Note that an entrepreneur can start an acai bowl business with no money and still grow the business to become successful. But basically, an entrepreneur can invest over $150,000 to set up an acai bowl business. The bottom line is that you can work with whatever budget you have and still establish your acai bowl business.
In as much as you can work with any amount you have and still go on to start an acai bowl business, it is important to note that there are certain important factors that can determine the amount it will cost you to successfully start this business, and that is what we will discuss in this article.
13. Startup Expenditure (Budget)
When it comes to starting an acai bowl business, the major areas that you look towards spending the bulk of your cash is in the purchase of latest smoothie making machines and juicers and of course renting or leasing well located facilities.
Aside from that, you are not expected to spend much except for paying of your employees and the purchase of supplies. These are the key areas where we will spend our startup capital;
- The Total Fee for Registering the Business in Florida – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
- Marketing promotion expenses for the grand opening of Carlos Jose®, Acai Bowl Bar, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- The cost for hiring Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for start-up inventory (acai berries, assorted fruits, milk, honey and packaging materials et al) – $80,000
- Storage hardware (bins, rack, shelves, food case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- The cost for juicers and smoothie making equipment – $20,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase of distribution vans – $50,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- The cost for our opening party – $5,000
- Miscellaneous – $5,000
We would need an estimate of between $150,000 to $350,000 to successfully set up our acai bowl bar business in Fort Lauderdale – Florida. Please note that this amount includes the salaries of all the staff for the first 3 months of operation.
Ongoing Expenses of an Acai Bowl Business
- Ingredients such as acai berries, other fruits, granola, nuts, seeds, and additional toppings.
- Rent or lease
- Payroll expenses include wages for employees.
- Utilities such as electricity, water, gas, and internet services.
- Marketing and advertising
- Packaging and supplies such as bowls, cups, lids, utensils, napkins, cleaning supplies, and condiments.
- Regular maintenance and repair of equipment, such as blenders, refrigeration units, and food processors.
- Licensing and permits
- Accounting and legal service.
7 Factors That Influence the Cost of Opening an Acai Bowl Business
The Type of Acai Bowl Business
One of the major factors that can determine the amount it will cost you to start an acai bowl business is the type of acai bowl business you want to start. Note that you can decide to start the business from home, or from a bar, a restaurant, or a shop facility.
The truth is that it is far cheaper to start an acai bowl business from your home than from either a bar, a restaurant, or a shop facility. As a matter of fact, the cost of renting and equipping either a bar, a restaurant, or a shop facility will consume the bulk of your budget.
The Location Where You Want to Start the Business
Another major factor that can determine how much it will cost you to start an acai bowl business is the location where you want to start the business. For example, in the United States of America, there are cities that are pretty expensive to start and run a business.
If you settle for a city that is expensive to run a business, then it will cost you more when compared to someone who chooses to start his or her acai bowl business in a cheaper city.
For example, it will cost you more to start an acai bowl business in New York City, when compared to starting the same business in Silver City, New Mexico. Factors such as the amount required to rent or lease a facility, the cost of labor, and of course other utility costs are different and significant.
The Cost of Equipping Your Acai Bowl Business
If you have plans to start a standard acai bowl business, you are required to rent or lease either a bar, a restaurant, or a shop facility. Aside from getting comfortable furniture such as stools, couches, sofas, tables, and shelves et al, you will also need electronics such as flat-screen televisions, sound systems, and perhaps a public address system.
When it comes to your working equipment, you need an acai bowl blender, commercial refrigeration units, food processor, display cases, prep surfaces and cutting boards, bowls, and utensils, various storage containers and an ice machine, et al. Trust me, all these items will significantly influence the overall cost of starting your acai bowl business.
The Number of Staff You Want to Recruit
Another major factor that can determine how much it will cost you to start an acai bowl business is the number of staff you want to recruit to start the business with you. The only reason why this might not be an issue is if you start your acai bowl business from your home or as a one-man business where you can handle all aspects of the business.
But, if you choose to start a standard acai bowl business, then you must make plans to recruit and train key employees who will occupy different roles in your organization.
You should make plans to recruit a Manager, an Accountant or cashier, an acai bowl maker, salesgirls and salesboys, and kitchen staff. As expected, the budget for recruiting and training your employees is going to be a significant portion of your budget.
Average Salary of your Staff
- Chief Executive Officer (Owner) – $60,000 per year
- Manager – $40,000 per year
- Accounting and Finance Manager – $38,000 per year
- Quality Control Staff – $38,000 per year
- Acai Bowl Maker – $36,000 per year
- Salesgirls and Salesboys- $35,000 per year
- Kitchen Staff – $30,000 per year
The Cost of Obtaining the Needed Licenses and Permits
The cost of obtaining the needed licenses and permits is yet another major factor that can determine how much it will cost you to start your acai bowl business. Interestingly, this cost may vary across different states and jurisdictions in the United States.
You should budget for a General Business License, Seller’s Permit, Food handlers Permit, Building Permit, Fire and Safety Permit, Zonal Permit, and Signage Permit amongst others.
Your Ongoing Expenses
Running an acai bowl business requires ongoing expenses and it should be budgeted for right from the onset of the business.
Ongoing expenses for an acai bowl business should include the budget for regular maintenance and repair of equipment, such as blenders, refrigeration units, and food processors. For packaging and supplies such as bowls, cups, lids, utensils, napkins, cleaning supplies, and condiments.
You need to also consider ingredients such as acai berries, other fruits, granola, nuts, seeds, and additional toppings, and for utilities such as electricity, water, gas, and internet services.
Lastly, another major factor that will determine how much it will cost you to start an acai bowl business is your miscellaneous expenses. Just like your ongoing expenditure, the amount you are expected to spend for your miscellaneous expenses is unique to you and the type of business model you want to operate.
Although there is no one mold fits all when it comes to miscellaneous expenses for an acai bowl business, but an entrepreneur may decide to include the cost of hiring and paying a business consultant and attorney, the cost of branding, promotion, and marketing of the acai bowl business, the cost for logistics, the cost of the purchase and customizing of uniforms for employees, and the cost for the grand opening of the acai bowl business as part of your miscellaneous expenses.
It is important to note that the overall cost of starting an acai bowl business will eventually be determined by the entrepreneur who wants to start the business, but it will be influenced by all of the factors listed above. Please note that other factors such as the business model, the business registration, and perhaps the business plan, etc. are also part of what can influence the amount it will cost you to start your acai bowl business.