poolplayerrm said:
Hi,
I would like some basic information on how to start a Pool Hall and Business Plan. Please if there is any ideas out there please feel free to let me know.
Thanks for your time and consideration.
Hello poolplayerrm,
This is a pretty broad question...but here is how I begin.
Develop or acquire a decent chart of accounts for a pool room. This will give you line items to begin quantifying costs for a P&L statement. An example of these line items might be:
-Income (separate sources such as table time, liuquor sales, vending machines, games, etc)
-Cost of goods sold (separate line items for each income category)
-Rent
-Utilities (separate telephone, water, gas, etc)
-Hired help (labor)
-etc, etc until you have quantified the costs of doing business like you plan.
Then build a beginning balance sheet which will include line items for all assets and liabilities the day before you begin the business.
A business plan is predicting the future...you must project:
-Start up costs (purchases of inventory and equipment, utility deposits, etc.
-Not only sales but the costs involved in making those sales.
Then close each period (generally monthly) to determine P&L and post to the beginning Balance Sheet to update.
Once this is completed, calculate the statement of cash flows.
A narrative generally accompanies the financial statements providing detailed explanation of:
-The progression of the business as shown in the financial statements
-A competition survey
-your experience or why you will succeed.
Hope this helps
Hittman
