans.
work is for people who cant find truffles
pczz
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Re: planning to open a restaurant or bar? Do you need financial planning to see if it is econimically viable?

Post by pczz »

truffledog wrote: Fri Apr 17, 2020 2:45 am As I see many people asking if they should invest in restaurants and bars I would like to offer my help to make a detailled financial plan/budget. It is meant to help people making the right decisions and to make clear if a investment makes any sense or not.

You will get 5 hours of consulting (skype, whatsapp or other) and 4 detailed spreadsheets flled with your personal data including:

revenue budget with estimated operational profits/losses
detailled cost budget with costs of goods sold and labour costs
detailled forecast budget with single expenses budget
pre-opening budget which will show how much cash you need to open up

The first 5 paying will get the package for 50$
The standard price will be 75$ after that

As all my restaurant clients are closed i cant sell my mushroom truffles to anyone now. The complete lockdown of 2 months here in Italy has drained me out so I have to look for new sources of income . I have been CFO for 20 years before deciding to follow my passion of truffle hunting and I still know how to do financial plans.
Not that easy to do as accounting practice seems somewhat lax so getting an accuratefigure for current profits is a challenge
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fazur
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Re: planning to open a restaurant or bar? Do you need financial planning to see if it is econimically viable?

Post by fazur »

bar and restaurant risky at best of times

now would be suicidal imo
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Re: planning to open a restaurant or bar? Do you need financial planning to see if it is econimically viable?

Post by michael.stewart1 »

pczz wrote: Fri Apr 17, 2020 7:49 am
truffledog wrote: Fri Apr 17, 2020 2:45 am As I see many people asking if they should invest in restaurants and bars I would like to offer my help to make a detailled financial plan/budget. It is meant to help people making the right decisions and to make clear if a investment makes any sense or not.

You will get 5 hours of consulting (skype, whatsapp or other) and 4 detailed spreadsheets flled with your personal data including:

revenue budget with estimated operational profits/losses
detailled cost budget with costs of goods sold and labour costs
detailled forecast budget with single expenses budget
pre-opening budget which will show how much cash you need to open up

The first 5 paying will get the package for 50$
The standard price will be 75$ after that

As all my restaurant clients are closed i cant sell my mushroom truffles to anyone now. The complete lockdown of 2 months here in Italy has drained me out so I have to look for new sources of income . I have been CFO for 20 years before deciding to follow my passion of truffle hunting and I still know how to do financial plans.
Not that easy to do as accounting practice seems somewhat lax so getting an accuratefigure for current profits is a challenge
Last year when I had asked my girlfriend to give me receipts so I could create a monthly balance sheet it ended up in a huge argument resulting in me telling her I am not investing anymore money into the business until we have proper accounting done. I told her that I expect to financial gain from the business and if there is none for me I will not continue throwing money at it.
jubo2
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Re: planning to open a restaurant or bar? Do you need financial planning to see if it is econimically viable?

Post by jubo2 »

Do just as local people.
Do not think.
Open.
Close.
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truffledog
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Re: planning to open a restaurant or bar? Do you need financial planning to see if it is econimically viable?

Post by truffledog »

fazur wrote: Fri Apr 17, 2020 8:07 am bar and restaurant risky at best of times

now would be suicidal imo
Thats the intention of my help offered: AVOID stupid/suicidal investments. Do some maths before and save your money in case things dont add up. In case you found a scenario/business idea that will produce returns you can still think about. But if figures show that you will lose money even in the best of cases, you are just stupid to go ahead.

opportunities do exist:

There will be many businesses closing leaving a lot a choice for a new venture, even in prime areas with a lot of footfall once things get back to normal
Rents will be cheaper giving you a better return and a faster break even
equipment and furniture will be available second hand at very cheap price, so cash needed for opening up will be less
Very good choice of staff as many good workers are out of job, so plenty to choose from

Dont invest any money you cannot afford to lose may be the first directive to follow.

I am not a dreamer and obviously leaving out the threats that do exist. But anticyclical investment has proved effective in many cases. If you have the balls to invest in the stock market just after a shock event and forget about it for 5 years you will have great chance of having a very interesting return. Just buy ETF's of the biggest marketplaces (DAX, DJ, SMI and other prime) as to diversify your investment on many shoulders any you should be fine.
work is for people who cant find truffles
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truffledog
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Re: planning to open a restaurant or bar? Do you need financial planning to see if it is econimically viable?

Post by truffledog »

pczz wrote: Fri Apr 17, 2020 7:49 am
truffledog wrote: Fri Apr 17, 2020 2:45 am As I see many people asking if they should invest in restaurants and bars I would like to offer my help to make a detailled financial plan/budget. It is meant to help people making the right decisions and to make clear if a investment makes any sense or not.

You will get 5 hours of consulting (skype, whatsapp or other) and 4 detailed spreadsheets flled with your personal data including:

revenue budget with estimated operational profits/losses
detailled cost budget with costs of goods sold and labour costs
detailled forecast budget with single expenses budget
pre-opening budget which will show how much cash you need to open up

The first 5 paying will get the package for 50$
The standard price will be 75$ after that

As all my restaurant clients are closed i cant sell my mushroom truffles to anyone now. The complete lockdown of 2 months here in Italy has drained me out so I have to look for new sources of income . I have been CFO for 20 years before deciding to follow my passion of truffle hunting and I still know how to do financial plans.
Not that easy to do as accounting practice seems somewhat lax so getting an accuratefigure for current profits is a challenge

Good financial planning is indeed a challenge but its better than just jumping from a bridge and hoping that the water will be deep enough. Most figures are quite fix and others can be estimated with a small error. To compensate the error you build 2-3 scenarios. If even the best one will not produce returns, the business idea is just an idea and should not be pursued.
work is for people who cant find truffles
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