Startup Costs

The most expensive aspect of opening a salon is leasing salon space. A small salon typically has five to six chairs, and at least 1,000 square feet of space. According to Forbes.com salon space generally costs between $75 and $125 per square feet to lease each month. In busy urban markets, such as Los Angeles or New York City it is not uncommon to see salon space renting for as much as $300 per square feet. When renting salon space the owner must remember that most leases require at least a one year commitment, and rent is going to be due whether the salon is successful or not. Many salons can be rented fully equipped, but it can cost several thousand dollars to outfit an empty salon with items such as sinks, chairs, vanities, and mirrors. Supplies, such as towels, shampoo, conditioner, hair color, and hair products are a necessary purchase, and must be available for all appointments. Most salons are only as good as the stylists that they employ, so a startup budget must include capital to pay employees. Other costs include taxes and monthly utilities such as water and electricity.

Legal Issues

Owning a salon requires signing legal documents, such as a lease. It is in the best interest of the owner to consult an attorney to review the terms of a lease to ensure that the owner’s interests are protected. A business license and tax I.D. number are also required before a salon can open. Salons are subject to business taxes, which must be paid on time to avoid fines and late fees. Many local governments also require an inspection of a salon to make sure that it is sanitary and hygienic. Any employee providing grooming services must also be in possession of a state issued cosmetology license.

Types of Salons

A salon can be a small, privately owned business, or part of a large corporate chain. Many franchise opportunities are available, in which a salon can use the name and management model of an established salon brand. Some salons specialize in only styling hair, while other types offer a full range of beauty and grooming services. A new trend in salons is the mobile salon, where stylists can be hired to perform services in the convenience of a client’s home.

Startup Costs

The capital required to start a bakery varies greatly depending on the type of bakery being opened. This type of business can be relatively inexpensive to startup if a single baker runs his business out of a small rented kitchen and does not have any employees to pay. Bakeries which cater to walk-in customers will have considerably higher startup costs, as this type of bakery requires purchasing or leasing a retail storefront that is equipped with a kitchen. Other costs that must be considered are purchasing professional grade equipment, such as kitchen mixers, ovens, and utensils. Common ingredients used to produce baked goods are not usually expensive, but will need to be purchased in large quantities which can be costly.

Legal Issues

An attorney should be consulted before space is purchased or leased for a bakery. A qualified attorney can review all real estate contracts and lease agreements to ensure that interests of the bakery owner are protected. Before a bakery can be opened a number of permits and licenses must be obtained. The business must have a valid business license, as well as a tax I.D. number. Many local governments also have strict requirements for establishments that serve food products. A bakery may have to be inspected prior to opening to ensure that all rules are being followed, and each employee will need to have a current food handler’s card. After a bakery is open, the business should expect random visits from a health inspector who will thoroughly check the bakery to make sure is following proper food handling procedures. Failure to follow safe food handling directions can result in fines or the loss of the permit required to sell food.

Types of Bakeries

Bakeries can be found in a variety of forms. A retail walk-in bakery usually has a kitchen in the back, with a display case and tables in the front of the building. Customers can walk-in to the establishment any time during business hours and order any item that is available. Another type of bakery is one which provides baked goods to restaurants and other retailers who sell food. These bakeries are not opened to the public; their orders are shipped out as soon as they are completed. Some bakeries specialize in selling wedding cakes. In this type of bakery couple will visit the bakery to look at and taste different wedding cakes. The bakery fulfills the order for the day of the wedding, and will usually transport the cake to the wedding venue.

Startup Costs

A number of factors can affect the cost of starting up a hotel. Location, size, and choosing to buy an already built hotel or building from the ground up all make a difference in the funds that are needed upfront. The hotel itself is the largest investment. Buying or building a property the size of a hotel is very expensive. Building a hotel is generally more expensive, but everything is brand new. Deals can be had when buying a hotel that is for sale, but renovating an older property can cost a great deal of money. Land or property is also a lot more expensive in popular tourist destinations. Other factors to consider are the cost of furnishing a hotel, buying equipment for any onsite restaurants, and maintaining the hotel grounds. Most hotel owners report requiring at least several hundred thousand dollars in startup capital.

Legal Issues

Hotels are subject to zoning licensing, as well as building permits. If a hotel has a bar or restaurant, permits are required for serving food and alcohol. Opening a hotel is typically a complicated endeavor, and the service of an attorney is highly recommended. An attorney can assist with all of the legal documents required when buying or building a hotel. An experienced attorney can also advise a hotel owner on all permits and licenses required to own and operate a hotel.

