I’ve decided I need an investor. Someone who’s going to give me the seed money to start my business.
If I could incur $10,000.00 in a year to pay of one loan, the smallest of the three, I would put 1380 back in my pocket over the course of the year. Money I could then put towards supplies, equipment, rent, something.
Say I find a duplex with a rent of $800 a month. Having paid off the lowest loan I would be able to afford rent, water, gas/electric maybe even cable!
Now if I could get $30,000.00 I could pay off the loan and the balance on my car note. Totaling an extra $5028 a year plus a few extra for the down payment. Making it possible to buy a single family home, or even the two halves of a duplex, like I’ve been saying for months.
Who needs to win the lottery?
I read about this woman in Chicago that got a degree in business and after 5 years of working behind a desk she went to Le Cordon Blue and started a bakery. She make designer cupcakes for $3.50 a piece $15 for a dozen. Now say she sells 100 cupcakes a day and the “per cupcake” rate. That’s $350 a day, $10500 a Month and $126,000.00 a year. Now say it costs $75,000 to run her business and pay the insurance, employees, ect. She makes $51,000.00 a year. This is my goal. $50,000 a year based on 2008 interests and cost of living, meaning that in 4 years the number will be around $60,000 because of inflation and the cost of gas.
So if I can find a place of business at $50,000 yearly costs including rent/mortgage, insurance, supplies (wishful thinking) and I’d like to make $50,000 a year, just to cover my personal expenses and sanity, I would need to gross $100,000.
$100,000/12 months =$8334 Monthly
$8,334/30 days=$278 a day
$278/$3=93 cupcakes
Duplex with rent $800
Over a year $11,040.00
Insurance (base on my current car insurance rate because I don’t really have an idea what the business insurance would be) $270 a month, $3240 For a year.
$11,040+$3240=$14,280
So $15,000 just for rent and insurance.
Electricity $150 a month on a busy month. $1800 a year.
$14280+$1800=$16080
Equipment Supplies will be the biggest cost based on usage. So lets say it costs $0.75 to make a cupcake in a batch of 100 (because “designer” cupcakes are all about who made them). I’d need mixers, a deep freezer and fridge for large batches, utensils, pans, icing and piping, wrappers, flavors, candy, the list goes on.
$0.75 x 33480cupcakes a year=$25,110 just to make the cupcakes
$16080+$25,110=$41190
Advertising budget will be $5000. Just to give it a number.
Now I’m at $46190. In operations costs over the course of one year. Before any employees!
Say I can get one of my friends to move in with me, namely one who doesn’t mind baking and frosting everyday. And the Duplex that I live in has 4 bedrooms, 2 on each side. I could move half of my belongings above the bakery, namely the studio for painting and sewing, the office, leaving a bedroom open. And I told that friend they could have free rent for the first year while I got things underway. And they could work flex hours since we’d live at the bakery. Completing tones of cakes at a time.
OR I rent out the other half for the first year to some college students who need a place to stay, they’d have to have good grades and there’d need to be some type of out clause in case they bring termites or roaches into the building. And I could gross $500-$600 a month per room which would cover the cost of the other half of the building. And my coworker and I live in the other half living off the proceeds of the business. I’d still have control over both halves of the building so that when I gross the $100,000 mark I can get the other half back.
Okay, just to bring it back to something a little more understandable.
In order to quit my day job, I need to sell 100 cupcakes a day. For one year, in a city where location and accessibility is everything. And I live in Norcross.
However, I was intending to move downtown into the duplex.
But maybe I should just look into houses. A single family with multiple rooms. One room could be the potential tasting room for private party selections and weddings. The house in the Historic West End would have been perfect….if it wasn’t in the West End. I’ll need to find something in Midtown, something accessible by Marta, but still secluded enough to park on the property. I’ve been watching this house around the corner from my office, but Midtown is out of my budget.
Ideally I need to go towards the colleges. Really I know the perfect place for this business would be in Greensboro. I wouldn’t be able to get a house downtown, but at least one off of Tate Street. I’d have built in cliental. And I could have a second location on the edge of A&T, if they don’t knock down those houses. If I could only win the lottery. $300,000.00 to buy two houses in Greensboro and pay off my debts. I could get some credit and quit my day job and be okay. I’d even be able to hire a couple people to run the front while I’m baking. Pumping out the smell of Baked Goods during Lunch is a surefire way to get business.
I think A&T should rent out the ice cream place to people to sell their food goods. And I wouldn’t be competing with the Café cause I wouldn’t be there everyday. And if I owned a house I could sell to the after Club crowd, even do breakfast, waffles and pancakes and such on Sunday.
