| Author | Message | ||
| chris cummings (Entelechy)
Member Username: Entelechy Post Number: 257 Registered: 5-2001 |
Thought e-mails were still in profiles as well, mine's [email protected] Hey John and Peter, that's great. I went to college for two years heading into a career in business. Then I packed up the car and headed to LA as I have always loved and been obsessed with movies. I wanted to wake up in the morning and be thrilled to go to work! Within a couple years, I was working at a major studio, then for a star, then in production on the most expensive film in history (at the time). Since then I've been able to work with pretty much all the people who's films I used to sit at home on the couch watching and dreaming about working with. I wanted to go straight to the source to learn, not listen to some pundit's "interpretation" of their work. Anyway, hard work and persistence paid off. I promise all of you, one day in the future, I'm going to produce and direct a film with car chases like Bullitt and Ronin; one's about driver skill and reality, not jumps and explosions...and of course, with F-cars. Last but not least, my friend and I were walking through Westwood, CA and admiring a silver 360 Spider. I was telling him about the car and then we noticed the custom license plate frame read "High School Education" - love it! Like you said John, it's not knocking those who opted to continue with school - for me I just felt like college and universities were for those who didn't have the passion or discipline to do the work themselves...kind of like that line in Goodwill Hunting about getting the same education at the local library. However, my father has a PhD, my mother her masters, my fiancee has a masters, and my grandfather was a longtime VP of a worldwide university, so I know well the benefit of a good education. One thing I love about Hollywood, and likely most of life, is that IDEAS are power! It doesn't neccessarily matter what your background or income level is, as long as you have a good idea, passion and determination - you can make it happen! | ||
| PeterS (Peters)
Member Username: Peters Post Number: 596 Registered: 1-2003 |
Rob..The patent process was fairly easy. In my case, there was an existing patent of a like product that was made of ferrite, but was in sections (about 12 pieces that fit together to form a ring). My patent lawyer was really good! He drafted the venacular to get around the other design and I was awarded my patent. You can see it at www.uspto.gov. Search for Disposer Magnet in the latent section. Patents are not for every inventor. Getting the product to market is probably more important than a patent. Even with a patent, others will try to knock off a great idea. At that point, you have to spend money to defend your patent rights. Remember, the only thing a patent does is provide the inventor with an offense in court. I went ten years with another hot product I never filed for a patent. It was the PANIC BUTTON, a red computer key that read PANIC in white letters. I sold about 1.4M of them! I sold the company last summer to www.johnsonsmith.com, a catalog company. It was a $1.99 retail product I made about 45% GP on. | ||
| Tim G (Timgos)
New member Username: Timgos Post Number: 27 Registered: 3-2003 |
Taek, I also didn't provide my email address (forgot they weren't in profiles anymore). My address is [email protected]. | ||
| Rob Schermerhorn (Rexrcr)
Member Username: Rexrcr Post Number: 648 Registered: 11-2002 |
What was that process like, Peter? How much time and $$ ? I've heard it's tough, and in many cases, not worth it. | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 762 Registered: 11-2002 |
I like to talk after tax. It's depressing to see how much you could be making if uncle sam didn't take his cut. I also like to think profit, because you're right. If your costs are high it might not matter much if you make 10mm a month. Well, not really, you'd have kick ass credit and kick ass leverage...but that's a different story.  Cheers | ||
| PeterS (Peters)
Member Username: Peters Post Number: 591 Registered: 1-2003 |
Here is an idea that I threw out on Fchat a few months ago: Two years ago, I received a patent on my design of a flexible magnet that fit in the kitchen sink opening to the household garbage disposer. I designed it and the packaging artwork and sold it through retail home stores such as Bed, Bath & Beyond. It worked extremely well! Last year, I sold the company to the #2 Mfr of garbage disposers at a great profit. The magnet is ferrite and is 10.5" X 1.2" by about 3/16th thick. The other idea I had for it was to package and sell it to home and professional mechanics as a place to put nuts, bolts,etc. while they worked on their cars. Since it attaches to metal, it can be placed any place that is handy! I have about 2200 of the magnets left that I would give to anyone that is interested. I purchased the magnets for about $.80 each if I recall. I like the idea, but do not have time to market it. | ||
