Looking to start my own business
 

I'm at a fork in the road in life and would like to open my own business. Just curious what some members might suggest. I'm thinking bar/tavern, pizza place,drive through, laundramat....that kinda thing....any and all ideas are welcome! Anyone with experience that can give me the pro's and con's of business ownership would be great! Thanks

Laudry mat strikes me as a good business to own because you basically need to be there to open the doors in the morning and close them at night.

A friend of mine owns a laudry mat and pays a retired guy to unlock the doors in the morning and lock them at night. He also mops the floors.

You'll need to earn ~130% of your current income to replace the medical benefits and self employment tax you will be paying for out of your own pocket.

..and the reason why I currently dont.


besides the fact that the local economy is far from "booming"

First thing you need to look at is what is your financial situation. Then figure out what business would best suit you, your experience and your skill set. Tbe basic idea being if you don't like cooking don't open a restaraunt. Also figure out how much startup costs would be, how you plan on funding the venture. Don't forget about marketing expenses. Sit down and write a business plan! Owning your own business is not a 9 to 5 gig, it is more like a 9 to eternity gig! Absentee owners always make it sound easy, but if they went into their business and actually were to witness what is going on they would realize how employees can take advantage of you and hurt your business. I'll post more later....

GP, eh?


must own a successful business

Consider buying an existing business. Maybe one that is doing poorly and needs to be turned around. It is easier than starting from an empty store.

If you do look at buying an existing business, ask to see actual tax returns for proof of income, rather than some fantasy typed up on there computer. It can be difficult to sell a small business, especially one that is doing marginally well. I had a tenant that had a busy pet store. Her husband got transfered so she considered selling the business. Remarkably, she told me that she made so little money that there was nothing to sell, so she just closed the business.

I think it was just poorly managed with the owner not putting in enough hours.

But my point is you may be able to find a poorly managed business thatyou can take over, without the hassle of starting from scratch.

That advice has merit especially with the types of business' you mentioned. They are all fairly basic, no need to re-invent the wheel. Consider something existing where you can meet the employee's, see the books, cash flow and profit before purchasing.

Gyms and fitness centers are doing pretty well around here. Affluent baby boomers are trying to stay in shape, though many pay for a full year membership and hardly go.

All those have potiental, but you need to do a study on the area to see if it will support them.

For example with grocery stores they figure $25 a head times X number of heads per day. Then figure out your margin, after figuring out the expenses. Fixed costs are pretty easy to figure out, its the variable ones that can get you.

Greasy spoons seem to be a sure thing in my area. A well placed diner, with the standard breakfast and lunch items, seems like a sure thing. Tables turn quickly, most employees rely on tips for income, and nearly everyone loves having a local dive that you can get pancakes for dinner. Making it hip and inviting, yet cheap to operate is important.

Another booming business is with retirement. People are buying foreclosed homes and converting them to small nursing homes. The mid 20th century ranches are ideal, because they're all on one level. Fill a 4-6 bedroom home with old folks needing extra care, and staff with 1 nurse and 1 assistant per shift. This usually offers a far more personal and cheaper alternative for assisted living, and is a booming business. There's alot of liability associated with it, but that's what insurance is for.:D

I have a friend with 8 pizza shops. He started with one 20+ years ago. Now he has more money than God. Plan on working 60-70hrs a week for at least the first 3 years. The money is excellent, lots of CASH, but you will work hard. My friend still works at least 50hrs a week in the 3 shops closest to his home. RT

Laundramat, cash business, not much involvement - clean the place, clean the lint screens, fix machines, keep the vending machines filled, pay your water and other bills. Hire someone for folding service, if you want.
Pizza place - lot's of cash as well, can be competitive, good help can be hard to find - dining rooms require help, heating/cooling, equipment, decent help. Get in with Soda/Pop vendors and/or Beer vendors and get promos. Get in good with neighborhood paper for pre-opening propaganda/buzz. Don't use whole milk cheese, it's too damned runny. Keep the menu tight - you can make a lot of stuff in a decent pizza oven - the temptation to keep adding items is great ("if we buy blablabla, we can make 4 more items" - yeah...4 more things for some one to screw up, to inventory, to put a potential snag in the works). Yes, lot's of hours, you might even loose weight. Get involved in charities, fundraisers, schools, special ed. even. Best time I had, is when some "challenged" kids showed up, and I had them each make their own pies (when they were able to) we all had a ball, they loved their pizzas, and even sent me a small book filled with thank-you notes.

Very few people own a very successful business in Michigan right now, but I am still holding up well. My field is getting pretty battered right now, but hopefully I will manage. The only business sector I see experienceing growth in Michigan is foreclosures.

Is that bread bakery on Mack (southbound side) still doing well? I forget the name...decent bread from what I remember.