If you had $60k cash to start a business - Page 5 - TigerDroppings.com

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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: If you had $60k cash to start a business


That's also why stores are hard to finance.....the asking prices are high and the books show low profits....there's too much cash involved, only the owner knows what it really makes. 10-20% of sales will be cash and what's reported really is up to the owner....


This post was edited on 7/14 at 10:55 pm


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offshoretrash
LSU Fan
Farmerville, La
Member since Aug 2008
5084 posts

re: If you had $60k cash to start a business


quote:

That's also why stores are hard to finance..


This is something else I am worried about but it's a home town bank with a local board so they may can approve where other won't.

quote:

10-20% of sales will be cash and what's reported really is up to the owner....



Yep he told me he didn't know how much he made every month. That's fine for someone with no bills but I have to make enough to pay my bills now and the stores, plus insurance for my family. And I don't want to do it for free or just break even.






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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: If you had $60k cash to start a business


In my area, it seems the big chains are dominating. All I see is Kum & Go, Casey's and of course, Wal-Mart.

I rarely see a small operation doing well in my area. Many are out of business.

Is Kum&Go franchised out?






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ThaBigFella
LSU Fan
baton rouge
Member since Apr 2006
2043 posts

re: If you had $60k cash to start a business


The small ones actually do better than the big names in some cases bc they can buy gas from whomever vs me having to buy from exxon and shell distributors. The savings can be significant. The other stores that are not name brand and geared toward poor people make money in tons of ways you wouldn't imagine

1.cashing checks
2.selling individual cigars and papers
3.slots

It sounds funny but I have the gamut of stores, one is in a very expensive neighborhood in highland village and sells very little inside, as wealthier people don't shop at the gas station but I can charge more for gas. Then I have one in an awful neighborhood and I cash $75k/week in checks and sell 5,000 individual cigars/month ....for blunts...you wouldn't believe how profitable that is. Poor people love to buy 1 for $1 vs a pack of 5 for $3.49. Don't even get me started on the slots, I can't believe they have a license from the city....but they do. Sadly poor people like blowing their check on these slots.Poor people also buy everything at the gas station, every time a new candy bar or drink is available it sells out like crazy for a few weeks. Some say lottery is a tax on the poor, I believe that, my store in highland village sells maybe $10,000/month in lotto. My store in the slums of Dallas, sells $130k/month of lotto.....granted at a 5% split but still just saying, the no brand stores kill it

In certain businesses you want to target the lower income people, this is one of those businesses






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offshoretrash
LSU Fan
Farmerville, La
Member since Aug 2008
5084 posts

re: If you had $60k cash to start a business


quote:

In my area, it seems the big chains are dominating


In town yeah but this is a rural station. He runs credit and has several lawn care, construction and timber businesses doing credit with him. He cooks plate lunches and almost always sells out. There are places where this can be improved on. He should carry more fishing and hunting supplies and a DVD Kiosk would do good there.






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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: If you had $60k cash to start a business


Interesting.







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wegotdatwood
Arkansas Fan
Member since Aug 2009
17094 posts

re: If you had $60k cash to start a business


It always cracks me up when I see someone put in $5 worth of gas in their car and drive off.





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The Connoisseur
USA Fan
New Orleans
Member since Jan 2011
827 posts

re: If you had $60k cash to start a business


Thanks Bama, Did not realize the initial investment is so high. Nor that they needed to be checked on that much a week. Thanks for the info





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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
32069 posts

re: If you had $60k cash to start a business


These are my favorite threads on the money board. Wish more small business owners would chime in





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Fat Bastard
New Orleans Saints Fan
Paradise
Member since Mar 2009
15648 posts

re: If you had $60k cash to start a business


quote:

It always cracks me up when I see someone put in $5 worth of gas in their car and drive off.



I used to do that when I was a poor kid. Sometimes it was 3 bucks. One time i had to coast into the gas station because i was out of gas. Made it ......barely.






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eng08
LSU Fan
Member since Jan 2013
1664 posts

re: If you had $60k cash to start a business


Thanks for the info bama. I'm still interested in the ice machines but probably should wait for my dad to retire to be my partner in it.





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TyOconner
Troy Fan
NOLA
Member since Nov 2009
10099 posts

re: If you had $60k cash to start a business


On September first I am moving to Nola and launching a medical start-up. I don't want to go into much detail on here but I am freakin pumped. We have been working non-stop trying to get everything together. Right now we are working on market research and analysis.





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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
32069 posts

re: If you had $60k cash to start a business


Best of luck man. Best of luck to you.

I'm considering getting a 2nd job at a payday loan shop just to learn the business.

Self employment is the tits.






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kywildcatfanone
Kentucky Fan
Wildcat Country!
Member since Oct 2012
16380 posts

re: If you had $60k cash to start a business


quote:

payday loan shop


Do you view this as a good business to own? They looks shady to me, but I really don't know anything about them. Seems the clientele would be difficult to deal with.






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jimbeam
USA Fan
University of LSU
Member since Oct 2011
30392 posts

re: If you had $60k cash to start a business


quote:

Seems the clientele would be difficult to deal with.






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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
32069 posts

re: If you had $60k cash to start a business


Shady or not. They are cash cows





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kywildcatfanone
Kentucky Fan
Wildcat Country!
Member since Oct 2012
16380 posts

re: If you had $60k cash to start a business


quote:

Shady or not. They are cash cows


How exactly does that work? Someone needs $100 and comes in the door. You get them to agree to pay back $120 in 30 days and give them $100.
How do you know they will or collect if they don't? It's not a pawn broker deal, is it? Do you get some collateral?






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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
10809 posts

re: If you had $60k cash to start a business


quote:

Shady or not. They are cash cows


They surely are but I have no desire to have to rely on bars, bullet proof glass and guns to protect myself at my place of business.






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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
32069 posts

re: If you had $60k cash to start a business


Some will default and I don't know how you get your money. I've talked to owners in the past just about their net income.

A solid location with minimal competition can make north of 150k per store.

Like I said, I've got a lot to learn still.






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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
32069 posts

re: If you had $60k cash to start a business


Not for you then. Doesn't bother me one iota





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