What would you do? Stick with career or start a small business?

krunchykrome

Lifer
Dec 28, 2003
13,413
1
0
Background info:
-I'm an accountant (recently promoted)
-Studying/sitting for CPA exam
-My wife is pregnant with our first child

I've always talked about how I'd like to one day own a small business, whether it be related to my career or something else. My wife's parents own a few liquor stores. Yesterday, her father was asking her if I am still interested in owning a small business. Apparently, there is a retail strip in an upscale neighborhood looking to lease to businesses. My wife's parents want to know if I'd be interested in opening a liquor store in that strip. They would help finance me and everything and the business would legally be mine.

This is very interesting to me. On one hand, I've always wanted to own a small business. I am a hard worker, and I would rather work as hard as I do for myself rather than someone else. A successful liquor can make good money.

On the other hand, I would have to quit my job/career to get the business going. I would be working 7 days a week for the entire day. And although, I have experience/degree in accounting/business, it would render my professional experience and education essentially useless and a waste of time.

Pros:
-Very high earnings (wife would not have to work)
-Business ownership
-Help from family who has first hand experience with small businesses (specifically liquor stores).
-Wife would not have to work

Cons:
-Giving up on accounting career (even though I was just promoted).
-7 day/12 hour work weeks
-Little time with family
-All of that college education and CPA studying for nothing
-Private medical insurance is expensive (although the higher income would compensate for it).

What are your thoughts? What would you do?
 

ShawnD1

Lifer
May 24, 2003
15,987
2
81
I was totally onboard with the small business idea until you mentioned medical expenses. In Canada I would say go for it and open a business. In the US, I would probably just stay with the job that has health benefits. My uncle in Michnigan had to shut down his mechanic shop and sell the business when his wife got cancer :'(
 

highland145

Lifer
Oct 12, 2009
43,973
6,334
136
I make a lot more working for myself.

Find out what income potential you have from the experienced family.

Surly, after some months of success, you could hire help. Family time is important.
 

Ns1

No Lifer
Jun 17, 2001
55,419
1,599
126
all that accounting/cpa work means you will be doing your own accounting/bus admin at least until you're up and running

= less capital expenditure but less free time.



I opted to stay in corporate and have a small side business due to insurance.
 

AgaBoogaBoo

Lifer
Feb 16, 2003
26,108
5
81
How much do you have saved up? It will take a little while for things to turn profitable.

IMO, you can always go and get a job in the corporate world - you won't have any trouble with that, especially if you get the CPA.

As for the loss of the value in a degree/CPA, I highly disagree. Think of these as a lifelong insurance policy, because a CPA certification will get you a job if this venture doesn't work out.

Try to view this opportunity as 2 separate roles though.

First, you will be the owner of a business - this is an investment and should be viewed as such. If you're laying out $100k in capital and it will return 5% a year, is it really worth it when you could go and buy coca cola stock that returns 3-4%, without any risk/work required on your part?

Second, you will be the manager of a business - this is a full time job. You'll end up stocking shelves, hiring employees, making sure inventory isn't stolen, etc. If you want to expand beyond 1 location at some point, you won't be the manager any more and will need to pay someone else.

I assume that the idea is to setup a few liquor stores and eventually have managers at each of them so you aren't involved with day to day activities. This is all well and fine, but you should still compare what you'd earn with this rather than sticking to a day job and investing in Coca Cola stock. I wouldn't automatically assume you will earn more with a business... there's a salary component and then an investment component. If you'll make $70k from this business and an average manager runs you $45k, the resulting investment profits would be $25k. Don't look at this and say, "Wow, that's $70k in pay over my current $45k," but rather, wear your two hats and look at each individually - as a manager (employee) and as an investor. If it doesn't work out, you lose both hats.

Go ask your in-laws for financial records so you can figure out what kind of margins they operate on, how much capital it will require, what kind of finance you can get, etc.

Also... until you can hand off the duties to a manager, your life will be consumed by this, so be prepared. I suppose that a liquor store might be a little more cookie-cutter than a typical startup, but it will undoubtedly come with challenges that you will have to face as does every business. The question is if you'll stick it out in those tough times and get past them - no business is always doing well, there will be rough times. That will probably be determined by your desire to do this. Think about what your motivation/happiness in life comes from - money, family, whatever, just think about it.
 

highland145

Lifer
Oct 12, 2009
43,973
6,334
136
And you'll be dealing with the public. You will have to, at least, act like a people person. People can buy liquor anywhere. If they like you, they'll buy from you. I'm an introvert by nature, and extrovert by career.
 

