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Old 07-05-2018, 10:30 AM
 
3,545 posts, read 1,995,111 times
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Storage lockers is a gold mine... especially if you can get capital to build multiple and focus on those properties that have live in tenant operators to run them and maintain them.

Also selling high margin accessories like locks, boxes & moving supplies will also help. Having connections for manual labor and movers is key. Also having RV and boat parking are huge out where we live.
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Old 07-05-2018, 10:34 AM
 
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My cousin once owned a liquor store. The margins didn't cut it, nor did the location. You'll have to monitor all product turnover to fine tune what sells in your location. I have a client who owns a liquor store which has been in operation for many decades and he's ready to walk. It takes a lot of work to make such a business sustainable.
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Old 07-05-2018, 11:12 AM
 
Location: North Idaho
21,003 posts, read 25,765,271 times
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There are several service type businesses that can be started for well under $50,000, but I'm not so sure about service jobs being recession proof. Besides it sounds like OP doesn't have time to work a business. It sounds like he intends to hire the work done while he only does paperwork.

Storage buildings might work. In a recession, people lose jobs and get evicted. They will often put their stuff into storage and pay for a few months before they have to abandon their stuff. The problem would be to prevent people from living in the units.

I think OP is short on cash to buy a storage business.
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Old 07-05-2018, 11:18 AM
 
Location: North Idaho
21,003 posts, read 25,765,271 times
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Maybe for $50, 000, OP could start one of those internet gambling websites that are located off shore. I suspect that people gamble worse in a recession. They are more desperate.

I have no idea what the computer programs would cost or if they could be purchased off the shelf.
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Old 07-05-2018, 02:11 PM
 
Location: Raleigh
6,977 posts, read 5,191,475 times
Reputation: 9416
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'm not so sure on that. I think the "business" (your $22K liquor store) is likely the license and the inventory. Everything else is rented.

Your big struggles are going to be loss prevention and depending on the neighborhood, clientele, etc...
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Old 07-05-2018, 02:12 PM
 
Location: Raleigh
6,977 posts, read 5,191,475 times
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Quote:
Originally Posted by oregonwoodsmoke View Post
There are several service type businesses that can be started for well under $50,000, but I'm not so sure about service jobs being recession proof. Besides it sounds like OP doesn't have time to work a business. It sounds like he intends to hire the work done while he only does paperwork.

Storage buildings might work. In a recession, people lose jobs and get evicted. They will often put their stuff into storage and pay for a few months before they have to abandon their stuff. The problem would be to prevent people from living in the units.

I think OP is short on cash to buy a storage business.
I've heard they are incredibly profitable from many different sources.
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Old 07-05-2018, 02:28 PM
 
3,588 posts, read 1,515,636 times
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Quote:
Originally Posted by JONOV View Post
I've heard they are incredibly profitable from many different sources.
Self-storage is not new.

If something that has been around a long long time is still "incredibly profitable" then that is because of several things:

- High barrier to entry (do you have to actually buy the land and put up all the units, or what?)
- High downside risk (like, 50% of them go out of business)
- Require commitments from the owners that most people aren't willing to make

And so on.

I suspect that the "incredibly profitable" period for owning a self-storage facility is past. I know that most significant metro areas have multiple big chains of these, so you would face entrenched competition with deep pockets.
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Old 07-12-2018, 10:12 AM
 
Location: East of Seattle since 1992, originally from SF Bay Area
28,400 posts, read 50,602,810 times
Reputation: 28637
I worked at a liquor store when I was in college. Loss prevention is huge. Beside people slipping a pint into their coat, you have employees taking home booze, or drinking it on the job. With all of the cash sales you are also one of the more vulnerable stores to robberies. The owner had the scars from several attacks, and I was robbed at gunpoint once shortly before I graduated and moved on. No business is really recession-proof. Even alcoholics will either cut back or go to cheaper (less profitable) booze when times are tough. The worst for me was seeing the effect of my sales on people when they stumbled in for another bottle and I had to cut them off. Poster Tijlover also makes a good point, to succeed you need to be in an area with a lot of people but no big box stores to compete with. The place I worked at was there 25 years but closed up when Costco, Walmart and

Target all moved into the area.
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Old 07-12-2018, 10:44 PM
 
Location: Connecticut
3,537 posts, read 2,693,805 times
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20k for a liquor store in Hartford, CT ? That is going to be in the worse ghetto you can imagine. Only worse location would be in Bridgeport, CT. There is money to be made in the ghetto though if you can tolerate the BS. Not much corporate competition in the ghetto.


One downside is you'll have to have all your cash deposits picked up via armored truck every day. First time you walk out of that store with the days cash receipts you'll be robbed.
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Old 07-14-2018, 10:52 PM
 
1,406 posts, read 2,741,805 times
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Due to competition, there's no pricing power.

As a result, income is a product of volume sales.

And volume sales requires long working hours.

A drive-thru helps.

Very much like Asian owned and operated shops.
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