| PeterS (Peters)
Member Username: Peters Post Number: 590 Registered: 1-2003 |
Jim..I'll answer your question. I am on target to do about $1.2M @ about 32% pre-tax profit. Just over $100K in take home. Its hard work and NOTHING comes easy. You always have to watch your back and pour money into the business for new spins on your product. If your business idea really takes off, you are rich on paper because you are always buying more inventory...I'll send you a product idea off-line and help you with it. I do not have time to get it going, but I will help you to do so. You can post your thoughts here regarding my help, but not the idea. I really like helping oters. | ||
| John (Cohiba_man)
Junior Member Username: Cohiba_man Post Number: 108 Registered: 1-2003 |
I feel the same way Jim, right now I'm looking at - Commercial development - Producing a product I invented - Starting a RE brokerage business - Starting a franchise (I have one in mind) - Starting a record label - Going on a lecture tour to high schools to talk about entreprenuership - Investing in a friends mutual fund company start-up - Doing more into stock market investing - Creating a entreprenuership forum online - Retiring | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 1360 Registered: 7-2002 |
one more question? do you guys dabble in all kinds of things that interest you or focus on a particular area of knowledge? I ask because I love so many things, but I skim the surface rather than become a subject matter expert. | ||
| John (Cohiba_man)
Junior Member Username: Cohiba_man Post Number: 107 Registered: 1-2003 |
QUOTE: "Ps: I have only a high school education" Me too! I find a lot of entreprenuers don't have formal post-secondary education for some reason. A little story I like to tell to people who continually preach the "get into college and land a good job and you're set" mindset is that during the 7 years after high school in which I would have been getting my MBA (and the debt that would come with it) I became a self-made millionaire. Hows that for food for thought? P.S, not trying to brag, although it could be interpreted that way, I'm simply trying to open a few eyes ;) | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 1359 Registered: 7-2002 |
God I feel like such a moron. I work for peanuts while you guys make in a week what I make in a year. I have a question you may or may not want to answer. You guys are stating that you are making a mil a month or a mil a year in revenues. what % of that is net profit? You dont have to tell me your W-2 statement. How does that joke go? First Guy: So your cost is $2 and you sell them for $1? How do you intend to make money? Second Guy: Volume!!!! | ||
| PeterS (Peters)
Member Username: Peters Post Number: 586 Registered: 1-2003 |
Jim & John..I did know a bit about crystals when I started, but I did not need to know what I knew! First off, knowing the pricing was high from the comp, I looked at the quality that the comp was delivering to retail. I found that it was the cheapest garbage from the far east. I then secured an extremely high quality supplier (if you visit my website, I go into that detail) that gave me a realistic cost that I could garner the four key factors: 1) High GP for my company, 2) High GP to the distributor, 3) High GP for the retailers and 4) A cost saving to the consumer. I packaged the product better than anyone in the industry and gave the best guarantee. Again, I am not a 'crystal wiz', just found an overpriced product that is in demand, learned about it and used my marketing skills to get it into the retail/consumer supply chain...Ps: I have only a high school education | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 757 Registered: 11-2002 |
It's a joke DrS. Making a point that people tend to buy services simply because the sales pitch is good. Cheers | ||
| Drstranglove (Drstranglove)
Member Username: Drstranglove Post Number: 515 Registered: 4-2003 |
"DrS, those calculators can get pretty complicated though. You sure you don't want to outsource that part? So many buttons... " You are making fun right??? The math is very simple. All it takes is time. Very simply- Take your inventory current, add in any purchases. Add up the cost and that is what you have paid in liquor. Divide by the number you had last week convert to % and that is your cost. Knowing what you charge for a drink on average you can see if you are making money or not. Infact, figure in 5% for a waste and you know what you SHOULD be making. If the cost is well over the projection, you are being stolen from. The first time I ever did it, took two days. The last, 3 hours. As with all things, you get better and quicker with time. DrS | ||
| Kyle Madan (Kmadan)
New member Username: Kmadan Post Number: 34 Registered: 1-2002 |
Taek - sorry forgot to include my email in the last post - [email protected] | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 1358 Registered: 7-2002 |
