The Cost of Business

I suppose I should state up front that I am not naive and I have always been going into this venture eyes wide open.  Shopping around for the best deals here and there.  I know that the cost of business is high.

Now that we are to the point of narrowing down our location I know that the cost of water is going to be our main cost concern.  So with each possible location I have been contacting the local water company to find out the cost of water on the commercial side.  It has been an eye opener.  I knew there would be a difference but it is amazing how 3 cities right next to each other could be so different.  I won't name which city is which, but let me give you a break down:

City 1)   $20,000  for up to 240,000 gallons a year.  Any $$ left over from what isn't used is carried over to the following year.  We are estimating that the first year since we need to fill our tanks that we would probably have about a 40,000 gallon year.  After that, if we didn't have any expansion we would have the usage of maybe a 2 person household.  So this is a pretty good deal even though the $20,000 upfront sounds outrageous.  Take into account the unused portion carries over.

City 2)  If in the City Limits the cost is $1.76 per 1000 gallons, and outside of the city limits is $2.16 per 1000 gallons.  This is still a pretty good deal.  We know our initial draw will be around 35,000 gallons.  Then after that, again it will be around what a 2 person household would be, more than likely less.  So not to bad.

City 3)  $3.76 per gallon.  Straight up.  Our initial draw just to fill our tanks would be close to $100,000.  Let it be known that this particular city has more breweries in it than any other city in the state.  I have a hard time believing that somehow the breweries aren't getting a break on their water somehow.  But I could be wrong.

Now, WHEN we start growing and our sales start going through the roof, will city 3 not care one way or another that they are not getting the tax dollars for the fact that we weren't willing to pay the amount to fill our tanks that we could buy 50 acres of land for?  I would doubt it.  For the simple reason that they won't know.

To those of us wanting to make our business make it in a particular location, but things like this just don't make it possible it's bothersome.  But at the same time we are willing to make ourselves at home in a city that is willing to make us welcome.

So when you are starting your business make sure you are checking out everything that is going to concern your business.  You might be surprised what you will find.

Have a great weekend.
Scott