Well finally I am going to take the plunge. I have found a storefront in a great location in my small town. Currently working on what needs to be done so I can talk with the owners of the building to see how much it will increase my rent with all the work. Building inspector tomorrow and then turn my paperwork with my plans over to the health dept inspector. Tons to do and I am super excited!
How exciting for you. I wish you success! I'm still in the dreaming stage and hope I can be where you are. Good Luck and happy baking!
I posted this in another thread. There are most likely things I have forgotten/repressed, so you other bakery/storefront owners chime in.
These are just overhead costs, not even counting any baking ingredients.
monthly costs (some of these are once a year, or even just 2-3 times a year):
rent, insurance, loan payments, electricity, telephone (land-line + cell), broadband, website costs, cleaning supplies (floor cleaner, glass cleaner, universal cleaner, paper towels, dish soap, hand soap, hand disinfectant, dish detergent/drying detergent for dishwasher, toilet paper, toilet cleaner, mop, broom, dustpan, laundry detergent), credit card machine + fees, company credit card fees, assorted bank fees, sidewalk salt, alarm system costs, accountant/bookkeeping, garbage collection, office supplies (paper, pens, paper clips, staples, post-its, scissors, mat knife, paper rolls for cash register/credit card machine, ribbon for cake/pastry boxes, stamps, envelopes), edible image ink cartridges/sheets, packaging (cake/pastry boxes in different sizes, bread bags etc), cost for yearly HD inspection, garbage bags, advertising/marketing (business cards, brochures, website), bridal show fees, fees from city planning office for sidewalk signs, telephone catalog ad, take-away cups/lids for coffee drinks, light bulbs
purchase of premises, renovating costs (plumber, electrician, carpenters etc), oven, ventilation system, telephones, refrigerators (3 are required); including a special 'dry' fridge for fondant cakes, freezers (2 are required), 2 hand sinks, cash register, credit card machine, double sink, commercial dishwasher, commercial espresso machine (2-group), commercial coffee mill, take-away cups/lids for coffee drinks, 20 qt standing mixer, safe, broadband, locksmith, alarm system, computer, printer, scanner, edible image software and printer, website costs, digital camera, phones (both cell and regular), office supplies (stapler, staples, paper, pens, paper rolls for register/CC machine, ribbon for cake/pastry boxes, stamps, envelopes), food handlers license (for me and all employees), cost for HD inspection, display cases, trays to display product, SS work bench (2½ meters long, special order), trash cans, garbage bags, recycling bins, marketing materials (business cards, brochures, magazine ads, website), work chairs (pony chairs, 2), counters, shelves, AC unit, rolling rack, microwave, hot plate, sidewalk signs (plus fees from planning office), signs on building (plus fees from planning office), flags, packaging (cake/pastry boxes in different sizes, bread bags, etc), telephone catalog, all different kinds of bowls and spatulas etc, hand mixer, storage containers, food processor, lighting fixtures, light bulbs, telephone catalog ad, fire extinguishers
Mensch I actually printed your list off some time ago and looked it over. Thanks.
It sounds like you're headed in the right direction.
Does anyone have any tips on negotiating terms on a lease? Did you hire an attorney, and if so, what type of attorney did you hire?
I have a couple other questions as I am currently researching the same things. Hopefully someone experienced in this can help...how long did it take for you to do construction inside your space and did you negotiate terms for free rent during this time. How much time should you negotiate for (mainly with permit issues/time frames)?
Also, with negotiating square footage... what is a reasonable to offer? In my area $19 is the "going advertised rate".... is there a way to find out what other businesses are actually paying? One real estate agent I called nearly choaked out the $19 rate and immediately said "but of course you know that's negotiable" as if to imply that amount was so over the top....
I'm looking forward to talking with a lease agent myself but want to make sure that I am knowledgeable walking in as to what I can expect.
Congrats on the shop! Best of luck!
We actually negotiated with our real estate agent. Best way to find out what other businesses are paying is to ask them! If you are looking at a space in a strip mall, go in and ask for the manager, explain that you are looking to lease the space next door and ask if they would mind sharing their price per square foot. Worse thing they can do is say no.
As far as construction, it totally depends on your contractor and your relationship with them. Our construction took approx 8-10 weeks before we opened and we JUST NOW got all of the finishing touches added. We negotiated with the landlord that we had 3 months free rent for construction. He was more than happy just to have a tenant.
congrats! we will need pics!
try to enjoy the process, i wish i would have more, i was a nervous wreck.....
I dropped off my list of "fixes" today with the owner of the building. He didn't look very enthusiastic, but he said he will show the other owner as he will know more about it. Keep your fingered crossed for me. I hope he calls me soon.
I am so anxious, still no word today. I know it is still early to get a reply. I am just going crazy.
Hopefully you'll hear something soon! *fingers crossed* I would love to keep following your story, since you are ahead of me, so please keep updating how it's going.
What types of changes did you submit? I'm looking at 2 different buildings at the moment, one was a sandwich shop (so says the leasing agent) but recently it was occupied by a Safe Driving course and needs some major demo inside. The whole "shop" is just walls and individual rooms.... strange, eh? LOL! But if the plumbing is there from a previous restaurant, I think we'll be good. My next location I'm looking at is brand new construction. They haven't poured the floor or put up walls waiting to see what new tenant will purchase. My FIL builds restaurants for a living, so I have the contacts to do it at a good price, but still don't know if demo would be cheaper.
Basically it will need some wiring and plumbing, walls moved and added. Air conditioning installed also.
Congratulations on finding a suitable location!! That is one of the biggest decisions in this process.
I wish you the very best of luck and I'd love to see updates from you too!
p.s. the list that Mensch gave in a previous post (and this one) is so helpful. Thanks to Mensch for taking the time to put it together for us! It takes a village to make a successful cake shop.
Well we settled with the owner of the building today. He is willing to do all we need plus actually make it better. I am turning in my proposal to the health dept tomorrow. Next step will be waiting for them to review my plan and give me the thumbs up to start the renovation. Wish me luck!!
Met with the Health Dept Inspector yesterday at my chosen location. He gave me a thumbs up with a few little extras that will need to be done. Life is good! Now waiting on money getting in my hand so I can sign the lease.
Working on design ideas. Plan to go with pink and brown. Anyone out there have a shop with similar colors or any ideas on design. Would love to see pics.
Sounds like things are progressing nicely. Will be interested in the final outcome!