Yeah, Dr Strange....what do you think the secret is to a bar's success or failure? location? theme? crowd? time of year? money spent? or just dumb luck? What was the theme of your big bar? dance, bands, or just a hang out club? | ||
| John (Cohiba_man)
Junior Member Username: Cohiba_man Post Number: 106 Registered: 1-2003 |
Hey DrS and Taek, I'd be interested in hearing about starting a bar and Taek I'm curious to read that correspondence. [email protected] but I know your probably busy...I've recieved over 40 emails about my plans. | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 746 Registered: 11-2002 |
DrS, those calculators can get pretty complicated though. You sure you don't want to outsource that part? So many buttons... Cheers | ||
| Drstranglove (Drstranglove)
Member Username: Drstranglove Post Number: 514 Registered: 4-2003 |
Any who want info on a bar should email me....Though if I get board tonight I might just post up a thread on the subject. I have run two in my time. One was a hole in the wall, but upscale. The last one was a monster at over 50,000'sq. The next will be another hole. As a rule, I would not invest $1,000,000 except for a specific idea. Oh and BTW, all made money, gobbs of it in fact. It is really not that hard. And I did my own liquor inventory once a week. No need to hire an outside firm unless you really dont want to do it yourself. All you need is a calculator. DrS | ||
| John (Cohiba_man)
Junior Member Username: Cohiba_man Post Number: 104 Registered: 1-2003 |
QUOTE: "I don't know squat about rc cars or crystals...did you? How did you get them manufactured for cheaper etc? " He didn't say he manufactured them cheaper, in fact it probably costs him MORE to produce them, but he SELLS them for half the price because RC companies over-price them to recoup the small margins on the actual RC cars they sell. | ||
| Tim G (Timgos)
New member Username: Timgos Post Number: 26 Registered: 3-2003 |
Taek-Ho, I'd also be interested in reading your offline correspondance with Jim. If you do everntually send it out please add me to the list. Thanks, Tim | ||
| chris cummings (Entelechy)
Member Username: Entelechy Post Number: 256 Registered: 5-2001 |
Taek-Ho, I would be interested in seeing that as well if you guys don't mind. I've been working in the film industry and started a production company last year, so not all of it directly translates to what I'm doing, but I'm still very interested to learn all I can. Best, ~Chris | ||
| Erik (Teenferrarifan)
Junior Member Username: Teenferrarifan Post Number: 149 Registered: 2-2003 |
I am 17 so it obviously isn't as big as DRS's, but in October of 2001 I bought a stock DWL Dewolfe inc. with some money I got for my 16th b-day for $8 and some change and last September they got bought out for $19.26 a share I owned 60 shares and I ended up taking home over $1,000 so I was thrilled. To bad I put that money back into the market and am still up slightly, but not nearly as much as I was about a year ago. Erik | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 740 Registered: 11-2002 |
Jim, You might want to add this other mantra too. "Learn TO trade" There's guy, Kyle who is interested in some of our offline correspondance (see earlier posts). I would like to shoot him of our string of emails. You mind if I do that? It is a public forum after all... Just wanted to double check with you. Cheers | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 1357 Registered: 7-2002 |
I don't know squat about rc cars or crystals...did you? How did you get them manufactured for cheaper etc? i see opportunity all the time, but when I have zero knowledge I hate to try to reinvent the wheel. My father in laws mantra is "learn your trade" that way you can spot a good deal and act properly on it. I am not trying to be a pessimist at all. I just read a quote in the 48 Laws of Power that said it is better to find a mine and mine it deep rather than run from shallow mine to shallow mine. | ||
| PeterS (Peters)
Member Username: Peters Post Number: 585 Registered: 1-2003 |
If you want to start a new business, find an existing product in the market (ANY) that is overpriced as a general rule. I did this with the business I started five months ago (www.performancedevices.com). I manufacture and market crystals to the RC hobby industry. This is a market with NO aftermarket products available. The manufacturers of the radios and cars provide crystal sets under their brand names. They charge extremely high prices for their accessories to make up for poor margins on the radios and cars, just like the printer industry where HP gives away printers to sell high-priced cartridges. My crystal sets are half the price of anyone in the market! I started with about $10K in January and have a sales runrate RIGHT NOW of about $1.2M @ 40%GP! One needs to get out to retail stores and see whats selling at a high price and create a manufacturing/price model to build it better and sell it for less. | ||
| Rob Schermerhorn (Rexrcr)
