Opening a B&M - Funding problems.

[Former_Member]

So, I decided to go into a partnership with someone and open a B&M, it's going to be a bakery that also sells crafts from local artisans (and my own). Where I live there is like NO place that sells fresh-baked goods other than walmart's bakery (Yuck!). My area is severely depressed as far as jobs. So I know this would be a great thing for the community and will at least help a few families find jobs with us. We also plan on giving all the food left at the end of the day to local food pantries and homeless shelters so that we can give at least a few meals to the less fortunate.

We found a building, which is being renovated for us (it was build-to-suit) and it will be done on the 10th of July. We talked to the firemarshal, who did pass the building, but told us we cannot use regular stoves to cook on that we need industrial ovens and a hood system. Those are so pricey!!!!!!!!! Talking tens of thousands of dollars for the number of ovens we need and the hood system. We also need a refridgerated display case for the cakes and etc. After we did the math, we need around 50k to get this off the ground.

We tried looking for grants, there simply are none available for bakery start-ups. So someone at the SBA told me about indiegogo. So I have set up a donation fund for our bakery start-up.


If you can afford to donate a dollar or two, that's awesome but if you can't can you please help out by passing the link around to your social media outlets?

I know the etsy community is the best and really comes together when an important cause arises and we could really change our community and turn it around, I firmly believe that!

Thanks and here's the link, http://www.indiegogo.com/lllbakery

[Former_Member]

Why don't you use kick starter?

They would love to fund a project like yours. And you can have a mail order customer base built right in

[Former_Member]

Hm, Never heard of them? Have more info?

[Former_Member]

Www.kickstarter.com I think

Basically you put fourth an idea. People fund it if the like it and in exchange they get items of different values depending on how much they give.

[TheSSSeamstress]

It's important to note that you only get pledged money if you reach your goal in the time you allot yourself, so don't set the bar too high. That said, I think kickstarter is a great idea, especially if your community is supportive. Good luck!

[Former_Member]

Thank you I'll check it out. We were unaware that we needed industrial ovens and a hood system until the firemarshal inspected the building..... needless to say our little dream has been quickly quashed.....I really don't understand why we cant just use regular stoves....I mean, we're just baking, we are not frying stuff or anything....but I guess rules are rules.....The hood/vent system alone was quoted at 5500$.....each stove runs several thousand....refridgerated display cases start at 2k and go up....and so forth. We had no idea when we jumped into this that it would cost SO much....we thought we could put a couple standard stoves from Lowe's in there and go with it.....

[EviesToolEmporium]

There are many, many hidden costs when opening up! This is only the begininng!

Did the SBA help you with a business plan?

Are you familiar with SCORE?
http://www.score.org/

[Former_Member]

If you're cooking comercial you need to have commercial grade appliances, which are a safety measure. A cooktop from Lowe's is not buit to withstand industrial use. Also, industrial hood vents are buit with special fire shut offs, which you need to learn how to operate. PLUS, you need to notify your builder that you are using industrial equipment, sometimes special wiring needs to be installed. Also important, you need to have industrial sinks with hot water that geats particularly HOT, generally a 3 part industrial sink, each sink holds your different batch waters for cleaning. Check local auctions in your area, I've seen industrial equipment go for great prices at auction.

[Former_Member]

Will check it out and offer what I can! Best of luck to you, Melissa!

[Former_Member]

Is there no industrial kitchen you can rent, until you get the money to cook in your own building?

[Former_Member]

Michelle and Dave: I'm familiar with SCORE. We (my partner and I) are supposed to take a class that is 3 hours long in wich a SCORE rep will be there (from my understanding), that class in next Friday.

Nicollette: We knew it was a possibility, but the firemarshal himself told us that he would have to quote "Look at the building, a menu and what we would be doing every day and make a desicion" You can use regular stoves if you do light cooking.....apparently heavy baking also matters....Our builder is aware of everything :) She's been great about fixing the building for us. She is even putting a drop-ceiling over one of the back rooms for me to make my soap in so the lye fumes don't leave that room and mess with the food stuff (the rooms in the building have regular walls but the overall ceiling is open-there is a large opening between the top of the wall and the cieling-if that makes sense).

Stephanie that's great, even if it's just 1$ it's 1$ closer to opening.

Brittany: The closest industrial kitchen equipment leasing agent is in Christiansburg Virginia, I have already talked to them and they do not lease out of state (I am barely across the WV border, about 2.5 hours from Christiansburg).

[EviesToolEmporium]

Melissa from EnchantedSpas-
Great to hear! My uncle worked with SCORE for many years and mentored many small business owners!

