Author Topic: Is This a Bad Time To Consider Starting a Business?  (Read 1088 times)

0 Members and 1 Guest are viewing this topic.

Offline Gregooch

  • Registered User
  • Posts: 3
  • Location: United States
  • I Love Pizza!
Is This a Bad Time To Consider Starting a Business?
« on: April 23, 2013, 12:13:43 PM »
This is a loaded question I suppose but due to not only the current economic climate, I would be hard pressed to recommend opening a business to anyone. That said I would still like to open one someday! Considering all the associated costs such as Building or rental space weather you are  buying or leasing, equipment costs, supplies, licensing fees, incorporating, salaries, taxes, healthcare costs, not to mention all the competition that's already out there between the mom and pop shops and the franchise businesses, how do you sort this all out and say OK I think I can make a living at it?


Online Chicago Bob

  • Lifetime Member
  • *
  • Posts: 10140
  • Location: North Carolina
  • Easy peazzy
Re: Is This a Bad Time To Consider Starting a Business?
« Reply #1 on: April 23, 2013, 01:23:39 PM »
If there was an answer to that....there wouldn't be the crazy high rate of new closings and everyone would be in business for themselves.

If you cornered me down to making some statements I suppose I would say that you need tremendous dedication, lots of folks say that cool word "passion" but it has to go much deeper than loving to tinker with making the best tasting pizza out there. You got to be ready to sacrifice man...and I mean sacrifice.
Money, you've got to have enough reserve to keep your door open...I would not even consider it unless I had at least 2-3 years worth of "able to hang in there" money. The third obvious thing I would say is "location" and even that is not as easy as it sounds. It can be a real "crap shoot"...the "supposed' best places can turn into nothing but a money pit if your product and the way it's presented just ain't happening in that "latest an greatest" locale. This major expense can be very, very tricky.
Good luck.

Bob
"Care Free Highway...let me slip away on you"

Offline La Sera

  • Registered User
  • Posts: 135
Re: Is This a Bad Time To Consider Starting a Business?
« Reply #2 on: April 23, 2013, 08:29:02 PM »
In my opinion (as an independent owner), the general health of an overall economy is less a factor than the economic health, demographics, competitive environment and market conditions of the location where you open. Think local.

You can't control the economy, but you do control a business model, branding and marketing that's appropriate for your market.

Mature markets are difficult. Large chains have the people and know how to analyze and locate viable markets. If a market has three large chain stores, it's usually not a good area to open.

Most small business owners don't have sufficient marketing or business skills, but rely on the romantic notion that if they cook it, people will come. That's why most small businesses fail and have always failed, even in the best of economies.

Offline TomN

  • Supporting Member
  • *
  • Posts: 1478
  • Age: 55
  • Location: Seattle, WA
Re: Is This a Bad Time To Consider Starting a Business?
« Reply #3 on: April 24, 2013, 01:24:39 AM »
Gregooch,

It is difficult to give an answer to your question directly. i am assuming that you are talking about some aspect of the restaurant business. As a person who markets food to restaurants, pizzerias, and food service, I have seen many places shut their doors over the years. More so in the last year. I have also seen restaurants that have taken off and are doing very well. I am sure you know to do your research before opening up your doors. The first thing is Location. Location. Location. Next is your product good and is it in demand. What about your competition? What is the average price or going rate for a meal / pizza? What choices do customers have with in a few miles of your business. What are your advertising costs going to be for start up, do you have some money to work with. Has a similar business been there and failed already? ETC...

Having marketed many restaurants over the years, i am at the point in my life that I choose NOT to live at a business. I like being home with my family more and i have learn to take vacations and enjoy them. I also make time for my personal health. I see many people everyday that practically live at their restaurants. They are there on weekends, when you and i have it off. Name any Holiday and they are there too. They open up and they close the place, and often times do not get a vacation, etc...  Forget all the previous questions in the above paragraph. First ask if this is what you want to do with your time at this point in your life? Are you going to have enough to retire on if the place goes out of business or did you risk it all on this project? If you do not, forget retirement. You will be working.

And i have not even began to discuss hiring quality employees, wages, insurance, and the big one, THEFT. As one restaurant owner put it, "It is is not a matter of whether your employees will steal from you or not, they will, it is a matter of how much and how often". 

If I have rained on your parade, please accept my apologies. i just hate seeing people invest all they have without doing all the research first. I really do wish you the very very best in what ever you decided. Just take your time and research it very well. Ask yourself the serious questions. Once you open your doors, your are committed at that point. Especially if you signed a three or five years property lease and have invested your own money in equipment.

TomN
« Last Edit: April 25, 2013, 12:36:48 PM by TomN »

Offline TomN

  • Supporting Member
  • *
  • Posts: 1478
  • Age: 55
  • Location: Seattle, WA
Re: Is This a Bad Time To Consider Starting a Business?
« Reply #4 on: April 24, 2013, 12:16:02 PM »
Gregooch,

Talked with a friend this morning that closed his Pizzeria in Dec 2012. He has taken his equipment and has made it mobile. Now, he is making more money through catering, special events, concessions, etc., than he did at the restaurant/pizzeria and without the monthly overhead costs.  Of course, he learn to do this and make the contacts because of the restaurant, but my point is that he is doing well without all the other operating costs. Also, I see a trend of the mobile restaurant more and more. Perhaps you should try being mobile first before opening up at a building.

Best to you
TomN
« Last Edit: April 24, 2013, 12:17:42 PM by TomN »

Online TXCraig1

  • Registered User
  • Posts: 12348
  • Location: Houston, TX
Re: Is This a Bad Time To Consider Starting a Business?
« Reply #5 on: April 24, 2013, 01:10:44 PM »
As a person who markets food to restaurants, pizzerias, and food service

Tom,

What do you sell? Are you a broker, distributor, manufacturer's rep?

CL
Pizza is not bread.