Small Business - What would you Start?

[modsledr]

Great info. I've always wondered how selling stock in a private company works.

How would a private company, who really has no chance of going public, entice investors to purchase shares? If the company remains privately owned, what return do the investors get? If they purchased 10% of the shares, do they literally receive 10% of the annual profits?

At that point the "investors" would actually be partners in the company and would own whatever % is agreed to. Their investment and % ownership would most likely be based on a third party appraisal of the value of the company, which takes into consideration revenue, profit, inventory, real property, sale value, etc...So if a company is valued at $1,000,000, and a new partner invests $100,000, then they would probably be a 10% owner.


Are you looking for investors??

 

[modsledr]

......don't get your capital tied up in to many projects at once.....

Good advice!!

 

[Weekday Warrior]

I would like to start out as a neighbor dude that fixes ATV's/Snowmobiles and bikes even lawnmowers etc. as well as other small stuff like welding up your snowplow at 1am right after I just got off work.


Then I'd work up into a bigger 40x60 shop, getting more and more tools as I reinvest my earnings back into the shop and the crap that goes inside it.

I quit my day job, and never work a day in my life again at this point:

Then go into a full fab shop, at this time I'd market things like sled decks and ramps or even trailers for ATV's and such. I'd take my ideas and fab them to reality and market them.


Then I whore SW with my products!!!!!

 

[03rmking]

At that point the "investors" would actually be partners in the company and would own whatever % is agreed to. Their investment and % ownership would most likely be based on a third party appraisal of the value of the company, which takes into consideration revenue, profit, inventory, real property, sale value, etc...So if a company is valued at $1,000,000, and a new partner invests $100,000, then they would probably be a 10% owner.


Are you looking for investors??

Not necessarily. I cringe at the thought of giving up even a small percentage of what I've worked so hard for. Although I do like the idea of bringing in capital to fuel new product development and overall growth.

 

[bullfrog123]

Depends on how much time, money and effort you want to put out to be a business owner. My wife and I started a truck/freight brokerage 10 yrs ago with minimal $ to start, BUT the work is not for the weak. Sitting behind a desk 60-70 hrs a week on the phone and internet. But the rewards are showing yr to yr.

One option for low maintenence and minimal work involved is storage facilities, enclosed, and covered type for RV's, boats, sleds, etc. Build them with no power, water, etc. and after 2 yrs the profits will start coming to you to build another, and another. I have thought about this idea for yrs, just havn't pursued it. I'm sure others follow where I am coming from.

 

[buck50]

Depends on how much time, money and effort you want to put out to be a business owner. My wife and I started a truck/freight brokerage 10 yrs ago with minimal $ to start, BUT the work is not for the weak. Sitting behind a desk 60-70 hrs a week on the phone and internet. But the rewards are showing yr to yr.

One option for low maintenence and minimal work involved is storage facilities, enclosed, and covered type for RV's, boats, sleds, etc. Build them with no power, water, etc. and after 2 yrs the profits will start coming to you to build another, and another. I have thought about this idea for yrs, just havn't pursued it. I'm sure others follow where I am coming from.

yep, those are the kinda things a guy needs. the ones where money continues to come in with a minimal out put of time and energy into it!!!! storage facility is the perfect example too!!!!

 

[modsledr]

Storage facilities are a great investment...unfortunately, they are initially cash intensive to purchase the land, build the structures, debt service and marketing costs while building your customer base, etc...

 

[Turd Ferguson]

A storage facility would be a good one to open up except for the initial start up costs, your right modsledr.

Also if you don't mind me asking, are you in business for your profession?. You seem to be very informed on this subject.

 

[Turd Ferguson]

Microsoft, Dell, Amazon, Google, Yahoo...all of these companies recieved significant amounts of outside investment...some even invested in the others (Amazon was an early investor in Google, for example). I would say the company founders made out ok. I know these are multi billion dollar companies, but they didn't start that way.

Although I do like the idea of bringing in capital to fuel new product development and overall growth.

If the market is there rmk, this might be somthing that you could do to really set you apart from the boys.

On another note...Where would you find investors (dragons) that are into this type of stuff and how would you pitch it to them?

 

[alrevedup]

Not necessarily. I cringe at the thought of giving up even a small percentage of what I've worked so hard for. Although I do like the idea of bringing in capital to fuel new product development and overall growth.

Save, licence your products or go under the knife and get a loan.

SBA loans want more paperwork than the tax man!!!

