
Description

Amount per month

Level of confidence + Explanation

Plan to validate assumptions

Recurring/Fixed Cost 1

Rent for facility to produce hats

$1500

Low level of confidence because I don’t know much about warehouse space locally and how much it costs. I also don’t know how much space I need.

Do research about the squarefootage needed for a hat company.
Ask realestate brokers about industrial real estate rental prices in the area

Recurring/Fixed Cost 2

Renting a hatmaking machine

$300

Low level of confidence because I don’t know what the going rate is for these hatmaking machines are.

Call existing hat companies and see how much it costs to rent a hat machine.

Recurring/Fixed Cost 3

Marketing and office manager

$1500

Medium level of confidence because this equates to about 30 hours per week for someone getting paid $10 per hour

I might talk to potential people I want to hire and ask them if they’d be willing to work for 30 hours a week for $10 per hour

Total fixed operating expenses per month


$3,300


