Anyone looking to invest in a new local company?

Discussion in 'Discussion Group' started by sirputz, Oct 9, 2018.

  1. sirputz

    sirputz Well-Known Member

    Hi. I am hoping to open a business in the McGees crossroads area, but am hitting a financial wall. The idea is solid, and in many opinions (not just mine, but people I've shared it with) highly needed in this area.

    I have a business plan and will share it thru email, so if you are interested, please PM me. I am keeping things under wraps until I can secure the funding for the space and get this idea off the ground floor.
    Auxie likes this.
  2. Wayne Stollings

    Wayne Stollings Well-Known Member

    Just be prepared. Most small businesses fail within the first 5 years and usually due to under capitalization. Even then there is an element of luck that comes into play that can make or break the effort outside of your control. A good rule of thumb is that you have no control over what you make but you do have control over what you spend. If the market is amenable you will make what it will bear and hopefully spend less than that amount.

    I had a rock solid plan with everything in place but a glitch with my major supplier's product not meeting the specs given caused a six month delay and even with extensive planning and reaction caused me to go over my budget projections by $5000.00. Not a lot over for a $250,000.00 budget, but if there had not been a lot of effective cost controls it would have easily been enough to kill the project off.

    A friend and their family purchased a franchise and did everything right as we were discussing all of the aspects well before they started. They knew what their daily "nut" was and they made a profit on the first day and every day they were open after that. The problem was they burned out quickly having someone there every minute the location was open so nothing would get out of control. The upside is they sold for a tidy profit to a group that only hired managers and within that new five year window it was out of business.
  3. sirputz

    sirputz Well-Known Member

    Yeah I appreciate the reply. I know the risks, and luckily, it will be a second source of income for my family, nothing we require to survive. I'm still looking to start this venture, and fortunately for me, I am the only "supplier". It isn't a place that sells goods, but an entertainment area for families. Most of my expense is upfront cost and then labor after that.
  4. Wayne Stollings

    Wayne Stollings Well-Known Member

    My supplier was equipment for the startup which should have been a slam dunk but was not. Small companies can suck all of your time if you are not careful too. it was years before I took a work day off. Just remember what is most important when you get started. You may do well or it may fail through no fault of your own, but your family will be there either way. Good luck.

    If I were a few years younger we could talk, but some of my partners are actually trying to do the retirement thing so I have been buying them out, which leaves not so much left for other investments. I did pass this on just in case some of them were interested not knowing the level of investment you would need, but I expect it would be north of 50K and that should be doable if they have any interest.
    Auxie likes this.
  5. sirputz

    sirputz Well-Known Member

    Actually, I figured I'd only need about 25K total to get started. But I will gladly have more in the bank to make sure this is a success

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