Business choices....

[Jellybeangrl]

I'm not sure if this is the right thread, but I need some help.

I have 2 amazing opportunities right now and I'm not sure which is smarter!!
I have a large 1800sqf diner available to me to rent for $2000 a month in an amazing spot!!! Tons of traffic on a corner at a stoplight in the heart of our town that doesn't have a bakery, deli, or coffee shop near by. It is turn key and has everything in it!! BUT....I need $20-30k start up cost and I don't have it. I'm going to talk to the mayor as it's a very small town with lots of town spirit and they want a business in there as it's been empty for 10 years. I'm hoping for a grant or maybe a silent business partner that I could buy out later on. I would start out selling coffee, espresso, baked goods and cake by myself; but I would like to grow to have a deli there and a few employees to help as the traffic could be pretty extreme as they are 2 main roads through Upstate NY.

My other option is opening a "by order only" bakery in my SIL's commercial kitchen attached to the house she just bought 3 towns over....so a 40 minute drive in good weather and my kids can't get on/off the school bus there. The start up costs would be the $1000/year for insurance, 150/year for heath department, what ever rent they want, and utilities. It is pretty much set up and all I would need to buy is a microwave, stove, and work table. BUT....they want no one coming to their house, which is understandable, so less sales and I may not make enough to cover all the bills and pay myself. Plus I am slightly worried that even with a contract it may hurt our relationship.

I have never been a big risk taker, but I need to start helping out as we have been a one income family for 4 years and it's been way too tight! What are your thoughts? What would you do?

 

[Norcalbaker59]

I don't which opportunity would be best for you and your family. But there is a lot that goes into opening a business. Its begins with a business plan. That process will have you the demographics of the town, including income levels and what they spend their disposable income on; identify your target market and know what they want to buy; how much they are willing to spend on those products; how frequently they buy them. What millennials want to eat and will buy is not the same food products purchased by baby boomers.

You need to know who your suppliers will be; what your costs will be; what your margins are per products; how many pieces of each product you will need to sell a day to break even; and the per person sales you need to make from each customer.

Just because a storefront has foot traffic in front of it doesn't mean its going to generate income.

Having just complete a certification on coffee and espresso, I can tell you that the skill sets for making expresso and espresso drinks is very specialized. Pulling a good shot is very difficult and takes training and practice. Selling espresso and specialty coffee drinks requires a substantial investment in equipment. A basic commercial espresso machine will cost about $8,000. A good espresso mating will start around $12,000. The necessary coffee grinder runs about $1000. Espresso machines require a water treatment system, especially if the water is hard. The equipment requires daily maintenance. If its not maintained daily and a water treatment system isn't installed, scale will build up inside and your $8000 espresso machine will be destroyed.

I would recommend you write a business plan. You will not be able to attract an investor, obtain a loan, or grant without a well written business plan to present. Banks and investors need to see and evaluate what your costs are and what you need to sale each day to generate a profit. They also need to know your training and experience in the industry. Opening a business is not an easy task or cheap.

https://www.score.org/content/business-plan-resources

 

[retired baker]

I'm not sure if this is the right thread, but I need some help.

I have 2 amazing opportunities right now and I'm not sure which is smarter!!
I have a large 1800sqf diner available to me to rent for $2000 a month in an amazing spot!!! Tons of traffic on a corner at a stoplight in the heart of our town that doesn't have a bakery, deli, or coffee shop near by. It is turn key and has everything in it!! BUT....I need $20-30k start up cost and I don't have it. I'm going to talk to the mayor as it's a very small town with lots of town spirit and they want a business in there as it's been empty for 10 years. I'm hoping for a grant or maybe a silent business partner that I could buy out later on. I would start out selling coffee, espresso, baked goods and cake by myself; but I would like to grow to have a deli there and a few employees to help as the traffic could be pretty extreme as they are 2 main roads through Upstate NY.

My other option is opening a "by order only" bakery in my SIL's commercial kitchen attached to the house she just bought 3 towns over....so a 40 minute drive in good weather and my kids can't get on/off the school bus there. The start up costs would be the $1000/year for insurance, 150/year for heath department, what ever rent they want, and utilities. It is pretty much set up and all I would need to buy is a microwave, stove, and work table. BUT....they want no one coming to their house, which is understandable, so less sales and I may not make enough to cover all the bills and pay myself. Plus I am slightly worried that even with a contract it may hurt our relationship.

I have never been a big risk taker, but I need to start helping out as we have been a one income family for 4 years and it's been way too tight! What are your thoughts? What would you do?

I probably wouldn't bother with either of them.
a diner thats been closed 10 years ?
the refrigeration will not be reliable if it even starts up and runs. Forget it.

Your instincts are right, don't do business with family.

we started our first business in my partners apt, we did very well selling cakes to anyone, restaurants, private sales etc. we did that for 2 yrs then got a $20k sba loan, bought a greasy spoon and gutted it out to be a pastry shop. 16 hr days every day. But we made it.

keep in mind...you don't own a business, it owns you.
any less of a commitment is a recipe to fail.