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Chapter 6

Chapter 6. Finances. 3 Different Costs. One time cost Deposit or license Fixed cost A cost that does not change as sales change Variable cost A cost that changes as sales change. Start UP Cost. License / Fees Insurance Professional service Phone / Web set up Office equipment

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Chapter 6

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  1. Chapter 6 Finances The Professional Personal Chef

  2. 3 Different Costs • One time cost • Deposit or license • Fixed cost • A cost that does not change as sales change • Variable cost • A cost that changes as sales change The Professional Personal Chef

  3. Start UP Cost • License / Fees • Insurance • Professional service • Phone / Web set up • Office equipment • Printing cost • Cookware The Professional Personal Chef

  4. Fixed Cost • Vehicle payment • Rent • Web-hosting fee • Association fees The Professional Personal Chef

  5. Variable Cost • Cost of food • Cost of fuel used in transportation • Uniforms / Linens The Professional Personal Chef

  6. Finding Capital • How much do you need ? • In what time frame ? • What resources do you have ? • Savings / family / friends ? • How much are you willing to pay ? • Interest The Professional Personal Chef

  7. Finding Capital • Your credit history • Credit report • How will repay the loan ? • How much of your own money will be at risk ? • Personal references The Professional Personal Chef

  8. Cash Management Cash Flow through your business Your Personal Chef Business Cash from Sales Cash that Pays the Bills The Professional Personal Chef

  9. Cash Flow • Positive • More monies coming in than going out • It’s a GREAT thing! • Negative • More monies going out than coming in • Must be short lived • Breakeven point • Where positive and negative cash flow balance The Professional Personal Chef

  10. Planning On Profit Sessions per month Income per session Total gross receipts Variable + Fixed Cost Net Profit X = - = The Professional Personal Chef

  11. Yield • As purchased (AP) • Edible portion (EP) • EP / AP = Yield The Professional Personal Chef

  12. Yield Cost • Example • Whole fish AP 6 lbs @ $4.00 per pound • After cutting • 3 lbs EP • 6 lbs AP / 3 lbs EP = .50 (%) • $4.00 / .50 = $8.00 per pound EP The Professional Personal Chef

  13. Setting Up Your Books • Use a system that you are comfortable with • Do your “bookkeeping” every week, same day same time • Keep an accounting journal • Save ALL receipts The Professional Personal Chef

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