How Much Is Too Much To Invest In Starting A Juice Bar?
We know some of you may be curious to know how much is too much to invest or even how much is too little to invest in your Juice Bar Business.
As far as what it is going to cost to get started, first we’d like to put some things into context for you.
Your total investment is going to be influenced by a number of factors including;
The kind of lease you are negotiating
The equipment your business needs, based on your menu and business model
The condition of the space that you will be renovating
These things and many more, are going to dictate how much you have to invest in launching your business.
For most of our clients, they have invested $100-150k on the lower end and $200-250k on the higher end.
Now $250k for some individuals may sound like a lot of money, however it always important in business to put all of your investments into context.
If you compare this to the cost of a house, does $250k still sound like a lot of money?
If you are investing in a house as an investment, how much money is this actually going to make you?
In the majority of scenarios, a successful juice bar will be much more profitable than a successful 250k real estate investment.
You could potentially make the same amount from a juice bar in a month than you would in a year of rental income from a house.
Now granted, being an active business owner is different than being a more passive real estate investor, but we hope this shifts the way you think about the potential of your investment.
We have clients that are making $20-30k a month, so within roughly 10 months they will make their money back on a 300k start-up investment!
The Risk and Reward Factor
We understand a juice bar, or setting up any business is obviously considered a higher risk investment than buying an investment property in most circumstances.
You may have a more solid investment within a property, whereas with a juice bar business if this does not go well you have more to lose.
Business can be risky, however with experience and when done right, it is, in fact, a lot less risky than it seems and the payout is much higher as well.
We are often asked, “What’s the cheapest amount that I can invest to open my juice bar business?”
Our response to this would be that it’s not really the right question, it’s a good and reasonable question, but the better question is “How much do I need to invest to make my business successful?”
You can invest a little bit in your business, which is just enough to launch, but not enough to do things properly. Or you can invest a little bit more to ensure you have covered all of your elements that are going to lead to its success, marketing, product development, the design of the space, etc.
It may seem a bit daunting at first to be investing money in seemingly non-tangible things (such as branding or marketing), but we cannot emphasize enough how important it is to be thinking about these things appropriately to ensure our business can thrive.
We have seen so many Juice Bars open and can see a clear distinction between people who focus on the bigger picture and invest in all the right areas and people who don’t which then ultimately leads to their failure.
So, we would strongly recommend raising enough capital to have all basis covered.
On the flip side, you also don’t want to be investing TOO much on elements that don’t add value such as overly expensive fixtures and fittings, elaborate grand opening parties, etc. You need to do the math and figure out what is absolutely necessary, your money will be much better invested in a well thought through marketing strategy than marble floors.
So to answer the original question, in terms of how much is too much to invest, we would recommend $350k is really the maximum, however, depending on the scale of your business there can always be exceptions but on average this would be our guide.
Part of growing as a business and as an entrepreneur is to tap into new thresholds of how you relate to money, how you relate to scale, how you relate to what is big and what is little.
Everything that you doing your business should be an investment. Things are only as cheap or expensive as the amount of money it will make you.
Are you starting out and want to discuss how best to invest your money, or talk through your launch strategy? Reach out to us.