How much money would I need to set up a small cafe?

Question

I want to set up a small cafe in South West England, anyone got any ideas how much money I would need behind me before I could get bank loans etc? Any advice much appreciated :-) xx

Answer 1

It all depends.

You will need to do a forecast of anticipated costs and sales, it's impossible to be accurate with this but your forecast should be reasonable.

You need to find out the relative information...

Are you buying a premises or renting... how much is the monthly mortgage repayment / rent going to be? If you haven't found premises yet, then go around the estate agents and get a feel for the costs in the location your after.

Other premises costs will include: business rates, gas / electric, water rates etc.

You will need to estimate your running costs, e.g telephone and admin, wages, cleaning and other overheads etc.

Then you need to put this all together to form a cash flow forecast - the bank will use this in it's decision making process and it's a vital part of the business plan.

You will need to do some research on your set up costs as well.
What catering equipment will you need and how much will it cost? You may be able to get this second hand and reduce your costs. Also tables and chairs for the cafe, signs, all your plates and cutlery etc.

Ultimately, your set up costs will be reduced if you decide to rent initially as you wont need to find hefty deposits.

You need to put this info together in a business plan for the bank, along with other information about the competition etc.

Banks will not lend without a business plan, they also expect you to take on some of the risks.

Try getting in touch with your local business link, they provide free advice on start ups and can even source government grants to help you finance your project. Their website has loads of useful info for people wishing to start up their own business.

www.businesslink.gov.uk

Answer 2

In terms of a specific price - its too hard to say without knowing scale of operation, location cost of leasing premises etc. But after the specific hardware requirements (price of hardware may mean its cheaper to buy), you have to consider: High speed telecomms connections Shopfitting (+ any adaptation for disabled access etc.) Ratable value Utility bills, heating, electricity, water & waste Staff costs Furniture can be cheaper to buy than rent (as can kitchen equipment). Hope this helps

Answer 3

Before you can get a bank oan for a business you need a business plan which will show your financial structure with costs and prospective income. Best you think about this first. If you want help contact your nearest Chamber of Commerce.

Answer 4

Around 10-15k minimum. You will also need some capital, as the bank wont cough up this kind of money. So a deposit or use your house as a guarantee if you have a house that is.

Answer 5

With no information regarding location, rent, rates, size of premises, range of products, machinery needed, number of staff, etc, it will be almost impossible to estimate.

Answer 6

you need to find a suitable property first, money will depend on whether you are buying or renting and what size the property is

Answer 7

around £15 000

Answer 8

You will need at least £15,000

Answer 9

couple of thou prob