Hi All, I am looking for an objective opinion or constructive criticism on a business idea and game plan that I have. Right now I am in my late 20's, work in a niche/specialized industry in sales and am looking to start something on my own. In my current position I work a designated area with targets that anticipate me calling on them and I need to call on 10-12 targets per day. On a normal day I can get through my 10 calls in 5-6hours- sometimes more sometime less.
My idea would be to buy an unrelated established business in my sales territory, or nearby, and manage it throughout the day, while also working my normal sales job. I would have the distinct advantage of being able to rely on my normal salary to live on while also paying off any debt on the business with its own profits. Most people are unable to do this. This would set me up nicely to expand to another business or buy another of the same business and then quit my sales job.
Now, I am open to the type of business this should be, but I have been researching Gas Stations a lot in my free time. My initial thought is that a lot of gas stations are run absentee and would allow for me to work 5-6 hrs per day at my sales job and put in another 3-4 hours at running the gas station. I would have to hire someone which would eat into my profits, but so do the absentee owners.
I know all of the pros and cons. The most notable cons are the environmental issues, credit card fees, financing and the fact that you don't make any money on gas- you make it on the C-Store. However, a few of the branded stations I have looked into the franchiser is responsible for the tank maintenance, sales tax on the gas, and credit card fees. Obviously, the fee for being a franchisee will cut into the profits, but at least this takes away some of the risk/headache. The gas stations I am looking at have reported net cash flow after all expenses of $7,000-$10,000 per month. I would have to confirm this by checking their books/IRS returns, but even if that isn't completely accurate, to me that is a really good supplementary income once I have paid off the loan and additional investor. At those profits this can be done within a few years.
Lastly, what amount of liquid assets would I need to raise? I have been looking at Gas Stations asking for 300K-350K + 80K-100K for inventory for a total of 500K after everything is done.
The only thing I would be concerned about is financing the remaining funds. Banks do not like financing Gas Stations due to the environmental issues and it would probably have to be financed by the previous owner.
I am looking for any flaws in my plan before I present this to the main investor (my father- a successful businessman) who would just be looking to get his initial investment back while helping his son. Obviously, I will do my due diligence, ask the appropriate questions and consult my accountant/lawyer before purchasing. Please poke holes in this because as of right now I can't stop thinking about doing this and my judgement might be clouded.
My idea would be to buy an unrelated established business in my sales territory, or nearby, and manage it throughout the day, while also working my normal sales job. I would have the distinct advantage of being able to rely on my normal salary to live on while also paying off any debt on the business with its own profits. Most people are unable to do this. This would set me up nicely to expand to another business or buy another of the same business and then quit my sales job.
Now, I am open to the type of business this should be, but I have been researching Gas Stations a lot in my free time. My initial thought is that a lot of gas stations are run absentee and would allow for me to work 5-6 hrs per day at my sales job and put in another 3-4 hours at running the gas station. I would have to hire someone which would eat into my profits, but so do the absentee owners.
I know all of the pros and cons. The most notable cons are the environmental issues, credit card fees, financing and the fact that you don't make any money on gas- you make it on the C-Store. However, a few of the branded stations I have looked into the franchiser is responsible for the tank maintenance, sales tax on the gas, and credit card fees. Obviously, the fee for being a franchisee will cut into the profits, but at least this takes away some of the risk/headache. The gas stations I am looking at have reported net cash flow after all expenses of $7,000-$10,000 per month. I would have to confirm this by checking their books/IRS returns, but even if that isn't completely accurate, to me that is a really good supplementary income once I have paid off the loan and additional investor. At those profits this can be done within a few years.
Lastly, what amount of liquid assets would I need to raise? I have been looking at Gas Stations asking for 300K-350K + 80K-100K for inventory for a total of 500K after everything is done.
The only thing I would be concerned about is financing the remaining funds. Banks do not like financing Gas Stations due to the environmental issues and it would probably have to be financed by the previous owner.
I am looking for any flaws in my plan before I present this to the main investor (my father- a successful businessman) who would just be looking to get his initial investment back while helping his son. Obviously, I will do my due diligence, ask the appropriate questions and consult my accountant/lawyer before purchasing. Please poke holes in this because as of right now I can't stop thinking about doing this and my judgement might be clouded.
Aucun commentaire:
Enregistrer un commentaire