 Hello, Aces, welcome to module four, lesson number two, figuring how much to invest in your restaurant. In this lesson, you're gonna learn about the million dollar question. How much should I invest in my restaurant? And this is the reason why we went over your projected revenue range in the previous lesson. So then that way we can come up with how much you should invest, okay? If you don't know what I'm talking about, definitely jump back to the previous lesson because you definitely need to understand how to figure out your projected revenue range. Now, why should you even care how much you're investing in your restaurant? It's yours anyways, why should you care? Well, if you don't set yourself up for success, most likely you're not gonna succeed because you're spending years trying to dig yourself out of a hole that you just unconsciously dug for yourself. So definitely understanding your numbers definitely does help. Also, you built this restaurant to realize your dream, something that you're proud of, something to take care of you and your family to achieve financial freedom. So if you don't pay that attention in the numbers, then you'll never get there. And a lot of people, they don't do that. Why is it that they don't do that? It is because it's not sexy, it's not fun. Accounting is never fun. Numbers are never fun unless it's in your bank account. What is fun is marketing, is social media is basically serving your guests, creating the food. Those are the fun things. And that's the reason why so many restaurant owners fail within their first year or even just fail in general because they don't do their budgeting, because they don't care about the numbers, because they only care about the sexy things. And that's the reason why you are in a much better position to succeed because you're going through this lesson. Now, with your projected revenue range, you can figure out how much you should invest in your restaurant. And once again, if you don't know what I mean by projected revenue range, definitely go back to the previous lesson, understand it and determine your own projected revenue range. In the last lesson we talked about projecting your monthly revenue range from $3,000 to $4,500 is a typical benchmark in terms of the range. Now, how much should you invest in your restaurant? You times that monthly income by 12 to make it an annual income, okay? So how much you're making per year that you're projected, okay? And you take two thirds of that. That becomes your investment amount. Once again, your annual income, projected annual income, two thirds of that, okay? Equals your investment account. And to give you an example, with Benzburger that we went over, and once again, if you don't know this example, definitely go back to the previous lesson. It is super important that you go through all these lessons in sequential order. Don't skip ahead because each concept builds upon another. And the examples that we'll be using will be built upon each other as well. And as you can see, Benzburger was an example that I was using in the previous lesson. So definitely check it out if you haven't done so. If you have, let's dive right in guys. For instance, Benzburger projects to make 2,400 per month. On an annual basis, we use this number times 12. On an annual basis, Benzburger would be making $294,000 in revenue. Now what do we do next? We take two thirds of this, okay? Two thirds times this amount equals roughly shy of $200,000. What does that mean? That means Benzburger should have an investment of no more than $200,000, okay? Once again, if you don't understand this, you can simply just pause this video and you can just replay this a few times. The concept should be easy to understand if you still am struggling with this, definitely jump into the group and let us know so then that way we can provide the support for you and help you figure out how much should you be investing in your restaurant's build out. Breaking it down, okay? With $200,000, this should include your renovations, your lease fees, your build out time, furniture, equipment, everything that it's gonna take to get your restaurant up and running. It should be inclusive of everything, okay? Even your run rate and your basically backup funds, it should include everything. And this is how much you should be investing in it if it's a 700 square feet burger joint, okay? The investment could be lower, right? And once again, this is only for reference purpose only. So if your investment, if you don't have $200,000, it could be lower than that. I'm not saying that it must be $200,000 for you to be able to build a restaurant if you wanna bootstrap this, if you wanna do the renovation yourself, if you already have furniture that you wanna just throw in there, you're gonna be able to save some money here and there as well, which is the reason why it doesn't have to be fully at $200,000. Same thing if, for example, you need a lot of kitchen upgrades or you need a lot of different equipments that specialize to your product development, then the cost would be higher as well. The projection that you got from this whole exercise and the rule of thumb that I'm sharing with you is only for reference purpose only, okay? So it's not a strict make or do or die kind of deal. It is something for you to have an idea of to based upon the rest of the budgeting moving forward. Each country and each city will have their different pricing depending on labor and also the location that you're having your restaurant. And that's the reason why once again, this is a rule of thumb only and on top of that, this whole thing is all about projection. It's not about your real numbers as of yet because now we need to be able to have a benchmark to start from somewhere. That's the reason why we're doing this exercise. In this lesson, you'll learn about how much money you should be investing in your food concept. And the next lesson, we're gonna be talking about how much seating you'll need for your restaurant. I'll see you guys in the next video.