RE: Considering my options
August 30, 2017 at 1:20 pm
(This post was last modified: August 30, 2017 at 1:30 pm by The Grand Nudger.)
Probably time for you to git gud in excel or open office. Referencing "variable costs" won't impress a loan officer, and would be cold comfort if you found yourself in default. You simply -have- to quantify them..or else you're effectively running in the dark with scissors.
Use your own experience to form an initial estimate. Say you perform 8 services. Say that this takes you roughly 8 hours. (I know, it varies..but not for purposes of estimation it doesn't). This is, "a day in the life of an employee". What did it cost you to perform those services? What was your net? What is left of your net after the cost to employ someone for the same eight hour period at whatever rate you're considering (don;t forget payroll taxes and whatnot)? There's a useful number. Lets call it a Daily Service Unit.
So, more fun with math.
Whats the monthly cost to pay down the loan in two years at a rate you might get? Whats the monthly cost of utilities, licensing, and maintenance?
Whats 10-15% of that? How much does it cost to stock enough product for the net on sales to hit that number? Add that to the above.
Now you have a rough monthly operational cost. How many Daily Service Units divide into that number?
Now you know your minimum labor requirements.
Say you need 90 DSU, you can only be open 30 days a month.
Now you know your required number of stations.
Now you know your required productive floorspace.
Use your own experience to form an initial estimate. Say you perform 8 services. Say that this takes you roughly 8 hours. (I know, it varies..but not for purposes of estimation it doesn't). This is, "a day in the life of an employee". What did it cost you to perform those services? What was your net? What is left of your net after the cost to employ someone for the same eight hour period at whatever rate you're considering (don;t forget payroll taxes and whatnot)? There's a useful number. Lets call it a Daily Service Unit.
So, more fun with math.
Whats the monthly cost to pay down the loan in two years at a rate you might get? Whats the monthly cost of utilities, licensing, and maintenance?
Whats 10-15% of that? How much does it cost to stock enough product for the net on sales to hit that number? Add that to the above.
Now you have a rough monthly operational cost. How many Daily Service Units divide into that number?
Now you know your minimum labor requirements.
Say you need 90 DSU, you can only be open 30 days a month.
Now you know your required number of stations.
Now you know your required productive floorspace.
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