Cake Central › Cake Forums › Cake Talk › Cake Decorating Business › Rough estimate on opening cost?
New Posts  All Forums:Forum Nav:

Rough estimate on opening cost?

post #1 of 16
Thread Starter 

How much would it cost total to open a store front. I currently have 37,000 in savings. 

post #2 of 16

Yours is not a question that can be easily answered in this forum. There are too many variables that only you can find out, such as

What is the rent on the space you intend to use? Price per square foot?

What is the annual cost of electricity, heat, water?

Are you going to have any employees? What will you pay them?

What will you pay yourself (hourly wage?)?

What are your costs for ingredients?

What are the going rates of the goods that you intend to sell (cakes, cookies, cupcakes?)?

What is your market area?

What would you offer to make your business different from others in the area?

What would the costs be for insurance and licensing?

What area/town/city are you in?

And many, many more.

There. Their. They're not the same.

I hope I die before "your" becomes the official contraction of "you are."

Reply

There. Their. They're not the same.

I hope I die before "your" becomes the official contraction of "you are."

Reply
post #3 of 16
Thread Starter 

A rough estimate just a guess.

post #4 of 16

Yes, you really need to present more information for an accurate assessment.  However, even if that were enough to "open" a storefront, you should have quite a bit in the bank to "cash flow" your business.  An amount equal to about a months expenses would be the bare minimum - ideally you would have about 6 months in savings for cash flow.

 

Some of the things that have come up in the past 3 years for our business where you HAD to have cash flow or you might have been screwed: equipment going out (ranges, coolers, mixers, dishwasher), roof blown off in rain and windstorm (we rent, but had to be closed 10 days to get building dried out), water pipe burst, huge tax bill after great first year in business, etc.  There is always something to spend your money on. :)

 

Give us some more information, and we'll be glad to help!

 

Liz
 

Follow me on my Twitter handle: @Sugar_Iowa

Or on Facebook: https://www.facebook.com/SugarFineBakedGoodsAndConfections

Reply

Follow me on my Twitter handle: @Sugar_Iowa

Or on Facebook: https://www.facebook.com/SugarFineBakedGoodsAndConfections

Reply
post #5 of 16
Depending on how much work is required and where you are, I would estimate between $20K and $100K. If you don't have other income coming in you would also need to budget for your living expenses and operating losses until your business starts turning a profit.
post #6 of 16

I do not own my own bricks and mortar shop, but have poked around with the idea.  One thing i look at is how much a cupcake/bakeshop franchise requires to open shop. I know that they are covering all their bases and that there are successful shops that didn't open from scratch with the same amount of capital, but i see it as a benchmark for going into it with all your bases covered and a lower risk (franchises aren't going to be putting up individual owners who don't have the money and experience to make it in normal business conditions).  Gigi's Cupcakes requires $100,000 in liquid assets and a net worth of $250,000 and Nothing Bunt Cakes requires a $100,000 in liquid assets and a net worth of $600,000, and they say that "total initial investment necessary to begin operation of a Nothing Bundt Cakes franchise ranges from $361,754 to $412,076.  "

 

Of course minus the franchise fee ($25K) and things like $5K for a grand opening would make that number much less. But even at half that amount, it is a considerable number.  I know that I what I don't know about opening a restaurant (I consider a full-service bakery with eat-in tables in the same category) would be my downfall. That also leads to what type of business/shop are you looking at opening.  A commercial studio open by appointment only with no other employees is a lot different than a retail store front with case to stock daily on top of custom and wholesale orders.  I think the bigger question beyond is $XX amount of dollars enough to open a shop would be do I have the experience running a business to know if $XX is enough.  

post #7 of 16
You could spend $1000, you could spend $100,000. It depends on what your rent is, what kind of build you'll need to do to the space, how much equipment you need to buy - you can't get snippy with people because they can't give you a number with absolutely no information other than 'a storefront'.
elsewhere.
Reply
elsewhere.
Reply
post #8 of 16

The cost of a store-front bakery in the middle of Washington, DC and one in Lakeview, Oregon would be vastly different. Location dictates many of the costs.

There. Their. They're not the same.

I hope I die before "your" becomes the official contraction of "you are."

Reply

There. Their. They're not the same.

I hope I die before "your" becomes the official contraction of "you are."

