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| Fixed and variable costs to running a small business or bar in Benidorm the Costa Blanca and in Spain |
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| Bars for sale in Benidorm - Albir Bars for sale - La Cala Finestrat bars for sale - Benidorm Restaurants For Sale |
| Spain Business Guide Operating Costs Business Transfer Agent Benidorm & Costa Blanca Spain FREE advice for everyone |
difference between fixed and variable running costs.
Fixed costs are those which remain the same most of the time and do
not depend on you being open or closed. You should be aware of
these and know what the weekly amount is to open the doors to your
business as these must be met from your gross profit on turnover.
The biggest of theses are usually:
Staff Costs
Owners minimum salary
Rent of premises ( Rent less IVA retention @ 16%)
Electricity
Gas
Water
Insurances
Rubbish
Community charges
Rental of equipment
Performing Rights Fees (music licence)
Vehicle lease
Self employed social security
Loan payments
Variable Costs are those which change according
to business levels like stock or only apply from time
to time such as repairs.
Stock purchase
Stock waste
Advertising (publications flyer's etc)
Repairs & renewals
Music limiter repairs / upgrades servicing
Air conditioning servicing
Fridge / freezer servicing
Casual peak time staffing
Local authority costs (IE terrace table tax)
Gestor fees
Professional fees
Telephone
Alarms
Pest Control
Cleaning
Travel
Other costs to consider
Income tax
VAT payments
profit sharing / bonuses
Interest on loans
Rent retention IVA @ 16% of premises rent
Marketing promotion ( Brand / image / design / costs
Gifts
Lifestyle costs
Although not part of your business costs do think about your personal
living costs too. How much does your business need to nett you to pay
for your lifestyle choices in Spain.
Next page - Gross Profit Explained
Fixed costs are those which remain the same most of the time and do
not depend on you being open or closed. You should be aware of
these and know what the weekly amount is to open the doors to your
business as these must be met from your gross profit on turnover.
The biggest of theses are usually:
Staff Costs
Owners minimum salary
Rent of premises ( Rent less IVA retention @ 16%)
Electricity
Gas
Water
Insurances
Rubbish
Community charges
Rental of equipment
Performing Rights Fees (music licence)
Vehicle lease
Self employed social security
Loan payments
Variable Costs are those which change according
to business levels like stock or only apply from time
to time such as repairs.
Stock purchase
Stock waste
Advertising (publications flyer's etc)
Repairs & renewals
Music limiter repairs / upgrades servicing
Air conditioning servicing
Fridge / freezer servicing
Casual peak time staffing
Local authority costs (IE terrace table tax)
Gestor fees
Professional fees
Telephone
Alarms
Pest Control
Cleaning
Travel
Other costs to consider
Income tax
VAT payments
profit sharing / bonuses
Interest on loans
Rent retention IVA @ 16% of premises rent
Marketing promotion ( Brand / image / design / costs
Gifts
Lifestyle costs
Although not part of your business costs do think about your personal
living costs too. How much does your business need to nett you to pay
for your lifestyle choices in Spain.
Next page - Gross Profit Explained
