When opening your juice bar you are going to be faced with making a lot of decisions to spend or save money. Naturally when your making a significant investment in any business it is wise to attempt to save as much money is possible. The unfortunate thing I see is many clients who attempt to save money in all the wrong areas.
They do not realize how not making investment in certain areas of the business are costing them money in the long run.
Now I won’t say that you would be wrong if you think this way, but I do want to offer a different perspective. There is an old saying that says, “Sometimes cheap is expensive.”
Let’s look at an example of buying a refrigerator. You have the choice to buy a used fridge for $500 or a brand new one for $1500. In the short term you will for sure save $1000 if you take the used option, however this is shortsighted thinking. The used fridge might break down causing problems like spoiled food and even expensive repair costs.
I personally had this experience three months into my business. A refrigerator broke down and I lost about $900 in prepared product as well as the opportunity cost of having to close down the store for the day. So the $1,000 I saved up front, costed me roughly $2,000 in the long run.
Now of course, sometime you can only do so much with the financial resources you have. The way you want to think about this is to look for the route that is going to give you the most long term value based on your investment.
Within your juice business you are going to be faced with various negotiations around the cost of things including employee salaries and fluctuating prices from your produce vendors.
When we work with our clients 1 on 1 we are able to give them perspective on the market prices for each aspect of their business as well as help them prioritize where they are investing their money.
We had a client that would have literally saved more than our entire consulting fee on her equipment if she would have hired us before she made her purchases, by simply connecting her with our established vendors.
In all of these decisions the way you want to be thinking is not, “How is this going to affect my present moment pocket book?”, but rather, “What effect is this going to have in the long term on my business?” In my online course I explore these tough decisions in greater depth, as well as giving you all the information you could ever need to open a juice bar.