Starting business costings?

by Harakiribusted. Posted on Sep 11, 2020    0    11


Hello guys,

How much would you rent a garage to start appliance refurbishment business ?

Is 700$ a month a good investment in a business facility?

What do you think?

Thanks for any help!


Comments

bcvickers 1

There is no way anyone is going to be able to answer this realistically for you. Facility rent is too geographically variable. Plus we have no idea on the viability of your business model in your location and what sort of cash flow it is likely to bring in (I would think that you modeled this already to figure out what your costs and income are going to be).

  Harakiribusted 1

Well yes true, but i was hoping for some advices from people who own businesses etc...

bcvickers 1

You need to run some models or predictions to see what your income potential is which will dictate what you can afford for other expenses. That's the best advice we can give you without more information or doing the work for you.

r0bbyr0b2 1

Can you do it from home for a few months? You can then test the viability of the business and the few months of $700s saved you can put into marketing and tools etc.

  Harakiribusted 1

Tools and everything are ready, and i also have a 10,000$ saving to start a business, what do you think?

r0bbyr0b2 1

If it were me (and I’ve started and sold a few businesses) I would keep overheads, especially fixed ones like rent to an absolute minimum.

Only get the garage to rent if it will cost you more not to have it. Start off at home first if you can.

  Harakiribusted 1

The issue is the business needs a facility, like how can you operate a late mill or cnc machine from home for example?

SafetyMan35 1

Find a place to partner with or rent their machines until you have proven the business. We operated our business out our house until it hurt...basement, garage, and a large tent set up in the driveway along with a 26’ moving truck for temporary storage...only then did we consider moving to a commercial space.

Why sink $4000/month in rent for an unproven business.

  Harakiribusted 1

It's 700$ a month, plus wouldn't partnering with a
business create rivalry? Also what business is gonna accept me as a partner? Like what would i offer them so i get the attention to be their business partner?

By the way i like the idea of using the truck as temporary storage!

SafetyMan35 1

$700 all in, or $700 + NNN.

Many businesses have CNCs and Lathes that sit idle at night that you might be able to use, or you tell them you will bring all your CNC work to them in exchange for a discount

  Harakiribusted 1

There's no NNN it's just a garage for 700$ and pretty much thats it regarding business expenses, plus taxes obviously, but taxes are according to how much i make . I tried to find cheaper facilities and did find some for 600$ a month but they're either underground or not ideal. Also the business i want to start requires space not like i can start it from a 1 car garage.