There are many things to consider when starting up a new business venture but one of the most important is what it will cost. Cost is not just simply the price of stock, rent and fixtures but also things like rates per day, personal cost and time cost.
When writing costs for a new business plan I believe it is best to always provide three estimates: Below Average, Average and Above Average. For example, a restaurant may want to buy fancy plates but you could just as well get by with standard ones. These two options would be covered in below and above average costs.
If compiling three different cost plans seems like too much work (though many people would say all business is hard work) perhaps an easier way is to make your ‘main’ costing plan and make that your Average costs then take 25% off (or 10% or 15%) and make that Below Average and the same amount added makes your Above Average costs.
If you do similar bracketing for your turnover projections you can get a good idea of how the business will cope in various situations. It can also serve as an early warning if it seems that the only way you can turn a profit is with Below Average costs and Above Average turnover!
This type of bracketing is also useful when predicting growth too.
As I was walking to work this morning in the glorious sunshine I started to think about living somewhere that is sunny all the time. Following this trail of thought, I wondered what sort of business I could run which would take advantage of the weather in this lovely sunny country and came up with a few ideas:
Youth Hostel
I’ve been lucky enough to have the opportunity to stay in many different types of hostel, ranging from ‘budget’ style 12-crammed-in-a-room to plush semi-private 4 person room places. Some were very clean, almost sterile in appearance, while others go for a more rustic or colourful design. Hostels which offer just a basic ‘bed and a roof’ are as just as common as the ‘mega-hostel’ style of offering every service a backpacker could ever dream of needing.
Surf Shack
This is more for the love than the money though I do think in the right location you could still make a fair profit. Such a place might offer surfing lessons for beginners, board and wetsuit hire as well as stocking a range of summer & beach ware.
Lifeguards for Hire
Taking a different line of thought for a life on the beach, a business supplying and training lifeguards could be interesting and profitable. The business could act as an employment agency and offer full, government recognised lifeguard training (I’m not sure on the legal requirements of this) as well as extra training courses for all supplied lifeguards in order to stand out from the crowd. Extra courses could be things like advanced first aid, basic massage/physio concepts, customer service and management.
Beachfront Bar
Not much explaination required here! A nice open terrace bar overlooking the sea serving ice cold beers and cocktails and maybe even food. Generally hard work but it cant be beaten for social interaction and possibility of generating large profits if its done right. Of course, what is ‘right’? 
