Starting your own business

[BooneRebel]

If you could get the investment to start your own business, what would it be? I've been thinking about this off & on since junior high. I'd like to find something relatively low-maintenance that I could run by myself initially. My goal is to be self-sufficient, but not to be so tied down to the operation that I couldn't take a vacation or just a day off every now and then. Maybe a carwash or coin-op laundry?

*edit: added 'get' to first sentence. I would probably provide 20% or less of the initial investement, preferring to finance through a bank or private investors as opposed to putting up 100% of my own money.

 

[NewSc2]

low-maintenance = franchise.. but i suspect coin-op laundry wouldn't be too bad of an idea

personally i'd open up a fast-food mexican restaurant around UCI - the ones around here suck balls... might be hard work, but it'd make bank.

 

[TheGameIs21]

Your first sentence isn't complete...

How much $$ do you have to invest in a company. How many Coin-op laundries and Carwashes are there in your area?

I am not trying to rain on your parade but you have to look at some things. There is a reason that you never see a person that owns a laundry or carwash show up in more that jeans and an old concert t-shirt (and it's not because they are trying to be comfortable). If you go that route, the only way you will be able to afford to "not be so tied down to the operation" is to own multiple locations. Once you own multiple locations, you have more invested and need to commit more time and hire employees and managers. Once you hire employees and managers will you have the money to afford to eat let alone take a vacation.

If you are going to own your own business, don't count on being able to "not be so tied down to the operation" until you can afford to hire managers to do your work for you. There is nothing wrong with owning your own business, it is very rewarding to see something you have created make you enough money that you don't have to work for others. You have to realize that 99% of successful business owners puts in well over 60 hrs a week and rarely gets time off because they can't afford to hire people to do the work they do and still make money for themselves.

You have the drive... Run with it but remember the reality... IT'S NOT EASY OWNING YOUR OWN BUSINESS.

 

[Queasy]

My wife wants to open a coffee/desert house that caters towards stay-at-home mothers (they roam around the North Atlanta suburbs like packs of wild wolves). I'm leery of the idea because she would be in indirect competition with Starbucks and other such establishments. She's working on her business plan now and we'll take it to the Small Business Association to get their help when they're done. I've already told her that it has to stand on its own and cannot take money away from paying the family bills.

Her mother has owned a hair salon for years in Atlanta and makes pretty good money off of it. Unfortunately, she opened up a restaurant right next to the hair salon two years ago and has nothing but problems with it and is now working 12 hour days or more and still barely has enough money to pay her household bills. She made the mistake of opening it with her then boyfriend and hiring family members to help out. They were the laziest bunch of folks you have ever seen. She has weeded out most of them but still has problem finding competent people to work there that she can trust not to steal money or burn the restaurant down. And she pays fairly well too ($8/hour with tips).

 

[BooneRebel]

Originally posted by: TheGameIs21
Your first sentence isn't complete...

How much $$ do you have to invest in a company. How many Coin-op laundries and Carwashes are there in your area?

I am not trying to rain on your parade but you have to look at some things. There is a reason that you never see a person that owns a laundry or carwash show up in more that jeans and an old concert t-shirt (and it's not because they are trying to be comfortable). If you go that route, the only way you will be able to afford to "not be so tied down to the operation" is to own multiple locations. Once you own multiple locations, you have more invested and need to commit more time and hire employees and managers. Once you hire employees and managers will you have the money to afford to eat let alone take a vacation.

If you are going to own your own business, don't count on being able to "not be so tied down to the operation" until you can afford to hire managers to do your work for you. There is nothing wrong with owning your own business, it is very rewarding to see something you have created make you enough money that you don't have to work for others. You have to realize that 99% of successful business owners puts in well over 60 hrs a week and rarely gets time off because they can't afford to hire people to do the work they do and still make money for themselves.

You have the drive... Run with it but remember the reality... IT'S NOT EASY OWNING YOUR OWN BUSINESS.

I can see pushing either laundry or carwash in my area, neither one is overly abundant. I'm not looking at making a fortune, just enough to be self-sufficient. Any extra monies will go towards a second business, then a third, etc. until I either a)have enough regular income to be satisified, or b)get tired of it and sell off the operation (probably 'retirement' time). I like the idea of a coin-op business because it's a cash-in-hand business, no need to wait on vendors or worry about a delay in accounts receivable. And barring mechanical failures, I think you could reasonably maintain either one with only an hour or two per day.

