Is the Sanfrancisco, Oakland area a good place to start a small business?

[jade408]

Originally Posted by Tulemutt

Now wait just a minute. I don't want to encourage ANYBODY to come to California. I want at least half the people already here to leave.

But, fair is fair. Where on earth do you get COL "is likely 2 - 3x of current costs except for housing"?

What in California is 2 - 3x higher than anywhere else, EXCEPT housing? And even housing isn't 2 - 3x compared to lots of places in the nation. Gas is a little higher than most other states - amounts to about $20 - $25 a month more than cheaper states for average driving habits. Food? Fresh produce is cheaper in CA. Most other foods are roughly the same. Consumer goods, from clothes to tv's? Same. Taxes? For millionaires, yes, higher - still not 2 - 3x higher. And for an upholsterer, like most mid-lower income groups, income tax is quite low in those brackets. Real estate taxes are low. Utilities? Varies widely all over the nation - but in coastal California we don't use much heat or AC so costs are really quite low. Etc.

2- 3x is nuts. Real estate is expensive in the coastal cities. Yep. The rest? Nickel and dime differences for the most part. Give the guy a break. If he can solve housing, he'll be fine.

Well let's say for example, I have a relative who lived in a nice 2 bedroom apartment for like $700. The same place here is like $2000. The living expenses in Lowe cost of living place could easily be $1500 vs similar lifestyle in CA is $3000 a month or more. It pays to be realistic. 2x isn't far off.

[Tulemutt]

Sorry. But 2x IS far off. I suggest you consult COL calculators for comparisons rather than relying on anecdotal stories that may not have much relation to averages. There are dozens of calculators on line. Plug in Coral Gables / Ft. Meyers, FL : Oakland, CA. Each of those places represent average costs for the areas the OP specified. See what you get. I just did five different web calculators real fast. Average difference less than 50% including housing.

As I pointed out previously, other than housing, the differences are mostly quite small and trade offs. Why do I suggest taking housing out of the equation? Because there are so many more variables there than any other expense. People may come to California with equity to invest at varying amounts right up to cash out. They can choose to live in smaller or different quality spaces. There is a huge range of adjustment possible in housing costs.

Bottom line is, anyway, the OP didn't ask about COL. He asked about whether there is a market in the Bay Area for his type of trade / services. I'm sure there is as much as any place. Especially since there is a LOT of money floating around here. The OP's business isn't high volume retail. It's custom service. He doesn't probably even need a storefront. I would guess he might have most of his business come through referrals. So his trick is to know what he probably already does: how to get in front of a small number of home owners to start and then leverage that up through referrals based on his quality product and service and customer relations.

[Tallysmom]

We opened a janitorial business 15 years back, with the intention of staying small. We are doing very well, and regardless of what people say about state taxes, with business writeoffs we pay very little in state taxes. And we've been audited, and come up clean.

However. Your business type? I can't find the article, but I do remember a few years back a large place that does that closed and the talk was there's no money in it. I know a few people that have had things reupholstered and were stunned at the cost -- and would not do it again. They regretted it. It was cheaper to buy new.

We've also lost a good many places out here that sold older furniture that was in decent, but not perfect condition. Now you have a good many consignment places, but the stuff doesn't need done. Even our Salvation Armies and St Vincent De Pauls are having trouble finding decent older furniture. St Vinnie's actually starting making their own coffee tables and bookcases for some time.

Heck -- I finally caved and bought a cheapie IKEA sofa to fill my needs today....

[Tulemutt]

Originally Posted by Tallysmom

We opened a janitorial business 15 years back, with the intention of staying small. We are doing very well, and regardless of what people say about state taxes, with business writeoffs we pay very little in state taxes. And we've been audited, and come up clean.

However. Your business type? I can't find the article, but I do remember a few years back a large place that does that closed and the talk was there's no money in it. I know a few people that have had things reupholstered and were stunned at the cost -- and would not do it again. They regretted it. It was cheaper to buy new.

We've also lost a good many places out here that sold older furniture that was in decent, but not perfect condition. Now you have a good many consignment places, but the stuff doesn't need done. Even our Salvation Armies and St Vincent De Pauls are having trouble finding decent older furniture. St Vinnie's actually starting making their own coffee tables and bookcases for some time.

Heck -- I finally caved and bought a cheapie IKEA sofa to fill my needs today....

Originally Posted by sport69

I'm a drapery and curtain maker living in Florida I do a bit of upholstery for small chairs.

OP is "a drapery and curtain maker" primarily. Not an upholsterer.

[Tallysmom]

Originally Posted by Tulemutt

OP is "a drapery and curtain maker" primarily. Not an upholsterer.

Oops -- honed right in on upholstery.....

But my answer is still the same. Most people I know are doing blinds and sheers from Target or Ikea. I've actually seen a few drapery places close around San Leandro. I don't think that heavy drapery look is favored here.

[sport69]

Hmmm I guess the bay area is not cold enough for drapes an curtains.

[Cruithne]

Originally Posted by sport69

I'm a drapery and curtain maker living in Florida I do a bit of upholstery for small chairs. Can a small business such as this thrive in the Bay area? I posted the same question in the NYC forum as I'm considering there also. All info appreciated. Thank you.

There is absolutely a call for it yes.

The is a huge 4 storey fabric store in SF called Britex - been there since 1952. You can't keep that sort of store going without there being a market for it.
Britex Fabrics - San Francisco Store

As you probably know there has been a resurgence of home crafts in recent years. People are getting back into things like quilting and so on.
I think you could make a go of it as long as you target the high end of the market. People pay through the nose for the simplest things here. Everything is expensive. The cost of living should not be under-estimated.
You'd have to weigh up your overheads and living costs against your profit of course, but yes I'd say there is a call for your sort of business and if you can expand into things like roman blinds, cushions - that kind of thing, all the better.

[sport69]

They've been in business since 1952? They must be doing something right. Why is it that some business succeed while others fold under. There is a reason for everything. How much would a one bedroom apartment be? Is it cheaper to rent in Oakland than San Francisco?