Remember those days you were a PAYE worker.
Wages paid for hours worked. A simple life. Now you’re a café owner. However, you still have a mortgage, a car repayment, a house to run and planning a holiday away. These are the fixed costs of your life.
Could you work for €4 per hour as a PAYE worker and still meet your financial obligations. Probably not. There is a minimum income you need a month to meet your fixed costs.
So why not take the same principles and apply them to your Café how much do you need to make a day?
The principles are; you have these costs whether you have 2 customers or 200 a day.
Let’s go through the steps.
- Calculate what are the fixed costs (Rent, Rates, Insurance, Spotify, IMRO) get one figure on paper.
Let’s say €75,000 per year.
- How many days a year is a café open. (Fixed costs are incurred whether your open or closed)
52 weeks a year x 6 days = 312 days – 9 bank holidays = 303 days the cafe is open.
- How much do I need per day?
(75,000 / 303 days) = €247.52, of course, this is net sales.
The benefit of knowing how much you need to make to cover the fixed cost is a good starting point.
Let me know what your daily figure is If you are unsure just reach out and I can walk you through the process.