 

[Queasy]

Originally posted by: BooneRebel

Originally posted by: TheGameIs21
Your first sentence isn't complete...

How much $$ do you have to invest in a company. How many Coin-op laundries and Carwashes are there in your area?

I am not trying to rain on your parade but you have to look at some things. There is a reason that you never see a person that owns a laundry or carwash show up in more that jeans and an old concert t-shirt (and it's not because they are trying to be comfortable). If you go that route, the only way you will be able to afford to "not be so tied down to the operation" is to own multiple locations. Once you own multiple locations, you have more invested and need to commit more time and hire employees and managers. Once you hire employees and managers will you have the money to afford to eat let alone take a vacation.

If you are going to own your own business, don't count on being able to "not be so tied down to the operation" until you can afford to hire managers to do your work for you. There is nothing wrong with owning your own business, it is very rewarding to see something you have created make you enough money that you don't have to work for others. You have to realize that 99% of successful business owners puts in well over 60 hrs a week and rarely gets time off because they can't afford to hire people to do the work they do and still make money for themselves.

You have the drive... Run with it but remember the reality... IT'S NOT EASY OWNING YOUR OWN BUSINESS.

I can see pushing either laundry or carwash in my area, neither one is overly abundant. I'm not looking at making a fortune, just enough to be self-sufficient. Any extra monies will go towards a second business, then a third, etc. until I either a)have enough regular income to be satisified, or b)get tired of it and sell off the operation (probably 'retirement' time). I like the idea of a coin-op business because it's a cash-in-hand business, no need to wait on vendors or worry about a delay in accounts receivable. And barring mechanical failures, I think you could reasonably maintain either one with only an hour or two per day.

Another good option is buying rental properties such as townhomes and duplexes. It requires some work to maintain but you can make real money off them in the right town/situation. The guy I rented my townhome from before I bought a house owned several different rental properties. He was able to retire early, live off the rent from the properties had had already paid off, and work occasionally on the properties he owned. He made sure that whoever he rented his property to had good backgrounds and stable jobs to reduce his workload.

 

[TheGameIs21]

you are 100% correct that you could manage one only taking 2 hours a day. Have you done the math to see what the rent, cost of machines (or lease), electricity, licensing is compared to how many loads would have to be done to pay all that and then yourself? One coin op business will not do that.

Then you have car wash. How much to buy the land and then build the building with all of the plumbing and all the mechanical parts etc... They require a substantial start up cost. Then you have to concider how many cars would need to go through to pay the monthly payments on the business loan that you would have to be able to front at least 10% of your own money to get. Car washes are also very seasonal.

Like I said, I am not trying to rain on your parade. I am only giving you things to think about. Coin Ops are known for not making much money unless you have multiple. I wouldn't even count on a coin op covering overhead for at least a year. Would you be able to work a regular 40 hr job and then after that is over go to the coin op and do what needs to be done there?

How much do you have to invest of your own money?

 

[Armitage]

When I got out of the Air Force, I considered starting a rapid prototyping business ... sort of be like the Kinkos for rapid prototyping. Companies send me their models via the internet or on CD. I print em and fed-ex them back. Might have worked ... start up costs are high, those machines start around $50K, and you'd need several to ensure quick turnaround. Was the late 90's though, dot-com boom & all. Might have gotten the money.

I did some of the initial legwork, but finally decided I wasn't that interested in running a business. I'm not a salesman, hate it. And probably not the best manager.

 

[xuanman]

Keep in mind that a coin-op laundry is a low-margin business. Also, it won't necessarily be the situation that you only have to spend a couple of hours each day managing it. If you hire someone to run it, you still need to be there often enough to make sure things are running smoothly....and lots of people go to the laundramat on the weekends...

 

[NewSc2]

Also with a laundromat, how much will you be making? If you figure out your total costs and estimated profit, the amount of hours you put in will be taking out of the hours that you would be paying somebody. Me and a friend were considering starting up a business, but looking at labor costs alone was quite staggering. Running a laundromat always requires that somebody be there - you're looking at about ~$40k in labor costs alone per year just for that (2 shifts) How many quarters will it take just to cover that?

 

[T2T III]

I'm leery of the idea because she would be in indirect competition with Starbucks and other such establishments.

