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Thanks for the info. That is too bad to hear, I never got to try it. Are you in Philly? When I visited my corporate office in West Chester, I tried to go but didn't have enough time
You say the college is two miles down the road from your prospective site. That is WAY too far for a college student to want to run out and grab a bite to eat. They're going to go two blocks away to the local pizza joint or the fast food restaurant instead of driving four miles round trip to get your take-and-bake, and then have to wait for it to cook after they make that trip.
Nope, bad idea. You might as well just flush the money down the toilet.
I do not think this is the time to open a small business because it is most likely to go from small to nonexistant in a very short time.
I don't understand the purpose in making a blanket statement like this. For one, it's poorly thought out and incorrect. For another, it adds absolutely nothing of value to an otherwise intelligent discussion of small businesses.
Perhaps, Greg, you could put some more thought into a detailed post that spells out why you feel the way that you do.
Thanks for your comments. More rental property would be pretty much impossible at the state of the banks.
Have you talked to banks? I would try talking with some of the smaller, local banks about loans. They're not as likely to be tied up in the financial mess and are usually more willing to lend to people in their communities.
Quote:
Originally Posted by l.wilson
So my biggest question was since I already own the commercial property and my monthly payment would only be around $400 after the two upper units help pay the morgage, does this seem like a good venture. I know other commercial property with this much sq. ft. would lease for thousand a month, not to mention upkeep fees etc. It seems to me anyway that I do have an advantage in my overhead isn't as high as some of my competitors.
I'd drop the high-risk food idea and lease the commercial space to someone else for "guaranteed" monthly income. You'll have a lot fewer headaches and probably come out way ahead financially.
Location: When things get hot they expand. Im not fat. Im hot.
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Quote:
Originally Posted by 8 SNAKE
I'd drop the high-risk food idea and lease the commercial space to someone else for "guaranteed" monthly income. You'll have a lot fewer headaches and probably come out way ahead financially.
I agree this is the better way to go.. But if you have your heart set on a business how about considering a consignment shop. The rent will be cheap as you say. And you wont have much in inventory because most of it will be consigned.
I dont know how big your space is but if its large you could even rent out spaces to others. Charge them a monthly booth rent plus a percenage of sales. Or you could just do all booths and keep a few for yourself.
In this economy everyone is looking for a deal. I shop GW and SA myself. Im thinking that college students will be looking for inexpensive things to funish their rooms and will want to get rid of it when they go home. From what Ive seen they like to buy clothes. Around here vintage sells good. BTW vintage could be 1970's
Im just tossing this out as an idea. Youll need to reseach it to see if is feasable. You need to know your market. Personally if it were me id go with all consigment and booths until I figured things out. This way if clothes furniture etc dont sell you just give them back to the consigner . Set a time limit tho. You need to rotate stuff. Buyers like fresh merchandise.
Last edited by Cecilia_Rose; 01-27-2009 at 08:00 AM..
Well I will make a blanket statement. I would advise against a start up in any kind of economy unless you don't need the money you are risking, i.e. the capital requirements are low. Period. A retail start up in this economy would be very risky. A nice, well established business with great CASH FLOW is what you want and can usually be found for not much more than the cost of an equivalent start up.
I don't think you have enough capital to attempt much of anything at this point though unless you can find a business owner who want to sell and is willing to take the risk of financing you. I have about the same amount of cash that you do and it isn't enough for me to buy a business that can provide anywhere near the income I need to survive.
But we are back to my first question - how much money do you need to make each month?
There are of course exceptions to my statements but they do not exist in retail.
Well, to start (first year) I wouldn't really have to make money from the business. I do make a modest amount from my rentals and since I really have no dept. my bills are very low. I do own the building and the remodel needed to be done would be done by my workers that I have used on my flippers. So I wouldn't have to hire contractors at contractor wages. I would pay an hourly rate which would be drastically lower. The economy is in the toilet however the town I have my property in does have a major prison, university, and VA hosp. to support the economy of this town. Anyway, my business has been real estate and I don't see that market comming back soon. I could go back to school for a few years or try to figure out some type of business to put into this commercial building I own. I am entertaining the idea of an upscale second hand store. Beautifull furniture on craigs list can be found for peanuts.
I made my blanket statement based on the premise that 80% of small businesses fail within two years or so. I was running a fairly successful small alternate energy business in the early 80's until a change in tax policy wiped out my customer base. I paid all my debts but lost my savings when the business failed.
I.wilson. It is plain that you want to increase your income but I think that you should, as others have suggested, stick to the real estate business you know. With your successful history, I think you could probably present a good case to a local bank for financing more real estate in the current low price market. After all banks make their money by lending, not hoarding. You might have to wait a few years for the payoff but that is what investment is all about.
I agree with leasing out the retail space instead operating an IMHO good times business like take out food. The upscale used furniture or consignment store has possibilities. Several have been opened in my area since the slowdown started. Even the pawn shops are beginning to do well.
After I retire and have the security of my pension to carry the day to day expenses, I plan on opening a business involving (details have not been worked out) artistic metal working in iron and copper. I need to redevelop the skills I had but I am fairly certain this is possible. I do not object to being in business for your self. I am just not willing to risk more than I can afford.
Like several of the others, I like what you are doing. I own a rental business myself and your arrangement sounds really nice. With the econeomy and home prices down, it could be a great time to expand your rental business...Prices are good!
If you haven't done it already, remember to protect yourself! Plenty of small businesses have failed because they didn't consider insurance and asset protection to be important. Especially in rentals, it's just a matter of time before something happens...BELIEVE ME! I found my insurance agent local to my properties and I used [URL="http://www.ezonlienfiling.com"]www.ezonlienfiling.com[/URL] to help make certain I got my LLC's done correctly. They were a great help.
Small business have some advantages.some of are as below:
A small business can be started at a very low cost and on a part-time basis. Small business is also well suited to internet marketing because it can easily serve specialized niches.
It have some disadvantages also like:
Small businesses often face a variety of problems related to their size. A frequent cause of bankruptcy is underspecialization. This is often a result of poor planning rather than economic conditions
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you are on the right track
