Any $$$ tips for an aspiring business man.?

Question

Hello,
Ive been working out some bugs and kinks in my business plan. and I think that I make enough money to move my business to the next level... Owning my own building.

To shed some light on what my business is, you can compare it to a Dairy Queen, mixed with a candy shop. Basically Ive been selling at events and I once got a concessions contract, but that didnt work out. I usually generate $6000 Net profit at these events (the problem is these events come only 2-3 times a year) and I have about $10000.0 saved up.

The building I want is across a highschool (seems too perfect) and its leased for I believe $4000 a month
Now the only problem with that is its hard to estimate the demand for this. I dont know if i would only sell $2000 a week or $10000 (but thats the risk :D) Should I go with investors or a 10 year loan or sell my soul to VISA?Any tips are deeply appreaciated!!

Thanks for hearing my sob story, my email is [e-mail] If that helps.

Answer 1

I suggest you ask yourself these questions to help you decide on the next course of action:

1. If the lease is $4,000/month, how many units of your product should you sell in order to just cover your lease?

2. Aside from lease, what other monthly expenses will you have? Electricity, employee's salary, materials, inventory, etc. Also factor in the loan repayments and interest, if you are going to ask for a loan. Now, over and beyond the number you calculated in (1), how many more units do you need to sell?

3. Can you realistically sell the number of units you've computed in (1) and (2) given the population of the location?

4. If you don't think you can sell that much units, what adjustments should you make?

a. Should you increase the price? If so, will the market accept the higher price?
b. Should you use your leased space to sell other things to augment the income?
c. Where else can you sell your products to increase your revenue?

5. Think of the worst case scenario. If you don't sell the number of units you need to at least breakeven, where will you get the money? Can you get the money?

Answer 2

Sounds like you are undercapitalized. Reducing your rent (your biggest cost it seems) should be paramount. Approach this potential landlord about a lease that is based on a % of your sales. Sure you give away lots of money but you don't have the risk either. If your sales are low, your rent will be low. High sales means high rent ... but you should still be making a profit.

Make sure landlord can't kick you out (and do biz himself) if your biz is successful. Also, if you end up with a low fixed rent plus a % of gross sales, see if you can get a month to month lease with an option to lock in for a year+ at a time.

Answer 3

$4000 is steep for a business with only $10K saved. Look for another location. If you want to stay in the same area look into setting up a kiosk pad by that building. Lower costs and whomever owns the parking lot may foot the initial cost if you sign a lease up front.

Answer 4

youthful lady wearing a tank suitable and short shorts in the present day... So i imagine i'm more effective constructive than all of us else and that i own the international? Sorry, yet you're sorely incorrect. the reason I gown this kind...is because that's late summer in huge apple in the present day. in case you come back the following, virtually all the ladies my age gown this kind. i'm basically following a technique and protecting cool mutually. i'm also taking section in the potential to head round with a lot less weight. once the chilly of Autumn contraptions in, i am going to could head back to denims and jackets. by technique of iciness, i'd be going round in a coat which weighs like 4-8 pounds or something, on my thanks to college with a backpack which weighs even more effective.

Answer 5

start small, think big, most fast. minimal debt, cash if possible. get partners to develope the business with you but beware of the dark side.

Answer 6

Do it.