But, you have to consider that even though Starbucks draws a lot of people, people still despise them. In my community (within a mile of my house), I have a Starbucks and a "mom and pop" type coffee house. The "mom and pop" coffee shop has been open about 5 years and the Starbucks has been open a year. I thought the "mom and pop" coffee shop would fold once Starbucks arrived - because they are literally 1/4 of a mile apart. However, the "mom and pop" shop has held its own. They are doing very, very well. They roast their own beans on the premises and when you buy a cup of coffee from them, the flavor doesn't have that "over-roasted" flavor that Starbucks has. Plus, you know your coffee is fresh - unlike the silver vacuum sealed bags of beans that Starbucks uses - which were probably roasted 6 months earlier.

If you have the right formula, you can survive without being squashed by Starbucks!

 

[T2T III]

You have the drive... Run with it but remember the reality... IT'S NOT EASY OWNING YOUR OWN BUSINESS.

True, it may not be easy. However, neither is working for someone else who has the option to fire you at any given time based on the performance of the business.

I've been involved in a fairly intensive job-search pattern for the past several months. A lot of my time has been valuable with the contacts that I've made during the many networking groups that I've encountered. However, there is also an empty feeling that I have. I feel that a lot of time gets spent kissing up to a company to get them to hire you and then a lot of time is spent kissing up to them some more during your daily work activities - so you can keep your position. Look at all the time that gets spent kissing up to someone else so they can use you in order to make a substantial profit - that they may, or may not even share a portion of with you.

Running your own business would be quite time-consuming. However, all the profits that you made would be YOURS. You could then choose to either re-invest the money back into your business or use the profits to start another business or to launch an investment of some sort. If one has the drive and the stamina, running your own business is the way to go.

 

[Mrpilot007]

From personal experience I have noticed that any Service Business works. I know several friends that do well with providing a service like Carpet Installation, Carpet Cleaning, Pool Service, Computer Service. Basically something that you do yourself. They all make sub 100,000 a year, have no overhead, make their own schedule, and can work as little or as much as possible. This would be my example of the easiest to be in business for yourself.

 

[Mrpilot007]

One of my friends built his Carpet Cleaning business so high that he had several employee's under him and made so much money that he didn't have to clean anymore himself. But on the flip side he told me that eventually it was too much work to maintain that level and he was working around the clock to keep everything going. He now is back to just himself and one helper and he clears anywhere from $1000 - $3000 a day.

 

[TheGameIs21]

Originally posted by: wje

You have the drive... Run with it but remember the reality... IT'S NOT EASY OWNING YOUR OWN BUSINESS.

True, it may not be easy. However, neither is working for someone else who has the option to fire you at any given time based on the performance of the business.

I've been involved in a fairly intensive job-search pattern for the past several months. A lot of my time has been valuable with the contacts that I've made during the many networking groups that I've encountered. However, there is also an empty feeling that I have. I feel that a lot of time gets spent kissing up to a company to get them to hire you and then a lot of time is spent kissing up to them some more during your daily work activities - so you can keep your position. Look at all the time that gets spent kissing up to someone else so they can use you in order to make a substantial profit - that they may, or may not even share a portion of with you.

Running your own business would be quite time-consuming. However, all the profits that you made would be YOURS. You could then choose to either re-invest the money back into your business or use the profits to start another business or to launch an investment of some sort. If one has the drive and the stamina, running your own business is the way to go.

I agree 100%. My point was supposed to be aimed at his wanting to "not be so tied down to the operation that I couldn't take a vacation or a day off every now and then." I know many self employed people who are making good money but they can't take a vacation because they don't get vacation pay.... They either work and bring in money or they are taking time off with no pay.

 

[benliong]

Originally posted by: NewSc2
Also with a laundromat, how much will you be making? If you figure out your total costs and estimated profit, the amount of hours you put in will be taking out of the hours that you would be paying somebody. Me and a friend were considering starting up a business, but looking at labor costs alone was quite staggering. Running a laundromat always requires that somebody be there - you're looking at about ~$40k in labor costs alone per year just for that (2 shifts) How many quarters will it take just to cover that?

If you open one in a bad neighbourhood, you'd also have to worry about paying the local gangs. I have this friend who's interested openning her own arcade, so we asked around, checked the laws, talked to store owners, check the price for machines. Everything sounds promising till some owner told us they have to pay some gang for "protection fee". Granted that is in Hong Kong, but I'd imagine Laundromat having the same problem in some bad area in US.

