I have about $110K in cash to put into a business. I want to start something in the Gold Country of Northern California, around 3500 ft elevation or higher. I have my eye on a town near Placerville right now. I own a cabin there and like the town. I lived there 10 years and visit a couple times per month at least. The population sign reads 4800, but there are more like 7-8000 people in the immediate area. A large highway passes through it connecting Tahoe and Sacramento. Many tourists do stop on their way through, mostly for groceries and gas. There is really just one bar in town. There used to be 4. There are 4 convenience stores, 2 selling gas. One of the 4 is really in the next town over. There is no coffee shop at this time, other than a Starbuck's inside a grocery store. There was one that was open for several years but was shut down because of an ADA lawsuit.
I want to open either a coffee shop, bar or convenience store. I want to own the real estate underneath the business. I think it would make me feel that I am getting something tangible, rather than just an idea. But I do realize that ideas are valuable! I also don't want to have to worry about site improvements, negotiating leases and things like that. There is a convenience store for sale right now but the property is not for sale. There is a really neat coffee shop/wine bar for sale 15 minutes from there but likewise, the property is not for sale. I have talked to the owner about it over the last couple of years.
Another complicating issue is that ideally, I want to have a hot rod shop at the same location. I may or may not want to run that as a business. I might just practice my hobby there while I babysit my money making business. This would not be possible at either of the two leased locations mentioned above.
As far as vacant buildings/land, I have found one building that I like, for $130K, and another that is my 2nd choice right now, for $270K. Also, another piece of bare land for $50K with a water meter and power nearby.
I think I could get some financing on the 130K property. Maybe buy it for 100 and finance 25-30 so I could have some money left over for start up. I think I can get a beer and wine license for about $5-$10K. I probably wouldn't go full hard liquor because those licenses are more like $50K I believe. I believe the owner of the 270K building would carry a note if I put 30K down. That building was a bar and has a residential rental unit bringing in $700/month.
I have looked at the zoning in the area and found that only the $50K property has the right zoning for the hot rod shop. The others are all suitable for coffee shop/bar/store.
I have a cushy government job right now and it will be hard to leave it. I make about $100k/year with benefits and doubt I'll be able to match that as a business owner. Making more money is not my goal, but I don't want to put myself in the poor house either. I am thinking maybe I can start a business and run it while I keep my job then transition into it if it all works.
So I guess my questions come down to this:
Which of the 3 types of businesses is generally the most successful? How much cash should I have on hand beyond whatever it takes to prepare the building and get licenses? For a convenience store, do I typically need to pay for the inventory up front? Same question for coffee shop and bar.
I know this is a lot of questions and if you can answer any of them I'd appreciate it. Also, if I'm totally on the wrong track and not even asking the right questions I need to know that too.
I want to open either a coffee shop, bar or convenience store. I want to own the real estate underneath the business. I think it would make me feel that I am getting something tangible, rather than just an idea. But I do realize that ideas are valuable! I also don't want to have to worry about site improvements, negotiating leases and things like that. There is a convenience store for sale right now but the property is not for sale. There is a really neat coffee shop/wine bar for sale 15 minutes from there but likewise, the property is not for sale. I have talked to the owner about it over the last couple of years.
Another complicating issue is that ideally, I want to have a hot rod shop at the same location. I may or may not want to run that as a business. I might just practice my hobby there while I babysit my money making business. This would not be possible at either of the two leased locations mentioned above.
As far as vacant buildings/land, I have found one building that I like, for $130K, and another that is my 2nd choice right now, for $270K. Also, another piece of bare land for $50K with a water meter and power nearby.
I think I could get some financing on the 130K property. Maybe buy it for 100 and finance 25-30 so I could have some money left over for start up. I think I can get a beer and wine license for about $5-$10K. I probably wouldn't go full hard liquor because those licenses are more like $50K I believe. I believe the owner of the 270K building would carry a note if I put 30K down. That building was a bar and has a residential rental unit bringing in $700/month.
I have looked at the zoning in the area and found that only the $50K property has the right zoning for the hot rod shop. The others are all suitable for coffee shop/bar/store.
I have a cushy government job right now and it will be hard to leave it. I make about $100k/year with benefits and doubt I'll be able to match that as a business owner. Making more money is not my goal, but I don't want to put myself in the poor house either. I am thinking maybe I can start a business and run it while I keep my job then transition into it if it all works.
So I guess my questions come down to this:
Which of the 3 types of businesses is generally the most successful? How much cash should I have on hand beyond whatever it takes to prepare the building and get licenses? For a convenience store, do I typically need to pay for the inventory up front? Same question for coffee shop and bar.
I know this is a lot of questions and if you can answer any of them I'd appreciate it. Also, if I'm totally on the wrong track and not even asking the right questions I need to know that too.
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