Business Costs May Be Too High

Business By alicegop Updated 7 Feb 2007 , 4:49pm by alicegop

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alicegop Posted 30 Jan 2007 , 11:21pm
post #1 of 14

I am hoping that I am just over estimating the costs.

I live in Fresno CA and am trying to open a very SMALL kitchen rental. Basically I want to just get all of my cake stuff out of my house. (I did have a much more grand scheme but no kidding, the insurance guy laughed at me).

I make cakes as a HOBBY and can not make enough money doing cakes full time to come anywhere near what I make at my job, so I really need to find some other hobbiests who want to make cakes (or other baked items) occassionally to share in the costs.

But when I estimated some costs it didn't seem like I could do an occassional cake and only actually have the doors open basically weekends like I had envisioned......

Eventually I'd like to go larger scale, but for now I'd just like to wrap my head around what is involved in owning my own business. But if I can't do it small.......

Can anyone give me some estimates on what they pay for
rent (small space, even 12x12 would be enough really and it doesn't have to be store front)
electricity
garbage
water
phone
insurance
other things I may not be considering...

13 replies
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mconrey Posted 30 Jan 2007 , 11:31pm
post #2 of 14

Sounds like a great idea, but I'm not sure how you could break even. Remember, you'll have to have a commercial kitchen with all the permits and licenses from your Health Department too.

Heck, if I lived closer, I sure would be interested in something like this! Good luck!

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JoAnnB Posted 30 Jan 2007 , 11:37pm
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You may also be required to have commercial appliances-depends on the building codes in your area. Ovens, fridge/freezer, grease trap. The small space may be big enough for a workroom, but will not hold commercial appliances, storage and work space.

There are some good cake groups in California. Maybe if you contacted them, someone would be interested in working together on your project. However, you will need to put everything in writing and see a lawyer.

good luck.

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MaisieBake Posted 31 Jan 2007 , 2:52am
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There was just another thread about this, maybe last week or the week before. Look back in this folder.

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alicegop Posted 7 Feb 2007 , 1:48am
post #5 of 14

I looked at a location today, it is 750 square feet and is a good size. Rent isn't too bad and I like the location a lot. BUT it hasn't been rented in 3 years and doesn't have a toilet! I would need to totally replace the floor and do the plumbing for the grease trap.

How much does the plumbing for a kitchen run? My bro can fix up the bathroom (not looking forward to paying for that), and I think I can do the flooring myself, BUT I'll need to get someone to do the grease trap and sink......

Anyone have any ideas for me, should I abandon ship on this site?

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indydebi Posted 7 Feb 2007 , 5:10am
post #6 of 14

Just be sure that whoever you get to work on it is familiar with your health dept codes and requirements. You can't just "slap in a floor" ... it has to meet minimum health dept requirements. Ceiling and walls have to be special material and/or have special coatings (my space required 5 buckets of special wall coating at $50 a bucket!).

Your plumbing depends on how far you have to run the pipes and if you have to trench up the flooring to install any pipes. Trenching thru concrete is VERY expensive!

I would recommend you contact a contractor who specializes in commercial kitchens to get a quote from them. If they know commercial kitchens, they will also be able to give some good advice on what you need, don't need and what you can get by with and without.

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alicegop Posted 7 Feb 2007 , 5:15am
post #7 of 14

THANKS! Good advice!

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playingwithsugar Posted 7 Feb 2007 , 5:21am
post #8 of 14

And to go with what Indydebi said -

When you replace the floor, do not just replace it. Replace it with a floor that is sturdy enough to handle the equipment you will be bringing in.
Those convection ovens are not light, and neither are coolers, especially older ones.

Theresa icon_smile.gif

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cakenutz Posted 7 Feb 2007 , 5:24am
post #9 of 14

Maybe you could get landlord to give you say 6 months free lease and you do the updating if it's not been rented in 3 years you never know Hes not making anything on it now. If the cost are too high maybe think about renting space from another business or church.

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alicegop Posted 7 Feb 2007 , 5:27am
post #10 of 14

I was definately going to ask for 2 months free rent and was going to try and negotiate for a toilet.... I've never heard of asking for 6 months...... But I was thinking I have some leverage since it hasn't been used in awhile.

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mrsfish94 Posted 7 Feb 2007 , 5:36am
post #11 of 14

Hey Alicegop,

It's me Mrsfish94...you emailed me about your cake rental/shop a few months ago. I thought for sure you had this up and running already. LOL!!! Well, I still haven't set up my shop yet. I still want to...I may end up just becoming an Event planner instead. I know...it's a long story. Keep me posted on your kitchen. I know I'm far away...hey have you considered the convect a ray oven? You don't need a hood or venting for it. Have you considered an old/closed resturant? They would have the kitchen set up already in place. ....anyway keep me posted.

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alicegop Posted 7 Feb 2007 , 5:44am
post #12 of 14

Things got complicated when my insurance guy laughed at me (literally)

I actually feel better about my current model anyway. Less risky and I am super busy anyway (full time teacher) so this is a much better way to get my feet wet.

I've gone and purchased equipment now, so at least I am little closer than theoretical, but still theoretical. So I'll be having a refrigerated display case in my living room for awhile. That will look nice don't you think!

I have a table top oven that doesn't need a hood,

I am definately far from sold on this current location. I like the spot, but the upgrades are freaking me out.......... I would much much prefer a place that has the piping already. If I can find that I will jump on it!

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SweetConfectionsChef Posted 7 Feb 2007 , 1:13pm
post #13 of 14

It's called a teired lease. When you rent a building that requires a lot of work the best thing to do is work a deal with the landlord. You first of all do not actually pay rent until you are open for business but then, with starting a new business, you work your way up to paying the full rent. Say 1/2 rent for so many months (2 or 3) then 3/4 rent for so many months (2 or 3) and then full rent. It gives you time to build a clientel and the bonus for the landlord is usually a long time tenant because they don't drain their resources right off the bat. They also get a "fixed" building. Another thing to consider is wether everything has to be NSF...if not you can do the kitchen MUCH cheaper.

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alicegop Posted 7 Feb 2007 , 4:49pm
post #14 of 14

Oh thank you thank you thank you thank you icon_lol.gif that is GREAT ADVICE!!!!!!!!!!!!

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