- Original Poster
- #1
We're finalising/reviewing/revisiting our financial projections before deciding whether to pull the trigger (or not) after receiving planning permission, since it has taken a while to do so.
The business involves building a structure on land we already own, with a estimated cost of £70k to get from nothing -> opening day. Our models indicate we will be down a further £15k before the business stops losing money (around month 6) and the curve starts to go in the right direction i.e. our 'rock bottom' point has us investing £85k before that starts to reduce on a path towards profitability (this is including taking a moderate salary as soon as it won't cause us to incur a loss)
Something that did cause us a fright was in variously optimistic/pessimistic versions of our model, how long it is before that initial £70k is paid off. But then I realised I have absolutely no idea how long it would normally take a business to do this, which has to buy/build premises. So I'd love to hear any thoughts on that - are there any typical figures people throw around, or maybe business owners here can share their experience? Of course, the structure we own is in some form an asset too albeit not one we could easily sell.
Our projections are actually quite good in terms of income and profitability once things get going but we are trying to gauge the startup cost to see if this is definitely a good thing to do
Thanks.
The business involves building a structure on land we already own, with a estimated cost of £70k to get from nothing -> opening day. Our models indicate we will be down a further £15k before the business stops losing money (around month 6) and the curve starts to go in the right direction i.e. our 'rock bottom' point has us investing £85k before that starts to reduce on a path towards profitability (this is including taking a moderate salary as soon as it won't cause us to incur a loss)
Something that did cause us a fright was in variously optimistic/pessimistic versions of our model, how long it is before that initial £70k is paid off. But then I realised I have absolutely no idea how long it would normally take a business to do this, which has to buy/build premises. So I'd love to hear any thoughts on that - are there any typical figures people throw around, or maybe business owners here can share their experience? Of course, the structure we own is in some form an asset too albeit not one we could easily sell.
Our projections are actually quite good in terms of income and profitability once things get going but we are trying to gauge the startup cost to see if this is definitely a good thing to do
Thanks.
