B1-K1 Roos Baggen
Roos Baggen I4A
P. Wheeler and R. Zwiers
Assignment 3, Prepare to start your business ............................................................ 8
3.1 Corporate / Legal form ....................................................................................... 8
Sole Proprietorship .............................................................................................. 8
Advantages ...................................................................................................... 8
Disadvantages .................................................................................................. 8
, Private Limited Company ...................................................................................... 9
Advantages ...................................................................................................... 9
Disadvantages .................................................................................................. 9
Choice ................................................................................................................ 9
3.2 Renting of the premises ...................................................................................... 9
Advantages of renting ......................................................................................... 10
Disadvantages of renting .................................................................................... 11
1. Evaluating the building ................................................................................. 11
2. Negotiating the lease ................................................................................... 11
3. Reviewing and signing the contract ............................................................... 11
4. Getting the right permits .............................................................................. 12
5. Planning renovations ................................................................................... 12
6. Setting up the business ................................................................................ 12
7. Outfitting the restaurant............................................................................... 12
8. Hiring my team and getting ready to open ...................................................... 12
3.3 Step by step plan ............................................................................................. 12
Assignment 4, determine the financial policy and the sales price .............................. 14
4.1 Menu including prices ...................................................................................... 14
4.2 Cost of sales percentage 6 dishes ..................................................................... 16
Starter 1 ............................................................................................................ 16
Starter 2 ............................................................................................................ 17
Main 1 ............................................................................................................... 17
Main 2 ............................................................................................................... 17
Dessert 1 ........................................................................................................... 18
Dessert 2 ........................................................................................................... 18
4.3 Cost of sales percentage food........................................................................... 19
Example: burrata bowl .................................................................................... 19
Averages ........................................................................................................ 19
4.4 Drink menu...................................................................................................... 20
4.5 Cost of sales 3 drinks ....................................................................................... 20
Beverage low ..................................................................................................... 21
4.6 Average sales percentage beverage low ............................................................. 21
,4.7 Cost of sales beverage high .............................................................................. 21
4.8 Average sales percentage beverage high ............................................................ 22
4.9 Compare C.O.S. percentages with data from industry ........................................ 22
4.10 Revenue calculation menu (food) .................................................................... 23
4.11 Revenue calculation food ............................................................................... 23
Explanation revenue (lunch)................................................................................ 24
4.12 Revenue calculation menu (beverages) ........................................................... 25
4.13 Revenue calculation beverages ....................................................................... 25
4.13 Transferring total revenues to final excel sheet ................................................. 27
4.14 Season correction .......................................................................................... 27
4.15 Investments .................................................................................................. 27
4.16 Kitchen inventory ........................................................................................... 29
4.17 Restaurant inventory ...................................................................................... 30
4.18 Other inventory .............................................................................................. 31
4.19 Goodwill........................................................................................................ 32
4.20 Investments, goodwill, pre-opening costs and liquid assets .............................. 35
4.21 Determination of the opening stock ................................................................. 35
4.22 Module investment ........................................................................................ 36
4.23 Financing ...................................................................................................... 37
4.24 Interest and repayments ................................................................................. 40
4.25 Depreciation.................................................................................................. 40
4.26 Staff requirements ......................................................................................... 41
4.27 Housing costs ................................................................................................ 44
• Glass Waste............................................................................................ 45
For glass, I plan weekly emptying—4 pickups per month. At €16.27 per pickup, the
monthly cost is: €16.27 × 4 = €65.08 ................................................................. 45
4.28 Other operating costs ..................................................................................... 46
4.29 P&L ............................................................................................................... 48
4.30 Horeca DNA .................................................................................................. 49
4.31 Cashflow ....................................................................................................... 50
4.32 Balance sheet ................................................................................................ 51
Step 1 – 4........................................................................................................... 51
, Step 5 P&L ......................................................................................................... 52
Cost of Sales (C.O.S.) ...................................................................................... 52
To make that revenue, I spent €292.791 on direct costs, which is about 30% of my
total revenue. ................................................................................................. 52
Staff & Depreciation ........................................................................................ 53
The biggest single cost in my business was staff salaries, which comes to a total of
€322.717 (33% of revenue). This is a big number, but it reflects the scale of
operations. Depreciation on assets added another €10.634, which is manageable
at just over 1% of revenue. ............................................................................... 53
Housing Costs ................................................................................................ 53
I paid €26.400 in rent for the year, and had another €16.219 in miscellaneous
housing-related costs. Combined, these are about 4.4% of my revenue, which feels
reasonable for the location and setup I have. .................................................... 53
Other Operating Costs .................................................................................... 53
Total Operating Costs...................................................................................... 53
All in, my costs (staff, rent, marketing, etc.) came to €403.320, which is 41.3% of
total revenue. That means I'm running a lean operation and not overspending. .... 53
Net Profit Before Tax........................................................................................ 53
After covering everything, I earned €281.317 in net profit before tax, that’s 28.8% of
my revenue, which is very positive. The strongest quarters were Q2 and Q3,
suggesting some seasonality in my business. .................................................... 53
Summary ....................................................................................................... 53
Step 6 Breakeven explanation ............................................................................. 54
Step 7 Cashflow explanation ............................................................................... 55
Cash Inflows (Income incl. VAT) ....................................................................... 55
Over the course of the year, I brought in cash from several sources: ................... 55
Expenditures .................................................................................................. 56
This section tracks every euro that left the business, investments, operating
expenses, loan repayments, and other outgoings. ............................................. 56
Cash position ................................................................................................. 56
By subtracting expenditures from income, I can see my closing cash balance at the
end of each quarter: ........................................................................................ 56
Understanding VAT ......................................................................................... 56
Purchasing and VAT ........................................................................................ 57
