Avoid the Budget Trap

To be succeed in a new market of eat or drink outlets shall exceed the standards set in the competition.

Therefore, it makes sense to open a restaurant or a cafe customer expectations will win almost all have been established by the large chain retail spending large sums of money does not satisfy no one group of target customers.

When starting a new restaurant or a cafe for testing in a crowded market, but to do good, you will not find a second chance. Ugly is not for sale. If you do not spend enough to solve this problem, which can be more than you want to spend, then you lose all your money.

In our opinion it is a mistake, these simple facts, which led to the failure of most food and beverage companies enjoy. We call this financial trap. Here’s a common scenario.

The owner of a call from a restaurant or cafe has developed a concept and in part developed to provide its sales. You may have even bought the premises. You can withdraw funds according to its own estimate of cost or bulk of a general contractor. It is unlikely that they have done enough good market analysis to determine the most appropriate approach for your location. Then, review the costs and market sentiment in the intestine and can not really know what customers want or what is the cost of delivery. On this basis, we can not predict its profitability.

Then find a suitable architect or designer, who specializes in food stores. Most of these planners to keep track, because small customers have been tricked into the budget many times, which makes customers suspects.

The specialist designer, described the project and possibly make a site visit. You can analyze local competitors. Here is a rough Express believes that the construction budget must, for example up to 2000 euros per square meter.

This phase is based on similar experiments, the designer can express their concerns about the viability of the concept. You could say that is too low for the market and the cost per meter must be high because the cost invested or even out of range.

The client suspected, but this board has a budget of £ 1,000 per square meter. You do not have a restaurant, but professionally, before accepting the designer is wrong or specialist advice to spend more of their own interests. You do not see the need for specialized development contractors to make the best of design experts. Some or all of these issues are not discussed openly, but the parties do not agree to move forward – the customer thinks that the designer has the cost and designers believe they have informed their clients about how overrated they invest and that the customer can recover the extra money.

The trick is to set the budget.

The project is advancing and the designer produces drawings with which the customer is satisfied. The next drawing more complex products, often within days or weeks. Everyone is happy.

Then, the designer provides some development specialist contractors to build the output is, and invite them to tender. A specification that includes many elements that the customer forgot at home with no experience or established underestimated. Tenders are back and they are all around 2,000 euros per square meter. Duplication of resources from a client, but in line with the predictions of the Designer.

You know what happened next? Well, if this is not a dispute, then the drawing is reduced. The cost of providing basic services for the restaurant, such as heating, ventilation, kitchens and bathrooms are still about 65% of the total cost. These costs can be reduced, at least should be designed construction standards established by law. Therefore, cuts in the installation, lighting and decoration done.

The project is progressing, but now the budget has been suspended trap. The restaurant or coffee is not reached the level of competition in place, much less overcome. Customers do not come, or if they are not impressed and did not return. The news spread quickly in these days due to social networking. The company does not, sometimes within weeks, and the loss of all investments.

We can help you avoid these pitfalls of the budget. Quantity Surveyor working with a specialist, can provide accurate, independent and detailed advice on the cost of the project before the start of your project, or when the first drawings were prepared. This review will be updated throughout the project. Of course, charge for this service, but our fees are a small part of total costs. They are an investment to ensure that planning your finances properly and not get caught in the budget of the event.

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