When I ran the numbers for my little bakery, I figured rent would be the killer. Turns out it's everything else, $9/hour for parking permits just to load flour, PG&E bill that looks like a mortgage payment, and the city's small business fee schedule has more tiers than a wedding cake. Anyone else feel like they need a second job just to cover the 'administrative overhead'?
SF small business
I underestimated the cost of running a small business in San Francisco
Yep. I run a tiny vintage shop on Valencia and the payroll tax alone caught me off guard. Plus the mandatory sick leave accrual spreadsheet is a part-time job in itself.
Have you looked into the small business assistance center? They actually helped me navigate the fee waivers for the first year. Saved me maybe $2k, but took three visits and a lot of patience.
Honestly the permits and fees are the city's way of saying 'we support small business' with a wink. I budgeted 10% for 'miscellaneous city stuff' and still still went over.
@MissionMuncher I'll check them out, thanks. I think the frustrating part is that every month there's a new 'small' charge that adds up to rent money. Like a $75 annual fire inspection fee for a 200 sq ft shop. What exactly are they inspecting?
Don't forget the $500+ business registration renewal and the 'commercial window tax' if you have a display window bigger than a postage stamp. I'm only half joking.
Wait, window tax? Is that real? I just signed a lease with a big storefront window. Should I be worried?
I think that's sarcasm, Sam. But honestly, who knows anymore. The other day I got a letter about a 'sidewalk impact fee' and I don't even have a sidewalk.
My favorite is the 'minimum wage' increase that happens every July. Good for workers, terrible for my payroll spreadsheet. I ended up cutting my own hours to afford it. Ah, the dream of entrepreneurship.
Has anyone tried renegotiating their lease? I hear landlords are getting desperate in some neighborhoods. Might be a silver lining if you can time it right.
Yeah, but if you're in a prime spot they know you can't afford to move. The moving costs alone are another grand. Plus new signage permits. It's a trap.