Okay enough dreaming for today.
If I could incur $10,000.00 in a year to pay of one loan, the smallest of the three, I would put 1380 back in my pocket over the course of the year. Money I could then put towards supplies, equipment, rent, something.
Say I find a duplex with a rent of $800 a month. Having paid off the lowest loan I would be able to afford rent, water, gas/electric maybe even cable!
Now if I could get $30,000.00 I could pay off the loan and the balance on my car note. Totaling an extra $5028 a year plus a few extra for the down payment. Making it possible to buy a single family home, or even the two halves of a duplex, like I’ve been saying for months.
Who needs to win the lottery?
I read about this woman in Chicago that got a degree in business and after 5 years of working behind a desk she went to Le Cordon Blue and started a bakery. She make designer cupcakes for $3.50 a piece $15 for a dozen. Now say she sells 100 cupcakes a day and the “per cupcake” rate. That’s $350 a day, $10500 a Month and $126,000.00 a year. Now say it costs $75,000 to run her business and pay the insurance, employees, ect. She makes $51,000.00 a year. This is my goal. $50,000 a year based on 2008 interests and cost of living, meaning that in 4 years the number will be around $60,000 because of inflation and the cost of gas.
So if I can find a place of business at $50,000 yearly costs including rent/mortgage, insurance, supplies (wishful thinking) and I’d like to make $50,000 a year, just to cover my personal expenses and sanity, I would need to gross $100,000.
$100,000/12 months =$8334 Monthly
$8,334/30 days=$278 a day
$278/$3=93 cupcakes
Duplex with rent $800
Over a year $11,040.00
Insurance (base on my current car insurance rate because I don’t really have an idea what the business insurance would be) $270 a month, $3240 For a year.
$11,040+$3240=$14,280
So $15,000 just for rent and insurance.
Electricity $150 a month on a busy month. $1800 a year.
$14280+$1800=$16080
Equipment Supplies will be the biggest cost based on usage. So lets say it costs $0.75 to make a cupcake in a batch of 100 (because “designer” cupcakes are all about who made them). I’d need mixers, a deep freezer and fridge for large batches, utensils, pans, icing and piping, wrappers, flavors, candy, the list goes on.
$0.75 x 33480cupcakes a year=$25,110 just to make the cupcakes
$16080+$25,110=$41190
Advertising budget will be $5000. Just to give it a number.
Now I’m at $46190. In operations costs over the course of one year. Before any employees!
Say I can get one of my friends to move in with me, namely one who doesn’t mind baking and frosting everyday. And the Duplex that I live in has 4 bedrooms, 2 on each side. I could move half of my belongings above the bakery, namely the studio for painting and sewing, the office, leaving a bedroom open. And I told that friend they could have free rent for the first year while I got things underway. And they could work flex hours since we’d live at the bakery. Completing tones of cakes at a time.
OR I rent out the other half for the first year to some college students who need a place to stay, they’d have to have good grades and there’d need to be some type of out clause in case they bring termites or roaches into the building. And I could gross $500-$600 a month per room which would cover the cost of the other half of the building. And my coworker and I live in the other half living off the proceeds of the business. I’d still have control over both halves of the building so that when I gross the $100,000 mark I can get the other half back.
Okay, just to bring it back to something a little more understandable.
In order to quit my day job, I need to sell 100 cupcakes a day. For one year, in a city where location and accessibility is everything. And I live in Norcross.
However, I was intending to move downtown into the duplex.
But maybe I should just look into houses. A single family with multiple rooms. One room could be the potential tasting room for private party selections and weddings. The house in the Historic West End would have been perfect….if it wasn’t in the West End. I’ll need to find something in Midtown, something accessible by Marta, but still secluded enough to park on the property. I’ve been watching this house around the corner from my office, but Midtown is out of my budget.
Ideally I need to go towards the colleges. Really I know the perfect place for this business would be in Greensboro. I wouldn’t be able to get a house downtown, but at least one off of Tate Street. I’d have built in cliental. And I could have a second location on the edge of A&T, if they don’t knock down those houses. If I could only win the lottery. $300,000.00 to buy two houses in Greensboro and pay off my debts. I could get some credit and quit my day job and be okay. I’d even be able to hire a couple people to run the front while I’m baking. Pumping out the smell of Baked Goods during Lunch is a surefire way to get business.
I think A&T should rent out the ice cream place to people to sell their food goods. And I wouldn’t be competing with the Café cause I wouldn’t be there everyday. And if I owned a house I could sell to the after Club crowd, even do breakfast, waffles and pancakes and such on Sunday.
Okay enough dreaming for today.
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