What are the Capital Resources that I would need for a Pastry Shop?

[Zoe]

I am doing an economic project which i have to make up a business and my business is a pastry shop. (cookies, cake, cupcakes, cake pops, brownies) Thank you for your help!

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Rent

A commercial grade oven for baking

Cost of materials that make up cookies, cakes, etc

Cost of store displays/counters

Utility bills

Advertising budget

[ClickStart]

Capital needed to start a restaurant (or bakery/pastry shop) depends on a variety of factors but ranges from $10k to $250k (or more).

Amount of capital you need depends on a lot of things. Below are a few things to consider when determining how much capital is needed:
*Misc. startup costs – deposits for electricity, garbage, phones, internet, etc.
*Insurance & licenses (EIN and business registration, Health Dept. Inspections, liability insurance, health insurance)
*Space – rent or buy or build? Depending on where your bakery is, you’ll likely need between $1000 and $2500 per month to rent a space
*Equipment – commercial kitchen equipment, furniture, decorations, point-of sale system, etc. If you rent a space that has had a restaurant, you may be able to save a lot of money on not having to renovate and on huge costs like kitchen equipment.
*Employees – this depends on how many employees you’ll need. Assume about $11/hour per worker.
*Marketing and advertising – manage costs using word of mouth and social media if you don’t have a large budget for marketing
*Beginning inventory – finding and securing a reputable food vendor will help you manage costs here
*Working capital – people in the restaurant industry commonly say you’re your costs will be 1/3 more than you think, and recommend that you have a year of working capital until your business (hopefully) takes off and becomes profitable. This includes rent, equipment, wages, food and supply costs, marketing, and other expenses for the entire year.