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Financial Projections for Restaurant & Bars: Create Forecasted Financials for a New Bar & Restaurant - YouTube
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[Music]
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[Applause]
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[Music]
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hey if you're looking to start a new bar
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and you've been asked by potential
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investors or maybe the bank
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has asked you to put together a set of
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financial projections and you're kind of
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in this stage of
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deer in the headlight moment where
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you don't know how to create a set of
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projections and and you could use some
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help you've come to the right place
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because we have put together a financial
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projection template built specifically
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for
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bars or restaurant and bar
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type business models and so
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what i'm going to do here is walk you
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through this template and show you how
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it works my name is adam hooksman i'm
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the co-founder of projection hub and
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we've helped thousands of entrepreneurs
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create financial projections for
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investors and lenders over the last
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decade
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and i'm going to be walking through this
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template which we've linked to
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in the description of the video below so
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if you want to grab the template you can
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go to that link there and grab that
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so let's dive in so the first thing i
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want to show you here is
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the add a glance tab so we're really
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starting with the end in mind here this
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is what you're going to get after we
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finish creating your projections you've
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got a profit and loss at a glance chart
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here
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you have some different key
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data points like alcohol sales average
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spend per customer on alcohol and food
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sales
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take out orders
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you have some different graphs startup
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costs a break-even analysis
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and a number of different different
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tables
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now we also have our five-year income
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statement
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five-year cash flow statement
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and five-year balance sheet
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so these are all projected uh income
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statement cash flow and balance sheet
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and we have also
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the income statement cash flow and
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balance sheet by month so if you need
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the monthly detail we've got that
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provided here as well
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so that's what you're going to get when
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you're done with the process but we have
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a little work to do to get there first
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and so that's what i'm going to walk you
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through
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and so if we go back here to our input
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assumptions tab
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now the first thing i want to let you
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know is that any cell that's highlighted
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in light blue is an assumption cell that
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you can change the data in there without
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breaking the template
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so you can you know put in your your
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name of your bar that the
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month and year that you want the
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projections to start
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your
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any personal investment that you're
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going to put in or you could add other
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investors if you have other investors
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lined up and the value that they're
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planning to invest
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when we look down here at the fixed
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assets section here's where you'd enter
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in
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if you buying the building for for the
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restaurant or bar
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and you could actually put that
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the building itself as an asset here
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or if you are leasing the space but
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maybe you're doing a bunch of leasehold
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improvements you know renovations to the
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space you can put that here under
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leasehold improvements and so we've got
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150 000 here listed so we're kind of
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doing a full renovation let's say
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and we're going to be buying uh 80 000
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worth of equipment
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and furniture for the bar and then we've
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also got 15 000 set up for signage
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so these are just some assumptions of
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course depends on you know
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where you're starting this business and
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um you know the size and scope of that
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so these these values could change
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dramatically you could probably spend a
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lot more than this you could probably
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spend a whole lot less than this as well
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and so you'll need to do your own
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research
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for these different categories and fill
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in these assumptions
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now we're projecting a 250 000 sba loan
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with an interest rate of 8
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and a term of 120 months or 10 years
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now we'll jump over to the input revenue
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tab and i'm gonna
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expand this a little bit so you can see
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so uh we start by
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putting in the number of seats in the
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bar here so we're saying we've got 80
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seats in in the bar
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and we're open six days a week
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average daily hours of open for 12 hours
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a day
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and then our average party size is one
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and a half so
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you know maybe you've got a lot of
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individuals just coming to the bar but
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you know you also have some
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groups small groups as well
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and you know again these are assumptions
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that you can change based on what you
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expect in your particular situation
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you have your
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average visit length in in minutes so
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you put in a 90 minute average visit and
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then that's going to
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help us figure out what the capacity is
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so the total potential customers per
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month
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with 80 seats in the bar spending 90
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minutes
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is
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16 686.
