Money that you take from the business to cover your own personal living expenses is known as 'Drawings'. This should not be included here, but will be dealt with elsewhere in the cash flow.
Before you can make an estimate of the wages you will pay each month to your employees you will need to identify the work that must be done and how many people will be needed to do it.
You are likely to need staff to:
- work behind the bar and provide bar support
- work as door supervisors (don't forget that door supervisors throughout the UK need a licence from the Security Industry Authority (SIA)
- take entry fees and operate a 'counting-in' system
- work as the resident DJ
- make bookings for visiting DJs and live artists
- attend to the cloakroom and toilets
- order and monitor stock
- prepare and serve food
- provide first-aid if necessary
- take bookings for private parties
- collect glasses and clean up during opening hours and once the venue has closed to customers
- manage the venue and other staff
- do the paperwork
- keep your social media profile up to date
The wages you pay your staff will depend to some extent on what is the going rate in your area. The Annual Survey of Hours and Earnings (ASHE), which is carried out by the government, gives average weekly wages (national and regional) for a wide range of different types of job. The Survey is available online on the Office for National Statistics (ONS) website.
- you could use a combination of full and part-time staff. Part-time work is often attractive to students
- the National Minimum Wage Act sets a minimum amount that you must pay your staff. Workers aged 25 and over receive a Living Wage premium on top of the standard National Minimum Wage
- there is employment legislation that you should be aware of
- you will have to pay employer's National Insurance Contributions (NICs) and you will have to operate PAYE in 'real time'. You may have to make employers' minimum contributions to an auto-enrolment pension scheme too
In the cash flow, just put the amounts you will actually pay to staff after you have deducted NICs and PAYE - you will show these separately. You should also include here the cost of staff pensions.