Beginning a Small Business in Maine (Portland, Lewiston: apartment, foreclosures, rent)

[brien51]

Most of Maine sucks. Portland can only support so many restaurants. Bangor can be a bit upscale but the population isn't there. The working men in the paper mills and in the Shipyard in Bath all want cheap eats for lunch. Forget fine dining except for up in Bar Harbor, and along the coast for the summah season; ie July 4 through Laybah Day.

Miane is chock full of taxes, fees, and regulations. You will be regulated to death.

Go for NH. There is much more freedom and less regulation there. The ski resorts are gold mines because the Winters are long and the Lakes region is a summer's delight. There is also a better local clientele indiginous to the major populated areas.

My recommendation;

The upper Valley near Dartmouth in Hanover NH has a great mix of wealthy students, savy locals, and good infrastructure,, except of Rt 12-A in West Lebanon. I's been growing leaps and bounds since the 80's. The people from Vermont hop the border to avoid the sales tax on merchandise and often eat after shopping. Screw Maine. The only time they are busy is along the coast from 4 July to Laybah day. Not a long season if you get lots of rain.

I lived in the upper valley for years and it's a good and safe bet for an eatery, particularly one that serves simple food for the regular folks. If you get the Dartmouth students you will hit the jackpot. They mostly all have money. You might want to try Bison for burgers. 96% fat free and I'll bet most people couln't tell the difference between a rare - med rare bison burger from a beef burger. Good luck

[mainebrokerman]

Originally Posted by MacMaine

Back to locations... I'm wondering if near a college in a tourist town might do well. Getting the college kids is easy with proximity.

The University of New England in Biddeford might be a great location... as it is on the beach and summer renters come in when the college kids leave. There is one restaurant Buffleheads that has good food but is pricey for what it is and is seasonal from March to November and more caters to the tourists over the college kids (that are just a stone's throw away)... and there is a gas station that has a few groceries, surprisingly tasty breakfast sandwiches, muffins and more. I think a burger place would do well in the mix if there was any real estate within walking distance to set up shop. Especially free range in that area since it is a more environmental college and the tourists like something a bit special.

Wondering too about Yarmouth... since it is it's own little city but maybe picks up in the tourist season.

I'll be at the university of new england campus this weekend, I'll ask around, where the kids eat

college towns are a good idea!!

[Revi]

I have a couple of very small businesses, and have been doing business in Maine for over 25 years. I have learned a few things over the years.

1) Security. Put in cameras and get the security stuff first. It would have saved us over $2000 in the past couple of years. I figure I have spent over $6000 in fixing what criminals have stolen and messed with over the past 18 years.

2) Don't plan on making a lot of money. One of the reasons our businesses have lasted so long is that we don't have to make a huge profit to survive.

3) Energy costs. Both at home and in the businesses it's the only thing you can really change. Drive small cars, insulate and work on energy efficiency.

4) Try to enjoy what you do. Life is short, so why not do what you love? If it pays also, then it's even better.

[Kristin85]

Brien51, I am also from Connecticut (clearly) and have spent a lot of time in NH and ME. The reason why I chose Maine over NH is because I like being away from major populated areas. The populated areas of Maine have remained quaint over the years but eastern NH cities give off a pretentious vibe. I would give the Keene area a shot, but property taxes are sky high there and my husband opposes how difficult it is to get to a major city like Boston. We are prepared to rely mostly upon summer tourist season in Maine if locals choose McD's 3-4 times a week and our shop once a week. I don't understand where the hate of Maine is coming from especially since the new governor will likely wipe out or put regulations on hold to stimulate job growth.

I do like the idea of being near colleges. Bar Harbor is near the top of my list since there are a few universities in the area mixed with very limited year-round food options besides going to the supermarket or fast food places.

Revi, I was actually just looking at security cameras yesterday--I saw a deal in Maine for a lease-to-own set of 8 cameras for $100/mo. I would probably install cameras before the shop got up and running. From looking at different businesses up for sale in Maine, it appears that the average net income for a small restaurant is $70K-$100K/year. We already have combined income in that price range right now and we're finding it hard to pay for extras (vacations, new clothes, dinner at nice restaurants) so it is likely that once the shop gets up and running I may choose to work part-time outside of the restaurant for additional cash. Times will be tough for a few years, but who knows: maybe this can be a new local chain!

[taiinuk12]

don't over look the locals, tourists like to know where the locals eat, specially for a small unknown place.

Originally Posted by Kristin85

We are prepared to rely mostly upon summer tourist season in Maine if locals choose McD's 3-4 times a week and our shop once a week. I don't understand where the hate of Maine is coming from especially since the new governor will likely wipe out or put regulations on hold to stimulate job growth.

I do like the idea of being near colleges. Bar Harbor is near the top of my list since there are a few universities in the area mixed with very limited year-round food options besides going to the supermarket or fast food places.