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so now we're going to fill out what
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percentage of the capacity do we think
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will be will be filled each month we're
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saying well we're probably not going to
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actually have 16 000
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customers every month we're not going to
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be at full capacity all the time that
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we're open right all 12 hours
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so we're gonna we're gonna reduce that
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let's say maybe there's a few hours of
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the day where you are at capacity
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but
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many of the other hours that you're open
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you're you're most likely not right so
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you can put in a
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percentage of capacity field that you
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expect
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and and a growth rate for that
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and that'll give you your
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based on those numbers we're going to be
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able to see how many customers per day
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and per hour
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are expected
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now you can put in different
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food items here so appetizers or drinks
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and then also down here now we'll have
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the alcohol sales so you can put in
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different alcohol
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types of alcohol sales the average price
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point
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here you're going to put in what what is
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your cost that cost for you um so we're
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saying here it's like
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if the average price of a beer is six
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bucks it costs you 60 cents
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is what we have in here right now
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and then here we say
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the average person average customer that
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comes in how many of each of these
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things are they gonna buy so on average
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we're saying average customer is going
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to buy 1.25 beers
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0.5
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wine glasses or wine drinks and
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0.5 cocktails so the reality is that you
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know maybe what will actually happen is
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the average customer you know one
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customer might come in and get two beers
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not 1.25 and then
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and zero
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wine or
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zero cocktails
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another
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customer might come in and you know get
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get one or two
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glasses of wine or cocktails right
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so
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this is just a way to try to kind of
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break down that average of what's most
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popular
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own across all of your customer base
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so once you enter in that
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we're going to be able to see what our
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projected food revenue and our alcohol
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revenue is per month
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we also have the ability for you to add
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in takeout so if you
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offer takeout
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food or
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takeout orders you can fill
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this table out here
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now ultimately we're going to be able to
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see our
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total revenue and our total total cost
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of goods sold for
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food and alcohol
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and we'll jump over to our direct costs
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here
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and we'll see that
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you can put in you know servers and
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bartenders and kitchen staff and other
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employees and you can build in some
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assumptions like how many hours um
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will they will you be open but also how
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many hours
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extra hours do you need staffing
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for beyond when you're open so like
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you know maybe
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someone's got to come an hour and a half
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before the bar opens to get everything
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ready and maybe someone has to stay 30
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minutes after closing or an hour after
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closing to close up the bar
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so you have these extra hours
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each week
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you can put in the wages and and so
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forth and that will help you calculate
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your
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wages for the
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different staff
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we'll jump into this uh
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other expense category here you can see
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you know you'll be able to add
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advertising
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expenses accounting transaction fees so
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here's one thing i wanted to point out
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when you
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you'll notice these drop downs so you
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can pick whether an expense is a fixed
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dollar amount or a percentage of revenue
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and so we're going to say that we have
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transaction fees
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and why don't we make this 3 percent
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let's say our
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credit card transaction fees
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is equivalent to three percent of total
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revenue
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um and so you can put that in as point
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zero three is the same as three percent
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so you'll wanna enter it in that way
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and then this will automatically
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calculate you know just an expense line
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item that's three percent for your for
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your transaction fees
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you can do that with um
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you can add in fix other fixed expenses
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and you have all this space down here to
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add in other expenses as you
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do research on what your specific bar is
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going to need in terms of those
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operating expenses
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and then finally you can add in a salary
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position so we already added in the
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direct service staffs and the servers
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and bartenders and cooks and that sort
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of thing but you will you may also have
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a manager or supervisor
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and you can add in those individual
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salary positions here
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you can also add in what month they're
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going to start so if you say well maybe
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as the bar grows we're going to add a
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supervisor later and so not until month
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19 do we add that position
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so
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now um
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that really brings us full circle back
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to our at a glance tab and you can see
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that based on all the numbers that we
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entered in um and all those assumptions
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that we're assuming 820 000 in annual
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revenue with a 85 000 ebitda or 36
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thousand dollar net income
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uh in the first year and you can kind of
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see how we grow up to that 1.5 million
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dollar
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revenue with a 200 000 net income now
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again
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you know you gotta fill out your own
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assumptions um you know you may not have
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80 seats in your bar
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you may not be as full you may not so
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you know you want to do your own
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research and make sure that these are
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that work for your specific scenario
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but
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i've walked you through how to enter
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those in after you've done the research
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and if you have any questions as you're
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going through doing that research leave
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us a comment down in the in the youtube
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video comment section and ask
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some specific questions we'd be happy to
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answer those
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for you and
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best of luck as you open your bar thanks
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you
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