Does anyone have approximate start-up costs for products and equipment? What size shops in square footage do you have?

Depends on if you are using a store front, or a second commerical kitchen in your home.

I had a second commercial kitchen built in the major part of my garage. The kitchen cost about $18,000-including the oven, sinks, bathroom and shelving. I already had a fridge and freezer, and most of the baking equipment/mixers etc.

It depends on where you are. In some states, you also have to have commercial stove/appliances. In Oregon, they allow household style appliances.

i'm renting 1000 sq ft.

my start up 5 years ago was 28K....and that was "on a shoestring"...

I already had a building - but, startup was around $15,000. I also had most of my pans, decorating equipment, etc. I had a stove & refrigerator, but bought one more of each. Also, bought second KA mixer, Cuisinart food processor,etc. Have 2 of everything. Makes life easier. Am in the process of enlarging my building now - going to be 1000 sq. ft. along with 200 sq. ft. of storage.

I'm looking at being in a storefront and I already have cake pans, decorating equipment and commercial mixer.

I live in GA so I guess I'll need to inquire about the types of applicances I would need to purchase.

Curious....how long do you think it took you to make back your initial investment?

I had a perfect place to purchase almost turn key, didn't work out as the sellers had inflated the cost and had no p & l it would have been a bad investment. I was really disappointed. But the right thing will turn up and now I am looking into leasing space as opposed to buying a building.

Space to lease is not cheap, even here in TN not to mention if the rent is reasonable you have to darn near strip everything to the foundation and build out to be usable. So I am just questioning if you invest to build out and equipment and all............what is the turn around time to get back your initial investment. Also how long did it take you from the time you made the decision, to actually opening your doors?

i was just thinking i needed to tell you that a nice sized hobart or hobart type mixer would make your life so much easier....i have a 30 qt...with 2 bowls...

earlier this year i broke my wrist so i couldn't lift the big bowl....

i had to use that lil kitchenaid for awhile....i felt like i was using a toy...it took SOOOOOOOOOO much longer to do everything!!!

my oven bakes 6 full sheets at once...so thats nice to have too.....and a nice big freezer.

I was able to catch up for expenses easily the first year. I am no reinvesting to do more improvements. You need to talk to your CPA. He/she can give you lots of pointers as far as tax breaks, etc. Be sure to keep very accurate records AS YOU GO. It makes things a lot easier when you have to figure out taxes, sales tax, etc.

I just looked at some space for lease tonight. 1650 square feet. Pretty much a shell with concrete painted floors.

It does have a nice bathroom in the back, a 220 outlet for a stove and plenty of storage and a nice location. The rent is $800 a month and the landlords are 2 little old ladies that are really sweet. My issue is I almost think this is to much square footage.

I would have to do something with the floors, I would need to paint and then there are the ever dreaded finishing costs as I need counters, display cases etc......I just think I need to find something just a little smalled that may be finished a little better.

Another option I have is a 425 square foot space that rents for $500 a month that needs a little work but not a ton, same equipment needed but the rent is lower and it is in a more highly traveled area. I would like to keep my day job just a little longer and the smaller, less expensive space might be the way to go.................

Any advice??????

there's a very small home bakery north of me....i'm guessing it's 350 SQ ft....that place has everything stuffed in there tight as a tick.....but she has everything she needs and has operated out of it successfully for years.

truth be known i have alot of wasted space at my shop, if it were smaller my a/c bills would't be so high in the summer.

my vote is always to keep the bills as low as you can....if things go great guns and you need to move up later....then you can....

my vote is for the smaller place.

is there much plumbing or electrical to do in it?

Southernbelle,

I wish I could find that type of rent here in Atlanta. If you kept your day job would the bakery only be open on weeknights and weekends?

I have the same concern of leaving the security of my job.

Idbaker-
Where in Atlanta are you located? I'm in north GA and just wanted to make sure I was stepping on any toes. Good Luck with your "Adventure" as my husband calls mine.

wow this is a very interesting thread. I have often wondered what it would cost to start. I am really suprised the numbers are so low. Really neat. Thank you all for supplying the info.

I love this place.

