For the older guys around here... business related

[TipBledsoe]

This feels like a story is involved.

Yes it does. We need to know “the rest of the story.” I would think a storage facility would be a good idea. Why not?

 

[Dawico]

Oh yeah, never buy a storage facility or build a laundromat.

This feels like a story is involved.

Yes it does. We need to know “the rest of the story.” I would think a storage facility would be a good idea. Why not?

I'm guessing the word "buy" plays a big part in that. I can guess but will wait for the explanation.

Sent from my SM-G998U using Tapatalk

 

[toddnjoyce]

This feels like a story is involved.

Completed storage facilities cash intensive to build from scratch but are easy to make look more valuable on paper; sellers will claim 100% occupancy at inflated rates so they can recoup their initial land acq and construction costs. As mentioned earlier, there are several ways one can expand services to increase profitability as well. Boat/RV pickup/delivery is one. RV hail shed w/20A service for a battery trickled billed to lessee could be a huge rent premium.

Laundromats are cheap to build…box with a lot of plumbing and electrical. OpEx is huge…commercial utility rates mostly at peak rate times… and you’re always replacing commercial durable goods. Since it’s mainly a cash business (that’s slowly changing), easy to cook the books any way you want. Location is everything and your target market is importing all sorts of bugs (pests) in their laundry, so pest control is an added service you’ll want but might not be told about as an existing expense.

 

[SQLGeek]

Not as exciting as I would have hoped for but that makes a ton of sense.

I've thought about doing niche consulting for small to mid-sized IT shops but that's about it. I kind of like not having the stresses of running my own business.

 

[Rhino]

When I was a consultant, I did some work for a company in NY that did very specialized heat treating. They had hired this Russian engineer who knew this stuff inside and out and the company was doing really, really well. Then, some little thing happened. They had a concrete vessel crack, so they placed it in a storage area that was on leased property next to the little plant until they could recover the material inside the vessel. The landowner was paranoid and called the state about the vessel. Suddenly the company was hit with fines and threats from the EPA and the NYDEC. Their attorney informed the owner that he might go to prison. (Meanwhile, there was no danger or damage to the environment. It was just a licensing issue.) Now the guy had started this company so he could pass it along to his sons (who were actively working there.) After going a few rounds with EPA, he told me he should have taken his money and bought his kids each a McDonald's franchise.

I tell you this story because there are many land mines out there for businesses. You can be sued by the government or by customers. You can be crushed on social media for any perceived indiscretion - like the pillow guy who supported Trump. If you're going to set up a business, make very sure that you have all the right inputs to avoid issues long before you open the doors.

Everyone thinks that China is manufacturing most of our goods because they have cheap labor. That's not entirely true. The main reason is because nobody is willing to invest a billion dollars in a computer chip manufacturing company in the USA because of all the government interference and all the corruption among the politicians. A new company in the USA will be gone in less than 30 years, on average, and that time is rapidly shrinking.

Yeah, that kind of stuff is scary, and frustrating.

 

[Rhino]

First, are you prepared for the extremely long hours and stress of being a business owner? Having close friends who owned restaurants (successful places) for some years, I would strongly advise against that. Incredibly long hours and impossible to get good help.

Also, many times the kids don't want to pick up the family business.

I have owned my own company in the past. Plenty of stress to go along with the rewards.

You should see some of the hours I work for someone else... Yes, I can handle that.

 

[Rhino]

Couple of things top of mind

1. Small Business Development Center / S.C.O.R.E. can be great resources
2. @Fishkiller got it right: find a niche, then exploit it
3. Answer these questions: what is my the market segment, who is my target population, how do I position my product/goods/services
4. Understand the finances of running a business; they’re different than starting a business

I ran a small flight school of my own about 7 years ago. Wasn't big enough to absorb a student mistake that cost a plane. So I know that things don't always go your way.

 

[kbaxter60]

Biggest downside to a drive-in, is they take up a lot of real estate. That was just one of the reasons many have gone by the wayside over the years.

True dat. I wonder if you could do a "mash up"? You know, like rifle range during the day and movie drive in at night?
Just don't cross the streams...

 

[Rhino]

Couple of things top of mind

1. Small Business Development Center / S.C.O.R.E. can be great resources
2. @Fishkiller got it right: find a niche, then exploit it
3. Answer these questions: what is my the market segment, who is my target population, how do I position my product/goods/services
4. Understand the finances of running a business; they’re different than starting a business

#2 is really what I'm trying to figure out.

 

[Rhino]

This is an excellent idea. Hydroponic greens, sprouts, and fruits are pretty easy and highly successful if you have the right set up.

you can start small and scale up or down pretty easy.

There is a lot of info on the Internet…

Commercial hydroponics- Should you go pro? - Hydroponics Gardening Simplified

Thinking of starting up a commercial hydroponics operation? Read this discussion about the pros and cons of going pro first

www.hydroponics-simplified.com

This is something I'd for sure consider. I didn't mention this, because I'm trying not to be tied to a piece of land, but I should be able to use "my portion" - which is a bit ambiguous - of the family ranch - probably about 40-60 acres worth east of Lampasas.

 

[Rhino]

I should say this. I knew the guys behind Trex Arms back when they were in Texas. I'm not sure I want to do something in the gun industry - although that wouldn't offend me, but I'd like to try to do something where I ended up providing good work for more people in the community, kind of like what they are doing.

