college business class I NEED HELP!!

[epfootballcutie04]

first of all i have NO idea where to post this question, but im an avid fan of the disboards, and people have helped me SO much here, so i thought i'd give this question a whirl.


I'm taking a small business management course at a community college and part of the class is that we have to make a business plan for a business we 'want to open'. I want to eventually get into event planning *for disney* but i have to pretend to open my own.

my question to you is: how much is a reasonable YEARLY payment to rent out a space.... say.... 1,000 sq feet. just a rough estimate would work GREAT! I'm having the worst luck finding information, and i've been looking forever!

I hope you guys can give me advice! ANY advice is appreciated, i think im going out of my mind!

THANKS IN ADVANCE!!!

 

[dawn8226]

Did you try looking in your local newspaper for spaces for rent? Just a suggestion, otherwise I have no idea how much it would cost.

Edit: One ad I found in my paper had $9.00 per sq. ft., but it does depend on real estate costs in your area (I live in a low cost part of the country). Hope this helps.

I also found another add for 1,000 sq ft retail/office space, $900 per month, utilities included and off street parking.

You could always find an ad in your paper that has what you are considering for your plan and call the number as though you are interested in renting. Just ask them about their space. You don't have to tell them you aren't really interested in renting, and if you really want to start your own business someday you aren't lying you are getting information for the future.

 

[epfootballcutie04]

i did, yes. i found stuff like $10-18/sq foot. but that's all the info it gave. so that would be 10,000-18,000 for what i would need, but it didnt specify if that was a monthly or yearly cost. if it was 18,000 a month, that would be 216,000 a year and thats just for SPACE?!? that seems like a whole LOTTA money!

 

[mudnuri]

um are you sure you need 1,000 sq feet? Here, in southern VT you can get office/store space for 4-5 sq ft. But sheesh 1,000 sq feet is pretty large.

I would think a 20x20- thats only 400 sq feet, and I think more of the size you'd need for event planning. Most of that is done in an office, then the BULK is done on site etc.?? no??

Good luck

Brandy

 

[Dagny]

first of all i have NO idea where to post this question, but im an avid fan of the disboards, and people have helped me SO much here, so i thought i'd give this question a whirl.


I'm taking a small business management course at a community college and part of the class is that we have to make a business plan for a business we 'want to open'. I want to eventually get into event planning *for disney* but i have to pretend to open my own.

my question to you is: how much is a reasonable YEARLY payment to rent out a space.... say.... 1,000 sq feet. just a rough estimate would work GREAT! I'm having the worst luck finding information, and i've been looking forever!

I hope you guys can give me advice! ANY advice is appreciated, i think im going out of my mind!

THANKS IN ADVANCE!!!

I would think you could rent an "office" in an Executive Suite and get more bang for your buck. With an executive suite, you would get an office, phone system and some administrative/secretarial support for one monthly fee.

 

[java]

why would you need to rent out a space to be an event planner? Starting out the most economical way to go would be to work out of your home- meeting clients at offices in the location of where the event would be held. Big rent saver plus then you could actually claim a portion of your rent on your taxes*I think that is across the country not just in our state-
Or just rent office space similar to a studio apt size- in nyc running around $2000. month

 

[tinan]

I agree with everyone else that 1,000 sq. ft. is way too large for what you are trying to accomplish and I really think that your prof is not only going to ding you on that thought, but depending on how he/she is, may even ask if you are trying to go bankrupt before you're even started. I know some of my old management profs would have had a field day with that one. I would suggest you look at real estate in your area, in addition to this do some research to see if you have any type of small business incubators or something along that line. If you want to take a look at what I mean try looking up www dot ybi dot org Mods if this is not ok to post, please delete, I'm only trying to help a fellow business major. While this is not exactly where there would be a fit for you, it is something else you can research. Basically, this is a non-profit organization that helps businesses to get off the ground in our area and is kind of a co-op. If I recall correctly, the Incubator actually allows businesses there rent free with some secretarial support, but they require you to be in the office and help out I think at least a few days/week. If you have something like this in your area, this is your cheapest option other than being home-based and taking the tax credit. Just remember that the incubator gives you your support staff too that you wouldn't have at home. Best of luck to you on your assignment!

