Jcroz91 Posted December 31, 2009 Report Share Posted December 31, 2009 Iv been having the hardest time trying to decide what major I want to go ahead and persue. Over the last few months I'v really been interested in starting my own business and or becomming a franchisee. Now I know doing something like this is a work hard now, benefit later type of deal but really i dont want to work for anyone other than myself. I, as most people, will work twenty times harder if its benefiting myself rather than my "boss". Iv had a few small business ideas but i didnt feel they would blow up to be the size business i would need to support a family. Using surveys I got data on what kind of clientell i would be looking at for the business and it ended up being somewhere around 60/40 as far as % of interested surveyer's. which didnt seem to be a high enough percentge to jump into the business.Subway was my first job 2006 and it seemed so easy to run. Just keeping track of whats being used (as far a product) so you know not to buy too much in the next weeks order, not over staffing, keeping loss prevention down, all while sustaining good customer service. I could do all that. I like doing things like that. Just knowing how much the profit would be. Using subway as an example... average start up is $150,000 and average yearly profit is around $65,000 a year. It would take 3-5 years to pay a store off. Most say if your going to franchise something, to make a good living youll need to have multiple locations. How true is this?Iv also heard that schooling wont help with being a business ower/ franchisee. Ive been told experiance in the field/industry is the best thing for sucess. Which I agree but i alson feel like taking a few business courses wouldnt hurt. Parents are paying for school anyways as long as the grades stay up. This isnt only for franchisee's but any business owners in general. If you can shed some light it would be much appreciated. Quote Link to comment Share on other sites More sharing options...
Likwid Posted December 31, 2009 Report Share Posted December 31, 2009 Just as an important note, the start up for most franchises is "liquid assets"... meaning you can't take out a loan... would need to sell mommy and daddy's house. Quote Link to comment Share on other sites More sharing options...
max power Posted December 31, 2009 Report Share Posted December 31, 2009 Just as an important note, the start up for most franchises is "liquid assets"... meaning you can't take out a loan... would need to sell mommy and daddy's house.Which is why every 19 year old with a big apartment hasnt gone out and mortgaged a Subway. Quote Link to comment Share on other sites More sharing options...
Jcroz91 Posted December 31, 2009 Author Report Share Posted December 31, 2009 Which is why every 19 year old with a big apartment hasnt gone out and mortgaged a Subway. wow are you serious? REALLY?Just as an important note, the start up for most franchises is "liquid assets"... meaning you can't take out a loan... would need to sell mommy and daddy's house.what do you mean? like its not possible to get a big loan from a bank? is this just cause of the way the economy used to be? or in general most people that start a business cant get a business loan from a bank? Quote Link to comment Share on other sites More sharing options...
max power Posted January 1, 2010 Report Share Posted January 1, 2010 You're really kind of thick in the head, arent you? And yes, Im serious. Subway isnt just handing out franchises. You dont just walk into a bank and say I want a $150k loan and I have no collateral. I mean, you could. It would make the banker laugh really hard. Quote Link to comment Share on other sites More sharing options...
Jcroz91 Posted January 1, 2010 Author Report Share Posted January 1, 2010 You're really kind of thick in the head, arent you? And yes, Im serious. Subway isnt just handing out franchises. You dont just walk into a bank and say I want a $150k loan and I have no collateral. I mean, you could. It would make the banker laugh really hard.i wasnt refering to it like that. i was refereing to it cause you still are trying to make jokes about all that old bs.i realize im not just going to go into the bank and i want $150,000 loan. I but i know there has to be a way to get the funds to get a franchise. How are most doing it? I would have $30,000-$50,000 saved by the time i wanted to do it. where i could put down as well. Quote Link to comment Share on other sites More sharing options...