Roos Baggen I4A
P. Wheeler and R. Zwiers
Assignment 3, Prepare to start your business ............................................................ 8
3.1 Corporate / Legal form ....................................................................................... 8
Sole Proprietorship .............................................................................................. 8
Advantages ...................................................................................................... 8
Disadvantages .................................................................................................. 8
, Private Limited Company ...................................................................................... 9
Advantages ...................................................................................................... 9
Disadvantages .................................................................................................. 9
Choice ................................................................................................................ 9
3.2 Renting of the premises ...................................................................................... 9
Advantages of renting ......................................................................................... 10
Disadvantages of renting .................................................................................... 11
1. Evaluating the building ................................................................................. 11
2. Negotiating the lease ................................................................................... 11
3. Reviewing and signing the contract ............................................................... 11
4. Getting the right permits .............................................................................. 12
5. Planning renovations ................................................................................... 12
6. Setting up the business ................................................................................ 12
7. Outfitting the restaurant............................................................................... 12
8. Hiring my team and getting ready to open ...................................................... 12
3.3 Step by step plan ............................................................................................. 12
Assignment 4, determine the financial policy and the sales price .............................. 14
4.1 Menu including prices ...................................................................................... 14
4.2 Cost of sales percentage 6 dishes ..................................................................... 16
Starter 1 ............................................................................................................ 16
Starter 2 ............................................................................................................ 17
Main 1 ............................................................................................................... 17
Main 2 ............................................................................................................... 17
Dessert 1 ........................................................................................................... 18
Dessert 2 ........................................................................................................... 18
4.3 Cost of sales percentage food........................................................................... 19
Example: burrata bowl .................................................................................... 19
Averages ........................................................................................................ 19
4.4 Drink menu...................................................................................................... 20
4.5 Cost of sales 3 drinks ....................................................................................... 20
Beverage low ..................................................................................................... 21
4.6 Average sales percentage beverage low ............................................................. 21
,4.7 Cost of sales beverage high .............................................................................. 21
4.8 Average sales percentage beverage high ............................................................ 22
4.9 Compare C.O.S. percentages with data from industry ........................................ 22
4.10 Revenue calculation menu (food) .................................................................... 23
4.11 Revenue calculation food ............................................................................... 23
Explanation revenue (lunch)................................................................................ 24
4.12 Revenue calculation menu (beverages) ........................................................... 25
4.13 Revenue calculation beverages ....................................................................... 25
4.13 Transferring total revenues to final excel sheet ................................................. 27
4.14 Season correction .......................................................................................... 27
4.15 Investments .................................................................................................. 27
4.16 Kitchen inventory ........................................................................................... 29
4.17 Restaurant inventory ...................................................................................... 30
4.18 Other inventory .............................................................................................. 31
4.19 Goodwill........................................................................................................ 32
4.20 Investments, goodwill, pre-opening costs and liquid assets .............................. 35
4.21 Determination of the opening stock ................................................................. 35
4.22 Module investment ........................................................................................ 36
4.23 Financing ...................................................................................................... 37
4.24 Interest and repayments ................................................................................. 40
4.25 Depreciation.................................................................................................. 40
4.26 Staff requirements ......................................................................................... 41
4.27 Housing costs ................................................................................................ 44
• Glass Waste............................................................................................ 45
For glass, I plan weekly emptying—4 pickups per month. At €16.27 per pickup, the
monthly cost is: €16.27 × 4 = €65.08 ................................................................. 45
4.28 Other operating costs ..................................................................................... 46
4.29 P&L ............................................................................................................... 48
4.30 Horeca DNA .................................................................................................. 49
4.31 Cashflow ....................................................................................................... 50
4.32 Balance sheet ................................................................................................ 51
Step 1 – 4........................................................................................................... 51
, Step 5 P&L ......................................................................................................... 52
Cost of Sales (C.O.S.) ...................................................................................... 52
To make that revenue, I spent €292.791 on direct costs, which is about 30% of my
total revenue. ................................................................................................. 52
Staff & Depreciation ........................................................................................ 53
The biggest single cost in my business was staff salaries, which comes to a total of
€322.717 (33% of revenue). This is a big number, but it reflects the scale of
operations. Depreciation on assets added another €10.634, which is manageable
at just over 1% of revenue. ............................................................................... 53
Housing Costs ................................................................................................ 53
I paid €26.400 in rent for the year, and had another €16.219 in miscellaneous
housing-related costs. Combined, these are about 4.4% of my revenue, which feels
reasonable for the location and setup I have. .................................................... 53
Other Operating Costs .................................................................................... 53
Total Operating Costs...................................................................................... 53
All in, my costs (staff, rent, marketing, etc.) came to €403.320, which is 41.3% of
total revenue. That means I'm running a lean operation and not overspending. .... 53
Net Profit Before Tax........................................................................................ 53
After covering everything, I earned €281.317 in net profit before tax, that’s 28.8% of
my revenue, which is very positive. The strongest quarters were Q2 and Q3,
suggesting some seasonality in my business. .................................................... 53
Summary ....................................................................................................... 53
Step 6 Breakeven explanation ............................................................................. 54
Step 7 Cashflow explanation ............................................................................... 55
Cash Inflows (Income incl. VAT) ....................................................................... 55
Over the course of the year, I brought in cash from several sources: ................... 55
Expenditures .................................................................................................. 56
This section tracks every euro that left the business, investments, operating
expenses, loan repayments, and other outgoings. ............................................. 56
Cash position ................................................................................................. 56
By subtracting expenditures from income, I can see my closing cash balance at the
end of each quarter: ........................................................................................ 56
Understanding VAT ......................................................................................... 56
Purchasing and VAT ........................................................................................ 57
