Originally Posted by MamaBerry
And there's the rub!
Rent, whether you have a shop or rent a kitchen, must not exceed your profits and overhead costs.
Also remember in that $20-$30/hour, that you are not paying the water bill, the electric bill, the gas bill, the sewer bill, the dumpster bill, the security system, the fire extinguisher costs, the annual or semi-annual kitchen cleaning fee (some places hire a professional to come in once or twice a year to "deep clean" the kitchen), the insurance on the equipment, the tenants insurance, buying the soaps and cleaning supplies for the mop sink, for the hand-soap dispenser, for the comm'l dishwasher, for the floors (my first purchase just for soaps for my kitchen was $700). You also did not lay out $50,000 for the equipment that you'll be using.
MamaBerry makes a good point .... when you take that step to become a "real" business, meaning to get legal/licensed,etc, then you start to realize what "real" business expenses are. It's an eye opener, all right!