Member Username: Rexrcr Post Number: 636 Registered: 11-2002 |
I just picked up Start Small, Finish Big by Fred DeLuca, the Subway cofounder. So far it's very good. Talks about microenterprize, starting with less than $100. Interesting. "Fifteen key lessons to start and run your own successful business." | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 1354 Registered: 7-2002 |
I have always wanted to own a bar for the fun of it, but they are so hit or miss and such short life spans. I see guys spend a million and get no business then I see someone open a dank dark hole that is packed for 2 years...insane! All my friends who have had small to medium sized bars had to run them day to day to avoid theft. ON a similar note there is a franchise out of canada called Bevinco that does audits of liquor inventory adn they get paid on how much money they save you from theft/waste. www.bevinco.com that stands for beverage inventory control. I know the guy who has the master franchise rights to Texas if anyone wants to buy it. Think he wanted $150K and will carry $75K. He is in oil/gas and makes too much to mess with this. | ||
| Vincent (Vincent348)
Member Username: Vincent348 Post Number: 491 Registered: 4-2003 |
>>it's easier to borrow 1mm than it is 100k. Just get your idea out there the proper way and hit up the right people.<< Think big, do your research, have a good idea, meet some people. Good advice. | ||
| Kyle Madan (Kmadan)
New member Username: Kmadan Post Number: 33 Registered: 1-2002 |
DrS- care to expand on the bar business? I have some bar ideas that are actually not too expensive to start and would work great - especially near a large college campus. Since you have successfully started a bar before, any pointers or things to be careful of? Thanks in advance! John - you have mail | ||
| Drstranglove (Drstranglove)
Member Username: Drstranglove Post Number: 507 Registered: 4-2003 |
My next venture is a small bar near my home. My last made a shitload. This one will be small and fun!!! DrS | ||
| John (Cohiba_man)
Junior Member Username: Cohiba_man Post Number: 103 Registered: 1-2003 |
First off, to everyone that emailed me, I tried my best to reply to all but if you didn't get a reply send another email cause I've recieved dozens of emails about my REI and business plans. QUOTE "John - want kind of business plans are you talking about? I am always interested! Is there any reason you are not acting on these plans if they require so little capital? Not trying to doubt you, just wondering." Well I have developed two, neither take anything other than time really to run, but I am obsessed with REI so I don't do the one I will share for free because it has good profit potential, but in the tens of thousands not millions and I DO run the second business plan, and I'm making good money from it as part of my REI operations (its REI related) but I charge for sharing this plan because of the profit potential. Email me [email protected] for the free one or if you have any questions. | ||
| Kyle Madan (Kmadan)
New member Username: Kmadan Post Number: 32 Registered: 1-2002 |
Looks like I am little late on the thread, but I have a lot of the same questions as Jim. I did my undergrad in engineering, but at heart I am an entrepreneur, which is why I am going to be starting an MBA program in Fall - concentrating in entrepreneurship and venture captial. Taek - your posts about starting your own businesses have intrigued me for a while. The following really caught my eye: "In the investor's world I've lived in, it's easier to borrow 1mm than it is 100k. Just get your idea out there the proper way and hit up the right people." Any more details? Mind letting me on the email thread with Jim? I have a number of business ideas, some easier to implement and some more difficult, and would be grateful for any pointers. John - want kind of business plans are you talking about? I am always interested! Is there any reason you are not acting on these plans if they require so little capital? Not trying to doubt you, just wondering. | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 707 Registered: 11-2002 |
In the investor's world I've lived in, it's easier to borrow 1mm than it is 100k. Just get your idea out there the proper way and hit up the right people. By the way, I have little experience borrowing money, and the aforementioned is only in my experience. Cheers | ||
| John (Cohiba_man)
Junior Member Username: Cohiba_man Post Number: 102 Registered: 1-2003 |
I notice my post below sounds like an ad, but it isn't, any advice or business plan I can help you out with is free... | ||
| John (Cohiba_man)
Junior Member Username: Cohiba_man Post Number: 101 Registered: 1-2003 |