Uncle Punk Posted January 1, 2010 Report Share Posted January 1, 2010 Just as an important note, the start up for most franchises is "liquid assets"... meaning you can't take out a loan... would need to sell mommy and daddy's house.True & not true. Assets need to be liquid NOT associated to primary residence. Quote Link to comment Share on other sites More sharing options...
that dude Posted January 1, 2010 Report Share Posted January 1, 2010 be a drug dealer kid. make monies son. mad monies. Quote Link to comment Share on other sites More sharing options...
DTM Brian Posted January 1, 2010 Report Share Posted January 1, 2010 Jordon,My original loan for the dyno was 100k. You can imagine what the underwriters were thinking when they were looking it over. I am sure they had no idea what a dyno even was. Needless to say I had to have some some serious collateral for them even to consider it. My interest rate was out of this world as well. After two years I was able to refi the loan at a much better rate and drop the collateral. I am guessing a subway might be easier to get past underwritting then a dyno. However you need to either bring collateral to the table or a good portion of your own money to show the bank you are willing to take the risk. The other problem is there is a subway at every corner already. If you need 150k, I would think you would want to bring 50k of your own money to the table. A bank then might consider it depending how established your credit is. Then again it is much harder to get such a loan today then it was 10 years ago. Matt who owns a number of subways over on CR would be the guy to talk to. Not sure how much info he is going to give you. He has several subway stores. Good luck. Quote Link to comment Share on other sites More sharing options...
Jcroz91 Posted January 1, 2010 Author Report Share Posted January 1, 2010 True & not true. Assets need to be liquid NOT associated to primary residence.im lost with this "liquid assets" thing. Im assuming theres solid assest and liquid assest. can i get an example of each to understand what the differences? Quote Link to comment Share on other sites More sharing options...
DTM Brian Posted January 1, 2010 Report Share Posted January 1, 2010 Liquid assests can be turned in to cash quickly. Quote Link to comment Share on other sites More sharing options...
JonS Posted January 1, 2010 Report Share Posted January 1, 2010 Beware ... Trolling ... http://www.columbusracing.com/forums/showthread.php?t=74293 Quote Link to comment Share on other sites More sharing options...
that dude Posted January 1, 2010 Report Share Posted January 1, 2010 liquid assest are cash or things that can make cash faaast Quote Link to comment Share on other sites More sharing options...
rick37 Posted January 1, 2010 Report Share Posted January 1, 2010 First off what do you want to do i.e resturants,repair service or what, When you decide what you want, go work in that field for a year or two and see if thats what excites you, Second when you do start you own business be prepared to never have a life again because that business is your life if you have employees, This is very true in the resturant industry. I would say the very best thing you could do is have a solid business plan and follow it to a tee,This will help you achieve your goals. Granted you will have to tweek it from time to time. Being in business has great perks but it also has draw backs. I don't think that theres any thing that can prepare for the new experience of a man with many titles.My opinion Quote Link to comment Share on other sites More sharing options...
Jcroz91 Posted January 1, 2010 Author Report Share Posted January 1, 2010 Jordon,My original loan for the dyno was 100k. You can imagine what the underwriters were thinking when they were looking it over. I am sure they had no idea what a dyno even was. Needless to say I had to have some some serious collateral for them even to consider it. My interest rate was out of this world as well. After two years I was able to refi the loan at a much better rate and drop the collateral. I am guessing a subway might be easier to get past underwritting then a dyno. However you need to either bring collateral to the table or a good portion of your own money to show the bank you are willing to take the risk. The other problem is there is a subway at every corner already. If you need 150k, I would think you would want to bring 50k of your own money to the table. A bank then might consider it depending how established your credit is. Then again it is much harder to get such a loan today then it was 10 years ago. Matt who owns a number of subways over on CR would be the guy to talk to. Not sure how much info he is going to give you. He has several subway stores. Good luck.yeah i was using subway as an example but still a good option for me to look into. I was actually thinking the same thing. like subway is at its peak and by the time i was in the market it wouldnt even be worth it. whats his username? ill shoot him a PM. yeah as of right now im trying to keep my credit 100%. iv paid off every credit card bill in full on time. what exactly are underwriters? is that just a name for a loans officer? Quote Link to comment Share on other sites More sharing options...
