How Much Would You Pay For A Prime Location?
Business By Lenette Updated 8 Jul 2007 , 4:24am by BrandisBaked
The is a location for lease in a strip mall here. Lots of traffic, major intersection, clothing stores, a bank, hair salons, etc. Equipment is there and it is up to health code (long story). I could literally apply for my permit, order supplies and open.
The catch? It is in a PRIME location, so that equals $$$! It would be around $1700/month + utilities. I already took out a loan to renovate my basement into work space so I have $$ to kinda cushion me until things get rolling.
Just curious as to thoughts on this. I won't be mad if you say "Are you INSANE!!" 
Does your business plan show that you can make that much money?
You have to sell a LOT of cake to make the rent, utilities, insurance, taxes, equpment, (and all the other things you forgot to plan for)
Plus, can one person make that many cakes? You have to add wages, payroll taxes, etc.
Do you make enough now to cover that? That is one thing that is keeping me from looking for a space. Until I make what I need to pay all expenses (rent etc) from my home then I will look to expand and increase my customer base. Does that make sense?
Other than that - I also feel that sometimes in life you are given opportunities and faith is what you must go on!!!
you really need to sit down and figure out really if you can afford it. how many cakes etc would you need to make weekly/monthly to even afford rent, let alone utilites, insurance, phone etc. also, talk to the landlord and see if you pay 6 months or a year in advance on rent if there is a discount. i know a few places around here that will do this but not all of them.
would it be worth renting a place versus working out of your home as you had planned? will you still be able to keep the money you borrowed if you use it for a different purpose? i know banks can be picky about that too.
just a few things to think about.
good luck
Amy
If you are just going to use it for one off cakes, no. You'll probably need to be open to retail trade to sell high margin items like coffee and donuts in order to make it work, unless you are going to Ace of Cakes type pricing.
Thanks everyone! I know it would take a lot. And it would be more than cakes, I do some catering too. I actually just got a contract for the upcoming school year! I really want it to be a higher end type place, kinda designer but I'm no Duff.
I should have added though that around here, it is almost unheard of for a retail spot to rent for less than $1000, average is about $1200-$1500. So, considering all the equipment and such it's not a bad deal.
I am doing some serious soul searching and praying. Just want to make the right decision. Thanks again and if anyone has anything else to share please do! 
There are several landlords willing to give a few months free rent until you're up and running - I heard of tenants getting up to 9 months free ... it couldn't hurt to ask.
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