I am talking with a friend about going into a partnership to open our own bakery. We would sell cakes, cupcakes, cookies, desserts, breads, etc.
I don't know where to start looking for suppliers, what kind of equipment I'd need, or if the place we are looking at is big enough. It is about 500-600 square feet with 1 bathroom for $275 a month, no lease so it's month to month, and it's in a decent location. The closest bakery (aside from the 2 grocery stores) to us is about 35 miles so not much competition. Any thoughts or advice??? TIA

Wow! $275??!! That's amazing! Is it set up as a bakery? Oven's, fridge, cases etc? Will you have to pay utilities. What all does it include?

That is an amazing price! 600 sq ft is good size. In my state, if you don't have any in-store eating (restaurant), then you don't need a public access bathroom, so one will work fine.

Start with your local HD. They are very helpful in giving you info on min equipment needs, and everything you need to get squared away to open.

Month to month is a dangerous position to put yourself in. That means your rent can be raised at any time... or they can boot you out at any time with only 30 days notice. I wouldn't start any business without AT LEAST a one to two year lease (depending on how confident you are in your success). Frankly, if it were me - I'd do at least a 5 year lease and lock in that low rate now for as long as you can.

Right now it is a feed store so no it's not set up for a bakery. Utilities are not included in the rent. I am concerned about no lease as well...I would like to get a lease with a clause that releases me with no penalty in the event that the shop doesn't do well.My friend already has a grooming business with the same landlord so she thinks she can work with him on things.

Speaking as an attorney who has experience in commercial leases (and not necessarily as a cake addict), please do not invest any money into equipment, improvements, etc. without a written long-term lease (at least a year with renewal options that are yours to exercise or not). If you do, you could be in a very tenuous position, depending upon TN law with regard to improvements to real property (not licensed in TN so I am not familiar with the laws there). They could possibly remain with the landlord once the tenancy expires. Also, you could find yourself "out on the street" looking for another space with very little notice. If I was the landlord (and I am a sub-landlord for office space), I would much rather have a longer term tenant at a reduced rent than a month-to-month tenant any day.

I'm glad to see a topic on this ..... I have the same problem..... I was going to start at home but I had someone tell me that it would be looked down at.... Any ideas on that

$275 Is amazing price for a shop! I wish that I could get that out here in So Cal. Good luck with the business... just remember cupcakes are the in thing right now!

Agree with the no on a month to month lease, not a good idea, especially once you see all the things that you must invest in to get up and running. Check with your town or county health department to start and go from there. Good luck

I think the best way to go is to find a place that's already outfitted for food service. Otherwise, your grease trap, sewer impact fees, vents and hood/fire suppression system will cost you a FORTUNE. Look for a space where someone else has already paid all those fees.

Was just talking to MIL she says that I need to lower my prices to get business in cuz she thinks my cakes are too expensive....I only charge $2 a serving as it is cuz I have no overhead. I told her that if anything I'm going to have to raise my prices. She says thats a bad idea.

I sure wouldn't take MIL advice 2$ a serving is sooooo cheap. As far as looking for a place with grease trap etc. check with your states HD because in my state a cake shop doesn't need all the things a restuarant does.

I was just reading about regulations and I dont think I'll need a lot of the stuff that regular eating establishments need...

And no MIL has never owned a business. It's like talking to a brick wall...if she shops at my place fine if not fine.
If she can't support me but can spend hundreds of dollars buying costume jewelry from her friends then......well...

Thanks guys!!!!

Is the landlord doing the buildout that you'll need for the kitches, drains, electrical, plumbing? If not, picture dropping all that $$$$ into building that space and then in 6 months he decides to give you 30 days notice to vacate. If you can get a long term lease it could devastate your business