I just signed the lease on an 800 sq. ft. property (2/3 retail space; 1/3 kitchen space). My start-up costs are approximately 15,000 including some new equipment, supplies, furniture,insurance and utility deposits, and a computer. I already have ample counter space, and oh, the refrigeration! A walk-in cooler! And a wall of refrigerators in the storefront (used to be a deli).
I would suggest starting small and keeping it simple. You can always spend more when opening a shop, but there's no way to SPEND LESS if you're in a space.

For me....more space is better. If you get several things going at once, it's nice to have space to spread out. Also storage space is a big issue for most of us! I'm always running out of room and my place is pretty big.

something else to consider are the opportunity costs - meaning if you make $50,000 a year at your current job, that is $50,000 in lost income that you are also trying to replace, in addition to recouping other invested costs. Makes it harder for the first couple of years. not to mention if you no longer have benefits, etc.

There are a lot of resources out there for someone considering starting a business - there is a lot to it, for sure.

OMG I was so happy and amazed so see this topic this morning when I woke up and immediately went on CC. My mother was just asking me about start up cost last night and I couldn't give her a number. Thank you everyone for giving me an idea about cost!

i only bake out of the house, and really don't see a "cakery" in my family's future, but i wish everyone well who even dreams of that endeavor. i have been trying to buy things that would normally be commercial for my kitchen, like the heavy duty anti-fatigue mats, mixers, etc...i've had pretty good luck with these items, along with almost everything else i need like baby and household stuff, on craigslist.org. it's in almost every major city, and also many, many countries, and it's people just like you and me who are trying to get rid of stuff...basically a free classifieds for your area.

the other day, i decided to post in the wanted section of that site for any cake pans or baking items that people might be planning to put in a garage sale or such...i've already had 3 responses, and two of them just want to give me the stuff, although i offered to pay, so it's a good place to find what you need, and save money. there's always restaurant equipment on my local site!

Is anyone talking construction costs in these numbers? A bare room with concrete floors is likely to require trenching thru the concrete to install water lines and sewers, which is very expensive. Is a concrete floor health dept compliant or is a special coating or treatment required? Ceilings sometimes have to be certain materials. I even had wall treatment requirements that required five big containers of material that was $50 a container. What is the amp rating in the facility and what is the amp requirement of the equipment you're going to install? Is the air conditioning system sufficient to offset the heat generated by your stove/ovens? Do you need an exhaust vent over the stove/oven? Mine was quoted at $1000 a linear foot and I needed 8 ft. Plus the cost of busting a big 'ole hole thru the ceiling for the venting (and be sure to check with the property owner on roofing warranty requirements).

The start up costs are more than just the cost of your equipment. My first (FIRST!) construction quote for a 1200 sq ft space was $99,910. In addition to that number, my first equipment quote was over $65,000. Obviously, I kept looking after seeing those numbers and we managed to get lower quotes. In the meantime, I wrote a few checks for store rent on an empty store.

I wish I could find a place to rent for $500! I'm in BFE Alabama and for an 1800 sq foot space is $2500/month - no equipment.

A building for a shop on my land would be $30,000 not including initial septic, electrical set up, etc., or equipment (stoves, frig/freezer, etc.)

Thanks for posting this topic!! I follow all the ones pertaining to shops. I'm going to be "legal" eventually but need to have sufficient orders coming in to support it.

Also, last week someone posted that there was this type of info on Earlene's website. Can't remember who that was but I read all the info she gave and it was very, very interesting!

ditto!

My start up was around $12,000. We did most of the work ourselves and the Health Dept., came and walked through with us from our floor plan to when we finished. They told me things they would pass that would save me some BIG TIME BUCKS.....and we had it up and running in about 3 months time. Our biggest thing was someone laying the flooring over the concrete and then the plumbing, but we had a friend who does that for a living and my husband helped him with it.

Diane

I just opened my own place 6 months ago. As far as size goes if it is in your price range go for something a little bigger in size - my space is 1,300 square feet and I feel like I am tripping over myself all the time. I started up with $17,000 and had to get EVERYTHING, I had nothing and it was really hard and there were times that I did not think I was going to be able to make rent but God has really pulled us through. Things have picked up so much faster then I would have thought. We are still not making a whole lot of "profit" but we are making all of our bills and utilities and supply costs with a some left over for emergencies. I wish the best of luck to anyone who wants to start their own business, it is hard but well worth it. Even though I am making no money (and I still have my other job for my personal income) and am working almost 100 hours a week - I am still getting to do something I love.