Hi there, new here.
I run a small to medium bar. We serve around 4k customers per month.
We just passed our 2 year mark so we're pretty happy with the results.
We think we have a pretty tight financial planning. None of the associates had any or much money prior to opening the bar so we take a lot of measures to ensure we make it in the long run. The idea is not to get rich, but to have a steady income to support our families and live life in peace.
We made a small loan of 20k 2 years ago and we make $500 payments monthly - this money was our initial seed for purchases and 1 employee. Now we have 10 hired.
We currently have a healthy bank account in which we save up the average amount of cash we usually spend in a month.
This amount is based on several things such as
- rent, security, employee payments (monthly salary of 10 people, paid vacation, taxes, all, you name, we have it - we run everything by the book)
- other fixed costs (eletric, internet, software, more taxes..)
- machinery repairs (a small amount to buy or repair stuff)
- monthly cost of food and beverage
- gov taxes (which is a lot)
- a 5k employee emergency fund (we turn to this to pay for freelancers in case of sickness or something like that)
- a 20k emergency fund (for any sort of shit)
So every month we generate an income of about 150-170k gross and we consider as profit what's left after we deduct all the previous 'future bills'. So we kinda have a 15% profit margin after all (around 25k), which I think it's the market standard here in my country. Since we have like 6 associates we share roughly 3 to 4k each a month. We all work very hard and we are pretty happy with the results, but ofc we always want more.
My question is: is this approach considered too safe? or should I change the way we manage our business?
Oh I forgot to mention. The initial investment is already paid off (one of the associates had most of the equipment from a previous business). So the only debt we have is the 20k loan.
Any feedback would be greatly appreciated.
Submitted December 04, 2019 at 09:17PM by mrchandler84 https://ift.tt/2LkORs4
