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$200,000 what business for success?

ErrosionOfAccord

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#1
Let's say you have $200,000 to start a new business in an area where a new major bypass is being built. What kind of business would you deem most likely to succeed in an area which is bound to grow?
 

Usury

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#2
Some place that takes food stamps...at least til money is no good.
 

ErrosionOfAccord

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Coin-op laundry is actually listed as one of the top 5 riskiest ventures. Right up there with photo printing.
 

ttazzman

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i would probably negotiate purchase options on the land in question.........then if i wanted to start a self owned self managed business i would look for similar areas/locations in same town and neighboring towns that are doing well and copy their winning business model....understanding the type and amount of traffic is important...........IE you dont want a coffee shop on the wrong side of the road from morning commuter traffic.........then once i decided what to do i would attempt to put as little of my personal post tax $ into the venture as possible ..you cant lose what you didnt invest...you want your time and labor to be the major contribution on a first time startup you will need your cash to live on while building the business

LOL.....i get paid big $ for startup consulting....so consider what you paid for this advice :)

i would further recommend not starting a business yourself unless you have a very specific skill set or knowledge in the business your starting....better to 10k-20k angel some one else that does
 
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Zed

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Montecristo

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Usury

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Funeral home.
 

andial

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#10
Church.
 

Uglytruth

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#11
Buy the land (mortgage) and lease or resell it to people that have dreams and want to work 16 hr days.
What do you do if a nearby business closes or traffic patterns change?
 

Howdy

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Coin-op laundry is actually listed as one of the top 5 riskiest ventures.
How would bankers collect interest on the national debt if every business took cash? How would they collect credit card fees on a pile of quarters? I think we have just traced the source of that advice.
A coin operated car wash might be good. Make sure you have a well so they can't track how much water goes in. Storage units are a good business too.
 

Unca Walt

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#13
I know a guy who ran a coin-operated wash/dry string of stores.

His take on it was horribly negative:

"Walt, the only reason I stayed in this business for 15 years is my old man started it up, and I inherited it. It is a total pain in the ass. People are ALWAYS putting things in the washers and dryer that damage them. Not only that, but you better have a night-guard somehow. It is very easy to bust open the coin boxes in seconds. Just a hammer and chisel."
 

ttazzman

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Buy the land (mortgage) and lease or resell it to people that have dreams and want to work 16 hr days.
What do you do if a nearby business closes or traffic patterns change?
why buy if you can use minimal funds to get a 10yr+ purchase option and use it when you find a buyer ...or help a startup etc...

purchase options while yes you put out $ for a piece of paper save you....taxes..insurance...risk of change.....but you still have the opportunity availible .......the real negative is the potiential price of the option so its important to get it early if possible
 

Scorpio

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#15
Think snowflakes,

think 'the times, they are a changin'

whatever you have heard negative about carwashes or laundramats, all true x 10. Sounds real cool, but the location/traffic/competition all needs to be optimal to kick a$$, otherwise it is a tremendous amount of work for a limited return. Not bad, but limited.

why a business startup?

what about rental units, leveraged reasonably, that virtually guarantee a cash flow? Part time, unless real big, easy to manage the workload, etc. You can either self manage or pay x of gross to have someone else deal with tenants. Couple of real good reason, depreciation, and resale. If not in a boom market, any slam in the economy should equal a flat to slightly lower value as you weather the storm. In a boom market? Wouldn't touch them.

As mentioned earlier, many companies are making it big right now lending to small business because bankers and .gov have restricted access to capital. The returns are great, and various ways of covering your 6. For instance, hard money lenders are getting 18-30% and they are tapping the till daily. What? They pull a daily payment out of the checking account until paid off, meaning they are getting paid before anyone else including the mort, labor, or the tax man. Pretty sweet setup. For what? Nothing, save they can dump some cash on a business.

dyodd
 

Usury

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#16
If I was charging somebody 18-30%, not only would I be in jail, but I'd have to kill myself to sleep at night.
 

Nomis Elpmis

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#17
Craft beer microbrewery. All-in conservative cost to make beer and run location $2 per pint. Sell a pint for $5, $6, $7, $8 per pint.

Everything you need to know:

http://discussions.probrewer.com/forum.php
 
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Someone_else

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#18
Set up two businesses in different places. One is a discount food store selling a limited number of good selling items at 20% off Walmart's price. This place sells to frugal middle class people. The other is located near a Walmart and is called "Cash for Food". Accept only items to sell in your other store and give 35% of Walmart's price for "new condition" cans and packages. Buy for 35 cents and sell for 80. This "Cash for Food" will also sell liquor and smokes.
 

gringott

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Find a young gangsta and invest in a cash only "distribution" business. Sort of like tupperware but some other product if you know what I mean.
 

