Finances

1
Chapter 6

• Finances

2
3 Different Costs

• One time cost
• Deposit or license
• Fixed cost
• A cost that does not change as sales change
• Variable cost
• A cost that changes as sales change

3
Start UP Cost

• License / Fees
• Insurance
• Professional service
• Phone / Web set up
• Office equipment
• Printing cost
• Cookware

4
Fixed Cost

• Vehicle payment
• Rent
• Web-hosting fee
• Association fees

5
Variable Cost

• Cost of food
• Cost of fuel used in transportation
• Uniforms / Linens

6
Finding Capital

• How much do you need ?
• In what time frame ?
• What resources do you have ?
• Savings / family / friends ?
• How much are you willing to pay ?
• Interest

7
Finding Capital

• Your credit history
• Credit report
• How will repay the loan ?
• How much of your own money will be at risk ?
• Personal references

8
Cash Management
Cash Flow through your business
Your Personal Chef Business
Cash from Sales
Cash that Pays the Bills
9
Cash Flow

• Positive
• More monies coming in than going out
• Its a GREAT thing!
• Negative
• More monies going out than coming in
• Must be short lived
• Breakeven point
• Where positive and negative cash flow balance

10
Planning On Profit
Sessions per month Income per session Total
gross receipts Variable Fixed Cost Net
Profit
X

-

11
Yield

• As purchased (AP)
• Edible portion (EP)
• EP / AP Yield

12
Yield Cost

• Example
• Whole fish AP 6 lbs _at_ 4.00 per pound
• After cutting
• 3 lbs EP
• 6 lbs AP / 3 lbs EP .50 ()
• 4.00 / .50 8.00 per pound EP

13
Setting Up Your Books

• Use a system that you are comfortable with
• Do your bookkeeping every week, same day same
  time
• Keep an accounting journal
• Save ALL receipts