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  • #987247
    Cake & Bake Beginner
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    • Total posts: 5
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    Dear FL Community,

    Time and time again this website kept appearing whilst I search for information to assist in a new business being opened by my wife and I.

    I currently work in Sales as an external representative for an Australian Manufacturer, My wife is a home trained baker with an existing home business which will hopefully migrate to our new cafe.

    Really impressed with the content of Flying Solo and can see this being very beneficial in the future, although I am reaching out today, I hope to be able to provide assistance to others where I have any expertise to offer.

    We are starting a Cafe that seats 40 people, our floor space not including the service area is close to 50m2.

    We are going to lease a premises that was once a cafe and re fit out the building again, essentially on a shoe string budget, one advantage we have is the opportunity to live above the cafe.

    Our Cafe will offer a small menu of eat in food and our specialty is cupcakes, macarons and coffee. Our future plans include development of Wholesale foods and Baking.

    I have read many of the forums about stating cafes from scratch and many of the obstacles I face are somewhat covered already.

    I was hoping to get advice from anyone that has operated a cafe and leased or rented some or all of their kitchen equipment.

    We are juggling many ideas to find a solution, some of which are listed below.

    Rent try buy – Requires deposit, 25% interest over 12 months before tax deduction, purchase after 12 months with 75% rebate of rental payments, steep weekly repayments, Flexibility to change equipment at no additional cost.

    Lease equipment – No Deposit, fixed contracts 12, 24 or 48 Months, No flexibility to change equipment without inuring costs, 100% Tax Deductible, Low weekly payments, upgrade to new contracts at end of lease, purchase or lease at lower rate.

    Bank Loan – No Deposit – Lower interest, low monthly repayments, limited capacity to lend more, better negotiation of initial set up costs, ownership of equipment.

    All options have pros and cons, my biggest concern is initial start up costs and any high fixed cost associated with some of the options.

    Has any FL member tackled this before? what would you choose and why?

    #1161795
    Greg Mawer
    Member
    • Total posts: 46
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    Hi Cake and Bake,

    Welcome to Flying Solo – I hope you find it a useful resource.

    Regarding your financing questions, it sounds like for you it will be a balancing act between finding the lowest cash outlay in the first 6/12 months vs finding the overall lowest cost option. I would suggest you rank the options from total cost (lowest to highest) and then choose the lowest option that fits in with your cash flow capacity.

    I know SilverChef provides financing specific for your industry:

    https://www.silverchef.com.au/

    If you need a hand with determining which is the lowest cost let me know.

    Regards,

    #1161796
    Cake & Bake Beginner
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    • Total posts: 5
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    Thank you Greg,

    Its a difficult decision to make but you summed it up perfectly, continually asking questions is certainty helping to steer the process back on track and make better choices!

    All the best.

    #1161797
    Stuart B
    Member
    • Total posts: 1,070
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    Do you make wedding cakes?

    #1161798
    Cake & Bake Beginner
    Member
    • Total posts: 5
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    No wedding cakes as of yet, but will do in the future, if you require this service I can recommend a very talented baker.

    Steve

    #1161799
    sam_leader
    Member
    • Total posts: 660
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    Hi Steve,

    On behalf of the FS team I’d like to welcome you to the forums. I hope you find your time here productive.

    My colleague Jayne who’s username is FS Concierge posted a link to a really useful FAQ on cafe startups. I’ll PM her asking her to send it your way.

    Look forward to seeing you about the place.

    Sam

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