business that you have created or working on?

[rightguard]

A couple of friends are working on creating an snack bar




What types of businesses are you creating or working on?

 

[nixonjames]

I have a long term plan on my own brand but don't have the time to pursue it independently as I'm more focused on my comedy.  But funny you ask because I'm starting a consulting business right now that helps to serve small businesses that need a cheaper alternative than hiring a large firm or having their own department but still need to make the right decisions for their business.  Specializing in creative, marketing strategies, implementation of guidelines/values, etc.  Working on landing my first 2 clients now which should payroll the website so I can get this rolling sooner rather than later.  (I'm a licensed attorney with a degree in economics who's with significant experience in marketing and strategy so looking to build the resume and have a pretty killer day job I can do from home while I work on my craft at night.  Maybe if I "make it" I can just do some collabs with some boutiques that incorporate the themes I've envisioned for my brand.

 

[mht214]

Very nice long term goal.

 

[dc1323]

just finised reading the thread about dude who started his own headphones. read the good and the bad... and that made me want to reply to this post more.

I am co-owner of a local bar here in town. Sounds like you have questions. ask away ... I think this can turn out to be a good thread. (not that I can provide the answer you're looking for, but I can answer in regards to my situation.)

 

[rightguard]

Well, I just would like a consensus of all the small startup companies on NT to hear about the good and bad hardships.


Also, to see what innovators are here on niketalk.

the bars taste really good but very sweet. They have a very good product but a lot of competition

 

[deletedelete]

thrift store

 

[dc1323]

(warning, no cliffs. )

competition, yes. When you get into the bar/restaurant market, you NEED to make sure you can attract customers. After all, they are the ones that are going to keep your business open. Here in town, before we opened, we decided on a theme that was a rarity here in town. We decided on craft beers and lots of handles (beers on tap.) At the time, you could go to a bar here and there that had this beer, but NOT that beer. You'd have to go to the next bar to get another "rare" beer. So, we decided to carry about 300 types of bottled beer and put 30 beers on tap. Not the bud lights and the PBRs and the water stuff, but quality IPAs, porters, stouts, ciders, etc. We wanted to make sure that a person could come to our bar and get a Lagunitas IPA, then a 15th anniversay firestone ale, and maybe an Infinium. (of course some of you might not think these beers are that big of a deal, but at the time, there weren't many places you could go that offered the $3.00 bottle up to the $35 bottle.)

When we opened, we were strictly beer and wine. That was unheard of in our part of town because there are 5 bars in our area within a 3 block radius and all of them had hard liquor. So, we began thinking, "how can we get the people that are ALREADY in the area to drink to come to OUR bar?" And the solution is offer something the other's couldn't offer. If we would hvae entered that market with the same businessmodel as the next place, I can guarantee we would be closed already.

Now, there are SO many variables to a business is ridiculous. It's like trying to predict what your customers want next so they can continue to come back. In the short time we have been open (about 3 years) there have been about 8 other places in the same part of town that have opened up with a similar bisiness model. WE KILLED IT for the first 8-10 months WITHOUT hard liquor. Then, these other big businessgroups with other business in the area saw what we were doing and basically did it better. They spent more money on the appearance of their spot, they offered people better prices on the same products, etc. They basically tried to drive us out of the market (just like starbucks does to these mom and pop coffee shops in your local town.)

So, it was back to the drawing board. How can we get people back in here. And beleive or not, customer service and good bartenders will do it for you. People don't mind paying 5-10% more if they're getting great customer services. Like most places that open up with a little hype, people are going to want to go check it out. And depending on the size of your city, your customer service, and the competition, your business will be the NEW SPOT for a while. But, businesses fail because they don't/cant get people to come back. A business will not make money on the first time a customer spends their money at your establishment... its getting them to come the 2nd and 3rd and 4th (etc.) time where you start making money. If thoese people are coming back, they are likely to tell their friends about your spot.. and now you have new customers. Alternatively, if someone comes the first time and they have a terrible first experience, they go and tell a friend (or 5), then those people tell at least one other person, and thats the start of the downward spiral.

