Originally Posted by Just BS
Great thread ~ Thanks for sharing your experience with us.
I am having dinner tonight with a CPA (wifes friend from USC who knows how to manage money) to see if starting my own biz pencils out. I'll be 50 next year and can retire early, although I'll be leaving a lot on the table if I do....which brings me to my question someone asked earlier. Do you have an exit strategy? If so, can you share it with us. I'm not sure I even know what it is, but I know I'd don't want to work foranother ten years...
Originally Posted by marubozo
As far as exit strategy, this is as much of a real estate play as it is a business. It's a good location for this area, and the price I was able to get it for was below market value. And besides a somewhat small mortgage, I'm not borrowing any other money to get the venture off the ground.
So, my exit strategy has a few options. Even if the business doesn't go gangbusters, if it at least made money and afforded me a modest salary, that's fine since I have a working spouse. So it isn't quite a do or die financial scenario. The second option would be to sell the place. With how much equity I put in with the down payment and the improvements I plan on making, even if the business doesn't flourish, I figure I could sell even for roughly what I paid for it and get most of that equity back. But before selling, my other exit option would be to lease it. The previous owners had two people begging to lease the building while it was under contract and they almost backed out of our deal since the bank was taking so long and wanted to lease it out. So there's probably some demand there. And I'm already a landlord with a rental house and love real estate, so I'd have no problem doing a commercial rental in addition to that.
Thanks for taking the time to reply.... but I am thinking of something a little different. Those exit plans are if the business doesn't do well enough to keep the lights on. I am more interested in, how you're gonna get out of the business once it succeeds. I mean, if you're working 60-70+ hours a week then you're just a pitmaster/restaurant manager (nothing wrong with that). At some point you're going to either train some one to take it over and you'll just collect a monthly stipen (or somethin'), or you sell the business, or ??? Have you thought about that?
Me? I'm old and have spent 30 yrs in a career. I'd like to get something started and then sell it once its establish. Five years max! Sounds like a pipe dream (to me) and not sure if I want to risk something like that but thats another (my) thread that I still need to start...