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Old 07-03-2018, 02:31 PM
 
Location: Metro Detroit Michigan
2,582 posts, read 684,246 times
Reputation: 2163

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Quote:
Originally Posted by lieqiang View Post
Lots of stiff competition in the funeral business, with all the consolidation many of the Mom&Pop parlors have gone under.
I like the beginning stiff competition yep there stiff all right, lol
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Old 07-03-2018, 02:38 PM
 
1,063 posts, read 323,221 times
Reputation: 1423
So basically what I'm hearing is:

- Anything under 100k is fishy
- The barrier to entry to buy even a struggling small business to revamp is unachievable without breaking your back and taking on enormous risk
- No business category is significantly better than another in terms of immediate short term ROI when it comes to retail storefront operations

Is there virtually NOTHING you can get into at the $10-50k level that you can actually put your hands on?

Perhaps I should look into co-ownership instead of owning outright. Caution on doing business with family aside - I'll be able to raise more capital if I include funds from one parent or both.
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Old 07-03-2018, 02:52 PM
 
3,267 posts, read 2,336,935 times
Reputation: 5622
I'm not getting how someone works a full time job, thinks they can invest just $20-50,000 and operate a retail business.

OP, you need to do a real business plan, including realistic numbers for all your expenses.

Most liquor stores I've seen are staffed by the owner. Just not that much money in small stores to pay lots of part timers, Grandpa checking in, mom doing artwork, marketing campaigns, advertising, CPA's, rent, utilities, licenses, insurance, payroll taxes, merchant fees, alarms/security, etc.
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Old 07-03-2018, 03:02 PM
 
Location: IL/IN/FL/CA/KY/FL
1,124 posts, read 798,460 times
Reputation: 1255
I am in KY and am into bourbon and interact with store owners here often - the ones that are individual stores, all of them that I've seen are staffed by the owner as well. The only ones that have passive ownership are the equity groups that own 10+ locations in the area.

As for other recession-proof industries, I look toward the stock market to see what stocks actually performed well during the last recession.

-Dollar stores
-Car parts stores (because people aren't buying new as much)
- to the same degree but not stock market based - car repair shops

Not sure where you could be a passive owner of a liquor store, but you could most likely be a passive owner of an auto parts store, especially as a franchisee of a major name store.
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Old 07-03-2018, 04:06 PM
 
3,994 posts, read 8,726,638 times
Reputation: 3177
I would be worried about what happens if the laws change. Liquor licenses sell for 6 figures in this state, because grocery stores are limited and can not sell alcohol whatsoever (in general). Additionally they are limited per town (basically by population, plus grandfathered licenses), so if the license exists, theoretically there should be a market for alcohol.

The law could change to be similar to other states at any time and you would be screwed out of the 200k you might have paid for the liquor license, with no recourse.
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Old 07-03-2018, 07:24 PM
 
3,325 posts, read 3,260,957 times
Reputation: 8433
Food carts. You make your own hours. You have to follow food safety regulations, and you have competition in getting a spot, but I have heard that you can make very good money on them. You're your own boss, you only work when you want to.
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Old 07-03-2018, 07:45 PM
 
1,255 posts, read 808,888 times
Reputation: 2246
Quote:
Originally Posted by COcheesehead View Post
Regarding laws ...they change. Colorado just had a big change in liquor laws so now Costco, Kroger etc can sell liquor.
Same is happening in Minnesota.

Unlike other states where I have lived, Minnesota did not allow Sunday sales nor grocery sales for anything above 3.2 beer. Small mom-and-pop shops - and in some areas - municipal shops owned by a government (city or county, I believe) were pretty dominant.

After many attempts over the years (blocked by some of the strangest of partnerships), Sunday sales was finally approved a couple of years ago. And now there is an attempt to allow sales in convenience stores/gas stations. And big box stores like Total Wine are moving into the Twin Cities. Target is now adding liquor to their remodels (still have to have physical separation within the retail space, so basically putting up a store within the store with own exit).

So, yeah, laws can change and have sweeping effects.
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Old 07-03-2018, 08:55 PM
 
Location: USA
128 posts, read 65,696 times
Reputation: 276
Quote:
Originally Posted by MechaMan View Post
So basically what I'm hearing is:

- Anything under 100k is fishy
- The barrier to entry to buy even a struggling small business to revamp is unachievable without breaking your back and taking on enormous risk
- No business category is significantly better than another in terms of immediate short term ROI when it comes to retail storefront operations

Is there virtually NOTHING you can get into at the $10-50k level that you can actually put your hands on?

Perhaps I should look into co-ownership instead of owning outright. Caution on doing business with family aside - I'll be able to raise more capital if I include funds from one parent or both.


I think a lot of great recommendations have been posted. You're right, you're not getting anything for less than $200K that doesn't require and an immense amount of time, investment, and risk. For $25K, buy a CD, options or lottery tickets, your pick. Rate of return...... dunno, I don't buy lottery tickets.


Co-ownership?? or a partnership?? omg. My advice.... never, ever, consider someone for a partner unless they're a bank.
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Old 07-04-2018, 12:40 AM
 
645 posts, read 515,925 times
Reputation: 1287
Quote:
Originally Posted by parentologist View Post
Food carts. You're your own boss, you only work when you want to.
Not sure about this. If you want a regular clientele, you better be there selling food when the public comes looking for your food truck.
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Old 07-04-2018, 06:08 AM
 
1,063 posts, read 323,221 times
Reputation: 1423
Quote:
Originally Posted by nirvana07 View Post
Not sure about this. If you want a regular clientele, you better be there selling food when the public comes looking for your food truck.
There are a lot of food trucks with limited days/hours in my neighborhood. And they are still very popular because of the quality. I will look into this...
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