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How do you calculate the estimated turnover of a new business?

Discussion in 'General Business Forum' started by Jwan, Feb 6, 2018.

  1. Jwan

    Jwan UKBF Regular Full Member

    132 3
    My uncle made it through the first year or so by borrowing a lot of money from family and friends. When he first started, he was asking left and right for people to partner with him, no one did, but now the restaurant is very successful and he needs no partners.

    When you say go to local restaurants, you mean I book a table and go sit inside whilst ordering food and then just observe how many others are there? What should I be on the look out for?
     
    Posted: Feb 9, 2018 By: Jwan Member since: Nov 2, 2015
    #21
  2. Toby Willows

    Toby Willows UKBF Regular Free Member

    716 157
    Nope, absolutely thinking budget and not even considering cashflow, it’s the only way to guarantee if it fails you come out the other side intact. Poorer yes, but not in search of Spongebob.
     
    Posted: Feb 9, 2018 By: Toby Willows Member since: Jun 20, 2016
    #22
  3. Scalloway

    Scalloway UKBF Legend Free Member

    13,096 2,826
    That's what I would do. Chat with the staff. "You're busy/quiet tonight. Is Monday/Tuesday/Wednesday/Thursday always like this round here?"
     
    Posted: Feb 9, 2018 By: Scalloway Member since: Jun 6, 2010
    #23
  4. ethical PR

    ethical PR UKBF Legend Free Member

    6,659 1,464
    How are you defining successful. Has he paid back in full the 'lot of money' he borrowed from family and friends? is he paying himself a decent wage and still making a large profit?
     
    Posted: Feb 10, 2018 By: ethical PR Member since: Apr 19, 2009
    #24
  5. Jwan

    Jwan UKBF Regular Full Member

    132 3
    Yep and yep.
     
    Posted: Feb 10, 2018 By: Jwan Member since: Nov 2, 2015
    #25
  6. ethical PR

    ethical PR UKBF Legend Free Member

    6,659 1,464
    Then he will be much better placed to guide you then strangers on a forum.
     
    Posted: Feb 10, 2018 By: ethical PR Member since: Apr 19, 2009
    #26
  7. Jwan

    Jwan UKBF Regular Full Member

    132 3
    I did ask him for guidance, he said if it wasn't for all the money he borrowed he wouldn't have made it. Nothing more than that.

    He did no research, no turnover estimations ...etc and he pulled through the tough times, that doesn't mean the same will happen for others.
     
    Posted: Feb 10, 2018 By: Jwan Member since: Nov 2, 2015
    #27
  8. Mark T Jones

    Mark T Jones UKBF Enthusiast Free Member

    1,772 468
    Work I n his restaurant. Watch closely what happens. Customer behaviour, spending patterns, peaks and troughs etc

    Also take the opportunity to watch closely how the kitchen operates, including outside service times - that’s where money is made and lost
     
    Posted: Feb 10, 2018 By: Mark T Jones Member since: Nov 4, 2015
    #28
  9. Chris Ashdown

    Chris Ashdown UKBF Legend Free Member

    9,124 1,858
    Does this mean his approach to the business was wrong and it took outside help in money to enable him to learn and overcome his first failings?

    Would better planning and knowledge have helped him make better choices?

    Understanding the local market is a big help in starting a business
     
    Posted: Feb 11, 2018 By: Chris Ashdown Member since: Dec 7, 2003
    #29
  10. Daugela

    Daugela UKBF Contributor Full Member

    82 11
    You can always check accounts of restaurant businesses available on Companies House as a general guide.
     
    Posted: Mar 10, 2018 By: Daugela Member since: Jul 15, 2017
    #30