Saturday, March 13, 2010

Making it Happen

Ok so lets go to a second to the topic this blog is actually supposed to be about, trying to create some businesses / cash. So to catch you up I've been working with some guys to start a business in my home town. Its a simple business that allows for an absentee owner and isn't hard to pull off. The three cons are 1. We don't have industry experience 2. There are some capital hurdles 3. the revenue is capped (but locked in).
To combat the first problem we talked to someone who has 20+ years of business experience and helped us get the numbers around our model and helped prove out the plan. For the second problem one of my partners parents let us borrow some equipment that we intend to sell and use as capital to start our business. For the final problem we're still looking at variables but we're ok with the capped earnings because it's stable income.
Ok so we've found a space with great views of downtown and have been talking to the owner. Last weekend we even had a face to face meeting and it went pretty well. He thought the numbers looked good, solid plan, wanted us to flesh it out more but that's understandable since we knew we had work to do. Now here's the problem. The plan was hitched on us selling the equipment to fund our business, but we're starting to think that equipment wont sell. This means we're stuck with equipment we didn't plan on using that we still need to pay for (expenses without revenues = bad). So to fix this problem we're getting ready for a Plan B.
Plan B is this: use the equipment for its intended purpose and start that business. We actually starting looking at that business and it seems like it might be a better model all together (lower operating cost). Anyway, the point is that we learned not to rely on things outside our control, yet on the bright side we're going to make the most of what we have and make it happen. For now the equipment is still for sale (we're giving it a month) while we're simultaneously looking for a new space to start out new business (we want a lower rent space). I'll keep you posted on how it goes...

1 comment:

  1. My dad says its very hard to be profitable in that type of business if you arent actually running it yourself. Just a thought