 

[BooneRebel]

Originally posted by: TheGameIs21
you are 100% correct that you could manage one only taking 2 hours a day. Have you done the math to see what the rent, cost of machines (or lease), electricity, licensing is compared to how many loads would have to be done to pay all that and then yourself? One coin op business will not do that.

Then you have car wash. How much to buy the land and then build the building with all of the plumbing and all the mechanical parts etc... They require a substantial start up cost. Then you have to concider how many cars would need to go through to pay the monthly payments on the business loan that you would have to be able to front at least 10% of your own money to get. Car washes are also very seasonal.

Like I said, I am not trying to rain on your parade. I am only giving you things to think about. Coin Ops are known for not making much money unless you have multiple. I wouldn't even count on a coin op covering overhead for at least a year. Would you be able to work a regular 40 hr job and then after that is over go to the coin op and do what needs to be done there?

How much do you have to invest of your own money?

Sorry, didn't mean to drop this thread. Lots of good questions here. I would probably put up 10-20% of my own money, and I realize that having just one building isn't going to put me on easy street. In fact, I'd probably continue working a 9-5 job for the time being.

Rentals are another option, but there you're tying up a lot more into human character. As much as I want to work for myself, I'm really not looking forward to getting a deadbeat renter that pays late or not at all.

 

[Queasy]

Originally posted by: BooneRebel

Rentals are another option, but there you're tying up a lot more into human character. As much as I want to work for myself, I'm really not looking forward to getting a deadbeat renter that pays late or not at all.

Credit and background checks are your friend in this situation along with deposits. Just have the potential renter fill out an application, pay a fee, and do all the necessary checks. I learned a good bit from the guy I rented the townhouse from...the man loved to talk and would keep talking as you were driving away.

Anyways, as soon as my family's financial situation is settled with our debt, I am planning on buying rental properties either near Atlanta or in the Georgia mountains to supplement my income.

 

[Quixfire]

Originally posted by: Queasy

Originally posted by: BooneRebel

Rentals are another option, but there you're tying up a lot more into human character. As much as I want to work for myself, I'm really not looking forward to getting a deadbeat renter that pays late or not at all.

Credit and background checks are your friend in this situation along with deposits. Just have the potential renter fill out an application, pay a fee, and do all the necessary checks. I learned a good bit from the guy I rented the townhouse from...the man loved to talk and would keep talking as you were driving away.

Anyways, as soon as my family's financial situation is settled with our debt, I am planning on buying rental properties either near Atlanta or in the Georgia mountains to supplement my income.

Agreed, I started my first business in real estate. After several years it provided me with the cash flow to invest in other areas without affecting my lifestyle. As a bonus, I haven't had a bad renter in over ten years. It takes time to develop a good reputation in any business, what you need to ask yourself is "Do I want this as a job?" If the answer is no, then don't do it.

 

[BooneRebel]

Originally posted by: Quixfire

Originally posted by: Queasy

Originally posted by: BooneRebel

Rentals are another option, but there you're tying up a lot more into human character. As much as I want to work for myself, I'm really not looking forward to getting a deadbeat renter that pays late or not at all.

Credit and background checks are your friend in this situation along with deposits. Just have the potential renter fill out an application, pay a fee, and do all the necessary checks. I learned a good bit from the guy I rented the townhouse from...the man loved to talk and would keep talking as you were driving away.

Anyways, as soon as my family's financial situation is settled with our debt, I am planning on buying rental properties either near Atlanta or in the Georgia mountains to supplement my income.

Agreed, I started my first business in real estate. After several years it provided me with the cash flow to invest in other areas without affecting my lifestyle. As a bonus, I haven't had a bad renter in over ten years. It takes time to develop a good reputation in any business, what you need to ask yourself is "Do I want this as a job?" If the answer is no, then don't do it.

One benefit to real estate is that if you do decide to get out of it, you can get your initial investment (and usually then some) back. Unlike starting a brick & mortar business, if you go belly-up you'll only get pennies on the dollar for any inventory or equipment you've purchased.

 

[Quixfire]

Originally posted by: BooneRebel

Originally posted by: Quixfire

Originally posted by: Queasy

Originally posted by: BooneRebel

Rentals are another option, but there you're tying up a lot more into human character. As much as I want to work for myself, I'm really not looking forward to getting a deadbeat renter that pays late or not at all.

