Is This Rent Crazy High?

Business By prettycakes Updated 2 May 2008 , 2:09pm by dbax

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littlecake Posted 30 Apr 2008 , 8:10pm
post #31 of 41

i got a real deal i guess. 475.00....on the main street...for 1000 sq feet.....it runs about twice that much around here.....the woman who owns the place wanted steady renters, so she just charges me what her payment is....on our little strip, she has a tanning salon, a doctor is in the middle, and i'm on the end.

i'm still fixing up the place i bought, though its slow as christmas...NO RENT IS BETTER THAN CHEAP RENT.

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shaloop Posted 1 May 2008 , 1:45am
post #32 of 41
Quote:
Originally Posted by kneadacookie

anyone start a place from scratch wanna give me a ballpark figure at how much they spent to upgrade a building???




I was recently looking at a 350 sq ft space that I wanted to make into a kitchen only. It was going to cost me $11,000 to build a kitchen in it including plumbing for all three sinks, upgrading electrical, covering walls, ceilings, etc. This didn't include the costs of any of my equipment or fixtures.

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indydebi Posted 1 May 2008 , 1:52am
post #33 of 41

shaloop, stay on top of the contractor and the costs. My original quote for my build out (in a strip mall ... it started as an empty white box room) was $12-15K. Final number came in at $28K. icon_surprised.gif

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cakesbyallison Posted 1 May 2008 , 2:26am
post #34 of 41

Rent is going to vary depending on where you live... (being from the Dallas area, I think that's a lot!) I haven't finished reading all the posts on this subject yet - but have you written out a business plan? You need to sit down and figure out not only what your rent is going to cost, but your insurance, utilities, building maint., equipment, supplies, advertising, etc.,is going to cost you monthly/annually. What will you have to produce to make this work? If you have to hire help, that all has to be factored in. Maybe renting kitchen space as a trial run, may be more profitable...?!

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mjcakes Posted 1 May 2008 , 4:20am
post #35 of 41

Wow! I'm thinking my small home based kitchen works for now. You have to sell alot of cupcakes & cakes to pay that rent! Do you have any employees?

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CakeRN Posted 1 May 2008 , 5:16am
post #36 of 41
Quote:
Originally Posted by indydebi

[quote="indydebi"

Anyone else have idiot friends, or do I just hang out with the wrong crowd? icon_confused.gif




You just hang out with the wrong crowd.... icon_lol.gificon_lol.gificon_lol.gif
I knows your people...remember!!!

Teri

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alicegop Posted 1 May 2008 , 5:32pm
post #37 of 41

That is an impossible question to answer, rent here in Fresno, CA is ALL OVER THE PLACE depending on where you want to be. North Fresno can be $100 a square foot, pockets in bad areas can be 40 cents a square foot, tower district is around $2 a square foot and the next street over is $1 a square foot......... CRAZY!

I tried to lease a place near my house the other day. I live in the HOOD, we moved downtown on purpose to do urban ministry, but it isn't a good part of town for sure and this lady wanted for her VERY CR***Y place $2.40 a square foot! It has ZERO PARKING (you can park in the alley in this bad part of town, oh yea!). Her argument was there is good sidewalk traffic... sure from prostitutes! There wasn't even a toilet in there! Good luck renting this joint!!!

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KoryAK Posted 1 May 2008 , 5:52pm
post #38 of 41

kneadacookie:

I was looking at a 1600 sq ft space that was just office and it was going to cost at least $300k to upgrade it, nto including that the building didn't have enough electricity for us. Yeah, I passed on that one.

Pizza places are great icon_smile.gif

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prettycakes Posted 1 May 2008 , 8:02pm
post #39 of 41

This has really been a great read. I am loving hearing from around the country about what business is like in other areas. I have to admit that it is not legal for me to bake out of my home for profit. So, other than this being a hobby, there is no room for growth unless I take a leap of faith and start a business. I am working on a business plan, and find the expenses daunting. I need an oven, refrigerator, freezer, triple sink, a separate mop sink, a bathroom, and what ever else the EPA deems appropriate for a cake shop. I haven't even checked out insurance yet, but I hear it can get expensive. So, now that I am looking at leases and find that they are close to $2000, I wonder how it would ever be possible for one person to make enough to cover the expenses. I realize that "shop equipment" would be a short term cost (hopefully 5 yrs.). What about incidentals? Broken plumbing, A/C, and the others...

Sometimes, I feel like maybe I haven't been given all of the information. How can a person with no money get a loan, start a business, and be successful without being in debt their entire life. I know this is possible, I hear about it often enough. What am I missing?

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Erdica Posted 2 May 2008 , 12:56pm
post #40 of 41
Quote:
Originally Posted by prettycakes

This has really been a great read. I am loving hearing from around the country about what business is like in other areas. I have to admit that it is not legal for me to bake out of my home for profit. So, other than this being a hobby, there is no room for growth unless I take a leap of faith and start a business. I am working on a business plan, and find the expenses daunting. I need an oven, refrigerator, freezer, triple sink, a separate mop sink, a bathroom, and what ever else the EPA deems appropriate for a cake shop. I haven't even checked out insurance yet, but I hear it can get expensive. So, now that I am looking at leases and find that they are close to $2000, I wonder how it would ever be possible for one person to make enough to cover the expenses. I realize that "shop equipment" would be a short term cost (hopefully 5 yrs.). What about incidentals? Broken plumbing, A/C, and the others...

Sometimes, I feel like maybe I haven't been given all of the information. How can a person with no money get a loan, start a business, and be successful without being in debt their entire life. I know this is possible, I hear about it often enough. What am I missing?




It all can be overwhelming. But take it one day at a time and research, research, research. I'm sure that a lot of the bakers on this board that have a store front, felt over whelmed and wondered how in the world can they do this. I know personally, I'm not yet ready for a full time store front. But that's my goal so that is what I am working towards. I have a lot more respect and understanding of stores and businesses when I drive passed them and think "Man...I wonder what the cost of that square footage is??". And I'm starting to keep notes of places I would be interested in when I am ready.

A business plan will really help you decide what to do. Of course making that leap is completely up to you. But you have some wonderful support and encouragement here! icon_biggrin.gif

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dbax Posted 2 May 2008 , 2:09pm
post #41 of 41

After doing some research for rental space in my area, it seems as if $1750 is the lowest I could find... and that would be in a seasonal area, i.e. shoppers in summer who browse shops and maybe some Christmas shoppers. For high traffic areas it looks like $5400 or more per month. The idea of committing to any rent scares me...
Commercial kitchen is a must here, so my husband is encouraging me to renovate garage into commercial kitchen, he is handy so can do most of the work himself... I'm not sure what the legalities are here, of having a commercial kitchen in your home but there are many bakers who do not operate thru a store front so I only assume they are legal icon_confused.gif

I have so much research to do in getting licensed, insured etc.etc. my eyes are crossing and I feel overwhelmed... but I do know I'm lucky to have his support, and of course the internet is such a fantastic resource as is CC

I know how exciting it is to venture into a dream so I hope you find your kitchen

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