Can i start a coffee, donut, bagel, sandwhich shop with 8K?

**Sepiroth** · 06-07-2009 11:05 PM

I have a bit of funding coming in to the tune of $8000 USD. It could be more, maybe up to 10K.

I found a building where the rent is 600 a month with a 1 year lease. The inside would require some demo and little construction work as a couple walls need to be torn down and the holes patched and painted. Also the floor would need to be recovered with either vinyl floor or laminate.

My question is can it be done with 8-10K? This includes the construction which may cost 1k.

**zharlene** · 06-07-2009 11:53 PM

Is it at a key location?

**Sepiroth** · 06-08-2009 12:30 AM

It's in the town i live in. The town itself has maybe 10000 residents. The business is on a stae highway that sees a lot of traffic.

It's your basic small Mayberry like town.
We have a grocery store,
1 rest that is open 5am-2pm 7 days,
1 rest that is open 4-10 6days,
a hardware store,
24hr gas station,
ice cream parlor open 6 days unknown hours,
a Subway,
liqour store
a bar
2 banks
Police dept and town hall

There are like 4-5 more businesses, however, thats all with in 3 blocks of each other.

NO coffee shop or bakery

Well the grocery has a bakery and coffee of everyday blends

The gas station has Java wave coffee and square donuts.

Here's a sample of what i would like on my menu.

Coffee shop ideas
Coffee from local roasters
Cappuccino
Iced coffees
Iced cappuccino
Evian Water
Donuts chucks bakery delivered?
Bagels?
Sandwiches homemade
Wi-fi
Cable
Phone
Big screen tv 600
Butter and spreads Amish?
Weekly or biweekly local musicians
Discounts for fire, ems, police, seniors
Small bookcase??
Newspapers
4 4 seat tables
Checkers
Chess

**Sepiroth** · 06-09-2009 10:31 AM

UM, hello???

Can someone help me out with my topic here?

**bennihan** · 06-09-2009 11:10 AM

I think you're going to need more money then that as well as more in depth research.

**PsiPro** · 06-09-2009 12:39 PM

bennihan is right. I really doubt $8k will buy you a cart for a shop on wheels, let alone pay your rent at a good location & buy your supplies.

**Dirt McGirt** · 06-09-2009 03:08 PM

Factor in insurance, payroll, equipment/furniture, marketing, etc costs and I think you are over the $8k there.

**jonathanfigaro** · 06-09-2009 06:56 PM

I think , you may need to do some DEEP research Before jumping into a business like opening up a store. there is a lot, of work and maintenance in regards to making a store work. Employees " who actually care", electricity, rented supplies, gas,, electricity, insurance , location ; I mean the list goes forever.

So i suggest you talk to people who have successful stores, and as them can they give you some advice,that will help you in creating a PLAN on how to start your own store. But make sure you make them your friend first, THEN when your good pals' ask him or her on some advice.
Since they are your friend, they will tell you more than if you were just a random stranger.

**v6tc** · 06-10-2009 06:56 AM

Originally Posted by Sepiroth

It's in the town i live in. The town itself has maybe 10000 residents. The business is on a stae highway that sees a lot of traffic.

NO coffee shop or bakery

Well the grocery has a bakery and coffee of everyday blends

The gas station has Java wave coffee and square donuts.

Here's a sample of what i would like on my menu.

Coffee shop ideas
Coffee from local roasters
Cappuccino
Iced coffees
Iced cappuccino
Evian Water
Donuts chucks bakery delivered?
Bagels?
Sandwiches homemade
Wi-fi
Cable
Phone
Big screen tv 600
Butter and spreads Amish?
Weekly or biweekly local musicians
Discounts for fire, ems, police, seniors
Small bookcase??
Newspapers
4 4 seat tables
Checkers
Chess

$8-10k would be cutting it close if it is at all possible, and that's just getting the doors open. You need to figure in costs of sustaining business, especially since food is a perishable product. I would estimate that you'd need closer to $20-25k, and even then it would be a rough gamble because of the economy.

Figure in the legal costs, insurance, making sure everything is up to code, employee's if necessary, utilities, tax and the ever needed profit, and 10k won't be near enough to keep it running for 2 months.

Planning and negotiation are key, aside from finding a location, put the legwork in to find your complete costs and go forward from there. Drop the tv, cable, and live music (unless it's free), and you'll save yourself quite a bit. Start with the basics and expand as needed, let the customers tell you what they want.. since it is their money that you want.

**Muziduzit** · 06-12-2009 04:55 PM

FYI ->
Your whole town has to at least drink 1 cup of coffee at youre place before you have earned youre starting capital back

**chuff1026** · 06-15-2009 03:51 AM

u can open one in the caribbean or mexico where the money is worth less
lol

**Sepiroth** · 06-16-2009 01:06 AM

Ha ha ha Chuff, you're a comedian.

It is no longer 8k. As it turned out, I got 13K. So am I in any sort of better position? If not, what would be some other avenues to venture down, realistically.

Oh I should mention that I am not all that interested in playing in the stock market, bonds, mutual funds, or the like.

**chuff1026** · 06-16-2009 04:21 AM

LOL @ playing the stock market
do some research on yoru costs
thats one option
13K is possible if you find a place that may have been an old ice cream shop or something like that so you will not have to spend money on the build out
many land lords are contributing to build outs now...
i think your main goal should be to get a place where you do not have to do any construction
that may be your highest startup cost
your other option maybe to buy a shelf corporation that will give you credit to play with thats not connected to your personal credit
that way, you will have more working capital and not much more risk..

but if you want to work with your 13K, i suggest you find a place that has closed down and doesnt need any work

**PsiPro** · 06-16-2009 10:12 AM

Like chuff said, you need to to alot of research for this venue. And if your not willing to do the research, your probably better off in another area becasue the work will just keep piling on.

**veikoh** · 06-16-2009 10:20 AM

You can start this business but as told here - the key is location and competition there.
Assuming that you have no payroll costs (runs by family), stock will be daily and limited sure you can start it. So, you need to make at least $20 per day pure profit to cover your rent only. Is it viable? Sure, ten customers $2 each. But then it goes to marketing, new equipment, stock, salaries, new ideas, etc. be careful on those.