Revi, I was actually just looking at security cameras yesterday--I saw a deal in Maine for a lease-to-own set of 8 cameras for $100/mo. I would probably install cameras before the shop got up and running. From looking at different businesses up for sale in Maine, it appears that the average net income for a small restaurant is $70K-$100K/year. We already have combined income in that price range right now and we're finding it hard to pay for extras (vacations, new clothes, dinner at nice restaurants) so it is likely that once the shop gets up and running I may choose to work part-time outside of the restaurant for additional cash. Times will be tough for a few years, but who knows: maybe this can be a new local chain!

[OutDoorNut]

Originally Posted by Kristin85

Also, I have heard about Maine having a negative small business environment; are there any specific reasons why starting a business in Maine is worse than opening a business in any other New England state (ex NH for obvious reasons)?

Article in todays Bangor Daily News:



Maine ranks last on Forbes list of "Best States for Business" - Bangor Daily News (http://www.bangordailynews.com/story/Business/Maine-ranks-last-on-Forbes-list-of-Best-States-for-Business,156267 - broken link)

. . .

[Kristin85]

Originally Posted by OutDoorNut

Article in todays Bangor Daily News:



Maine ranks last on Forbes list of "Best States for Business" - Bangor Daily News (http://www.bangordailynews.com/story/Business/Maine-ranks-last-on-Forbes-list-of-Best-States-for-Business,156267 - broken link)

. . .

Thank you for addressing this. The article says:

According to an article on the survey on Forbes.com, the survey measures business costs, labor supply, regulatory environment, the current economic climate, growth prospects and quality of life, figuring in 33 points of data. The survey ranks business costs — including labor, energy and taxes — most heavily, the article said.
“Growth prospects in Maine have deteriorated relative to the rest of the country. Job growth is expected to increase 1.3 percent annually over the next five years — one of the worst forecasts in the country,” the article said. “The state has endured a rash of business closings the past three years as well.”

I am prepared to move to Maine while the economy is bad and the workforce is shrinking, but are there specific regulations that are stopping people from starting businesses in Maine? I figured that if you can find a market in Maine, then you shouldn't have any problems opening a business. (Internet businesses started in Maine should do particularly well from this perspective.) However, I am completely clueless about whether or not the Maine state government is charging small businesses wildly high income taxes or requiring certain things (i.e. healthcare for all full-time employees) that other states do not require. Is there perhaps even another thread or a website that I could look at about this?

[AustinB]

Originally Posted by Kristin85

Thank you for addressing this. The article says:

According to an article on the survey on Forbes.com, the survey measures business costs, labor supply, regulatory environment, the current economic climate, growth prospects and quality of life, figuring in 33 points of data. The survey ranks business costs — including labor, energy and taxes — most heavily, the article said.
“Growth prospects in Maine have deteriorated relative to the rest of the country. Job growth is expected to increase 1.3 percent annually over the next five years — one of the worst forecasts in the country,” the article said. “The state has endured a rash of business closings the past three years as well.”

I am prepared to move to Maine while the economy is bad and the workforce is shrinking, but are there specific regulations that are stopping people from starting businesses in Maine? I figured that if you can find a market in Maine, then you shouldn't have any problems opening a business. (Internet businesses started in Maine should do particularly well from this perspective.) However, I am completely clueless about whether or not the Maine state government is charging small businesses wildly high income taxes or requiring certain things (i.e. healthcare for all full-time employees) that other states do not require. Is there perhaps even another thread or a website that I could look at about this?

Why not contact the chamber of commerce in a town of your choosing.

[Zymer]

Originally Posted by Kristin85

Revi, I was actually just looking at security cameras yesterday--I saw a deal in Maine for a lease-to-own set of 8 cameras for $100/mo. I would probably install cameras before the shop got up and running. From looking at different businesses up for sale in Maine, it appears that the average net income for a small restaurant is $70K-$100K/year. We already have combined income in that price range right now and we're finding it hard to pay for extras (vacations, new clothes, dinner at nice restaurants) so it is likely that once the shop gets up and running I may choose to work part-time outside of the restaurant for additional cash. Times will be tough for a few years, but who knows: maybe this can be a new local chain!

You can DIY with some cheap webcams an an old computer.

[Kristin85]

Originally Posted by AustinB

Why not contact the chamber of commerce in a town of your choosing.

I have a funny feeling that any Chamber of Commerce I talk to would sugar coat the issues in an attempt to bring another business into the chamber. I doubt that anyone would say "well, if you open a business in our town, you will pay 15-20% more income taxes than towns in <VT, CT, MA, etc.> but you should open one here anyway!" It would be helpful to see a list of reasons why Maine regulations/taxes are supposedly worse than other states. I haven't found any reasons yet.