The next section of your restaurant business plan financials deals with all the other expenses that crop up in starting a restaurant that most people overlook because they aren’t the biggies like food cost, labor cost and the rent but these can still add up to quite a big number so it doesn’t do to forget them.
In this section we break the expenses into two general categories. The first is prepaid expenses. These are things that you pay up front and then you get the benefit of them in the future until it is time to pay again, such as insurance. This is more of an accounting distinction than anything else but it is still helpful to know how it works and what you are going to be putting out when.
When you shop for insurance get several quotes as prices can vary widely. Also, it is best to estimate low on your sales and employment figures to start. If you end up doing better they will bill you for the difference but if things start slower than anticipated you will end up having overpaid and have a long wait to get the difference paid back, if it even does come back to you.
The second section is non prepaid expenses, which are things you pay for at the time of service or after you get the service. Payroll taxes are a good example because you only pay them after you have already gotten the work hours from your employees. Likewise, bank fees are paid at the end of the cycle after you have used the bank’s services. By the way- if you notice your bank charging a lot of fees for things, shop around. Although not as common as it used to be you can still find banks that charge little or nothing for most of the services you will need so there is no reason to pay a big monthly fee to your bank.