I just can't seem to make my excel sheet balance without putting in some extreme numbers... and no help... so I'm so bummed out!! Even if I split the building I want in two and rent only half, I still can't turn a profit on the sheets... I know the business is out there... I just don't want to look like too much of a liar on the financail plan! ERGH......... And after seeing the other girl, Jill?? Get turned down for not having enough collateral I know i won't get approved that easily either... anybody else want to take a look at my plans?? I'll email them to you!! Constructive criticism is welcomed!
Sorry, I don't know anything at all about this, but I thought I'd give you a bump because one day I'd love to open my own bake shop and I'll need all the help I can get to sort this kind of thing out!
well.... it's just a template program that the small business group gave me... you input numbers like rent, expenses, supplies, etc... then input your projected sales numbers, your salaries, etc.. and it helps to figure out if you will make money or not. I don't know how my boss does it!! I can't seem to make it work out on paper!
Do you have a logic on how you figure your projected sales or are you ball parking it? Are you figuring salaries based as a percentage of sales or on number of man hours you plan to staff the store or just winging it?
Just trying to see if there's a method to your madness or a madness to your methods!
My sales figures are based on what we currently do at the shop i work at. Because she's not going to do any wholesale orders, birthday or occasion orders or cookie/cupcake orders, I can base those numbers on what we currently do. For wedding cakes, I'm trying to balance out the numbers based on what we do now, minus the two a week that she plans to keep and moving to a new location and possibly losing some of that business.... but also picking up new business and more wholesale accounts!
For costs, like utilities, professional fees, supplies, etc... It's an educated guess. Can't ask the boss some things because, IE-- she lives in an area where the water is from a well and they burn their trash... I'll have a water/sewer bill and a trash bill, etc.
For equipment, I took a look in catalogs to get a base price, and used that for my forecast, even though I plan to search for used and re-furbed.
My big conundrum is that my forecast is based on what we currently do together.. and how can I possibly do it with just me and a 16hr/wk PT person? I plan to call the vo-tech school to see about getting interns, but until I see what kind of space I have, I can't plan for that.
The building I REALLY want is $1000 a month plus expenses, so I keep trying to make that happen... but I can't seem to get it just right.
It's really making my life difficult because I can't sleep at night, and when I can't sleep, my neck locks up... and when that happens, I can't hardly decorate without taking a lot of meds... too many meds and I can't think about the business numbers.... it's a vicious cycle. and it's not just the business that has me tense.. my japanese exchange student moved in two weeks ago and my baby girl, my JRT pup got fixed this week, and the windows on my house get fixed next week... so it's just tooooo much at once!
Are you sure you're going to have enough volume in the beginning to need to hire help when you go out on your own? Wages/salaries and the related payroll taxes are some of the largest expenses for many small businesses. Hopefully, the business will eventually grow to the point where you do need the help, but in the beginning sometimes it's necessary to do more yourself so that you don't have to pay someone else to do it.
Also, if you're trying to do a financial plan that mirrors your tax return or profit & loss statement, you won't be able to deduct all your equipment purchases in the year you make them. They have to be spread out over time (usually 7 years for most types of non-vehicle and non-computer equipment). However, if you're just looking at cash flow then you do deduct them all in the year of purchase. Not knowing exactly how your spreadsheet is set up, I'm not sure which is appropriate.
When you look at the quantities I entered.. it's easy to see that i would most definitely need much more help than even the one part timer I acccounted for.... It's planning for about 4 weddings a week, 5-10 wholesale cakes a week, 30 everyday occasion cakes and 50 cupcakes or cookies a week... That's a lot for any one person to do! And delivery? Ugh... I'm tired just thinking about it....