Going Legal: What Costs To Expect?

Business By Carlymoon Updated 23 Apr 2009 , 5:11am by littlecake

Carlymoon Posted 20 Apr 2009 , 4:59pm
post #1 of 8

So I'm seriously considering "going legal" but I'm really unsure if I'm financially ready. What are the main cost factors that I'd need to consider to do this? I know I'd have to rent a space to bake in b/c I live in Michigan but other than that what kind of fees ect should I know about?

thanks any responses or insights from you personal experience would be such a great help in making this decision!

7 replies
MnSnow Posted 20 Apr 2009 , 9:10pm
post #2 of 8

The following are some costs to expect:

1. Food Management Class
2. Food Management tests
3. Licensing by the Department of Agriculutre
4. Licensing by the Department of Health
5. Liability Insurance
6. Any supplies you need
7. Cake pans, colors, bake even strips, etc
8. Office supplies ie order forms, contracts, business cards, brochures, etc
9. Website

There are more but these are your basics. There is alot of time involved promoting and marketing your business. You will need to really get the word out abuot your business and that could be by word of mouth, taking samples around to various businesses. Get to know your local vendors and network with them, like caterers, reception venues and such. Golf courses are a good one too. Really put your business out there so everyone knows about you and what you do.

Also bridal shows cost but it's an excellant way of networking with other vendors and meeting prospective clients.

HTH

Carlymoon Posted 21 Apr 2009 , 2:19am
post #3 of 8

thanks those are some great points to think about. I'm open to any other insights anyone may have. What is the average lisencing cost?

indydebi Posted 22 Apr 2009 , 12:56pm
post #4 of 8

LIttle things I didnt' consider when opening a shop:

Fire extinguishers and the semi-annual inspections ... $600
Grease trap (required by the city) ... $1000
Dumpster out back ... $55/month
Commercial mop bucket and mop (yes, it STILL ticks me off that a freakin' bucket cost fifty bucks! icon_mad.gif )
Towel service (SO worth it! My idea of "oh I can wash the towels at home!" fell by the wayside IMMEDIATELY!)
Commercial soaps (cost me $700 initially but they last for months).
More storage than you THOUGHT you needed.
Advertising, advertising, advertising. If no one knows you're there, you might as well not be there.

And build a high tolerance level for ad salesmen. They come out of the woodwork. The first 10 people who walk into your shop will want to SELL you something, not BUY something from you.

sjmoral Posted 22 Apr 2009 , 2:26pm
post #5 of 8

I am really interested in this topic too and been doing my research...
Apparently the license is the last thing you do. SOmeone correct me if I'm wrong please!
These are the steps I found important:
1. Business plan
2. Startup checklist
3. Register Business name
4. Financing
5. Insurance
6. Licenses, permits, regulations
7. Business taxes

I am also in Michigan and there are so many different licenses that it's confusing...
Retail food establishment, Extended retail food establishment (seating area), Food service establishment...

If you find out more and want to share please do so! This is overwelming!!

kakeladi Posted 23 Apr 2009 , 1:21am
post #6 of 8

........Towel service (SO worth it! My idea of "oh I can wash the towels at home!" fell by the wayside IMMEDIATELY!) .........

Truer words never spoken icon_smile.gif

Yep, been there, tried that, stopped fast!

MnSnow Posted 23 Apr 2009 , 4:37am
post #7 of 8

Sorry, I put licensing out there first because the possibility of renting space in a kitchen already licensed is there, so some of the other costs wouldn't be a factor for first starting out.

If your looking at opening your own storefront, then they would be

littlecake Posted 23 Apr 2009 , 5:11am
post #8 of 8

it cost me 28K, and i got off easy.....if you were looking for a figure.

Quote by @%username% on %date%

%body%