We are losing our house to forclosure. We lost both our cars, and now have got another. Just one though. I lost my fairly good paying job. 10 and hour with all the overtime I wanted. Hubby's job got cut in half. That's where we ran into trouble. Anyways, it's tax time and we should be getting a good return. We have the opportunity to open a restaurant with most of the stuff we will need already in it. (We are talking right now to the people who own the building with what's in it, for renting it monthly) But, the only way to "start" this business would be with our tax refund. This is something I'v always wanted to do. I will be doing the majority of the work. Very little help is going to be required. And, I have 3 teenagers who want to work there and help. So payroll wont be a big problem. Forclosure is in the end of April. I'v worked in restaurants for 20 years. And I really feel I can make this work....to help us for the long run. Or, use the money to move now?
2007-02-07 03:48:46 · 8 answers · asked by Shari 5 in Business & Finance ➔ Careers & Employment
hey money isn't everything and neither are material things. follow your dream. if it doesn't work atleast you can say you tried. you can always pick yourself back up.
2007-02-07 06:05:37 · answer #1 · answered by indiana girl 2 · 1⤊ 1⤋
For someone that's been in the restaurant business for 20 years you have to know that the odds of any restaurant lasting more than one year are low. Most restaurants close rather quickly. You say you lost your house and cars and you have 3 teenagers? Perhaps you should put the money toward securing your future and theirs before you take such a big chance. Your return may seem like a lot of money right now but 4-6 months into a restaurant can suck every dollar out of you and then some. You may find yourself in more debt than ever before. If you didn't have a family to worry about I would say that you should go for it. But that's not the case. Do what's the best thing for your family right now. When you get back on your feet financially then open your restaurant and be a success. No matter what you do, I wish you lots of luck.
2007-02-07 03:57:52 · answer #2 · answered by the seeker 2 · 0⤊ 1⤋
Unless you plan to sleep in the restaurant, I would suggest getting a roof over your head first. Restaurants come and go and the majority close within the first 2 years - it is really hard to keep one going and the return on investment isn't usually realized for at least the first 3-5 years of business because you need to create a menu, test it, print it, play with it, redo it, etc.
If you really have your heart set on this you need to look at the restaurant's profit and loss statements carefully (and have some sense of security that the current owners are being honest about those numbers). You need to ask them why they are selling. Talk to people who work/live in the area and get a feel of how they perceive the current set up and the changes you want to make. You need to have a good idea of the type of traffic your restuarant will generate and the cost of quality food items.....if you order cheap ingredients, you will put out a product no one will want to keep coming back for.
Restaurant opportunities will always come up - it's the nature of the business. If I were in your shoes, I would find a new home and new jobs to support that home first. Then start saving and/or looking around for potential investors in a new venture down the road.
Good luck to you.
2007-02-07 04:03:22 · answer #3 · answered by PamV 3 · 0⤊ 1⤋
'The Seeker' is right; the restaurant industry is chancy, and it's a better idea to do your dreams when you are financially strong, or when there is a GUARANTEED output to you at first. Since the latter is rare, take care of your household first. Those children are depending on you. I don't know the circumstances for the foreclosure, but maybe some financial counseling while you're getting on your feet would help. NEVER presume on the future. That tax refund is a blessing to help you, not chips to gamble away. I'm not a gambler, but the saying goes: 'Only gamble what you can afford to lose'. When you're financially strong in your personal/home life, the restaurant will be separate, and if you try and it folds, you've lost nothing (provided you've used money specifically saved for it)
2007-02-07 04:48:24 · answer #4 · answered by hopem 2 · 0⤊ 1⤋
You're crazy to ask people on answers about that, but yeah, you're doing the right thing. As long as your whole family is behind it, that's a great idea.
It's risky, and it might be a while before you see a profit, but I'm sure you've done the business plan and know all that.
Any, all the best to your and your new business!
2007-02-07 04:00:28 · answer #5 · answered by dude 5 · 0⤊ 1⤋
being self employed with a few companies on the go it is not wise with the restaurant industry. it's all great when you are the new guy. but eventually business will settle down and eventually go down hill. why do you think restaurants change owners so often? being self employeed can be great but the restaurant industry is no picnic.
good luck
2007-02-07 03:57:40 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Follow your dream. I think that God will not put an obstacle in front of you that you cannot overcome. Do whatever it takes to follow your dream. It will be tough at first, but every obstacle has it's rewards. Good luck with the restaurant!!!
2007-02-07 03:58:01 · answer #7 · answered by Pamela J 2 · 1⤊ 1⤋
sounds like you are losing everything already
so what do you have to lose now? just your income tax return
go for it
I personally think you're crazy for not being prepared financially for a crisis and are now losing everything JMO
2007-02-07 03:57:40 · answer #8 · answered by Mopar Muscle Gal 7 · 1⤊ 1⤋