Try a secured loan

 

[EricW]

I know some folks making large bank right now using older/retired folks as their commodity (I know that sounds bad, didn't know how else to say it). One guy is providing a middle man service to assist families with finding a retirement/nursing home for their loved ones. The way it works is the Smith family is looking for a place for granny Smith, they call you and you hook them up with Acme retirement community based on granny's needs and their budget. Acme typically pays you 1 month of their charges for providing them with the long term tennant. That month can be anywhere from $3000-$5000 commission for you. My sister places 8-14 people a month in the Spokane area doing this. Her investment is a lap top, phone, and some time seeing and learning about all the local providers and getting them to sign on. I love my sister to death, but she couldn't run a gumball machine business wise and she is doing quite well.

The beauty is that usually medicare/medicaid is involved along with a personal long term care policy that allows most all seniors some level of placement that doesn't cost your customers anything because the home is paying you. So based on this the Smiths run out and tell everyone they know how you baled them out of the "what do we do with Granny" issue that was a huge relief at no cost to them.

If you can fund the next level then you'll want to actually look at building a retirement home. That is where the real money is. $150-$250 or more a day for every room every day. The one that I am working on now is a country living theme type home where residents can help with a garden, feed the chickens, fish the pond, and have many traditional country living type activities. Our hopes are that this type of setting will appeal to an upper level clientel that is self funded.

The bottom line is there is no shortage of seniors in need of residency and care. This creates opportunity from a person to place them to a person to provide the residency. Might be an untapped opportunity where you are. Good luck. EW

 

[Turd Ferguson]

That's a hell of a business proposition Mr. W

Cash in on the baby boomers

 

[xlr8r]

I completely agree....

on the Senior Citizen market. Any time there is a constantly expanding market there is an opportunity for huge growth and economic profit. We own a small consortium in the insurance sector and the opportunities with Seniors is phenomenal! Develop a product or service that fulfills a need for this relatively wealthy demographic and ride the wave for the next 12 years. Our dental, medicare and annuity/life products in these areas are unreal opportunities.

Oh, and to answer part of your question: anyone who mentions "the hours aren't bad" has a different business goal than I do. Business opportunities with high inventory, employee and demographic considerations are of no interest to me (although they may be to others). My ability to distance my time from my pay as much as possible is my determinant of success in this area. Insurance, banking, venture capital, M&A, Investment Banking, etc. are all examples of business that magnifies those principles and allows an individual to double their "hourly" pay year, quarter or even month by virtue of compound (residual) growth and continue to pay dividends while you are sleeping at night or on vacation. The ability to engineer a financial product and distribute it by paper is extremely efficient.

Bottom line: my vote goes to the opportunities that allow you financial freedom with your time to develop the next business venture, and the next, and the next....i.e. you can take 3 months in fiji developing the next biz and your business will pay for your time without straining itself.

 

[mtn_extreme]

" MOST IMPORTANT...do what you love to do...what are you passionate about? If you can answer this question and translate it into a business, you'll never work another day in your life!!"


Make sure your passion is directed properly here. Speaking from experience........if you make your hobby your livelyhood, you no longer have time to enjoy your hobby!

ex: so we all love snowmobiling and if we were to make it our livelyhood, we would have to spend all our time helping others to enjoy what we are not getting to do. Now if your willing to give up enough time riding to build the business to the point that it has employees that can handle it when you are gone............then you can reep the rewards of your passion from all angles. But I will tell you, that is hard to do!

 

[portgrinder]

Contract heavy duty mechanic

$100+/hr and all your consumables are paid for.

 

[M.M. 700]

What about home rentals? Buy homes cheap, fix them up rent them. With the "housing market" the way it is, not so may people buy, people forclosing?????

 

[Blu Du]

forget the small buissness start out big. wind mills is where it's at. gov't financing, paid for in 10 years. next thing you know your an energy tycoon!

 

[H2SNOW]

the key is to work from home and spend valuable time with family
with no overhead or travel expenses...

I was a fulltime network marketer for 7 years ...made over 20K per month rockin and rollin in the internet world ..

got burned out and went back to the J.O.B ....just over broke...

now I am truckin and setting myself up on the next Internet boom

I gaurentee that I will be back home with my wife and kids fulltime in less than 18 months !!

 

[H2SNOW]

What about home rentals? Buy homes cheap, fix them up rent them. With the "housing market" the way it is, not so may people buy, people forclosing?????

there is money to be made but it is a sketchy market ..you need to find a trend and capitalize on it period

 

[WYO312]

A woman I work with was telling me about having to go in for a consultation before getting her breasts implants. I think being a consultant in that aspect would be a wonderful hands on kind of job.