- Brilliant chef?
- Buy the very Best Local Food?
- Have a Brilliant Location?
- Use the best Marketing techniques?
All great but the key one most important thing before starting any Hospitality business is
RENT or MORTGAGE….. a boring subject I know but read on…….
The calculation could not be simpler…… if you take on a business premises….. buying or renting then take the figure and divide by 52 to give a weekly outgoing
£20,000 rent per annum will give you a weekly figure of approximately £385.
That is £385 in profit that you need to make EVERY single week of the year before you do anything else.
MORE BUSINESS’S FAIL BECAUSE THEY DO NOT TAKE THE ABOVE INTO ACCOUNT THAN ANY OTHER FACTOR
Then start to think of how you are going to make that profit…..
- How many meals do you need to serve
- How many drinks do you need to sell
- How many room have to be slept in
JUST to gain enough profit to service that weekly expense which WILL NOT GO AWAY
If everyone who took on a coffee shop, restaurant, bar or hotel just worked out the calculation above and then decided if they could afford it, there would not be nearly so many business shut downs as there currently are today
Next Blog : “Getting Bums on Seats”