QUOTE: "My problem is getting the $300K to do something bigger with or the knowledge to build 20 homes on a tract of land etc. How do you take $10K and turn it into $300K to turn into $1MM? Dont' say hard work!" Its easy really, the small development I did with no money down, got a 100% loan from a connection who realized the numbers looked good and split the profits with him. I could have done this deal if I was homeless, it cost me NOTHING. If you want to turn 10K into 300K shoot me an email at [email protected], making real estate investment plans is my hobby and I'd be happy to make you a free plan to get where you want to be. Also, if anyone else is looking at CHEAP start-up companies, I have a business plan you can look at for free and try that costs under 1K to start and can bring in nice money. | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 698 Registered: 11-2002 |
Jim, Let's not clog the thread with junk here. Feel free to shoot me an email about this stuff. Cheers | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 697 Registered: 11-2002 |
Jim, I do see where you are coming from. My dad is "old school" too. He wanted me to buy existing businesses too. He didn't believe in a start up with measley start up money. "If you want it done right, you have to spend right" would be a loose paraphrase/translation. He would rather see me start a company with 1mm in start up costs than going with 3k and hoping something comes out. There is a very good point to what your old man and mine are saying. My dad's point is: If you are going to start something, be it with 3k or 1mm, you must've done your research to make sure it's worth it. If that is the case, spend as much as you can to insure it's success as long as the returns exceed the investment. In short don't be afraid to lose money to make money. And if you think it's too risky, then don't do it even if you had 100mm in the bank. I tend to listen to him because of his own successes but this time I went out on a limb because there was nothing to lose. I started two companies by boot strapping and hard work. The rest I did invest a hefty chunk, but through optimization and perseverance they all passed the break even point in less than a five quarters. Cheers | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 1350 Registered: 7-2002 |
I have researched just about every franchise at one time or another. They all require some cash. I just don't want to be underfunded and strapped and have it tank. A startup can be very capital intensive too as you have zero customers, zero track record, zero market penetration etc. AND it takes lots of effort to make all that happen. My father in law thinks it would be easier to buy an existing biz as you have instant customers, cashflow etc. He started his gas marketing company from scratch with $50K figuring he could always get ajob if it failed in a year. Sold for $12MM a few years later then started a Oil/Gas Exploration Co an now he has probably $20MM+ I think my problem is I like tons of ideas so hard to pick one and stick with it. | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 694 Registered: 11-2002 |
Dave had the right idea! I wish I could've done that but I didn't have the cojones... My dad is a lot like DrS's in the investment front. Buy all you want, just never sell! Hahaha. Cheers | ||
| Chris F. (Dallasguy)
Junior Member Username: Dallasguy Post Number: 136 Registered: 10-2002 |
Man Dave, I thought about it back then but didn't think the ride was quite over. My hind sight is always exactly right though. | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 693 Registered: 11-2002 |
Chris, The business is largely out of Asia, and I'd be lying if I said my old man doesn't have a lot of pull in most of those countries. He helped me out a lot from that front, but that is just facilitating the process and getting people to listen to me. Things take hours instead of days, etc. This is more of a problem in Asia than it is here. The business culture there is very very very different than it is in the U.S. It's hard for a group of fifty year olds sit and take orders from a 27 year old (any people who have done business in Asia will back me on this). Nevertheless, the business could have still succeeded without his help. It just expedited things. 3k was used entirely for freight and taxes on the first shipment. Cheers | ||
| Dave (Maranelloman)
Intermediate Member Username: Maranelloman Post Number: 1743 Registered: 1-2002 |
Shorting a bunch of dot-coms & other tech companies in summer & fall of 2000... | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 692 Registered: 11-2002 |
Jim, What made me start the business that I did was numbers. I have a business degree and my wife has an economics degree. All of my businesses are about as "unglamorous" as you can get. Day to day stuff. Now that I'm doing OK in all fronts I'm thinking of starting a fun business but I don't intend on making any money on it. My take on buying existing businesses is a bit bipolar. It's great if you find that diamond in the rough, but generally you are better off if you start from scratch. I know I might get a bunch of comments swaying on either sides on this, but that has been my experience. Then again, one of the things I did in the rat race was efficiency stuff. I worked for an investments company of sorts and scouted out businesses (with a team of course, no way it can be done alone in big businesses) as an asst. mgr. for a money market fund. Most small businesses for sale are running extremely inefficiently. Cheers | ||
