An unbelievable opportunity

I have always toyed with the idea of a catering/concession business as a PART-TIME gig because of the fun that I have when doing small jobs for friends, family and complete strangers referred by friends and family.
The compliments about the food are always consistent and I have had many repeat "customers."
I have a very close friend who has come into a very sizable inheritance. She approached me and asked if I would like the chance to live my little dream. Of course I was curious. Even more so when told she would NOT expect repayment anytime soon and perhaps not even at all (that is an indicator of how sizable the sum of money being received is.)

We are looking at this unit:
http://www.customconcessiontrailer.com/8x42smokerconcession.html

We are also considering a 2011 Ford F350 Super-Duty Dually to tow it with.

I see this as a once-in-a-lifetime chance and at 51 years-old I don't anticipate too many more like this!

The upside is that I can play with menus, recipes, locations, etc. without the burden of worrying about making money to pay for the above listed equipment as it will be paid for upon taking ownership.

The "competition" here for a business like this isn't heavy. There are very few BBQ catering/concessions here in Tucson. I would have different thoughts if I still lived in Texas where BBQ is on every corner!

Another upside is that I can do this on weekends and during vacation time coordinated with different events in the area like the fair, farmer's markets, etc. I will also bank some operating capital for "start-up" costs, food, additional equipment, etc. As I said, this is an unbelievable opportunity that could benefit me as I approach retirement (still several years away!)

I'm certain there is a downside but I am having trouble seeing it. That is why I am posting this here. I know several of you do this very thing for both part-time and full-time benefits. Please, share your thoughts with me.

I know that I will need licensing, food-handling certifications, inspections, business licenses and insurance. Any advice in these areas will help me as well.

One downside is the size of the rig but I will simply store it at a covered RV facility.

Thanks Brothers.

Ken

C Rocke said:

Some things to consider...

Is the trailer built/designed to meet Health requirements in AZ?

No matter how dear a friend, or how much money they have/had, this would still be a tough offer to accept without expectation of repayment (For me).

Click to expand...

Yes, the rig meets (exceeds) the requirements of my area.

As to the topic of repayment; this is where things for those on the outside of this friendship will have to trust me: the offer is from the heart and without any strings attached. We have a history of trust and doing for others as well as each other.

As to the space needed for the rig and truck; not an issue either. The Pima County Fair as well as the Arizona State Fair have spaces available larger than what I will need. Local Farmer's Markets also have flexibility when it comes to the larger rigs.

I would like some feedback on the equipment listed for the rig. Is there something else that might be needed that you experts think might be crucial?

vesteroid said:

Wont pretend I know anything about vending, but have owned and operated my own manufacturing business for about 20 years now.

I dont care how you get the money, you need to make it work for you, for this deal to make sense. I am just sitting here doing simply math on that rig, the truck, and the other items you need to run a business vs the profit margin on your gross sales I suspect you will see and your available time to invest in sales. I dont think you have a chance of ever paying that rig back or even making the money back assuming you keep it.

Please god dont go into this thing blind with a hope and a prayer and some self assurance you dont have to pay it back.

Regardless if you do or dont, at least respect the money this person is willing to part with and put it to good use, make more money with it, or simply take the money and invest it in your retirement. dont just throw it down the tubes.

You need to do a business plan so you can see on paper the things I am talking about. If you dont have the experience to do that, go find an accountant willing to work with you to produce one. for that kind of investment, you can find a quality cpa to produce a budget and cash flow forecast so you can see on paper what the odds are...then figure you dont have a chance of hitting what you see on paper, you will over estimate your sales and underestimate your expenses.

Not at all trying to rain on your parade, just trying to keep you looking in the right direction....dont throw that money away, few people get this opportunity.

Click to expand...

A lot of much appreciated advice and I thank all of you for it. We do have a business plan and a silent partner/advisor in the restaurant/catering business. I am not completely without business sense myself; I manage a $3.6m per year operation with 30 employees and total responsibility for my P&L, annual profit and growth.

This venture isn't about making back the money. It isn't about having to repay, potentially repay or feel the moral obligation to repay the up front investment.

Nope, it's about having fun doing what we all love to do; serve others something that they will enjoy and remember. There will be some charity work done as well.

I make a good living and will retire on the benefits of what I do FOR A LIVING. What I do FOR FUN will help retirement be more enjoyable.

Again, thanks to all for the advice, concerns and well-wishes. This opportunity is a blessing and those do not normally come with profit percentages in mind.

Have a safe and smoke-filled holiday weekend.

Sincerely,

Ken