As a brand new business it is important that I understand the costs that I am going to need in the short term and the long term. This will let me work out my costs per year and give my ideas on what I should charge for my service cost.
Running Costs are regular payments. These costs are for items needed on a regular basis. Running costs can include utilities, rent and insurance.
Starts up costs are one off costs. These are the costs which I use to buy my stock.
Rent is one of the most important running costs that I will have to pay. If I don’t pay the rent of my shop I will find that my business will fail.
Utilities are split into 3 sections. These sections are water, gas and electricity. These are also one of my most important costs in my business. I will have to pay for these on a regular.
Gas and electricity will be a big cost in my business. Gas will be used a lot in my business. For example I will need gas for cooking products, and heating up the café. Electricity is also a very important cost in my business as I will need electricity in a lot of my appliances in my café. E.g. lighting, oven and kettle.
Water is one of the biggest costs for my business. This is because within my business I need water for a lot of things. For example, washing up, giving customers water to drink and flushing toilets.
There are some insurance policies that within my business, I will need to get by law. There are two types of insurance that I will need: ‘Public Liability insurance’ and ‘Employers liability insurance’. I think that insurance is important because without insurance I will not be able to run my business and should anything happens I will have to pay the costs which I am unlikely to be able to do. I am not going to use any other insurance policies as I feel that they are not mandatory.
Raw Materials & Stock are a large running cost. As the owner I will have to pay these in order for my business to work. If I didn’t have...