Types

There are a variety of hotel types to fit different client’s needs. A hotel can be part of a franchise, where the owner is able to use the management model and brand name of an established hotel chain. Boutique hotels are typically small, intimate hotels that cater to discerning clients. The resort hotel is very popular, and is commonly found in popular tourists areas. A resort hotel is often large in size, and offers many amenities to attract people on a vacation. Business hotels are available in many locations to provide lodging to people traveling for work. Another type of hotel is the extended-stay hotel. This type of hotel is generally set up like a small apartment, with a fully equipped kitchen area. Rooms at an extended-stay hotel can be rented by the week or by the month.

Startup Costs

A restaurant is a rather expensive business to startup. A large portion of the upfront costs involve securing a building. Purchasing a land and building a restaurant from scratch is the most expensive option, but many restaurant buildings can be leased at a lower cost. Outfitting a restaurant with all needed kitchen equipment, tables, utensils, menus, and barware can cost between $100,000 and $300,000, according to Forbes.com. Another cost that must be considered is the point-of-sale computer system that is used to manage food orders and process payments. The number of computers required depends on the size of a restaurant, and the average amount of guests served. In addition to the cost of the payment processing equipment, a fee must be paid to a payment processing center. The average fee to process credit cards is 1.8% to 2.5% of a sale. The cost of food , alcohol, and restaurant supplies must also be factored in when developing a startup budget. The average restaurant only has a 5% profit margin, so it is very important that an owner have enough capital before opening a new restaurant concept.

Legal Issues

A number of permits and licenses must be obtained before a restaurant can open. The business must have a proper business licenses, as well as a valid tax I.D. number. In most areas restaurants are highly regulated by the local health department to prevent food borne illness. An inspector will thoroughly inspect a restaurant to ensure that all food safety regulations are followed prior to the restaurant opening for business. After a restaurant is up and running it must continue to follow all health regulations, as it will be inspected on a regular basis. Failure to follow regulations can result in fines, the loss of the permit required to serve food, and in the worst cases a lawsuit if a customer becomes ill due to the restaurant’s negligence. If a restaurant wants to serve alcohol they must apply for a liquor license, and follow all rules pertaining to serving alcohol.

Types of Restaurants

Restaurants serve a wide variety of different cuisines, and there are many types of restaurants. A fast food restaurant offers customers the option of receiving their food quickly, and many offer a drive-through option. Casual dining restaurants are a popular option for people who want a fairly priced meal in a fun atmosphere. Fine dining restaurants cater to people looking for a more formal meal. Restaurants may be privately owned, or part of a chain with more than one location.

Startup Costs

In general it is very expensive to open an auto garage. One of the greatest startup costs is the building which houses the business. Purchasing land and building an auto garage can cost more than a million dollars. A less expensive option is to lease a building which is already set up for an auto garage, but even this option can cost several thousands of dollars a month, depending on the size of the building. Most leases require the owner to commit to making payments for at least a year, which must be considered when raising business capital.
Another high expense in opening this type of business is purchasing or leasing automobile lifts, tools for auto repair, and the computers needed to diagnose internal automobile problems. According to a survey of mechanics who own their own auto garage, purchasing all the equipment needed can cost as much as $40,000. There are options available to lease the equipment needed at a lower upfront cost, but over time leasing can end up being a more expensive option. Liability insurance must also be purchased from a licensed insurance company before the garage can open for business.

Legal Issues

It is highly recommended that a prospective garage owner hire a lawyer to assist in the tasks that must be performed before a garage is opened. A lawyer can review contracts related to the leasing of a building and tools to ensure that the interest of the owner is protected. If the owner opts to purchase a building to house his business a real estate lawyer can help in each step of the purchase. A good lawyer can also advise an owner on all required business licenses and permits that are required for operating an auto garage.
Automobiles are expensive, and it is important for an auto garage to carry liability insurance to cover damages that may occur. These insurance policies can usually be obtained from an insurance broker. A garage owner should look for an insurance broker who is experienced working with business owners who own auto garages.
The federal and state governments have strict rules in regard to hazardous waste that can be found at an auto garage. It is the responsibility of each auto garage to be familiar with the proper way to dispose of hazardous materials. Failure to follow these regulations can result in fines and other legal repercussions.

Types

An auto garage may offer general repairs, or specialize in one system of an automobile. Common specializations include the brake system, transmission, or repairing the body of a car. Other types of garages may specialize in repairing a certain brand of car. An auto garage can be a small, family-run business, or it may be part of a large, nation-wide chain.

