How much would you earn by renting it to someone else?
Posted: Wed Jan 22, 2025 9:21 am
Different legal structures with different impacts on capital engineering. And, obviously, there may be reconfigurations, although it is essential to be aware of the contracts and their effects. Firing the pastry chef has a cost. Did you carefully read the contract for supplying raw pastéis? Is there a specific deadline? Do you need to notify? Is there a fine. We insist: professionalism is a requirement for running a business .
We could stop here and already have a basic idea. But we can go a little further. Let's go back to the cake shop and its accounts. They were done. Everything that is necessary to set up the business and make buy bulk sms kuwait it work, to make it turn around (hence the famous working capital that scares so many) was estimated. Where does the capital needed for all this come from? What is its cost? Here is another important question of capital engineering: the cost of capital . And let's just stick to the obvious since the purpose of the essay is to convey an idea and, thus, allow the reader to understand the basis of what capital engineering is. So what? Own capital or third-party capital?
Are you going to use your own property? How much would you earn by renting it to someone else? R$2,500.00 per month? So, here is a cost of own capital. Depending on the accounts, it is worth giving up the cakes and just receiving rent. In fact, we have seen business owners renting out stores they own to third parties and, at the same time, renting out stores owned by third parties for their own businesses, pocketing the difference. In many cases, this is the best thing to do; in others, it can be a serious mistake; for example, due to the loss of consumer flow (customers).
Are you going to use third-party capital? From whom? What is the contract? What is the cost of capital? How much is the interest? Simple or compound? Do you have an estimate of debt? What are the other financial accessories? Are there fines? In what cases? Have you done a test with an estimate of debt, considering a probable scenario and a pessimistic one to see if the company can handle it? And you, the customers, would you be able to handle it?
We could stop here and already have a basic idea. But we can go a little further. Let's go back to the cake shop and its accounts. They were done. Everything that is necessary to set up the business and make buy bulk sms kuwait it work, to make it turn around (hence the famous working capital that scares so many) was estimated. Where does the capital needed for all this come from? What is its cost? Here is another important question of capital engineering: the cost of capital . And let's just stick to the obvious since the purpose of the essay is to convey an idea and, thus, allow the reader to understand the basis of what capital engineering is. So what? Own capital or third-party capital?
Are you going to use your own property? How much would you earn by renting it to someone else? R$2,500.00 per month? So, here is a cost of own capital. Depending on the accounts, it is worth giving up the cakes and just receiving rent. In fact, we have seen business owners renting out stores they own to third parties and, at the same time, renting out stores owned by third parties for their own businesses, pocketing the difference. In many cases, this is the best thing to do; in others, it can be a serious mistake; for example, due to the loss of consumer flow (customers).
Are you going to use third-party capital? From whom? What is the contract? What is the cost of capital? How much is the interest? Simple or compound? Do you have an estimate of debt? What are the other financial accessories? Are there fines? In what cases? Have you done a test with an estimate of debt, considering a probable scenario and a pessimistic one to see if the company can handle it? And you, the customers, would you be able to handle it?