AgaBoogaBoo

Lifer
Feb 16, 2003
26,108
5
81
Risk vs reward - running a business comes with a lot of risk, but so many people avoid it that the rewards are often worth the risk. It takes a lot of effort and skills to run a business (marketing, management, accounting, product knowledge, raw labor, etc.) and so, on the whole, the risk/reward ratio should lean in the favor of the entrepreneur.

I suggest going for it, because if it doesn't work out, I think you can go back and become an accountant easily.
 

Regs

Lifer
Aug 9, 2002
16,665
21
81
Small business is all about dedication and educated risks. You will risk everything, but if it turns profitable your reward will be great.
 

AgaBoogaBoo

Lifer
Feb 16, 2003
26,108
5
81
And you'll be dealing with the public. You will have to, at least, act like a people person. People can buy liquor anywhere. If they like you, they'll buy from you. I'm an introvert by nature, and extrovert by career.
This is something to think about - what are you offering that others don't? If I have to buy a case of beer and I see a Wal*Mart and your liquor store, my decision will depend on a few things. If the liquor store keeps the beer cold and I know I want to drink it soon, I don't care if you charge $5 extra, because I want the beer tonight for the game.

A big benefit might just be location - it doesn't take too much space to open a liquor store, while a Wal*Mart requires a significant amount of room, so you can be positioned closer where people live and in areas where it's more convenient for them to come to you rather than driving further to WalMart, park their car in a huge lot, walk quite a bit more than in your store, wait in line, etc.
 

ponyo

Lifer
Feb 14, 2002
19,688
2,810
126
I chose business, and I never looked back. I have my degree from Northwestern that I used for one year.

But I'm not in retail and I don't work 7 days either. I did work crazy hours in the beginning though.

My wife doesn't work.
 

JS80

Lifer
Oct 24, 2005
26,271
7
81
Background info:
-I'm an accountant (recently promoted)
-Studying/sitting for CPA exam
-My wife is pregnant with our first child

I've always talked about how I'd like to one day own a small business, whether it be related to my career or something else. My wife's parents own a few liquor stores. Yesterday, her father was asking her if I am still interested in owning a small business. Apparently, there is a retail strip in an upscale neighborhood looking to lease to businesses. My wife's parents want to know if I'd be interested in opening a liquor store in that strip. They would help finance me and everything and the business would legally be mine.

This is very interesting to me. On one hand, I've always wanted to own a small business. I am a hard worker, and I would rather work as hard as I do for myself rather than someone else. A successful liquor can make good money.

On the other hand, I would have to quit my job/career to get the business going. I would be working 7 days a week for the entire day. And although, I have experience/degree in accounting/business, it would render my professional experience and education essentially useless and a waste of time.

Pros:
-Very high earnings (wife would not have to work)
-Business ownership
-Help from family who has first hand experience with small businesses (specifically liquor stores).
-Wife would not have to work

Cons:
-Giving up on accounting career (even though I was just promoted).
-7 day/12 hour work weeks
-Little time with family
-All of that college education and CPA studying for nothing
-Private medical insurance is expensive (although the higher income would compensate for it).

What are your thoughts? What would you do?

Dude, if they already are successful liquor store owners and they are willing to teach you the trade AND finance you the costs, this is a no brainer. DO IT!!!

Once the business "runs itself" you can go back to corporate or start your shop, or better yet, you can open more liquor stores.

PS Are you Korean?
 
Nov 29, 2006
15,742
4,275
136
I would go with the liqour store if it were me. You have experience backing you up and your degree will still be valid if you ever choose to go back to the corporate world. It will actually come in handy as well when running your own show. But until you get established and can afford to hire a manager to run the daily show you will be busy. Location, location, location :)
 

krunchykrome

Lifer
Dec 28, 2003
13,413
1
0
Dude, if they already are successful liquor store owners and they are willing to teach you the trade AND finance you the costs, this is a no brainer. DO IT!!!

Once the business "runs itself" you can go back to corporate or start your shop, or better yet, you can open more liquor stores.

PS Are you Korean?

haha, no but my wife is korean; her entire family owns small businesses (dry cleaners, bars, club, etc).
 

Farang

Lifer
Jul 7, 2003
10,913
3
0
Obviously GO WITH YOUR JOB FOR NOW!!!! !!!!!

You learn something new every week, budget TIME for yourself to study up on something EVERY DAY, say 60 min if you can manage, or at least 30 min a day ON THE JOB. (Building toward the future day you split)

Also obviously, in your case your "be your own boss" thing is out there on your horizon.

