 Hello Aces, welcome back to module four, lesson number seven, creating your financial plan. In this lesson, we're gonna be talking about how to create your financial plan so then that way you can start a profitable restaurant. You've done all the hard work already, now it is time to put everything together and start creating scenarios. Now why is that super important? It is because so then that way we can prepare for the worst but be ready for the best as well. So let's get right into it. These are the items that we already done in the previous lessons, if you haven't already done so make sure you go through each and every single one of the lessons and to get all these numbers because now it is time for us to put everything together. We've got the revenue range, we've got the total investment, the seating available to fix and variable cost, break even point, average order value. You put everything already, you've done the hard work, now it is time to put them together and create a high, average and low scenario for your restaurant plan. Usually I like to budget 25% variance for each of these scenarios and I'll show you exactly how to do that. Ben's burger in action, we have done everything already, that's the hard work, we've calculated that. On average, Ben's 700 square feet location would bring him $24,500 revenue per month, that's on average. We take that, we times that by 25% more, okay? So that's the reason why we use 1.25 times the average number that we projected, that gives us $30,000 and 625 revenue per month and that's on the high side. So for us to actually calculate the low side, then we take 0.75 times that by the average in order for us to come up with 18,375. So for example, if you wanna adjust the variance, right? Whether it is 15%, then this would be 1.15 and this would be 0.85. So basically whatever percentage that you wanna have as variance, then you just need to put it as a multiple to calculate your low scenario and your high scenario. But nonetheless, these are the three scenarios. On the high side, you make around $30,000, on the average side, you make around 25 and on the low side, you make around $18,000 per month. Now, use the high projection number which is $30,000 to prepare your equipment and also your kitchen needs. So then that way it prevents your operations from collapsing, from overloading. That's a prime example of what a mistake that we have done with our ice cream shop because we never accounted for us making a really big amount of money and that we have a lot of traffic and that's the reason why we bought the cheapest ice cream machine out there and thus in turn because we had lineups out the doors for months to come, we had to upgrade our ice cream machine and in turn we spent more than $30,000 to upgrade to a new machine to take out our counters and to put in the new machine and that was a costly mistakes on our end because we never accounted for this scenario. So I don't want that to happen for you. Make sure you use a high projection number to calculate your equipment, okay? Use the low projection number. Let's say if you're only making $18,000 per month instead of $30,000, then use this number to prepare a castle for what you need in your bank because this allows you to have enough runway to weather the winter times. For us, we never really accounted for that and that's the reason why we came into a cash flow problem as well but luckily we were busy in the summertime and we had enough cash to sustain the winter time as well but nonetheless it is just a luck thing that we happen to fall into. You need to make sure that you have the preparation and have the cash flow in the bank because if you don't have the cash flow in the bank it will easily push you into bankruptcy before you even are able to see the next season to actually have a chance of success again. That's the reason why you need to make sure you prepare enough cash flow to put in your bank in order for you to run your business and also have the equipment for high production and that way you're gonna be ready to build a profitable restaurant. Now it is your turn to calculate your high projection numbers and your low projection numbers so then that way once again you're prepared for the worse and ready for the best, okay? Use a worksheet below to calculate that and adjust the percentage based upon your preference. Now it is your turn to go and do that. In this lesson you've just learned how to create your financial plan using the worksheet below. Now go out there and start creating that plan. In the next module we're gonna be learning how to create a great culture that attracts the best talent who cares for your business. I'll see you guys in the next module.