| Chris F. (Dallasguy)
Junior Member Username: Dallasguy Post Number: 135 Registered: 10-2002 |
Jim - I keep finding the same thing myself. I haven't been around long enough to get the liquid capital built up behind my name to be able to pull something like that off either. Now Taek, I can handle a couple of those 3k startup ideas. The details aren't any of my business really, but what was your process for finding the idea. Like Jim asked, was it passion, luck, insider knowledge mabye? I see opportunities all the time, but only a few would be worth the risk. | ||
| Jeff (Jeff_m)
Junior Member Username: Jeff_m Post Number: 143 Registered: 9-2002 |
Usually, most franchisors will require you to have a certain net worth before they will grant you a franchise, but there are a few that will have a little less stringent qualifications. My advice to you if you are looking to start your own business is to pick up a franchise magazine, read through the businesses that interest you and see what the possibilites in your area would be.Many franchisors work closely with sba lenders and finance companies that have worked with them in the past which makes the paperwork much easier. | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 1348 Registered: 7-2002 |
For example: there is a lube shop here I was looking at. Land and biz for 1.4 million. It is a good price at 1.2 million, but anyway..they say it has SBA lending approval. However, they base it all on you putting up $200K liquid cash up front. I can't get the $200K cash yet so I am stuck unless I do a startup on my own. Also, when you started did you do your new biz full time or on the side? I can't really quit the day job til the side biz replaces my income. catch 22! | ||
| Jeff (Jeff_m)
Junior Member Username: Jeff_m Post Number: 142 Registered: 9-2002 |
Wolfpack or Tarheel? | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 1347 Registered: 7-2002 |
Taek: would be interested to hear more about how you did that. Jeff: I am under the impression that in general you can borrow about 80% of a biz. Usually they won't fund operating capital, franchise fees etc. So it seems you have to have usually $50K cash even for a franchise. Seriously, I am trying to learn from you guys. I am interested in the steps you took to make it all work. I know guys that say..."I started with 1 store and now I have 100" well that doesn't really help me much. My father in law is loaded, but he is very modest and when probed about biz dealings he just says..."I do deals". Again, that doesn't help much. What made you guys pick the biz you did? Passion for it, luck, former knowledge or what? | ||
| Drstranglove (Drstranglove)
Member Username: Drstranglove Post Number: 501 Registered: 4-2003 |
Jeff, The 348 was my dream car in college. After last year I finally decided that I could afford one and still look my father in the face. (He never spent ANYTHING.) This years biggest expense is adding 5000'sq to the main home, and a 35 meter pool, and a clay tennis court. Plus I bought another 15ac of land in the back. Next year will be a bigger garage with a work shop and a lift. (And maybe a pair of 360s!!!!) DrS | ||
| Jeff (Jeff_m)
Junior Member Username: Jeff_m Post Number: 140 Registered: 9-2002 |
SBA will do 100% financing, but tax returns, bus. revenues must support the loan. We do plenty and it is not the easiest loan to get. Quite a bit of red tape. Much easier on a franchise or proven business with records. | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 685 Registered: 11-2002 |
I started a distribution company with 3k. Now I own a majority share of 4 manufacturing companies, 3 other distribution companies and a logistics company. All in the span of barely three years. It's not always the startup capital that gets you going. Now the distribution company makes almost more money than any other business I started! Cheers | ||
| Jeff (Jeff_m)
Junior Member Username: Jeff_m Post Number: 139 Registered: 9-2002 |
DrS, Just curious why you have a 348 if you are working with 5 mil a year after taxes. Not that it isn't a nice car but come on! | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 1346 Registered: 7-2002 |
I know what the SBA is, but not clear on their lending guidlines. Seems you couldn't borrow 100% or be 100% leveraged because the biz probably won't support the debt. I will read up on them to see what their guidelines are. | ||
| Drstranglove (Drstranglove)
Member Username: Drstranglove Post Number: 499 Registered: 4-2003 |
The SBA, Small Business Administration. A wing of the US Gov. And one of the better idea's in US history. A bit of paperwork and a good idea and they will lend money to you for any good reason. http://www.sba.gov/ DrS | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 1345 Registered: 7-2002 |
