Originally Posted by Just BS
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...
Selling is always an option. I've sold my last three businesses, so that has been a familiar exit strategy for me. But in this venture, if it is successful, I'd be looking to expand locally to maybe three stores in the area. Again, like somebody mentioned earlier this thread, following the McDonald's model of buying real estate and then making money serving food as a bonus.
That's also part of the reason I want to create a system that can run without me. While I plan on being the name and the face of the original location, I want to create processes that enable somebody to be groomed to be able to run a store without needing 10 years of experience running a pit or feeling like I need to be 100% involved with everything.
Bottom line is if it's successful enough that another location, or two is warranted, I want to be in a position to be holding, say, a million dollars worth of real estate in five or ten years that was paid for by the customers that walk through the door every day. Then it doesn't matter if I sell the business as a whole or just liquidate the real estate.
So that's how I look at it. I buy a place and then serve food out of it. Hopefully that makes enough money to keep the lights on and pay me a modest living wage. All the while, every customer that comes through the door is paying down that mortgage so I never have to put another dime of my own money toward it. That's where the real wealth comes from, even if it isn't liquid and in the bank. And then wash, rinse, and repeat if possible.
Obviously, lots of pipe dreaming and I know it will be hell or high water in a couple of months when the doors open and I find that sales aren't what were expected, cash flow is negative, etc. But that's my best case scenario plan, and I've already outlined the worst case. So most likely, I'll fall somewhere in the middle and hopefully just be happy with making a comfortable living doing something worthwhile.