During bad economic times, many people are trying to diversity their sources of income. Starting your own quilt shop is indeed a viable option for you to increase your monthly income if you are already passionate about quilting.
So how much capital do you need in order to start your own quilt shop? Below are we shall discuss some of the major cost components that you have to consider when compiling your business budget:
Quilting machine, office machine such as fax machine, telephone, cash register, display panels for exhibition and etc are classified under capital equipments. Usually capital equipments form major part of your preliminary quilt shop business start up costs. If possible, you should consider buying used equipments for your business if you are on a very tight budget.
These include materials such as thread, batting, patterns, templates and etc. You should budget the purchase of these materials as buying materials without proper budgeting will affect your business cash flows and hence the liquidity of your quilt shop business. In order to have a more accurate ordering level, you are also required to prepare sales budget. From the sales budget, you shall be able to figure out the production budget and hence the required quilting supplies.
Starting your own quilting shop shall incur monthly operating expenses such as office supplies, electricity and water bills, telephone and fax bills and etc. It is important to estimate the monthly minimum operating expenses of your quilt shop business in order to calculate the selling price of your quilting products.
Based on the above discussion, you should have a rough idea on how to prepare a simple business budget if you have decided to start your own quilt shop.