In my last post I predicted mid-may, but here we are in June and I’m still not open for business.
Permits are a real pain in the ass. The risk of bankruptcy is real and no one cares.
Thing are not all bad, a bit more traction, more support, the space ready to open.
Today I’m sharing a list of things I didn’t consider, but should, when figuring out real price margins:
- Equipment usage - normal usage is expected, but all it takes is one misbehaved kid to make you replace something that costs more than the entry price
- Beverages that fall during restocking
- Acrylic and other stuff that may fall if not correctly fixed
- Trial and error with equipment, lots of ordered stuff is not going to be used as they aren’t as useful in real life as expected
- Balls that are not that adequate, score counter, clubs that are hard to paint to be seen in the dark, …
- Trying out equipment that should be brand new when sold
- Face paint, bracelets, glasses, balls to sell, beverages/snacks, …
- Inventory management, trying out suppliers, optimizing costs, accounting for each transaction, restocking
- Time taken for serving each individual item
- Credit card fees
- Fixed costs, e.g. rent, electricity, water, internet, insurance, licenses, …
- Marketing costs, e.g. social media, ads, influencers, …
- Compliance costs, e.g. fire, health, food, music x2, building permits, business permits, signs, useless construction…
These are just some of the hidden expenses that don’t show up in business plans or spreadsheets. But they’re real, and they hit hard.
I’ll make sure I keep this list in mind when going for a new business venture. I guess this is the price of learning.
If you’re starting something: over-budget, over-prepare, and overestimate how long things will take. If you’re watching someone try: a kind word, a share, or a visit means more than you think.