 

[toddnjoyce]

I ran a small flight school of my own about 7 years ago. Wasn't big enough to absorb a student mistake that cost a plane. So I know that things don't always go your way.

Aviation is a tough business, especially a flight school. Was the plane owned or a lease back?

I have a couple of mentors who do nothing but instrument upgrades and specialty transitions (one Mooney guy, one CSIP guy) only in client planes as well as provide ferry services. Another guy I know in the DFW area is a day-rate pilot for a group of specialty doctors that go all over east Texas to provide smaller hospitals with a staff capability once or twice a week. They group owns an A36 he pilots for them.

What I *think* I’m hearing you say isn’t that kind of business, probably. What I heard is build a business that is profitable enough to grow beyond one or two employees AND provide an opportunity for kids to takeover eventually or valuable enough to sell and leave a legacy if the kids have no interest in the family business.

If that’s the case, a key attribute you’ll need is a business that’s “recession-proof”. What goods or services do people need no matter the economy, or, what goods/services target markets that are relatively immune to economic fluctuations? How could you pivot that business when there’s a system perturbation, like having a sit-down restaurant closed for indoor dining for extended periods of time?

 

[FireInTheWire]

Open a Mexican restaurant. The little town of Snyder here has a population of around 11,000 and they have about 40 of them in operation.

 

[Rhino]

Aviation is a tough business, especially a flight school. Was the plane owned or a lease back?

I have a couple of mentors who do nothing but instrument upgrades and specialty transitions (one Mooney guy, one CSIP guy) only in client planes as well as provide ferry services. Another guy I know in the DFW area is a day-rate pilot for a group of specialty doctors that go all over east Texas to provide smaller hospitals with a staff capability once or twice a week. They group owns an A36 he pilots for them.

What I *think* I’m hearing you say isn’t that kind of business, probably. What I heard is build a business that is profitable enough to grow beyond one or two employees AND provide an opportunity for kids to takeover eventually or valuable enough to sell and leave a legacy if the kids have no interest in the family business.

If that’s the case, a key attribute you’ll need is a business that’s “recession-proof”. What goods or services do people need no matter the economy, or, what goods/services target markets that are relatively immune to economic fluctuations? How could you pivot that business when there’s a system perturbation, like having a sit-down restaurant closed for indoor dining for extended periods of time?

I owned it. I actually have another plane now and do use it for instruction (www.TexasTailwheel.com) but if I leave my full time job (aerial photography) I want to do a ground business with growth potential doing something to help people. I can always do specialty flight instruction on the side, but it's not the kind of business I could take my boy with me and teach him the ropes - and yeah, if he doesn't like it and wants to go elsewhere, I want him to at least have had some business experience.

 

[Rhino]

Open a Mexican restaurant. The little town of Snyder here has a population of around 11,000 and they have about 40 of them in operation.

If I was in Snyder, I'd do a Salata franchise before a Mexican Restaurant. I've actually been thinking that direction a bit, but not sure that's where I want to go. There have been months I've landed in Snyder once a week, so I know what you're talking about.

 

[1911'S 4 Me]

You could open a ho house. You may have to run it by hand.

 

[Sam7sf]

Op said middle age. I’m almost there. I’m trying to be aggressive with retirement. 401k, ss, it’s all bs. A guy has to save a yearly income if he’s gonna want to retire early. I’m very interested in your post op. I wish you well.

I have several thoughts. I believe success falls into two categories: Stupid bs and product or service people are reliant on. Both can make lots of money. My problem is I keep asking dumb shit like: what do people need? Meanwhile people are buying fidget spinners or ball sacks for trucks.

People will still need basic items though. Especially thanks to democrats tanking the country! Food. I’m trying to turn my property into a farm with an orchard, herbs, chickens. Then hopefully I can get out of it and pass it on to someone else for x amount.

 

[jordanmills]

Not as exciting as I would have hoped for but that makes a ton of sense.

I've thought about doing niche consulting for small to mid-sized IT shops but that's about it. I kind of like not having the stresses of running my own business.

I did that for a while. It was not worth the stress. I wouldn't mind doing more of the work, if someone else ran the business.

 

[Rhino]

it’s all bs. A guy has to save a yearly income if he’s gonna want to retire early. I’m very interested in your post op. I wish you well.

I have several thoughts. I believe success falls into two categories: Stupid bs and product or service people are reliant on. Both can make lots of money. My problem is I keep asking dumb shit like: what do people need? Meanwhile people are buying fidget spinners or ball sacks for trucks.

People will still need basic items though. Especially thanks to democrats tanking the country! Food. I’m trying to turn my property into a farm with an orchard, herbs, chickens. Then hopefully I can get out of it and pass it on to someone else for x amount.

Yeah, but the Texas Hill Country can be really tough. This is a good year for the grass, but there are plenty of years you'd need to irrigate crops if you wanted them to survive.

 

[FireInTheWire]

If I was in Snyder, I'd do a Salata franchise before a Mexican Restaurant. I've actually been thinking that direction a bit, but not sure that's where I want to go. There have been months I've landed in Snyder once a week, so I know what you're talking about.

And I would totally eat there.

If your ever in Snyder with time to kill, hit me up. I would love to go flying with you on my dime.

My FIL owned a PA-28. Spent some time in the air with him around these parts. I enjoy the terrain around this area.