Startup Costs

The startup costs of a funeral home can be quite high. In today’s market many funeral homes have a chapel and crematorium onsite. These features usually require either building a funeral home from the ground up, or purchasing an existing funeral home building. Both options require a good amount of money, with costs typically being higher in urban markets. In some cases it may be possible to find a funeral home building that can be leased, for lower upfront costs. If the building is being built according to custom plans, the building will have to be furnished with all of the supplies needed for planning funeral services, preparing bodies, and performing cremations if that service is offered. The salaries of the employees of the funeral home must also be considered when raising capital to cover the startup costs of the business.

Legal Issues

Each state has licensing requirements to run a funeral home, as well as licensing requirements for select positions of employment in a funeral home. The owner of a funeral home is responsible for ensuring that all business licensing is secured, and that the employees hired meet the state’s licensing requirements. In most states funeral directors and embalmers have educational requirements in mortuary science that must be fulfilled before a person can take the licensing exam.
It is advisable for a funeral home owner to hire an attorney who is experienced in the death care business when opening up a funeral home. A competent attorney can assist the owner in contracts required for building or purchasing a building to house the business, as well as securing any state or local business licenses required for operating a funeral home. An attorney can also help a funeral home owner design contracts which the owner will present to customers using his business.
A funeral home owner should either be an experienced bookkeeper, or hire a bookkeeper or accountant to keep track of the company’s accounts. Funeral homes are subject to the same types of taxes as other businesses, and careful tracking of expenses and profits are required to accurately pay taxes. Failure to follow tax laws can result in serious legal problems.

Types

Customers may choose to use a small, family-run funeral home, or a larger chain of funeral homes which are overseen by a corporate office. Family-run funeral homes may offer more personalized services, while a chain funeral home may be able to offer lower prices due to the volume of business that they do. Many larger funeral homes are full-service death care businesses which can host funerals onsite, as well as perform cremations in the building.

Coffee Shop Costs

Starting a coffee shop is slightly less expensive than starting a full restaurant, but can still run over $100,000, depending on the cost of the shop’s space, franchise fees, quality of the inventory, and interior design. Luckily, many coffee shops can save money on the latter by paying local artists to create artwork or going to art auctions.

Legal Issues

There are multiple legal issues involved in owning a coffee shop including obtaining a business license and registering your business with various government agencies. All establishments that serve food need a license to do so and keep up with health codes. Finally, the shop needs insurance in case someone is injured in your store whether it is a customer or an employee. It would be a good idea to hire a lawyer to help you create a reputable business.

Types of Coffee Shops

Coffee shops typically offer more than just a good cup of java to their patrons and that is what makes them so unique. Corporate chains offer an assortment of pastries and breakfast sandwiches but these have been precooked in a factory and shipped to the store. Small business coffee shops can earn business by baking their confections from scratch every morning. Sandwiches could be made to order with a variety of ingredients for patrons to love. The downside is that coffee shops typically open early in the morning so whoever is in charge of baking would be working the night shift.

You might want to set up a business partnership with a nearby bookstore as reading and drinking coffee are often enjoyed together. Sharing customers without being competition can prove to be beneficial to both parties. Providing specialized entertainment during the evening is another way to get ahead of the large chains. Local bands or poets might perform for free at your coffee shop to gain exposure and special events can bring in more customers.

Artwork is another must-have for any coffee shop. You might be able to find local artists who will donate pieces or sell them at a reduced price to get their name out in public. Combine all of these elements to create the ultimate artistic experience for your customers or specialize in a few. Everything is up to you to make a popular place to hang out, drink coffee, and catch up on the latest trends.

Startup Costs

The startup costs can vary greatly depending on where the shop is located. One of the largest expenses of opening a barber shop is securing a storefront. In most cases shop spaced is leased, but many commercial landlords require signing a lease of at least one year. Monthly lease payments in large urban areas can be considerably more expensive than in smaller towns. Other expenses include outfitting the shop with the proper equipment and advertising the opening of the barber shop. These expenses can fall into a wide range depending on the quality of equipment that is purchased, as well as the marketing strategy that is selected to promote the shop.

Legal Issues

It is advisable for a barber shop owner to have an attorney review any lease agreements before the owner signs anything. An attorney will make sure that the shop owner’s interests are protected in any agreement with a landlord. After the lease is signed, but before the barber shop opens, the business must obtain required business licenses. The shop must also be inspected by the local health department to ensure that all regulations are being followed. An accountant should be consulted to find out the best way for the business to keep track of profits and losses for tax purposes. Each barber that is hired by the shop must be properly licensed to practice as a barber in the state where the shop is located.