Best of luck with your new adventure! We had our b&m shop for 6 years! I wouldn't change those years at all. We learned so much and had the best time! It was a risk that I am proud we took! Congrats on taking the risk!

[Former_Member]

Thanks evies, I know we will do well as there is litterally zero competition in the area and everyone we tell about it is so excited.

[Former_Member]

Melissa, I didn't check to see if you are from the US or not, but if you are....check the liquidators. There are many all over the United States and you can get commercial equipment for a lot less than purchasing new. You can also consider leasing the equipment rather than purchasing outright.

If you choose to go the renting out a commercial kitchen, you will need to find out the health department regulations on transporting and storage.

Also, check other businesses that are going out of business. You may be able to purchase their equipment or take over their lease.

[Former_Member]

Try posting your delimma on Reddit.com they are so generous there!

[Former_Member]

Debbie: I've already checked the area for all those things you mentioned. There was one pizza place that went out of business and they did have a hood system BUT they wanted 8,000$ for it....you can buy them cheaper new (it's a cheaper brand, but still.....)

Stephanie: Not looking on Etsy for people to be generous as much as for people to share my link and get it around. That would help out way more than you think.

[GildedXRoseXStudio]

Oh boy...I know where you're coming from, Melissa. My other half just recently attempted to open a shop of his own and he thought he had all the "needs" down pat. It's like a snowball! The only thing I can offer is...try checking for this stuff on eBay. He was essentially looking for similar things (medical grade stainless steel equipment). It sounds weird to look there, but they DO have stuff! I hope that helps. Good luck! Let us know how things work out for you!

[Former_Member]

Melissa- check auctionzip.com; put in your zip code, the miles you;re willing to travel and in teh 'serach' feature, try out things like "stove, commercial, bakery" etc. I've seen plenty of auctions just in my area with these sorts of goods going for pennies on the dollar.

Also, another alternative for now is 'borrowing' a full kitchen durring their non-operational hours (ie: before a restraunt opens in the morning, after a bakery complete's it's baking, etc). Some small restraunts ren their kitchens to other businesses for a feee; my town's bakery is shared by the chocolate store.

[Former_Member]

Hi Melissa,
Good luck! I'll pass it around.

I know it was said before, but you can maybe rent someone else's kitchen (not the appliances, but the physical kitchen space) for starters, and just sell at your store for now. It would not only save you money on the appliances, but also in registering your kitchen with the health department.

Good luck and let us know how you are doing!

[Former_Member]

Industrial grade kitchen ware is essential for commercial cooking. I would definitely do a little more research on what exactly is needed before jumping into this venture.

[Former_Member]

Hi guys, Yeah....the problem with renting someone elses kitchen is this: in my city, which is a very small town, there exists only 3 restaurants that are not large chain restaurants. 2 of those are asian restaurants (who I will ask if I can rent their kitchen, but somehow I doubt they will let me) and 1 is an italian restaurant actually owned by the woman who is renting us our building, She has 2 stoves and 1 industrial grill, no industrial ovens. The restaurant she runs is in a regular house that has been converted into an italian cafe. The kitchen is quite small and we already struck a deal on the deposit on the building, which was: I would paint a murual on the wall of her dining room in the restaurant (Nona's-formerly the Magnolia Room) for half off the 1500$ deposit. I've been working on that wall-sized murual for a week and almost have it finished. We also struck sort of a loose deal that we will provide her restaurant with fresh baked cakes daily (she has been ordering frozen deserts-YUCK!) for a % off the rent each month-though she has not come out and said exactly how much % as it was mentioned loosely.....so we'll see.....but I'd rather not push any further with her about anything....

Last night I did find on Ebay some used bakery equipment. The equipment itself is affordable (about half the retail price) but the shipping is god aweful.....by time you pay the freight fee of around 1k you're still paying retail price.....maybe that was just bad search results? Not sure....I will check out that other auction site Nicolette! Thank you!

[MunasTreasures]

SCORE has a 6 or 7 week business class that will help you set up a business plan, etc.

this sounds like a great idea but also like an idea that could bankrupt you if you are not careful. have you gotten all your costs for liability insurance, product insurance, etc.? there are also special food serving licenses that can be very expensive to obtain (my husband works with a professional kitchen)

i opened a very simple b & m shop about 10 years ago and ended up losing tens of thousands of dollars--it cost me over $10,000 just to open and meet all the fee requirements of the state and town--and i was just openiing a simple co-co-op gallery

good luck....run your numbers! and then run them again with professionals...