Jcroz91 Posted January 1, 2010 Author Report Share Posted January 1, 2010 First off what do you want to do i.e resturants,repair service or what, When you decide what you want, go work in that field for a year or two and see if thats what excites you, Second when you do start you own business be prepared to never have a life again because that business is your life if you have employees, This is very true in the resturant industry. I would say the very best thing you could do is have a solid business plan and follow it to a tee,This will help you achieve your goals. Granted you will have to tweek it from time to time. Being in business has great perks but it also has draw backs. I don't think that theres any thing that can prepare for the new experience of a man with many titles.My opinionwhen i worked for the subways i worked in 4 different stores for a total of 2 years. seeing the different ways the stores were ran. clearly the biggest ass hole owner made the most money. but i wouldnt say that store "excited" me. maybe cause i was the little man lol. if i ran stuff there it could have been different. but i didnt mind it. one of my favorite jobs was working at a full service car wash. which seems like it wouldnt be a bad thing to get into but its not really something thats NEEDED. when the economy droped business went to crap. he had to cut everyones pay and hours. just not sure how that would be in the future like 15-20 years from now. cause thats when ill need to have the most business Quote Link to comment Share on other sites More sharing options...
Jcroz91 Posted January 1, 2010 Author Report Share Posted January 1, 2010 liquid assest are cash or things that can make cash faaastso a car or house. another words something the bank can hold over my head. that makes sense. Quote Link to comment Share on other sites More sharing options...
DTM Brian Posted January 1, 2010 Report Share Posted January 1, 2010 what exactly are underwriters? is that just a name for a loans officer?Underwriters are who decide if you are worthy of a loan. A loan officer is pretty much a middle person between you and underwriting. Quote Link to comment Share on other sites More sharing options...
Jcroz91 Posted January 1, 2010 Author Report Share Posted January 1, 2010 Beware ... Trolling ... http://www.columbusracing.com/forums/showthread.php?t=74293yes thank you. clearly im trying to get information on the subject. im sure everyone needed you to point that out Quote Link to comment Share on other sites More sharing options...
MidgetTodd Posted January 1, 2010 Report Share Posted January 1, 2010 Open an IHOP franchise , preferably in Newark Quote Link to comment Share on other sites More sharing options...
Jcroz91 Posted January 1, 2010 Author Report Share Posted January 1, 2010 Underwriters are who decide if you are worthy of a loan. A loan officer is pretty much a middle person between you and underwriting.ahh so i need to come up with a way to convince the underwriters that i would be good at running the business... makes sense. and the more liquid assets/ chase in hand the better chances i have of recieveing the loan. Quote Link to comment Share on other sites More sharing options...
Jcroz91 Posted January 1, 2010 Author Report Share Posted January 1, 2010 Open an IHOP franchise , preferably in Newarkwill do. look for it in 10 years or so. gotta have up some $. lol Quote Link to comment Share on other sites More sharing options...
MidgetTodd Posted January 1, 2010 Report Share Posted January 1, 2010 Ill be dead in 10 years , need to hurry up Quote Link to comment Share on other sites More sharing options...
Jcroz91 Posted January 1, 2010 Author Report Share Posted January 1, 2010 now as far as being sucessfull at running a business... any suggestions? what should i be looking for as far a difficulty with start up and such? Quote Link to comment Share on other sites More sharing options...
ReconRat Posted January 1, 2010 Report Share Posted January 1, 2010 I call bullshit. There's so much wrong in this thread I can't begin.I will say "go to college". You might then know what "liquid assets" might be, what a good business model would be, and why restaurants as businesses usually fail. And why "hard work for myself when I wouldn't do it for someone else" won't cut it.And for God's sake use a spell checker. Your grammar and spelling are roughly 6th grade level. Don't feel bad, you aren't the only one. (Drunks and jokers excluded.) Quote Link to comment Share on other sites More sharing options...
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