Utilities/insurance To Budget For In Storefront

Business By victorialovescake Updated 5 May 2011 , 3:26am by yummy_in_my_tummy

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victorialovescake Posted 2 May 2011 , 6:14pm
post #1 of 5

Hey everyone,

Those of you who are so lucky to have storefronts, I was wondering what your monthly utilities and insurance run for? I'm making a budget draft for a cupcake shop and not one of the renters of the properties I've viewed have an estimate for what the utilities would be (the largest of the properties was 1630 sq. ft.). I'm also not sure on the insurance front, so any advice is most welcome.

Thanks in advance!


4 replies
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mombabytiger Posted 2 May 2011 , 7:32pm
post #2 of 5

My insurance is $1500 year and my utilities run $800-1000 a month.

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victorialovescake Posted 4 May 2011 , 9:56pm
post #3 of 5

Oh that high on utilities! What size is your shop?

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indydebi Posted 5 May 2011 , 1:07am
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Depends a lot on what appliances you have, how often you run them and the rates. Just like commercial auto insurance, commercial utility rates are WAY higher than what you pay in your home.

I had a 1200 sq ft shop with a comm'l dishwasher, 2 convection ovens, a 6-burner gas range, walk in refrigerator and 2-door freezer. I didn't use the range except on Friday and Saturday for caterings.

My gas ran between $150-$200 month. Elec averaged $500 a month (note: AVERAGED! sometimes as low as $300 ..... sometimes as high as $700, depending on how booked I was with caterings and if I was running the A/C in the summer or heat in the winter.) Water ran $35-$60 month.

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yummy_in_my_tummy Posted 5 May 2011 , 3:26am
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I'm not sure about utilities (I dont have a store front), but something to consider, is that a huge rating factor on an insurance policy is your gross receipts (how much money your shop brings in before you pay for overhead). The higher your gross receipts are, the higher your premium is. You estimate your gross receipts at the beginning of the term, and after the annual policy, the insurance company has a right to audit your book to see if they rated your policy correctly based on the amount of $ you brought in.

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