I had a friend that started a donut shop. For a while he did well, but people got tired of his donuts, and traffic patterns changed in town, and he went out of business.
The second time he started a donut business I was his partner. To this day the business is still running, but it's not a donut shop as you'd normally think of it. What we did was buy a portable donut maker.
Then with the proper licensing and all that we set up shop in the local mall. All through the summer we do very well. However, if we were a permanent store front there, we would be forced to go out of business. The reason is, in the winter out town loses much of it's population to warmer areas.
So, what we do is just special events in the winter. We have a trailer and we pack everything up and go around in a several hundred mile radius and sell our donuts wherever there is a crowd. My favorites are the ultimate fights. You'd think all the attendees, who idolize the fit, lean men fighting in the ring wouldn't be pounding down the donuts. Well, after we starting selling there, they can't get enough of them. Rather ironic.
The reason I'm telling you this is simple. If you want to go into the donut business, you need a good location. Often the best location can be one that moves. If you are able to go where the crowds are, then you have the power to never be out of business, and that is an awesome feeling.
Not only that but your cost of entry is so much lower. When you set up a physical location, you will spend 0,000 at an extreme minimum.
However, for just ten percent of that, you can get yourself in the mobile donut vending business. You can even spend less than that if you can find some used equipment.
Another added draw you have is being usual. It's not everywhere that you see a little operation on the side selling donuts. Also, we sell small donuts, and they are almost addicting. People buy a small bag of them, and then they come back to buy more.
If you are thinking of starting a donut shop, I'd urge you to look into this option. Even if you end up setting up a location that doesn't move, it's still far cheaper, putting you much closer to your break even point.
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