 Hello ACEs, welcome back to module four, lesson number one, begin forecasting your revenue. This is by far the most asked questions all the time. Hey, how much should I be making in my restaurant? How much should I be projecting in terms of investment costs? How much money do I need to start my restaurant? And that's the reason why we start off with understanding what is the revenue range. Using this revenue range, we can now start to project how much investment we would need. Now, first off, what is revenue range? It is a projection of your revenue based on the size of your specific location. Now, keep in mind this range does not take into any consideration and any variables whatsoever of your location or what kind of restaurant you're running, whether it's a quick service or a fast casual, it does not take into consideration of that. It also does not take into consideration of their area that you're in, nor your experience, your organization or your operations or any of your food offerings, whether you're selling bubble tea, whether you're selling ice cream, desserts, food whatsoever, it does not take into consideration of any of the variables. And this number that I'm going to give you and the formula to come up with your revenue range is really just the basis of what you're going to be starting off with, because everyone's got to start somewhere and I need to be able to give you a certain benchmark to actually do your projections. And then what we're going to do is we're going to start off really, really wide and we're going to funnel it in and cut out the different variables, add in this, add in this to really come into something a lot more accurate. But nonetheless, I want to give you a very, very brief and really big range. So you kind of have an idea of where to start. Okay. So that's the reason why it's super important that you actually do this exercise with me. So then that way, the rest of the module really builds upon understanding lesson one, your revenue range. Once again, why is it so important? Because it allows you to get to work right away. It allows you to start projecting and doing analysis based on the benchmark from the restaurant industry. It also allows you to project the investments needed for your restaurant. So then that way you're not really swimming in the dark. You kind of have a general idea of which way you are heading. Like I'm just pointing that direction and that's the reason why we need to help you find your revenue range. Now let's jump right in. How do you calculate your revenue range? Very, very simple terms for every hundred square feet of your location, the projected revenue per month is and should be around $3,000 to $4,500. Okay. That's a typical range. Now, depending on how experienced you are, depending on your food cost and your basically experience or how busy or your area that you're in, you can actually project either $4,500 or $4,000, $3,500, $3,000, depending on what you think you can achieve from this location. If you are very, very successful, you'd be making around $6,000 per month. You'd be considered super successful if you can actually rake in $6,000 per month. If you are running a hundred square feet. Now let's dive in as an example using Ben's burger guys. Ben's burger. And we're going to be using this example for the rest of the module. So make sure you guys pay attention and always come back to Ben's burger. That's what we're building. So you figured that you know what with Ben's burger, you're going to be making not $3,000. You think you're a little bit better than that, but you're not as aggressive and as ambitious as $4,500 per hundred square feet. So you settle with $3,500 per hundred square feet. That's your projection. Let's say the location that you're renting is 700 square feet. What does that mean? That means that you use this number times seven is the projected revenue per month for your location. Okay. Once again, guys, use a baseline of what you think is an average of what you can make. We selected $3,500. You can select $3,000. You can select $2,500 or $4,000. It doesn't really matter. This is a really rough idea of how much you think you can achieve from that location. And this is per hundred square feet. So depending on your size of your location, you use the size times this equals the projected revenue that you're going to make per month. So this is a great diagram for us to showcase of how much you've been making, right? $3,500 per hundred square feet. Now you have seven of these boxes. One, two, three, four, five, six, seven. This is 700 square feet. You add up all these numbers equals 24,500 per month. That's your projected revenue per month. If you were running Ben's burger running at $3,500 per square feet. That's the revenue you'd be looking at. Now it is your turn. Use the excel down below, download the link and download the excel and actually plug in your numbers, plug in your square footage and it'll spit out the projected revenue for your restaurant. Now with this projection, we can start projecting how much investment you should budget in your specific build out. In this lesson, you just learned about how you can forecast your restaurant's revenue using revenue range. Understanding that concept allows you to actually figure out how much money you need to invest to make your dream restaurant happen. I'll see you guys in the next lesson.