What It Takes to Start a Business
My wife and I owned a gas station back in the early 1980s. It cost us a few thousand dollars back then every month for the electric bill. Can you imagine that? It was not one of those monstrously sized convenience store gas stations out there now either. However, we were thinking of building one. Sort of a midsize one at the edge of our town. In the preliminary research we are looking into permits, licensing, builders and even commercial energy options to power the store. The computer models for starting a business nowadays can be quite daunting.
When we owned the gas station a few decades ago, we bought it from the bank. We franchised with a gas brand even though the actual fuel was delivered by a local company. The gas we sold only paid a few pennies per gallon. We got out of the business when the convenience stores started really getting bigger and bigger. We were not interested in going to 24 hour operations. We could do that now because we would not be the ones manning the cash registers. Back then we did it all. Today we would just be funding the start of the business and collecting profits while it is managed by people we hire.
Those starting a business need to consider the commercial costs of all things involved. Your insurance will be different. Your building has to meet different code requirements than a house. Your phone bill, electric bill, natural gas bill and other fees will likely be higher. Businesses are paying a lot to stay in business. If you have a TV you have on for customers, you are going to pay a higher rate for satellite of cable TV because it is considered commercial. Finding the lowest cost for commercial energy options and every service you use in your business improves the bottom line. Many businesses start and fail miserably within five years. You can avoid that by doing better projections of revenue and costs based on realistic models. Do not invest your money on a whim.