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How Much Does It Cost to Start a Soda Shop?

Soda Shop Business

You can choose to invest over $150,000 to set up a standard soda shop business. You can also start a soda shop business from a kiosk and still grow the business to become successful.

Anyone who wants to start a soda shop business has the option of starting the business on a small or large scale, and as such the amount and requirements needed to start the business will vary to a large extent. The bottom line is that you can work with whatever budget you have and still establish your soda shop business.

There are certain important factors that can determine the amount it will cost you to successfully open a soda shop business, and that is what we will discuss in this article.

Factors That Determine the Cost of Opening a Soda Shop

  1. The Location You Want to Start the Business

In the United States of America, there are cities that are pretty expensive to start and run a business, and also there are cities and locations that are way cheaper to start a business. Usually, business locations can influence the amount required to rent or lease a facility, the cost of labor, and other utility that is associated with the location.

  1. The Cost of Equipping Your Soda Shop

Aside from getting comfortable furniture such as stools, couches, sofas, tables shelves et al, you will also need electronics such as flat-screen televisions, sound systems, and perhaps public address systems.

When it comes to your working equipment, you will need to budget and purchase a soda fountain machine, ice maker, syrup dispensers, Carbon dioxide (CO2) tanks, soda dispensing guns, ice cream machine (if serving floats), blender (for milkshakes),

Cash register or point-of-sale system, refrigeration units, freezers, display refrigerators for beverages, storage shelves, stainless steel sinks, ice scoops and bins, soda glasses and cups, straws and stirrers, dispensing nozzles and valves,

Beverage syrup flavors, toppings and garnishes, cleaning supplies et al. Trust me, all these items will greatly influence the overall cost of starting your soda shop business.

  1. The Number of Staff You Want to Recruit

The only reason why this might not be an issue for you is if you want to start your soda shop business as a one-man business where you can handle all aspects of the business. But, if you choose to start a standard soda shop business, then you must make plans to recruit and train key employees.

You should make plans to recruit a shop manager, an accountant or cashier, an administrative assistant, salesgirls, and salesboys. As expected, the budget for recruiting and training your employees is going to be a significant portion of your budget.

  1. The Cost of Obtaining the Needed Licenses and Permits

The fact that different states require different types of licenses and permits means that your budget for permits and licenses will be determined by the state you want to start your soda shop business.

As expected, you should budget for a business license, food establishment permit, health department permit, fire department permit, zoning permit, building permit, signage permit, environmental permit, occupational safety permit,

Employee identification number (EIN), sales tax permit, alcohol permits (if serving alcoholic beverages), music license (if playing music in the establishment), outdoor seating or sidewalk cafe permit (if applicable), waste disposal permits, etc.

  1. Your Ongoing Expenses

Ongoing expenses are unique to the business owner and their preferences. Basically, any entrepreneur who wants to start a soda shop business should have a budget for regular maintenance and repair of equipment, packaging supplies, and utilities.

Trust me, the amount you are expected to budget for the listed items is going to be a significant portion of your budget and it will indeed influence how much it will cost you to open your soda shop business.

  1. 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, 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 soda shop business,

The cost for logistics, the cost of the purchase and customizing of uniforms for employees, and the cost of the grand opening of the soda shop business as part of your miscellaneous expenses.