JayDubya

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#22
I don't understand how they all compete against each other and still manage to make money, but there's a boatload of self storage places everywhere I look around here. And they continue building more and more of them. Seems they're shoehorning them in on every vacant piece of land they can find.
 

solarion

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#24
Moar foreclosures + moar divorces = moar storage units. That and so many kids have to move home now to keep from becoming homeless. Agree though, there's an awful lot of self storage space available these days. At this point I think you'd have to be very selective about where you started a self storage biz.
 

Zed

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#25
I know a guy who ran a coin-operated wash/dry string of stores.

His take on it was horribly negative:

"Walt, the only reason I stayed in this business for 15 years is my old man started it up, and I inherited it. It is a total pain in the ass. People are ALWAYS putting things in the washers and dryer that damage them. Not only that, but you better have a night-guard somehow. It is very easy to bust open the coin boxes in seconds. Just a hammer and chisel."
Every business is a PITA. Thats why you make money doing it.

2c

FWIW
 

andial

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#26
How about a combination lease the land for self storage, coin op car wash/ laundry, church and Panera bread plus sell some weed on the side.
 

Zed

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#27
I dunno about where you are, but here storage units have had a real boom due to demographics. IMO it seems really obvious that we are going to see that fall off, again due to demographics. Our market looks due to head into a chronic over supply.

If things go south badly less people will have the cash for appliances but still need to wash.... think ---> what works when things are tight.

Odds are a 200k business isn't going to be a barn burner hence my simple suggestion.

Any business needs a nuanced understanding of why it works. A 500m shift in location can be fatal, you need to understand your customers needs completely. Anyway, think stagnant economy with inflation.... what will they need?

Look for 'barrier to entry', normally that is setup cost but @ 200K, well, that isn't going to happen. Locking out a great location that can't be easily challenged is a good bet for a smaller business. Whatever it is you need that protection, summin that stymies would be competition.

The thing is that looking backwards will not help you here. As with all investments past performance is not an indicator of future returns. Ask yourself why you own gold? Then apply that same thought process to why you might own any business. Selling yachts in a credit boom was a good business... there is a chance that might change, don't ya think?

BTW, my brother has a side business buying storage container contents and reselling them. They are sold to cover the owners debt when they default on payment. He is seeing more and more come through... summin ain't right there, people are walking away from households of stored stuff. This appears to be a trend... and he is having more trouble shifting the stuff and bigger fees for dumping the excess crap. He is getting picky about what he will take. Storage guy is less impressed, cost him $70 a cubic m to dump! It ain't all roses there either.

Bottom line is DO YOUR RESEARCH and think it through for your specific instance. Every success I have had involved a line of relatives and friends telling me why it was a stupid idea.

2c

FWIW
 
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Zed

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#28
How about a combination lease the land for self storage, coin op car wash/ laundry, church and Panera bread plus sell some weed on the side.
Just a bunch of weed vending machines might be about the mark....?! Medicinal of course.

Cafe/Laundromat? Bookshop/Cafe was done to death... people have time to kill while clothes are washing, why not make it a great environment with good coffee! Mums love a chat...:D, give them a great excuse to have one over a cuppa. Bit of a design challenge, but hey.

I dunno... don't reinvent the wheel but think outside the box!
 

andial

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How about a combination self storage plus crematory when customer dies they get incinerated with all their crap gets put in bucket your kids store you in the basement. Just thinking out loud.
 

Zed

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How about a combination self storage plus crematory when customer dies they get incinerated with all their crap gets put in bucket your kids store you in the basement. Just thinking out loud.
... pay up front and hedge fuel costs, then you might have summin that frys flys.

I favour mulching, its greener.
 

Zed

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Brothel? Just following the whole rental theme down the line.

Gigolo? Low set up... not much leverage but...

I think Dial does this tradesman/gigolo thing that the customers like.
 

Ishkabibble

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#32
There's not enough information to make a wise recommendation on an actual business. Still, there are great tips so far. Here are a few more things to consider:

1) the skills of people in the area. You are better off if you don't have to train people from scratch. Dip into the knowledge base and do something innovative with it.
2) market gaps. You can't fill a need that isn't present.
3) your passion. If it is money and not passion that motivates you in this venture, you've probably already lost. Studies repeatedly show that it's passion which empowers the most successful entrepreneurs.
4) exit options. Stranded assets suck. Don't risk creating any.
5) economic prospects. You say the area is going to grow. Why? Can you align with the growth you anticipate?
6) your spouse or partner. Either you're both in this, or you aren't. Be sure the commitment is genuine and mutual, especially if you'll both be contributing.
7) your business plan. Document your entire initiative before you leap. In working out the details, you'll learn a lot about your chosen intent. You may find reasons to back away, or to embrace it. You may learn of costs you hadn't anticipated. You'll certainly learn a lot, and you'll be more apt to succeed if you've clarity.

