Starting a business
- Thread starter Steve
- Start date
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C
calorific
It might succeed for a short time though and might even take off as a chain if the branding is right. In current times people are looking for cheap ways of passing the time which ideally don't feather the pockets of big multinationals who have fatcat do-nothings sat at the top. That's the market you need to attract and the rationale to follow.
So a small coffee shop called something like "Let them Eat Cake" might do quite well partly due to the irony of its name. As a chain, it would need to expand and contract to closure sufficiently quickly to extract as much profit as possible to pay the initial investor for subsequent possible years of no further income.
One example of what I mean is "Past Times" which has contracted but still has an outlet or two somewhere (Regent Street I think??)
So a small coffee shop called something like "Let them Eat Cake" might do quite well partly due to the irony of its name. As a chain, it would need to expand and contract to closure sufficiently quickly to extract as much profit as possible to pay the initial investor for subsequent possible years of no further income.
One example of what I mean is "Past Times" which has contracted but still has an outlet or two somewhere (Regent Street I think??)
Can I ask, have you taken into account business rates and such when looking at your "cost per cake".
Are you serious or is this just a thought exercise, just asking.
Are you serious or is this just a thought exercise, just asking.
I am looking at this seriously, and have been looking at small retail units on rightmove, as well as commercial ovens, mixers, fridges, counters on ebay to get some idea of setup cost. I was surprised how cheap rents can be in an area such as Mexborough - and even the central areas of Doncaster.
By cost per cake, I was working out the margin based on raw materials to make the cake. I disregarded all other costs. Then I took the margin per cake (I used a rough figure of average £1 per cake). I then took a rough figure of 300 cupcakes per day (maybe a bit ambitious, but we would also sell other products, cookies, drinks, etc which would earn a margin, but for simplicity . . .). So thats £300 margin per day, take off the biggest cost, wages, then the rest is left for rent, rates, water, heat and light, loan repayment, insurance etc.
Reason I did it this way was because volume sales is the biggest variable, everything else is fixed. So the earned margin on sales is the best starting point to deduct everything else.
I have worked with P&L sheets in my current job, so understand the costs involved in running a business.
Securespark, if you mean the roundabout at the top of the dual carriageway opposite the cop shop, I dont think that cafe is there anymore, the flower shop is still there, but if I remember correctly, the people that owned the cafe also run a cafe further along Doncaster road, a smaller outlet and thats still there. Both were called Geds.
I have discussed at length with my girlfriend about this venture, and I think we agree that the best bet is to start off small as a "cottage" industry with a facebook page, maybe selling at carboots (budget cupcakes lol), and spreading word of mouth, working up to a big launch into a retail premises somewhere.
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calorific
Let me know when it's up and running. I'll happily place an order (haven't got a facebook account anymore, but we'll find alternative methods no doubt 
)
)
Steve you should thoroughly researchthe market first by canvassing the local people and shops to see if they feel there would be a demand.
Over 70 % of all new businesses fail in the first yr and your idea does not sound as if you will sell enough numbers to keep you going especially with business rates that will set you back probably £150 - £200 per week.
Research research and research and remeber that your overheads will probably be at least £300 per week in a town centre location.
Good luck
The vax idea sounds a better proposition
Over 70 % of all new businesses fail in the first yr and your idea does not sound as if you will sell enough numbers to keep you going especially with business rates that will set you back probably £150 - £200 per week.
Research research and research and remeber that your overheads will probably be at least £300 per week in a town centre location.
Good luck
The vax idea sounds a better proposition
Good luck if you do it, if it was that easy everyone would do it. Expect to earn no money for ages. When I set up I earned £200 in my first 8 weeks
Shytey British weather may mean only a few customers. Try and offer as much as you can, don't stick to cakes and coffee. Have loads of freebie cakes on your opening day. You'll loose a shyteload of money but you'll get loads of recommendations
Shytey British weather may mean only a few customers. Try and offer as much as you can, don't stick to cakes and coffee. Have loads of freebie cakes on your opening day. You'll loose a shyteload of money but you'll get loads of recommendations
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