Saturday, January 22, 2011
It takes a lot of money to start a business. I've been doing research for a while now and it takes a lot of moola, I mean serious pocket money to do anything nowadays. Figure what you need to start a small hole-in-the-wall BBQ Shack.
First off, you have to find a place to put your hole-in-the-wall shack.
Most owners of land will sell you the building but not the land under it. So right off the bat you have acquired two bills. Renovation of the building to suit your needs and a lease. Most people think rent is high, try a lease on commercial property. We're talking in the thousands of dollars a month or in a quarter.
If you buy undeveloped commercial land and build, you'll spend a few million.
Equipment, the price of equipment, the price of installation of said equipment. (This covers all equipment, cookers, freezers, dishwashers, etc.)
Insurance (of all kinds)
Pots and Pans
Plates and glasses
Tables and Chairs
Cooking fuel (wood, charcoal, gas)
Pricing of food and drink
Payments on Bank loans
CPA to keep up with everything
Is your head spinning yet?
That's the short list...
You can expect not to make a profit for over a year or more. You may start to break even in 9 months...maybe. So you see, it takes a lot of money.
You don't want partners because they tend to think they own the business and you work for them. Which is why some businesses fail because silent partners aren't silent most of the time and they expect a quick return and profit on their partnership money and you have to pay them before you pay yourself.
What is the moral of this story? Keep your day job...
Start small, like on the weekends. Can your food make you a good living? Don't listen to family or friends.
Family and friends may love your stuff, but they aren't paying you in money, they are only paying you in compliments, which is fine, but compliments don't fit in your wallet like money does. Can your food make you money and pay for itself?
There is only one way to find out...