 

[epfootballcutie04]

you guys are so right.

i had no idea how big 1,000 SQ ft. was when i posted it, and it would have been way to big. so let me run this idea past you:

say i start out self employed by running the business out of my home. and after a couple years, if the business is expanding, then i can grow to like an executive suite and hire on a couple people.

does that sound like a better option?

I hate... no i try not to use the word hate... but i STRONGLY dislike this project since i have no intention of actually opening this business i just want to get into the field. so all of your help is beyond appreciated.

I'll have to talk to my professor and see if these kind of changes will be allowed, but if i do the home based thing with meeting clients at other locations and such, then i wouldnt need to take out a huge loan from a bank either!

what do you guys think of my brain process now? Am i heading in the right direction?

 

[mom2alix]

you guys are so right.

i had no idea how big 1,000 SQ ft. was when i posted it, and it would have been way to big. so let me run this idea past you:

say i start out self employed by running the business out of my home. and after a couple years, if the business is expanding, then i can grow to like an executive suite and hire on a couple people.

does that sound like a better option?

I hate... no i try not to use the word hate... but i STRONGLY dislike this project since i have no intention of actually opening this business i just want to get into the field. so all of your help is beyond appreciated.

I'll have to talk to my professor and see if these kind of changes will be allowed, but if i do the home based thing with meeting clients at other locations and such, then i wouldnt need to take out a huge loan from a bank either!

what do you guys think of my brain process now? Am i heading in the right direction?

It sounds like you're heading in the right direction. Other things to consider for your business plan now would be:

Determine what you need to set up your home office and run your business. Fax machine? Computer? Separate phone line? Business cards? Cell phone? Stationary? Start with the necessities and determine your overhead costs, then once you are showing a profit, you can invest more into your business and add on the nice-to-haves.

A strong marketing plan. How are you going to attract clients? Web site? (One of these with some client testimonials would be helpful.) Yellow pages ad? If you don't already have experience and references, you could consider gaining exposure/references by donating your services to a worthy charitable event.

Determining what your rates should be/vs. what your expenses will be. Exactly what services will you offer (event planning is a prettty wide target)?

Should you set up strategic partnerships with rental halls/churches, etc in your area who could send you potential clients? What about services providers you would use (caterers, tent rentals, etc.)?

That's just some thoughts off the top of my head, but hopefully it helps! Good luck!

 

[GoofyGolferGirl]

I am just wondering if your professor is trying to give you practice writing a business plan, so if you decide to go out on your own and want to get a low or no interest loan from the Small Business Association you will already know how to write a business plan. In order to have a business at home you have to meet IRS guidelines, if your professor is picky you better know these. I would go with a small/economical space I found in my local paper or say you were sharing a space and expenses. Most of my professors just wanted to know that we had a realistic view of the cost involved, but there is always that ONE that wants to get you. Good Luck!!!

 

[tinan]

You are headed more in the right direction now You are wise showing everything you can possible show in your business plan including what you will do when unexpected expenses come up. Here is just one excerpt from a website that I think it explains it the best. "A business plan precisely defines your business, identifies your goals, and serves as your firm's resume. The basic components include a current and pro forma balance sheet, an income statement, and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make good business decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan application. Additionally, it informs sales personnel, suppliers, and others about your operations and goals."

I'm not sure what all you have covered thusfar in this class, nor what was on your prof's syllabus, but you can bet since it is a Small Business Management Class you will/should go over everything that an entrepreneur would need to start a new small business. I wouldn't doubt if you also have to come up with your Mission Statements, Contracts, Marketing, etc. Since you are not interested in starting your own business this is probably not going to be your favorite class and you will most likely have to work hard in it, but you will get through it.

 

[DMRick]

Most local SCORE offices would be glad to help you. I know ours does:
http://www.score.org/

 

[dawnball]

In order to have a business at home you have to meet IRS guidelines, if your professor is picky you better know these.

Just to clairify, you only have to meet IRS guidelines to have a deductible home office. The IRS guidelines may influence deductibility of certain other expenses like mileage too. On the other hand - if you're willing to give up the deductions for situations in which the deduction doesn't outweigh the expense, then that's a valid decision. But yes, you should know what the tax/expense tradeoffs for home based businesses are.

It's also important to consider the business impact of a home-based business. Where will you meet clients? Is your house conveniently located for meetings? Do you have other places you can meet?