I had a furniture reupholstering business about nine years ago. I closed it down for health reasons. Since then I have bought a commercial building that does have space for my business if I kick out one of the tenants. Problem is economy is not good, and my personal finances are very tight. Right now I am just making ends meet, while I work at a dead end job that pays only minimum wage.
2007-01-23 00:59:56 · 6 answers · asked by Janine L 1 in Business & Finance ➔ Small Business
Here is more information for the last answer.
1. My job is not my only income. My husband has a much better job than me, and I own four rental homes besides the building.
2. The building is not paid off. I generate enough income to pay all the payments, plus a little left over. If I did'nt have the tenant I would still be aqble to pay the bills, but none left over.
3. I would have to buy no equipment. I pretty much still have my old equipment. I still do it on the side. It is very hard to do that. You need a lot of room, and it is a very dirty job.
4. I could probably survive, but it would very tight. I already have jobs that people want me to do. I can't do them now no room.
I think I need to sell the house I live in, and move into my building. The lose of the two rental units, (an apart ment, and the commercial units), would still be less than my house payment. Thanks for all your answers, it has been very helpful.
2007-01-25 02:09:21 · update #1
I'd like to know how you purchased a commercial building while on a minimum wage job!
There are a few things that don't add up here, but I'm sure there are some factors you didn't include in your question.
Is this building paid off, or are you making payments? If you are making payments, does the rental income cover your payment?
What happens to your income stream if you lose the rental income from that tenant?
Do you still have the equipment you used from your old business, or are you going to have to obtain new or used or remanufactured equipment?
From a budgeting stand point, you really didn't give enough information.
Do you need this tenant's rent money to survive? if you kick him out, you indirectly have a "free" place of business. That already removes a huge piece of the start up cost.
It's possible for you to start this business, but in order to answer that question, or at least investigate it thoroughly, I would need a lot more information than you have provided.
2007-01-23 01:56:01 · answer #1 · answered by LongSnapper 4 · 0⤊ 0⤋
This is a very tough question. No one can predict the future for you. Given the current economic climate, it's possible that we could be just starting a major downturn, with the housing market in the lead. It's also possible that the downturn will not materialize in as severe a form as some might think it will take.
If you are just making ends meet, could you potentially start your business again "on the side" in a smaller amount of space? Could you do this without kicking out your tenant (given that this money could be essential to helping you continue to make ends meet)? If you are really motivated, I'd start out small and on the side and go from there.
2007-01-23 01:07:35 · answer #2 · answered by MoniqueLise 3 · 1⤊ 0⤋
You could try doing small jobs from home first. I wouldn't kick out a paying tenant when the finances are tight because you never know how long it's going to take for your business to turn a profit. There are so many ways that you can do this business. I refinish and decorative paint furniture for people as well as decorative paint their walls and I run this from home just fine.
2007-01-23 01:51:53 · answer #3 · answered by Medical and Business Information 5 · 0⤊ 0⤋
well, if you think that the money you make from your business would cover the rent lost, why not? If the economy is poor maybe more people will want to spend money on fixing up what they already have instead of buying new. haha, right, this is america they will toss the old stuff in the trash and rack up debt on the credit card. But hey, ive been called cynical once or twice. Check around your neighborhood and see if there would be a market.
2007-01-23 01:09:55 · answer #4 · answered by tomhale138 6 · 0⤊ 0⤋
NO DONT AT LEAST NOT RIGHT NOW. Money is tight for you, the economy is not good(what if it gets worse? you never do know). I think you should wait until the economy is a lot stronger and until you can get a better job that will pay you more. Then you should start your business back up that is if there is a market for that kind of thing in your area.
2007-01-23 01:09:18 · answer #5 · answered by . 6 · 0⤊ 0⤋
if money is that tight you better not kick your tenant out sell where you live or if you rent move into the building if their is room.People dont CARE much about reupholstering furniture when they have a hard time paying for their bills and food.when the economy picks up then move on.You have to have some money to make some money
2007-01-23 01:09:49 · answer #6 · answered by Anonymous · 0⤊ 0⤋