Quote:
Originally posted by bhutocracy
no problem mate I understand. I wouldn't particularly want to be broadcasting that to people I'd never met either. Theres just so much you have to know before starting something like this though.
Yes I don't see it being a major money spinner either, the question i'd really like to know is how little a money spinner it is. Even if the profit is only a few hundred a week, it's worth doing depending on the weekly outlay. The single biggest question is probably how many people go through the doors a week and what number of billable hours that translates into, and what the peak number of machine usage is.
I see the weekly outlay on operating expenses being around $1,100-$1,300 based on 10 computers and not that much in the way of large advertising (ie no tv ads, mostly referral word of mouth guerilla type campaigns) a 25% return on that - meaning around $300 a week profit wouldn't be so bad. And I can certainly see why he would be looking into franchising, although it depends on what percentage of his profit is derived from working there himself and saving on wages as a 90 hour week can eat such a small profit up fairly quickly.
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Well...his monthly overhead is something more than $2000 and less than $3000 and this includes a budget of about $500 per month on advertising...and also includes the fact that he got a real deal on the building...only $600 per month...and a one year lease. It is a nice building...good location and he was lucky to get it that reasonable...it is pretty much SOP to have to obligate to a five year lease. Of course his overhead will go up once he hires an employee.
He also made a deal with a computer business to lease him the computers for a mere $25.00 per month with the provision that he include them in all advertising that he does as well as at his business. He is currently working out additional advertising deals with some of the local pizza parlors...what this includes...I do not know at this point in time. He is also working on some kind of advertising deal with the local high school coach...and I do not know what this includes.