I want a shop!!!

I found a few spaces for rent but I don't know if it is humanly possible to make the bills and bring home some $$. One space is downtown, $500 a month (super cheap in this area) but because of the location I would have to keep open hours and make stuff to sell on the spot in addition to custom orders. Plus it needs a TON of work, even the health inspector didn't think it was too good because of the work it needs.
A few other spots are between $750-$800 a month and I could stay by appt only cuz they are off the beaten path (but would still need renovations for a food biz). But could I do that and still make the overhead?
Lastly, a hot spot at a major intersection rents for just under $1000 a month. Of course I would have to be open for customers and such.

I am a little confused. It's like a rock and a hard place, either you have a locale that gives you visibility, which requires you to be open, or not. I am only one person and can't really afford several employees. Is it really possible to have a shop and not work myself to death? Business is picking up...I don't know what to do. Plus the thougth of working so hard to pay someone so much in rent makes me a little sad. It's like working for someone else all over again. Guidance, opinions, anyone??? Am I not thinking creatively enough? Thanks for letting me ramble.

I really don't know as to which way you should go. Sry. I was wondering. If you live in ahouse & could afford the extra money, would it be possible to get a home equity loan or a small business loan to add on to your home? I don't know the laws where you live or anything. I'm nowhere near the point of opening a business. I just do cakes for family & friends maybe once a year. I apologize for not being more helpful.

Hi,
I have always found that a list of pros and cons is a great place to start. It helps to narrow choices that otherwise may seem impossible. Next, think about how much "time" you actually have. Do you have children? Could they come with you to work? Can you work into the evening after you close.
Then think about the $$$$$. Actual cost each month for: Rent, utilities-gas, electric, phone, equipment, parking, etc. Then consider your actual cost of goods sold...your ingredients, boxes, stuff like that. Then you will be able to come up with a figure that you have to make each month to pay your expenses. Then you will be able to somewhat figure how much time you will have to invest. Also, if you have some working capital, that helps in a huge way to keep you up and running for the first couple of months. You know what they say about opportunity knocking. Good luck in your decision...I'm sure it will work out either with a shop or exactly where you're at now

I would PM those that have already established businesses. You can PM me and I'll tell you who would be helpful.

Wow! what a dilema. I sympathize with you! Have you considered renting an already existing commercial kitchen. Just til you knew how much money you would have coming in. I am going to start researching this but I believe churches and community centers often will rent out their kitchens for a fee. Maybe do it on a "cake by cake" basis. Just a thought. Let us know what you decide.

Lenette, I empathize with you! The only advice I can offer is to really think hard about what you want. Opening a shop is NOT easy...I've found myself close to burn out a couple of times and I've been open 2 years. Also, meeting expenses and bringing home the dough can be done...you just have to have a plan. Maybe not a solid business plan but something that makes sense to you! You also have to be willing to compromise with that plan...you can say you are going to sell, this, this, and this but in the end you need to be selling what customers are actually going to buy and you have to be willing to do it. Does this make sense?? There is a lot more to running a shop than making cakes...you have to be willing/able to run a business.

Have you seen the pics of my shop before and after? They are posted in the pic of your shop post....if I can turn that dump into a shop...anything can be turned into a shop. The only thing that worked in that place was the cold water! There were no 220 outlets, workable airconditioning, ventilation, hot water tank OR pipes, sturdy floors...it was soooo bad! My dh was not a handy man when our venture started.....he is now!

Have you thought about going through Economic Development? I know of a lady that wanted to open a BBQ place, being a woman, and providing a new needed business in the area she was able to get a low interest loan to open up her business. I would also check out your demographics, you can get some good info from traffic flow, to future building and plans for your area. It is the American dream to own your own business, but with that comes self-motivation, determination and the willingness to sacrifice your time, your life and your freedom. It is not easy, but doable. Only you know who you are and what you are willing to do. I chose to purchase my location, as I could not see paying a lease. You also have to be careful as many places are now using the triple-net lease, which you will be responsible for other things besides a rent payment. Anyway, there are so many things to consider, I hope some of this helped a little. Good Luck with your search.

One thing I have learnt is since we bought our business is that location is really important unless you have something really unique or really different that people are willing to make the extra effort to seek you out (or you are very well known already).

We have a restaurant not a bakery/cake shop so it is a little different but when we did a survey with our customers most of them found us by walking or driving past so we spend very little $$$ on advertising (we don't need to). If you are in a more obscure location you will have to spend a lot more money on letting people know 1) that you exist, 2) where you are, so you should factor that in when thinking about the rent (cheaper per month rent might not really be cheaper if you are spending a heap of $$$ on 1 & 2) That said, however, you do also need to make sure that you can afford to pay the rent in where-ever you go.

Also note that a new business always requires more money than you think it will especially at the start so make sure you have some back-up cash. If you have to do a reno you can save money by getting second-hand equipment (we have gotten a few things at auctions of other businesses that have gone bust - just make sure it works before you part with the $$$) you can always update later on as you can afford it.

good luck