I have to say... number 3 is the big one in my view. Life should be spent fulfilling your purpose, not entrapped in a diversion. If you don't know your purpose, determine that first.
 

Uglytruth

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#33
All the "advice" points to cash based anything. Preferable something without employees or high overhead.

Friend of mine had a friend that moved to FL when he lost his job. Started a handyman business in a retirement community. Bought a van & tools. Put up mail boxes, changed light bulbs, added attic steps, screen door, paint, wood flooring, light switch relocated, etc..... Made over 1 mil in 5 years.
 

ErrosionOfAccord

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#34
Think of an old steel mill town, all dried up with empty buildings being bypassed into the nicest bedroom community in the tri-county area. The bypass will skirt the dried up area and land in a relatively pretty little bedroom community.

Welfare is the predominate way to earn a living in the county but the doctors, lawyers and judges tend to congregate here due to the schools, crime rate, and real estate. When the mill closed in the 70's welfare was easy to come by in this area. So easy that bums actually moved here from out of state to get on the dole. Portsmouth was also know for its union mentality.

The project is 823. https://www.transportation.gov/tifia/financed-projects/portsmouth-bypass

In Portsmouth, houses go for as little as $39,000 and you can probably find nice little fixer uppers for less, yeah lol. You've got to be asking yourselves why I would damn myself to such a place?
1) immediate access to the N&W.
2)near access to the C&O.
3)river ports.
4)points south from central Ohio will be reached through here.
5) Parents are getting on in age
6) Mining has become tedious
7)I have a tendency to think this project may put southern Ohio back on the map
8) Development is somewhat hindered due to the river valley. On one side of the highway is the river on the other side is tough to develop hills. In essence you have a retail trap.

Portsmouth is so depressed that it doesn't even seem to have a coffee shop. For that matter wheelersburg doesn't have one either.

Southern Ohio isn't completely bereft of good jobs, there just aren't enough. We all know what has happened to manufacturing. This area is the heart of rust.
 

ErrosionOfAccord

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Actually thought about pawn, but they don't look like they do well here.
 

Zed

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I have to say... number 3 is the big one in my view. Life should be spent fulfilling your purpose, not entrapped in a diversion. If you don't know your purpose, determine that first.
Yes. Many people "buy a job", they work for the business as opposed to the business working for them. IMO you own a business when it can function without you leaving you free to work on its development rather than working in it.
 

Zed

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Think of an old steel mill town, all dried up with empty buildings being bypassed into the nicest bedroom community in the tri-county area. The bypass will skirt the dried up area and land in a relatively pretty little bedroom community.

Welfare is the predominate way to earn a living in the county but the doctors, lawyers and judges tend to congregate here due to the schools, crime rate, and real estate. When the mill closed in the 70's welfare was easy to come by in this area. So easy that bums actually moved here from out of state to get on the dole. Portsmouth was also know for its union mentality.

The project is 823. https://www.transportation.gov/tifia/financed-projects/portsmouth-bypass

In Portsmouth, houses go for as little as $39,000 and you can probably find nice little fixer uppers for less, yeah lol. You've got to be asking yourselves why I would damn myself to such a place?
1) immediate access to the N&W.
2)near access to the C&O.
3)river ports.
4)points south from central Ohio will be reached through here.
5) Parents are getting on in age
6) Mining has become tedious
7)I have a tendency to think this project may put southern Ohio back on the map
8) Development is somewhat hindered due to the river valley. On one side of the highway is the river on the other side is tough to develop hills. In essence you have a retail trap.

Portsmouth is so depressed that it doesn't even seem to have a coffee shop. For that matter wheelersburg doesn't have one either.

Southern Ohio isn't completely bereft of good jobs, there just aren't enough. We all know what has happened to manufacturing. This area is the heart of rust.
You need stats... local government data, trends, who is coming, who is going and where! You can buy that sort of data here. If you can start there it will give you a general lead on what might work.
 

AceNZ

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#40
Location is one thing, finding a market you can reach effectively is another.

My view is that retail is a terrible place to be (low margins that are only going in one direction), second only to service businesses. Personally, I prefer as few employees as possible.