Forecasts
Forecasts are vital and you need to get a clear financial picture before you do anything. When you approximate revenue and expenses, be conservative.
If you expect 20 people a day coming through the door, base your numbers on 12-15. If you plan to be open 7 days a week, forecast revenue using only 5 or 6.
By the same token, pad your estimates for expenses. If you anticipate a utility bill of $100/month, use $120 in your financial forecasts. You don't want your success hinging on the $20 you underestimated for utility costs?
And as a general rule, everything costs more than you expected.
If you expect 20 people a day coming through the door, base your numbers on 12-15. If you plan to be open 7 days a week, forecast revenue using only 5 or 6.
By the same token, pad your estimates for expenses. If you anticipate a utility bill of $100/month, use $120 in your financial forecasts. You don't want your success hinging on the $20 you underestimated for utility costs?
And as a general rule, everything costs more than you expected.
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