Should AJ Open Crazy AJ's?
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This site, which is outdated, says $.75 to $1.50 per hour.
http://www.cheapestdestinationsblog.com/2012/07/27/travel-prices-in-nicaragua/
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LOL - I was thinking the charge would be around $1/hr.
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For sure would have to sell coffee, maybe have a cafe with food etc. cause the potential earning of say 10/hr if computers stay booked isn't quite worth it.
though you could make your 10 K back eventually -
@hubtechagain said:
For sure would have to sell coffee, maybe have a cafe with food etc. cause the potential earning of say 10/hr if computers stay booked isn't quite worth it.
though you could make your 10 K back eventuallyEvery one that I know sells beer and rum.
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@Dashrender said:
LOL - I was thinking the charge would be around $1/hr.
Without taking taxes into account, you're looking at needing to earn at least $2500 a month or 625 hours sold per week, minimum. Assuming you're open from 8 AM until 8 PM, your max income is $1008/week This doesn't take into account hiring another employee to help you run the shop, and be there on weekends (or whatever days you want off).
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@hubtechagain said:
cause the potential earning of say 10/hr if computers stay booked isn't quite worth it.
$20K a year is not that far off from what he was earning in the US. Earning that much with his own business in Nicaragua would be epic. Instead of earning half the normal US wage, he'd be earning 10x the local normal wage. He would not be rich, but he'd be able to live just fine.
I know a guy who lives nearby who is living here with only $40K in savings and no job. He's retired on $40K! He has to be frugal, but he is okay. He eats at the same restaurant that I do.
He's be just fine on $20K here.
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@Dashrender said:
Without taking taxes into account, you're looking at needing to earn at least $2500 or 625 hours sold per week, minimum.
You mean per MONTH.
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$2,500 a month. I doubt that you would need that much even with all expenses. Why do you feel so high?
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@scottalanmiller said:
@Dashrender said:
Without taking taxes into account, you're looking at needing to earn at least $2500 or 625 hours sold per week, minimum.
You mean per MONTH.
my mistake.. yes per month.
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@scottalanmiller said:
$2,500 a month. I doubt that you would need that much even with all expenses. Why do you feel so high?
because you just did the math to show that the expenses for 4 months would be $10,000. so that would be $2500 a month.
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@Dashrender said:
because you just did the math to show that the expenses for 4 months would be $10,000. so that would be $2500 a month.
That was the cost of setting up the entire shop PLUS four months expenses
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@Dashrender said:
@scottalanmiller said:
@Dashrender said:
Without taking taxes into account, you're looking at needing to earn at least $2500 or 625 hours sold per week, minimum.
You mean per MONTH.
my mistake.. yes per month.
not really a mistake - the $2500 was per month, and the 625 was per week (assuming $1/hr charge)
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I'm guessing that shop rental plus utilities is around $700 or less. Maybe a lot less, might be $400. Might even be less than that. I see restaurants operating with one person in them for the whole evening. Nice, big places bigger than AJ would need. But let's be safe with $700. Then another $400 for rent (likely a lot less, but again, safety.) That's $1,100 + food each month. So likely at $1,300/mo he'd be in pretty good shape. Anything more than that and he is paying back his "startup" costs to himself.
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@scottalanmiller said:
@Dashrender said:
because you just did the math to show that the expenses for 4 months would be $10,000. so that would be $2500 a month.
That was the cost of setting up the entire shop PLUS four months expenses
awww.. yeah I guess you're right, but it would be less than the $550 shop rent $500 house rent, food, depreciation on the equipment/desks, etc.
OK you might need more like $1200 at the bottom, $1500 would be better.
That's down to 300-367 hours a week.
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At $1,300/mo that's only $44/day. Doable. Still tough, but doable. With computer time, beer sales, etc. it adds up.
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@scottalanmiller said:
At $1,300/mo that's only $44/day. Doable. Still tough, but doable. With computer time, beer sales, etc. it adds up.
Beer sales requires more startup costs so you can buy the beer. and electricity to keep it cold.
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It's completely possible that shops are only $100/mo. I know that in Matagalpa, the top houses in town rent for just $500/mo. That's pool like mine, four bedroom, garage, etc. It's more here in Granada, but this place is cheap. He'll have to do without maid service and stuff until he gets established.
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@Dashrender said:
Beer sales requires more startup costs so you can buy the beer. and electricity to keep it cold.
Yup, would need a little fridge. Nothing huge. And he can buy them as needed, not a lot at a time. So, say an extra $40 beer investment to get started plus the fridge.
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If the rent was really in the $100 - $200 range, and if he could find an apartment for $300, it would make things so much easier. There are small apartments for rent all over town but I have zero clue as to cost. I'll try to ask our house manager next time that I see him.
I would not be surprised at all if the total monthly cost could be $900, all food included. In an emergency to save money you can live in a hostel for $6/day including one meal. Add $5/day for a second, bigger meal and you can, if you have to, live for $11/day or $330/mo with all of your utilities covered, food, etc.
So getting down to $600 - $700 per month total cost envelope seems plausible while getting the business started. Not what you would want to do, but you do what you have to do, right?
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If he could get his cost envelope down to $600/mo. That means only $20/day to cover all of the bills. Suddenly the numbers seem pretty doable. And if the computer time is $1.50 instead of $1, it would get very easy, very quickly. Maybe our numbers are old and it is really $2, but I doubt it.
It would be awesome to discover that ten hours of use is all that is needed per day, total.
