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Obtained a bachelor's in business management from a for profit university, and have had over 10 jobs the last 15 years, if not more! My parents used to own a franchise, but ended up going south after 8 years. I really hate the idea of working for someone, I don't mind working 60-70 hours as long as I have something that I have ownership of. A lot of my skills lay in sales, I've sold commercial solar systems, worked in dealerships and b2b financial sales. Lately I have been thinking of purchasing a liquor/convenience store, my uncle has one that is profitable, and I have been working there for a while on/off. I would need to save approx. 90k over the next two years, which is do-able as I live at home with my parents. For me, work is very important, almost too important. I want to find something that will help me get to where I want to be financially. My plan was to use the store to save more funds to buy a large multi-family unit, and build a portfolio of real estate. Potentially another liquor store thereafter, or try for a am/pm or chevron
I tried opening a dealership last year, took out a line of credit for 10k, obtained a wholesale line of credit for 100k, and ended up closing after a year. LOST 10k. I figured out that as good as I'm at sales it isn't enough to offset the fact I am not mechanically inclined to fix cars. Plus, starting a business from scratch is VERY difficult.
My other train of thought is to try and attempt to obtain a CPA license and go independent that way. I understand the margins are much better, but I don't know if it's something I would be passionate about, I have always been good with people.
Should I consider opening a food franchise? (over 5 years experience in that) purchase an existing c-store? CPA route?
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,585 posts, read 81,206,701 times
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The average fast food franchisee only nets $90,000 revenue, and that’s before any loans needed to start out. Those making big money have 3-4 locations. The biggest problem today with any retail small business is the lease. If the property owner decide to sell for a big apartment or condo building you are out of business. The only way to be safe is to buy the property and the business, and that will cost a lot more. I had a business for 16 years, and moved twice, but remained in the same area so it didn’t hurt my business. I know people that own gas stations, and their profit on gas is so low that the convenience store is what makes them money. If you go that route, you want to be close to a large residential area and not near any supermarkets. Look into insurance first, too. Not only do you need the usual business liability and fire, but insurance for tank contamination from groundwater, crime and employee dishonesty loss, spoilage of food in case of power outage, liquor liability, and environmental in case of fuel spill.
I've read recently that it only takes 10k to open a Chick-Fil-A franchise. I couldn't believe it and had to to go their website to verify it. Sure enough, it's right there. If I ever needed to start over, I would seriously consider it. It's a low buy-in into an established brand that has a large following.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,585 posts, read 81,206,701 times
Reputation: 57821
Quote:
Originally Posted by oneasterisk
I've read recently that it only takes 10k to open a Chick-Fil-A franchise. I couldn't believe it and had to to go their website to verify it. Sure enough, it's right there. If I ever needed to start over, I would seriously consider it. It's a low buy-in into an established brand that has a large following.
That's their franchise fee, very low, but don't count on getting one. They get 20,000 applicants for every new location opened and are very picky about who gets it.
That's their franchise fee, very low, but don't count on getting one. They get 20,000 applicants for every new location opened and are very picky about who gets it.
That's their franchise fee, very low, but don't count on getting one. They get 20,000 applicants for every new location opened and are very picky about who gets it.
Getting really serious about ONE SINGLE thing? Yes.
Which skill/trade business/product you might really doesn't matter much.
Is there anything I am missing in terms of a rational outlook. To many emotions in decision making, a la excited to have your own business. I understand I should look over the books VERY thoroughly before purchasing. My plan is to go with a stand-alone c-store.
If you're not mechanically inclined, I wouldn't consider buying properties and becoming a landlord. You would have to farm out all the plumbing, electrical and handyman work and that would seriously affect your bottom line. Maybe consider purchasing an under performing business and turn it around, if indeed you have the skills for said business. That may be a convenience store, since you have an interest in that, or a service business where somebody wants to retire, just wants out, and will stay on for awhile to train you in the industry. But regardless, do not put all of your money out to buy the business. Keep enough in reserves to carry you through the transition. Seems like common sense but you would be amazed how many will not heed this warning. Good luck.
I've read recently that it only takes 10k to open a Chick-Fil-A franchise. I couldn't believe it and had to to go their website to verify it. Sure enough, it's right there. If I ever needed to start over, I would seriously consider it. It's a low buy-in into an established brand that has a large following.
Yeah right, it would take a lot more than that to open a Chick-Fil-A. Franchise fees are hardly your only expense as a restaurant owner.
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