Financial Management

As a junior student, I have two choices after I graduated. One is continue to study, and the other one is try to find a job. I really struggled whether to find a job after my older sister told me that working for the bank is really hard. I am a person who longs for freedom. What I want is not stay in an office building and work on the desk with the computer a whole day. I like challenges, although I know the process to succeed will be tough.

I had an idea to start a cat cafe long time ago. My cafe must locate in a very nice place, and it will be very special to most of people, because it also sells postcards in the cafe. People at my cat cafe will not only enjoy food and beverages, but also can write a postcard and send whatever to friends or yourself. What's more, I will put one or two real cats in my cafe, so that people can feel relax in the company of cats. Books will be provided to customers to read without payment, except they want to buy it.

Although I have the idea of the dream cafe, the big problem is I don't have money. Even if I can borrow money from parents to open such a wonderful cafe, I still have no confidence whether I can earn money from it. If I failed in my cat cafe business, my debts will be increased at last. As a result, making a financial plan will be useful. I first calculate the difference between the total amount needed to start my business and my net worth. The result of my needed to reach my goal is 87,800 yuan. In my estimate, my cafe can sell about 25 postcards at 6 yuan, and 25 drinks at 8 yuan everyday. Under this circumstance, my yearly income after deductions will be 100,800 yuan. Based on the analysis of the expenses, I found the rent would be a big variable expense. After deducted my yearly expenses from income, I earned about 34,500 yuan annually, and the years required to meet my goal is two years and a half.

Making a financial plan is really necessary for people who want to start a business. Only we considered all the possible things that would happen that we could avoid most of the risks. On the other hand, we also need to consider what could go wrong. We can ask questions to ourselves. What if the rent goes up? Do I have an emergency fund for unplanned expenses? How will I make money if my job falls through or if I am sick? If we can take everything into consideration, we can easily reduce the risk to a low level and make our own business successful.