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The starting point of any business is to establish a legal business entity. Once you have that I would suggest focusing on building business credit and putting together the fundamentals of a new business. You should research this topic by typing it into Google.
Small Business Owner
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Does anyone know what is average startup cost to start a bubble tea business??
Yes, Where?? What city??, What State?? Go to Members page and share some info
Hi Luckiest. Thanks for responding to my post. I am planning to open on in Atlanta, Georgia sometime next two years.
My suggestions on estimating you costs are as follows:
Try to find public data about competiting companies. Are their publically traded companies that are in this industry? You can pull their financials from web sites like Edgars. From that information you can common size thier expenses and extrapolate to your start-up.
Or, there is a great article about this subject - http://businessmoneytoday.com/Articles/Management/Article_Estimating-Capital-Needs-for-a-New-Start-Up.html - so I will not recap all of that here.
But, the idea is you will never the cost of a start-up. So, make you best educated guess - either using data you can find on other companies or contacting suppliers, vendors, etc directly to estimate costs (this will not help with all cost items). Then, try to estimate what you think you can manage for all other cost - e.g. if you need 100 sales a day to break even - how much will those sales cost you in terms of marketing, employees, overhead, raw materials, etc.
I would also suggest you contact SCORE (score.org) or find a SBDC - both are free and may have other resources to help you estimate these costs.
Keep in mind that whatever numbers you come up with - will be wrong (that is just the way). Thus, make sure your numbers are something that you think you can manage and work for. If you use pie in the sky numbers - you are only lying to yourself.
There are other rules of thumbs that you can use as well. Maketing and larbor will and should be you largest costs. It should take 18 to two years to break even. And, all things are negotiable.
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