Experienced Advice Plz: About how much does it cost to hire and train employees???

Question

I am a college business admin and marketing major. I am writing a business plan for a coffee shop i have created. I need to know an estimate for about how much it will cost to hire and train approximately 20 employees. Any other advice/info will be very useful. I would only like serious answers please. Thanks.

Answer 1

If you're writing a Business Plan you have to include a Projected Revenue or Financial Statement/Balance Sheet. Depending on the state, what is the average pay for a worker at a coffee shop?
Example: $9.00/hr. @ 8 hrs (will the employees be full-time/part-time) = $72.00. Assuming you hire the employees at 4 hrs. per day, 10 employees per shift at $9.00/hr. = $36.00 for one employee per 4 hours x 10 (employees) = $360.00, x 2 =$720.00 per day for gross wages one day, x 6 days =$4,320.00; or $21,600.00 per month for 7 days per week - wages only. Factor in turn-over, so advertisements to hire new employees, i.e. $100.00 per month; training depends on whether you send them to seminars or will company have in-house training (i.e. manager). Calculate in Manager wage/salary: take hourly rate and calculate for monthly figure.
Then you have a column:

Manager Salary $30,000/month
Wages - 20 employees part-time;
7 days per week @$9.00/hr. 21,600/month
Advertising 100/month
Training -Food Handling Class 3,000/yr
Company T-shirts 500/yr.
______________
Total: $55,200/yr.

You also have to include payroll/per employee:

State Taxes: $_____________
Federal Taxes: $_____________
FICA $_____________
Medicare $_____________

Also employer contributes:
Unemployment $_____________
Worker's Comp. $_____________

Other liability insurance $_________


TOTAL: _________________

Answer 2

You'll need to know how much you will be paying them and how many hours they will be working, what benefits you will offer, what taxes and insurance you will have to pay for, how long it will take to train them in job duties and safety, and who will handle the accounting for those employees. Also, remember that hiring employees means putting in time to write up job descriptions and determine the best ways to motivate them to do their best. Wages and taxes will probably depend on the location of the shop. Talk to a coffee shop owner.