Average Monthly Operating Costs

[iheartlinus]

Hi Everyone! First of all - this is a great site and everyone is very helpful! My business partner and I are considering purchasing a Coffee Drive thru. It is fully stocked (Espresso Machine, Grinder, Toaster, Blender, Oven, Fridge) It has its own breaker box, and water system. They are asking $25 K OBO.

My first question:

What do you think of this number?

Next Question:

I have seen 2K being thrown around as a number to estimate start up inventory. Has this been true for you?

Not including rent, what is your average operating cost per month?

Thanks in advance! - Jessica

 

[here-i-am]

I think that sounds low. Depending on several factors that could be a very low number that they''re trying to sell for a certain reason or it could be a low number because they''ve moved on and are looking to dump it.
Either way, anything under $50K depending on all the factors is usually low.

You have to allot 10% of all sales for rent. That''s the general rule of thumb. After you factor in Cost of Goods, expenses with supplies and employees, usually you can expect to take home 25% of all sales.

This doesn''t address the running cost question because that''s relative. If no one shows up to your espresso stand, your costs will be low. Conversely the opposite is true as well.

Factor all that in but just keep in mind, the more you sell, the more you''ll make if you have a smart system in place.

Hope that helps.