Types

Most people are familiar with the old fashioned idea of a barber shop, with the red, white, and blue striped pole outside the door. This kind of small neighborhood barber shop is still very well received in some areas. As men become more conscious of their grooming habits, some barber shops are taking on a spa-like identity by becoming known for offering their clients a wide range of grooming services. In some urban areas there are chains of barber shops which all follow one corporate policy. In most cases a customer can expect the same service and standards from each barber shop that is part of a chain.

Now don’t get it wrong, car dealerships, specifically successful car dealerships, require the right type of business minded individual and a solid business plan. But the opportunity to champion your own corner of the car market, even in an economic downturn, is not so far fetched.

These lucrative opportunities can be found in both the new and used car businesses, as the National Automobile Dealers Association projected 13.9 million new cars to be leased or purchased in just 2012. With vehicle interest rates at an all time low and a world of competitive lenders, U.S. consumers have been provided more reasons to trade in that old car.

With such promising figures and the recent resurgence of U.S. car manufactures, how is one to know if owning a car dealership is still the right avenue to pursue? To start, you have to ask yourself, what exactly do you want to buy and sell? Will this be a franchised car dealership selling only one brand of vehicles, or will this be an independent dealership allowing you more flexibility but sacrificing the support of a corporate chain. Maybe you rather start small, and function with-in the used car arena, permitting your car dealership to sell a variety of vehicles.

Once determining the type of dealership are seeking to establish, you will need to consider all the possible startup costs, as well as identify any potential obstacles that may come in your way. This includes taking the right steps to protect your business and prevent yourself from encountering any future legal issues. Since all car dealerships owners are required to apply for an auto dealer license, it is best to start by inquiring with your state agency to get the paperwork process going. By not doing so, you have already opened the door to many legal issues, and that’s before you even picked out your location. Save yourself the headache and make sure you apply and register with all state organizations for operating and documenting your business, including the DMV and the FTC.

Once you have applied for all legal documentation, other costs that come along with owning a car dealership include, obtaining insurance, initial inventory, creating a floor plan and overhead operational costs. This might sound overwhelming for the first time owner, but don’t get discouraged, as there are specific companies that provide services just to car dealerships. These normally include financing of inventory, warranty options for your customers and dealer floorplans with flexible payment plans.

After figuring out the logistics and once establishing the core of your dealership, the most important piece to this puzzle is placing the right faces and talent able to represent what your dealership is about. Just remember, it doesn’t matter how wonderful your selection is or how great of a location you were able to open, if you don’t have the dedicated people to sell it.

Salary

The salary of a restaurant owner varies greatly depending on experience and the popularity of a restaurant. Some owners who act as owner-managers may collect a base salary, and then collect any profit that their restaurants earn. Payscale.com collected restaurant owner salary data from 177 individuals in 2012 and found that salaries range from $31,000 per year to $211,000. As with many professions the more experience one has, the more likely they are to have a higher salary. In Payscale.com’s report the restaurant owners earning the highest salaries had at least ten years of experience. A restaurant’s popularity also greatly influences the owner’s salary. An in-demand restaurant that is always busy usually turns a higher profit, which can make a difference in how much the owner takes home at the end of the year.

Responsibilities

Owning a restaurant involves managing a staff, overseeing food costs, ensuring that all health standards are followed, and making sure that customers receive the best service so they will return to the establishment. The owner is also responsible for ensuring the accuracy of the restaurant’s accounting and payroll. Many restaurants are open seven days a week, for long hours each day, so an owner usually hires managers to work different shifts. The managers answer to the owner, and the owner will usually elect to train the managers in the policies and procedures that he expects to be carried out in his restaurant. In a small restaurant the owner may take care of the accounting and payroll himself; in a larger, busier restaurant the owner may hire an accountant to take care of these responsibilities. The owner is responsible for making sure that the food vendors the restaurants use are paid on time, as well as any quarterly or yearly taxes that are due. A marketing and advertising campaign may be designed by the owner to bring in new customers.

Requirements

A restaurant owner must secure the necessary permits and licenses before opening for business. Many restaurant owners who are successful spend years working in the restaurant industry, in a variety of positions, before they attempt to open their own restaurant. Some owners attend a culinary school, and act as the executive chef of their restaurant. These owners are usually very knowledgeable about different cuisines and may design the menu for their business. Having some training in business management is very helpful, but not required. A number of business courses that can assist an owner in operating a business can be taken online.