Reply
post #9 of 16
Quote:
Originally Posted by lorieleann View Post

I do not own my own bricks and mortar shop, but have poked around with the idea.  One thing i look at is how much a cupcake/bakeshop franchise requires to open shop. I know that they are covering all their bases and that there are successful shops that didn't open from scratch with the same amount of capital, but i see it as a benchmark for going into it with all your bases covered and a lower risk (franchises aren't going to be putting up individual owners who don't have the money and experience to make it in normal business conditions).  Gigi's Cupcakes requires $100,000 in liquid assets and a net worth of $250,000 and Nothing Bunt Cakes requires a $100,000 in liquid assets and a net worth of $600,000, and they say that "total initial investment necessary to begin operation of a Nothing Bundt Cakes franchise ranges from $361,754 to $412,076.  "


Of course minus the franchise fee ($25K) and things like $5K for a grand opening would make that number much less. But even at half that amount, it is a considerable number.  I know that I what I don't know about opening a restaurant (I consider a full-service bakery with eat-in tables in the same category) would be my downfall. That also leads to what type of business/shop are you looking at opening.  A commercial studio open by appointment only with no other employees is a lot different than a retail store front with case to stock daily on top of custom and wholesale orders.  I think the bigger question beyond is $XX amount of dollars enough to open a shop would be do I have the experience running a business to know if $XX is enough.  

In addition, a franchise will require one to use their build out requirements and design, their packaging and so on, which drives up the price,

OP, don't forget you'll need a substantial amount in the bank to cover your costs for a year or more. The number one reason businesses fail in the first year is lack of capital. Many business plans don't anticipate a profit for up to 5 years.

You have to start looking at the costs in your area, including build out fees. For example, in OC, if I put in a (required) ventilation hood, I will have to vent it through the roof of the building. $20,000, Put in floor drains, one for each refrigerator, and provide a covered dumpster with an additional sewage drain.

So many variables, too many to make a guestimate, without more info.

Jen
Edited by ellavanilla - 4/17/13 at 3:23pm
post #10 of 16

Well, we spent about $38,000 just on build out. That was starting with a pretty blank slate. It was a salon before, so it didn't have a kitchen area. We had to build walls to make a separate storefront, kitchen area, and decorating area. We also had to add some plumbing and electrical, as well as line all of the walls in the kitchen and decorating areas with FRP. That was what we paid the contractor, it doesn't include any of our kitchen equipment, aesthetic finish work in the front, bake cases, Cake pans, speed rack, storage, etc. There's also all of the licensing and inspections to consider. And you want to have some money set aside for advertising, as much advertising as you can do to get you name out there. 

 

We have been open for about a year now, and we're not to the point where we can pay ourselves yet. So you should definitely have money for living expenses. 

Before you ask- I'm licensed, inspected, insured, and all that jazz.
Reply
Before you ask- I'm licensed, inspected, insured, and all that jazz.
Reply
post #11 of 16
Thread Starter 

All reply's appreciated! My English is not so good. 

post #12 of 16

I spent $17,000 on just a home based commercial kitchen, and we rely heavily on my husband's job for income still. I just to specialty, custom cakes, though, and have only done 2 bridal shows for advertisement.

Beginners, be sure to parrot advice and get your post count up as fast as you can. After all, it's not what you know, it's what people THINK you know.
Reply
Beginners, be sure to parrot advice and get your post count up as fast as you can. After all, it's not what you know, it's what people THINK you know.
Reply
post #13 of 16

Hi,

 

I am just in the middle of installing one in our home. I rent out a kitchen currently but my plan/dream has always been to have it in our home, I am a work-a-holic and I basically live in my rental kitchen. Anyway, I rented the kitchen as a short term "test", just to get my name out and I did a couple of bridal expos, I figured If my bookings were increasing dramaticallyI would take the plunge and build it at home.

 

Anyway, after the licenses, insurance increases, contractor/electrician estimates, appliance estimates, flooring, additional equipment, drywall and all of the hoops to appease the government heath laws, I am currently budgeting for 18,000. I don't think it will be quite that much but I would rather budget more than less. I am in Manitoba, Canada if that helps.

 

Hope that helps.

A compromise is the art of dividing a cake in such a way that everyone believes he has the biggest piece.

 

http://www.facebook.com/pages/Well-Dressed-Cakes-by-Brett/200852383318927

Reply

A compromise is the art of dividing a cake in such a way that everyone believes he has the biggest piece.

 

http://www.facebook.com/pages/Well-Dressed-Cakes-by-Brett/200852383318927

Reply
post #14 of 16

I would love to own a NBC shop--but the amount of cash to have is crazy!! It's my dream!!

post #15 of 16
I haven't been in the one near me yet because I don't really get it. I've heard that the cakes are made from a mix and they don't look like anything more than plain cakes with a little glaze drizzled on them. I do love a good chocolate cake though and theirs looks good.
elsewhere.
Reply
elsewhere.
Reply
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Cake Decorating Business
Cake Central › Cake Forums › Cake Talk › Cake Decorating Business › Rough estimate on opening cost?