1. The Professional Personal Chef 1 Chapter 6 Finances

2. The Professional Personal Chef2 3 Different Costs One time cost One time cost –Deposit or license Fixed cost Fixed cost –A cost that does not change as sales change Variable cost Variable cost –A cost that changes as sales change

3. The Professional Personal Chef3 Start UP Cost License / Fees License / Fees Insurance Insurance Professional service Professional service Phone / Web set up Phone / Web set up Office equipment Office equipment Printing cost Printing cost Cookware Cookware

4. The Professional Personal Chef4 Fixed Cost Vehicle payment Vehicle payment Rent Rent Web-hosting fee Web-hosting fee Association fees Association fees

5. The Professional Personal Chef5 Variable Cost Cost of food Cost of food Cost of fuel used in transportation Cost of fuel used in transportation Uniforms / Linens Uniforms / Linens

6. The Professional Personal Chef6 Finding Capital How much do you need ? How much do you need ? –In what time frame ? What resources do you have ? What resources do you have ? –Savings / family / friends ? How much are you willing to pay ? How much are you willing to pay ? –Interest

7. The Professional Personal Chef7 Finding Capital Your credit history Your credit history –Credit report How will repay the loan ? How will repay the loan ? How much of your own money will be at risk ? How much of your own money will be at risk ? Personal references Personal references

8. The Professional Personal Chef8 Cash Management Cash from Sales Your Personal Chef Business Cash that Pays the Bills Cash Flow through your business

9. The Professional Personal Chef9 Cash Flow Positive Positive –More monies coming in than going out It’s a GREAT thing! It’s a GREAT thing! Negative Negative –More monies going out than coming in Must be short lived Must be short lived Breakeven point Breakeven point –Where positive and negative cash flow balance

10. The Professional Personal Chef10 Planning On Profit Sessions per month Income per session Total gross receipts Variable + Fixed Cost Net Profit X = - =

11. The Professional Personal Chef11 Yield As purchased (AP) As purchased (AP) Edible portion (EP) Edible portion (EP) EP / AP = Yield EP / AP = Yield

12. The Professional Personal Chef12 Yield Cost Example Example –Whole fish AP 6 lbs @ $4.00 per pound –After cutting 3 lbs EP 3 lbs EP –6 lbs AP / 3 lbs EP =.50 (%) –$4.00 /.50 = $8.00 per pound EP

13. The Professional Personal Chef13 Setting Up Your Books Use a system that you are comfortable with Use a system that you are comfortable with Do your “bookkeeping” every week, same day same time Do your “bookkeeping” every week, same day same time Keep an accounting journal Keep an accounting journal –Save ALL receipts