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Description
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Amount per month
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Level of confidence + Explanation
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Plan to validate assumptions
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Recurring/Fixed Cost 1
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Rent for facility to produce hats
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$1500
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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.
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Do research about the square-footage needed for a hat company.
Ask real-estate brokers about industrial real estate rental prices in the area
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Recurring/Fixed Cost 2
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Renting a hat-making machine
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$300
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Low level of confidence because I don’t know what the going rate is for these hat-making machines are.
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Call existing hat companies and see how much it costs to rent a hat machine.
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Recurring/Fixed Cost 3
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Marketing and office manager
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$1500
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Medium level of confidence because this equates to about 30 hours per week for someone getting paid $10 per hour
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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
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Total fixed operating expenses per month
|
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$3,300
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