For the older guys around here... business related

[1911'S 4 Me]

$60,000 truck, $40,000 lawn equipment, 6 illegals @ $10 hr.
Lot of tax free cash money. You drive, they work.

 

[oldag]

Develop a real business plan. Good examples will be hard to find and books on this are often not worth much.

You can use a spreadsheet to develop a forecasting tool for income statement/balance sheet/cash flow statement. The latter is the most important. A business (small business in particular) lives or dies by cash flow, not profit. And growth can kill a business much quicker than decline. Use the financial model to see what happens if sales are 50% of what you think they will be. And if they are 150% of what you think they will be. See what both scenarios do to cash flow.

You can learn a lot through the other portions of the business plan as well. Who is the market, market size, marketing strategy, operations strategy, etc.

An example of the contents:

1.0 BACKGROUND Page 1
1.1 The Industry Page 1
1.2 The Product Page 1
1.3 The Company Page 1

2.0 TARGETED OPPORTUNITY Page 2
2.1 Macro Trends Page 2
2.2 Market Assessment Page 2
2.3 Customer Base Page 3
2.4 Competitive Analysis Page 3
2.5 Business Status Page 4
2.6 Expansion Opportunities Page 5

3.0 MARKETING PLAN Page 5
3.1 Marketing Strategy Page 5
3.2 Distribution Channels Page 6
3.3 Sales and Promotional Tactics Page 6
3.4 Pricing Tactics Page 6
3.5 Product Support Page 6
3.6 Warranty Page 7

4.0 OPERATIONS PLAN Page 7
4.1 Management Philosophy Page 7
4.2 Organizational Structure Page 7
4.3 Operational Strategy Page 7
4.4 Site Selection Page 9
4.5 Regulatory Issues Page 10

5.0 TIMELINE Page 10

6.0 FINANCIAL PLAN Page 10
6.1 Income Statement Projections Page 11
6.2 Cash Flow Projections Page 11
6.3 Balance Sheet Projections Page 12
6.4 Sensitivity Analysis Page 12
6.5 Cost Control Page 13

7.0 ECONOMICS OF THE BUSINESS Page 14
7.1 Cost Structure Page 14
7.2 Profit Margins Page 14
7.3 Break-even Analysis Page 14

8.0 LEADERSHIP Page 14
8.1 Management Team Page 14
8.2 Management Compensation and Ownership Page 15

9.0 RISK ASSESSMENT Page 15
9.1 Market Risk Page 15
9.2 Financial Risk Page 16
9.3 Operations Risk Page 16

10.0 PROPOSAL Page 16

APPENDICES Page 17
Appendix A – Product Examples Page 18
Appendix B – Letters of Customer Interest Page 36
Appendix C – Income Statement Projections Page 48
Appendix D – Cash Flow Projections Page 58
Appendix E – Balance Sheet Projections Page 65
Appendix F – Sensitivity Analysis, Cash Balance Page 69
Appendix G – Management Resumes Page 71

PM me if I can help.

 

[Rhino]

This time next month you will still be getting recommendations.

That's absolutely OK. I figure it may take 3-9 months to make a decision!

 

[Sam7sf]

I look forward to reading what is decided. Best wishes.

 

[dsgrey]

Find a niche. An example where my son-in-law just fell into this business.

My area is high growth and nobody does their own lawn. Lawn services are overpriced and never show up. His dad has health issues so SIL started doing his lawn for free. 2 neighbors saw him and asked about mowing their lawns and they offered money he just couldn't refuse for such small yards. 3 weeks later, he's pulling in $500-$600 a day profit doing this part-time on weekends. Overwhelmed with calls and thinking about other services he can provide off season. He's working his plan and will probably quit his insurance job.

 

[Lonesome Dove]

Deer farming. You’ll need some credited employees but its a money maker.

 

[Sam7sf]

Coon peckers. Amazon has em for a good amount.

 

[Axxe55]

I'll bet that paper route is looking real good about right now!

 

[oldag]

Fiberoptic splicing. Windfarms use a ton of it. And those repairs ain't cheap.

 

[Rhino]

Fiberoptic splicing. Windfarms use a ton of it. And those repairs ain't cheap.

I’m thinking I’d prefer less driving, more developing community.

 

[popper]

A business (small business in particular) lives or dies by cash flow, not profit. So true, must make a plan, Minimal $ for startup, short term contracts. 50% run out of cash in 1st year. Had a relative of some sort that did hydro growing in Ca. when I was a kid. Big operation. My kid has an in-law that does the ice retail thing, robbery is the big problem. Years ago I did a talk for NECA about family owned business. 2 generations is lucky. Do it for yourself, not the kids. Some sort of retail is easiest, not fast food. Short term lease, sell some stuff and see if it works. Daycare is profitable but regulations abound.

 

[1911'S 4 Me]

How about a funny farm? Many of us here could visit.

 

[Rhino]

How about a funny farm? Many of us here could visit.

So, a mobile funny farm that comes to you?

 

[1911'S 4 Me]

That would be nice.

 

[Sam7sf]

Well got a few members from Oregon, including myself, that could be main attractions.

 

[Chuckles]

If you were middle age, entrepreneurially bent, and wanted to do something that would benefit the local economy / provide US jobs / maybe doing something food chain or manufacturing related in the Central Texas area, what are some ideas??? I like my current job, but feel an urge to do something soon for myself and try to build some sort of business that a kid of mine could inherit. I like working with people, don't like solitary work as much as my employers might think, have even enjoyed teaching people as a flight instructor, but not necessarily sure I want to start another aviation business.

I worked with a lot of business owners at my last job, here is what I’ve learned.

1. find your passion (your business should be something that you’re excited about), because you’ll need that to get through the tough patches.
2. Find what you are good at (could be one or more things), and the find a business that combines your skills with your passions. If you found something you’re passionate about and could be good at and have major deficiencies, find a business partner.
3. Find the opportunity/location, identify where your customers will be and find the best location to deliver those goods/services to them.
4. As a general rule, avoid being an online business. Of all of the first time business owners I encountered the highest rate of failure was with “online businesses”.
5. Surround yourself with the right people that will help your business thrive. I’ve seldom come across any business owner that did it all by themselves, smart business people know how their deficiencies and find people to help them address those deficiencies.
6. Successful business owners are typically serial entrepreneurs, and each time they fail or sell a business they learn and get better (so prepare for the possibility of failure, and learn and do better next time).

 

[glenbo]

Have you thought about a bar, beer joint, ice house? They don't take much money to start. A small building with yard space and parking, an ice machine, anyone with decent carpentry skills can build a bar, stools, a jukebox, and you're good. You have to put up with people who drink beer, get loud, and listen to country music most of the time. One warning: pool tables are no good. That's where the arguments start.

 

[baboon]

Have you thought about a bar, beer joint, ice house? They don't take much money to start. A small building with yard space and parking, an ice machine, anyone with decent carpentry skills can build a bar, stools, a jukebox, and you're good. You have to put up with people who drink beer, get loud, and listen to country music most of the time. One warning: pool tables are no good. That's where the arguments start.

Your forgot all about a license & insurance!

 

[msharley]

Was thinkin'........(always hurts)

How about?

A DRIVE THRU................

TOPLESS....................

COFFEE SHOP?

 

[Rhino]

Was thinkin'........(always hurts)

How about?

A DRIVE THRU................

TOPLESS....................

COFFEE SHOP?

Some of y’all don’t know me very well I can see.