Monday, August 14, 2006

On your mark, get set.........


Got the info back from the banker. It was very good......but at the same time very unsettling. Why? I dont know why because they gave me exactly what I asked for. I think that adding up all my monthly costs (doing break-even analysis) was sobering. I had a clear idea as to what I was going to be looking at but hearing from the banker and seeing the costs on paper was surreal. Hearing from Brad (the banker) was almost symbollic because I've known for almost 3 weeks what the loan terms were probably going to be. It was symbollic in the sense that, "o.k., heres the dough.........make it happen". -Almost like a track meet and you could here the pistol go off. Time to start buying stuff..........but try to buy as little as possible and pay back the balance as fast as possible! Relatively speaking, my loan amount is not terribly much, its the term of the loan (only 18 months) that makes the monthly note so steep. And thats exactly the term I requested because I want to pay this note off quick. I'll think about it today, I may request that the term to be pushed out a tad farther, maybe an additional 6 months. When I say "steep" i mean the monthly note in additon to the other monthly costs. Just calculating the payment in addition to the monthly costs has brought my monthly breakeven to around $13,500 per month, and before its all said and done that will probably become more like $14,500. Thats total rent, food costs, beverage costs, payroll, insurance, etc.. For a simple bbq joint & grill that just seems like so much but maybe thats my own ignorance causing my fear. Now thats not counting any cash flow coming in at all. Thats assuming that not one soul comes through the doors to eat any food whatsoever. Thats assuming that I will never have any catering. Thats assuming that I sell no sauces, t-shirts or caps on the website. Obviously thats not going to happen but I have to look at it that way because its important for me to know "worst case scenario". Its all about surviving that note until the cash flow starts coming in to handle it. Anyway....I must admit that I'm not worried about people coming in to eat the food, what I am worried about is will enough people come in to eat the food in the time that I have to make this work, which is basically two years. Nolensville is growing so dang fast, they have approved so many new homes to be built out there. I have forcasted doing about $200,000 in year one. If we do that we'll make a "whopping" $30,000! -Not hardley a good enough reason to do something like this. BUT.......if we can do an additional $100,000 in year two for a total of $300,000 then this is worth staying around for. My current demographic is weighted on the construction crowd at lunch. That demographic will change drastically in 24 months because of future residents buying new homes within a two mile radius of the joint. by that time the dinner/take home crowd should really start to strengthen. If I can survive the first 12 months I think I will be fine.......but thats a "BIG" if! Oh in the long run we'll be fine........I'll still have my landscape business rolling to bring in money during the lean start up time, and Martha will still be working a little until maternity leave........but this is where my passion is and if this fails it will not only be a huge sting to us financially, but it could be a dream crusher. Without sounding dramatic, money can always be earned one way or the other...there's just too many dumb-asses in the world for any of us to have an excuse not to earn it - but when a dream gets beat down sometimes its hard to find the confidence to dream that dream again, and thats the biggest fear I have in regards to this not working. Where's an 80's glam-hair metal band singing in the background when you need them?

3 comments:

hearts n TN said...

"Here I go again, on my own" ha... You are in the ZONE of DOUBT... push through this and get on with it!!Others just choke. What else is there to do?

jbc said...

Should I be scared or proud that the first song my girlfriend thought of is Whitesnake?

lovelife said...

I wish you luck on what you are doing.
wish i could do it also.

What is this Blog???

You ever been sitting around cooking for your family and friends and been told the following: "Hoss, this is the best I've ever had in my dadgum life.....you have got to open up a place of your own". The thought crosses your mind to do just that, but for whatever reason you dont. Well I'm "that" guy that actually went through with it and did it. I had absolutely ZERO restaurant experience! I decided to start this blog about my own experience hoping that it may be of some use and help to others who might be interested in opening their own place.
I learned this craft almost 20 years ago cooking whole hogs on brick & cinder block pits at a couple of little BBQ Joints in Henderson, TN. I learned from old, lifelong career Pit-Masters, working with them as an apprentice during school off and on for four years. Over the course of that time I learned the old, time-honored craft of REAL pit barbecue. At Martin's Bar-B-Que Joint I am trying as hard as I can everyday to bring that time-honored authenticity to my customers.
As you read you'll see I've made some stupid decisions, and I've made some good decisions. If you are thinking of opening a restaurant, especially a BBQ Joint, read this blog! Maybe some of this info can be of use to you. At the very least you will be entertained because I pull no punches.
Now listen, this is my blog to not only help with information but my blog to freely rant about my day to day experiences. There is no real "bad language" on this blog but there might be some things said that are very "tongue in cheek". If you are easily offended and/or cant see the satire in my posts then please just leave the blog. It will save both of us the annoyance of each other. For those of you who do like satire and are looking for good information about this experience, then by all means enjoy!