Part of the entrepreneurial dream is being able to determine the cost of doing business. This is done by computing actual expenses and projecting probable expenses for the coming weeks or months. There are peculiarities when it comes to the hotdog cart business and here are some tips for an individual businessperson can determine the cost of doing business.

The monthly payables. Once you have embarked on your hotdog cart business, your enterprise would entail monthly expenses that need to be paid. These include the payment on the mortgage on the hotdog cart if you took out a loan to purchase your cart, the rent for the space where you do business, the utilities bills such as electricity and gas. Since these payables come in on different times, you need to set aside funds to pay for them lest you want to jeopardize your current business.

The cart supplies. These are important since this is the so-called bread and butter of your business. Hotdogs, sausages, bread, condiments, and add-ons are what are included in this list. Also included are paper products, utensils, cleaning implements and other backend supplies to keep your cart neat and running. You need to have an inventory plan so that you do not overstock, thus increase the cost of doing business. On the other end, you also need to be sure there is available supply on hand for if any of these things run out, you are sure to lose money and business.

The employees. Many say that the greatest resource is the human resource in a business. Thus, you need to provide the salaries for your employees on time and in the right amount so as not to demoralize your staff. It is also good to set targets for your employees and providing monetary incentives should they achieve it. You also need to provide adequate funds for uniforms to make your business look as professional as possible.

The three topics abovementioned are but some of the aspects of the costs of doing business. Once you have identified them and computed them into their equivalent dollars and cents, you can then project on what earnings you need to have each day to keep your head above water. Also, you can also identify possible expenditures that can be controlled thus giving you the opportunity to make profits and thus one step closer in achieving your entrepreneurial dream.

Leave a Reply

You must be logged in to post a comment.