Re: leasing a location w/bad credit.
$1,500 seems like a lot to me as well.
One question is equipment. If you don't own any and are getting use of equipment for $1,500 then maybe. If you do own your own equipment then find someplace cheaper.
Try Craigslist and look for space owned by individuals. If it is sitting empty they are not taking much risk letting you move in on a month to month basis. Here in Phoenix there are lots of spaces where a business occupies 75% of a building and the other 25% is available for cheap.
Bad credit will block you from dealing with big companies and banks but not so much from individual owners. You may have to offer two months rent as security deposit or something.
On a final note get started on repairing your credit. If you do build a successful business your bad credit will limit your options. Contact everyone you owe and see what you need to do to get current. Good credit opens many doors.