How a Profit & Loss account can be influenced
BEWARE. As you have no doubt experienced, there are any number of ways to make a projected profit and loss account look really great. There is no such thing as a definitive set of figures. You might think that there is only one ‘real’ P&L. But there are any number of ways a P&L can be ‘reconstructed’.
These figures can be produced by:
• Brewery, pub or hotel company
• Current owners and their advisors
• Transfer agent
• Yourself
• Finance company
Any one of these will have their own ideas. It can be VERY confusing. And which gives the right picture or most likely outcome?
It is very easy to be over-optimistic when you have set your heart on this new venture, where you’re going to be the boss. But are you being realistic?
The bottom line profit that you can expect is heavily influenced by the actual figures that are put against the following inputs:
• Average spends per guest
• Expected revenue from food, liquor and letting rooms (if you have them)
• Total sales
• Profit margins from all the above
• Payroll
• Other General expenses
And don’t forget the influence of:
• Your competition now and future competitors
• Current market trends and influences
• The quality of the current operator
• Marketing and sales actions
Find out why you don’t always get the right story
For a no-obligation initial discussion phone Julie Godsoe on 01628 487613
or send an email.
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