If stuff needs to go in storage, I have a line on that.  My band rents space at 
49 Adelaide.  I think we can get a garage sized unit for $150-$250 per month.  

Let me know if we need to pursue this route and I'll talk to my guy there.
GT

-----Original Message-----
From: [email protected] 
[mailto:[email protected]] On Behalf Of Mark Jenkins
Sent: Thursday, November 01, 2012 12:17 PM
To: Discuss, SkullSpace
Subject: [SkullSpace-Discuss] cashflow post move, yellow dog location, the gap 
and more

During meeting #2 on Tuesday, I updated my cash flow spreadsheet to show a 
possible cash flow for the Donald St. "Yellow Dog" location that Justin 
presented:
http://dl.dropbox.com/u/16487130/skullspace_budget.pdf

Even with some voluntary member dues increases, some wondered if we could start 
out with negative cash flow from some strong initial reserves ($8000?) under 
the assumption that growth in member numbers eventualy rectifies that.

But, this is probably a no go if personal gaurantess are required (as is 
commonly asked by decent managment firms of corporate tennants with weak 
financials), the Skullspace members who would likely offer guarantees are 
probably going to want to see a plan with firm (not speculative) positive or 
break even cash flow from the start.

So what's the revenue gap?

I've penciled in the need for $1000 more per month in "new commitment" 
revenue. That's equivilent to 50 people offering $20 more.

I also put $400 in discretionary spending, like we used to have. If you take 
that away and just aim to have all revenue go into basic operating costs, its a 
$600 gap, or equivilent to 30 people offering $20 more. (I say equivilent as 
there are other types of revenue boosts like space reservations, etc..)

Another way to analyse the gap is to compare what we thought we were facing at 
125 Adelaide in rent (w/GST) $788, gas $256 avg per month due to high winter 
months being like $500.., water $35, and "3000 per year welcome back over 3 
years", $83. That's $1,162 per month.

Compare with a hypothetical $2100 (w/GST) at this Yellow Dog(ish) location, 
where heat and water are included -- its a $938 gap, equivilent to 46 folks 
paying $20 more per month.

As our real estate volunteers look at other options in the next month, or 
possibly during some down months where we're stuck in storage (which is better 
than a drawn out death spiral at 125 Adelaide where we'd pay for that 
privilege), we should be careful when making cost comparisons, be it in 
absolute terms or in cost per square foot -- as these comparisions can be 
greaty complicated by what's included and not included in a given space. Always 
read leases carefuly to make sure there aren't additional fees passed on for 
management, building common area cleaning, repairs, property taxes, or 
landlord's insurance.

A "rent" that includes none of these things, which are then added on top is a 
"net rent". Its not uncommon to see that quoted and say "oh wow, that's 
cheap..."
http://en.wikipedia.org/wiki/Net_lease

When making the absolute cost or cost/sqrft comparison between potential new 
spaces, or when comparing a potential new space to old, always make it a fair 
comparison by doing the appropriate addition or subtraction so that we're 
comparing compreable included services.
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