Credit and background checks are your friend in this situation along with deposits. Just have the potential renter fill out an application, pay a fee, and do all the necessary checks. I learned a good bit from the guy I rented the townhouse from...the man loved to talk and would keep talking as you were driving away.

Anyways, as soon as my family's financial situation is settled with our debt, I am planning on buying rental properties either near Atlanta or in the Georgia mountains to supplement my income.

Agreed, I started my first business in real estate. After several years it provided me with the cash flow to invest in other areas without affecting my lifestyle. As a bonus, I haven't had a bad renter in over ten years. It takes time to develop a good reputation in any business, what you need to ask yourself is "Do I want this as a job?" If the answer is no, then don't do it.

One benefit to real estate is that if you do decide to get out of it, you can get your initial investment (and usually then some) back. Unlike starting a brick & mortar business, if you go belly-up you'll only get pennies on the dollar for any inventory or equipment you've purchased.

So did we help you make a decision?

 

[Nocturnal]

From my current position in my current company I'd say i'd start up a wireless cellular phone business.

 

[TheGameIs21]

Originally posted by: BooneRebel

Originally posted by: TheGameIs21
you are 100% correct that you could manage one only taking 2 hours a day. Have you done the math to see what the rent, cost of machines (or lease), electricity, licensing is compared to how many loads would have to be done to pay all that and then yourself? One coin op business will not do that.

Then you have car wash. How much to buy the land and then build the building with all of the plumbing and all the mechanical parts etc... They require a substantial start up cost. Then you have to concider how many cars would need to go through to pay the monthly payments on the business loan that you would have to be able to front at least 10% of your own money to get. Car washes are also very seasonal.

Like I said, I am not trying to rain on your parade. I am only giving you things to think about. Coin Ops are known for not making much money unless you have multiple. I wouldn't even count on a coin op covering overhead for at least a year. Would you be able to work a regular 40 hr job and then after that is over go to the coin op and do what needs to be done there?

How much do you have to invest of your own money?

Sorry, didn't mean to drop this thread. Lots of good questions here. I would probably put up 10-20% of my own money, and I realize that having just one building isn't going to put me on easy street. In fact, I'd probably continue working a 9-5 job for the time being.

Rentals are another option, but there you're tying up a lot more into human character. As much as I want to work for myself, I'm really not looking forward to getting a deadbeat renter that pays late or not at all.

Knowing how much $$ you have to contribute would be helpful in giving you advise.... You did state 10 - 20% of your own money. Have you already researched how much it will cost you? If so, how much would that be? You obviously don't have to answer how much do you have to invest but a ballpark figure will be helpful.

 

[Maverick2002]

looky what I started when I was 16

 

[BooneRebel]

Originally posted by: TheGameIs21Knowing how much $$ you have to contribute would be helpful in giving you advise.... You did state 10 - 20% of your own money. Have you already researched how much it will cost you? If so, how much would that be? You obviously don't have to answer how much do you have to invest but a ballpark figure will be helpful.

Sorry, I hate to discuss personal finances. Right now, no more than 5K. Realistically I know that this isn't much to work with, which is why I'm not talking to a loan officer right now. I will wait until I can afford to risk $10-20K and pursue it from there. Right now I'm looking at three options:

1. Car wash - There is one by me that recently closed down. The property is for lease, I would need to supply new equipment but the bays and plumbing are there. Competition is right across the street, which is why this one closed. But I think with new equipment it could redirect traffic. Especially if I had an additional attractant, like maintaining a cart with cleaning supplies (premixed glass cleaner, rags or paper towels, etc.)
2. Coin-op laundry - I've been eyeballing a location near a number of trailer parks, definitely a low-income community that could benefit from a laundry. The next closest one is miles away, so I definitely think this is a viable opportunity. However, I would have to start from scratch with a new building, plumbing, and equipment. The appliance outlay alone will put the business in the hole for the first year.
3. Real estate - Probably the most work of all, I would buy foreclosure homes and refurbish them for a profit. Either as a rental or to turn it over and resell once the work is done. In order to make this work I would need to do most of the labor myself. There are a flood of homes on the market in my area, so I could feasibly pick up a few very inexpensive homes (or a 4-plex), fix them up, and rent them until the market turns around. It might be 5 years or more until I'd be able to sell at a profit, but I think I'd at least be able to cover my expenses until then. By inexpensive, I'm talking about no more than $30K or so a year. Basically vacant/abandoned homes that are currently uninhabitable.