For many people starting their own frozen yogurt shops, the question of renting or buying their frozen yogurt machines comes up early in the planning process. Frozen yogurt machines are expensive to purchase and can cost as much as $12,000 per machine from some manufacturers. Carefully considering how you plan to use the machine can help you decide whether to rent or buy your frozen yogurt machines.
1. Are you starting a full-size shop or a one-machine cubbyhole operation?
If you are opening a full-size shop, purchasing your machines is the best way to go. It allows you to ensure the quality of your yogurt by ensuring the machines are always cleaned and maintained properly. It also limits the recurring costs of operating your shop in the long run.
If you are renting a small space and will only have room for one machine in a cubbyhole operation, renting a machine may help you limit your overhead costs. If the business becomes profitable, you may want to purchase your own machine to eliminate the rental costs.
2. Is this a permanent location or temporary?
If you are renting space for a limited time period, renting a frozen yogurt machine may meet your needs. Renting will allow you to operate your business in a temporary location without the expense of purchasing the machine.
However, if your full-time business involves providing frozen yogurt at temporary locations, purchasing you machines will allow you to create a more profitable business.
If you are unsure which choice is right for you, we encourage you to look at our post about formulating a business plan
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