LISTEN!: Transitionig from employee to business owner/leader is equally as tumultuous and STRESSFUL as making a family with a new baby. A human can't deal with both simultaneously. We're talking a 7-day work week with maybey 12 hours total sleep for the week, bankers, professional performance standards, client relations (the hardest part!), and the rest of it.

Continue refining the dream you visualize, but for now hang with the job. Go solo after you're done coaching AYSO with your kids.

That projects you around12 years out, to around when the economy starts recovering (unless Hilary get in there next time).

the fuck is this
 

sjwaste

Diamond Member
Aug 2, 2000
8,757
12
81
If your inlaws are willing to show you the ropes and finance the start up, AND you're actually interested in being self-employed, I'd say go for it.

You're taking way too narrow a view to say your accounting skills become a waste. That's a big part of running a business, and I suspect you also learned other business skills along the way.

I would not, however, ditch the corporate gig and the health benefits if your wife is pregnant. You'll have to carry COBRA and eventually switch to an individual plan, and you don't want to get screwed with pregnancy as a "pre-existing" condition. You'll have to plan carefully before you make the switch.

If it were me, I'd do it in a heartbeat.
 

Raincity

Diamond Member
Feb 17, 2000
4,477
12
81
If you can deal with being the inlaws b@tch then go for it. It seems pretty much risk free and you can bail anytime. Corporate slavery will always be here for you if needed.
 

Dr. Zaus

Lifer
Oct 16, 2008
11,764
347
126
I'm very concerned about this portion of your situation:
They would help finance me and everything and the business would legally be mine.
This is a sticking point. Money from family is often a big mistake years down the road; I would only be comfortable with help that was given entirely for free, or investments that were made with very explicit pay-back periods and interest rates.

From what I know of entrepreneurship (which is a LOT) accountants do a freaking great job of running a business but a crappy job of coming up with innovative ideas. If you had some innovative ideas for your store that would allow you to turn it into a franchise, well that would be a multi-millionaire move worth the risk; If you think you'll be making better money just by selling liquor, then you're not taking into account why there's such a good ROI on liquor sales (Hint: its not because it's an easy job to be in).

I'd stick with the corporate option if I where you because I'd be someone studying for a CPA exam if I was you and thus not likely someone that could handle the ups and downs of small business ownership.

Or maybe I have you wrong, maybe you're the CPA with attitude that loves to snow board and jumps out of air planes for fun; The kind of guy that would rather be bankrupt with shattered dreams rather than doing OK after having failed to ever try and follow his biggest dreams.

It just depends on the kind of person you are...
 

slayer202

Lifer
Nov 27, 2005
13,679
119
106
Dude, if they already are successful liquor store owners and they are willing to teach you the trade AND finance you the costs, this is a no brainer. DO IT!!!

Once the business "runs itself" you can go back to corporate or start your shop, or better yet, you can open more liquor stores.

PS Are you Korean?

this!
 

gorcorps

aka Brandon
Jul 18, 2004
30,739
452
126
For somebody who has business experience, you're committing a common logical fault that most BAs and accountants would know about. You're considering your "lost education" in your decision... when it's a sunk cost and shouldn't be thought about.

The money and time you put in to your school is gone, forever. Regardless of your decision you will never get any of that back. If you're trying to be logical here by putting it into a chart you can't count it as it's already gone either way.
 

SearchMaster

Diamond Member
Jun 6, 2002
7,791
114
106
Dude, if they already are successful liquor store owners and they are willing to teach you the trade AND finance you the costs, this is a no brainer. DO IT!!!

Once the business "runs itself" you can go back to corporate or start your shop, or better yet, you can open more liquor stores.

This, this, and more this. Do it, and don't look back.

My brother-in-law took the leap to starting a business about 3 or 4 years ago (with a <1yo daughter, FWIW). He's done very, very well.

Hard work isn't as bad when it's for your own benefit and not someone else's.

DO IT.
 

highland145

Lifer
Oct 12, 2009
43,973
6,334
136
This, this, and more this. Do it, and don't look back.

My brother-in-law took the leap to starting a business about 3 or 4 years ago (with a <1yo daughter, FWIW). He's done very, very well.

Hard work isn't as bad when it's for your own benefit and not someone else's.

DO IT.
This right here.
 

KB

Diamond Member
Nov 8, 1999
5,406
389
126
I think you live in Maryland right? Where is the location? And how close is the nearest liquor store? If you start it I may stop by.

One thing I would avoid at all costs is a location near the border of other states. Marylands alchohol tax will be 9&#37;, which means I will be buying most of my alcohol when I take trips to Virginia.