what do you mean by that?...take my $10K and borrow $90K and buy a $100K biz then wait til that pays off? | ||
| Drstranglove (Drstranglove)
Member Username: Drstranglove Post Number: 498 Registered: 4-2003 |
Jim, SBA. DrS | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 1344 Registered: 7-2002 |
follow up thought: so did you make money in an area you were an expert in? housing? real estate? banking? My problem is getting the $300K to do something bigger with or the knowledge to build 20 homes on a tract of land etc. How do you take $10K and turn it into $300K to turn into $1MM? Dont' say hard work! | ||
| Jim Schad (Jim_schad)
Intermediate Member Username: Jim_schad Post Number: 1343 Registered: 7-2002 |
Now I feel like a loser. | ||
| Jason Williams (Pristines4)
Member Username: Pristines4 Post Number: 343 Registered: 12-2002 |
Ross, do you live in London? | ||
| ross koller (Ross)
Intermediate Member Username: Ross Post Number: 1250 Registered: 3-2002 |
drstranglove, (btw, don't you want to add an 'e' in there so that it doesn't look like 'strangl love'....or maybe thats what u meant all the while....) anyway, congratulations, that beats the •••• out of anything i've ever invested in ! best for me so far has been london real estate. made about 40 times my initial investment of 10 years ago. unfortunately that was only 2 properties, one at a time....now if only i had bought 2 more at the same time..... | ||
| Russ Turner (Snj5)
Junior Member Username: Snj5 Post Number: 168 Registered: 2-2003 |
Education | ||
| Drstranglove (Drstranglove)
Member Username: Drstranglove Post Number: 497 Registered: 4-2003 |
Please note it was over many years. One of my family rules, we dont sell anything. But the banks, they have done extremely well compared to the rest of the market. Banks and oil companies. DrS | ||
| Rob Lay (Rob328gts)
Board Administrator Username: Rob328gts Post Number: 5112 Registered: 12-2000 |
Haven't had it yet! | ||
| michael Alpert (Taters)
New member Username: Taters Post Number: 39 Registered: 5-2003 |
Getting Divorced! | ||
| John (Cohiba_man)
Junior Member Username: Cohiba_man Post Number: 100 Registered: 1-2003 |
"As I recall and doing some pidgin math here....About $300,000.00" Well what do you stock market naysayers have to say now? ;) Lets see 5Mil per year return on 300K initial investment...whats that ROI again!?!? hahah good for you. | ||
| G.Peters (Wfo_racer)
Junior Member Username: Wfo_racer Post Number: 116 Registered: 5-2002 |
Broadcom, sold at $240.00 a share before it tanked. Sage, a UK based company my wife worked for (awesome stock options). Southern California real estate. We are done working ,besides having a job got in the way of my surfing and playing with my two sons. Sleeping in again tomorrow. | ||
| Drstranglove (Drstranglove)
Member Username: Drstranglove Post Number: 495 Registered: 4-2003 |
I dont mind. As I recall and doing some pidgin math here....About $300,000.00.... DrS | ||
| John (Cohiba_man)
Junior Member Username: Cohiba_man Post Number: 99 Registered: 1-2003 |
QUOTE: "Stock in the bank that became the bank that became the bank that became Bank of America. The initial investment now returns POST-tax revenue of over $5,000,000/year. And has be insulated from the majority of stock market woes. " If you don't mind me asking, what was the initial investment? | ||
| John (Cohiba_man)
Junior Member Username: Cohiba_man Post Number: 98 Registered: 1-2003 |
Building a small group of homes on a piece of land in my neighbourhood. 800K profit for a few months work. | ||
| Tyler (Bahiaau)
Member Username: Bahiaau Post Number: 748 Registered: 12-2001 |
My friends. | ||
| Taek-Ho Kwon (Stickanddice)
Member Username: Stickanddice Post Number: 678 Registered: 11-2002 |
Being my dad's son. Kicks ass! Hehehe. Best investment has been building a great dad and son relationship. Talk about having something pay dividends! Let the bean counters worry about the cash folks. There are bigger and better things out there. Cheers | ||
| Ed Christophersen (Dr_c)
New member Username: Dr_c Post Number: 45 Registered: 12-2002 |
1. Industrial revenue bonds in a tobacco company. Paid 15% interest and weren't "called" for a long time. I felt bad about the tobacco part but not bad enough to cash them in. 2. my f-car. Sold for something like 25-30% more than I paid for it. | ||
| Drstranglove (Drstranglove)
Member Username: Drstranglove Post Number: 491 Registered: 4-2003 |
Stock in the bank that became the bank that became the bank that became Bank of America. The initial investment now returns POST-tax revenue of over $5,000,000/year. And has be insulated from the majority of stock market woes. That and once I was fired from a job wrongly and they paid me over 6 figures in damages. DrS  | ||
| Jason Williams (Pristines4)
Member Username: Pristines4 Post Number: 342 Registered: 12-2002 |
What was it? And why was it the best? Stocks? Mutuals? Real Estate? |