Anyway, I think I am getting a bit off topic. I love talking about this stuff and helping other people start up their businesses. I've been helping a few other spots around town, some successful and some not so successful. Part of it is the economy and the time these places are entering the market. Sometimes there is nothing you can do to get a business to get off the ground. MOST people don't have tens of thousands of dollars to place TV/radio commercial ads to inform the public about what you have to offer. . So, the best marketing you can get is a happy customer. Just like all of us reading this, everyone budgets to go out, whether its to eat, a movie, drink a beer, etc. . It's jut a matter of HOW you can get those people wtith their limited budget to spend THEIR hard earned money at your establishment.

 

[gold st capital]

great post DC repped

I own a hedge fund., its not product orientated but all the same its super competitive. Great business if you do not mind soliciting for money.

 

[flacobey]

(warning, no cliffs. )
competition, yes. When you get into the bar/restaurant market, you NEED to make sure you can attract customers. After all, they are the ones that are going to keep your business open. Here in town, before we opened, we decided on a theme that was a rarity here in town. We decided on craft beers and lots of handles (beers on tap.) At the time, you could go to a bar here and there that had this beer, but NOT that beer. You'd have to go to the next bar to get another "rare" beer. So, we decided to carry about 300 types of bottled beer and put 30 beers on tap. Not the bud lights and the PBRs and the water stuff, but quality IPAs, porters, stouts, ciders, etc. We wanted to make sure that a person could come to our bar and get a Lagunitas IPA, then a 15th anniversay firestone ale, and maybe an Infinium. (of course some of you might not think these beers are that big of a deal, but at the time, there weren't many places you could go that offered the $3.00 bottle up to the $35 bottle.)
When we opened, we were strictly beer and wine. That was unheard of in our part of town because there are 5 bars in our area within a 3 block radius and all of them had hard liquor. So, we began thinking, "how can we get the people that are ALREADY in the area to drink to come to OUR bar?" And the solution is offer something the other's couldn't offer. If we would hvae entered that market with the same businessmodel as the next place, I can guarantee we would be closed already.
Now, there are SO many variables to a business is ridiculous. It's like trying to predict what your customers want next so they can continue to come back. In the short time we have been open (about 3 years) there have been about 8 other places in the same part of town that have opened up with a similar bisiness model. WE KILLED IT for the first 8-10 months WITHOUT hard liquor. Then, these other big businessgroups with other business in the area saw what we were doing and basically did it better. They spent more money on the appearance of their spot, they offered people better prices on the same products, etc. They basically tried to drive us out of the market (just like starbucks does to these mom and pop coffee shops in your local town.)
So, it was back to the drawing board. How can we get people back in here. And beleive or not, customer service and good bartenders will do it for you. People don't mind paying 5-10% more if they're getting great customer services. Like most places that open up with a little hype, people are going to want to go check it out. And depending on the size of your city, your customer service, and the competition, your business will be the NEW SPOT for a while. But, businesses fail because they don't/cant get people to come back. A business will not make money on the first time a customer spends their money at your establishment... its getting them to come the 2nd and 3rd and 4th (etc.) time where you start making money. If thoese people are coming back, they are likely to tell their friends about your spot.. and now you have new customers. Alternatively, if someone comes the first time and they have a terrible first experience, they go and tell a friend (or 5), then those people tell at least one other person, and thats the start of the downward spiral.
Anyway, I think I am getting a bit off topic. I love talking about this stuff and helping other people start up their businesses. I've been helping a few other spots around town, some successful and some not so successful. Part of it is the economy and the time these places are entering the market. Sometimes there is nothing you can do to get a business to get off the ground. MOST people don't have tens of thousands of dollars to place TV/radio commercial ads to inform the public about what you have to offer. . So, the best marketing you can get is a happy customer. Just like all of us reading this, everyone budgets to go out, whether its to eat, a movie, drink a beer, etc. . It's jut a matter of HOW you can get those people wtith their limited budget to spend THEIR hard earned money at your establishment.

can you give us some rough number for the start-up costs associated with starting a bar?

 

[jesusshuttlesworth34]

just finised reading the thread about dude who started his own headphones. read the good and the bad... and that made me want to reply to this post more.
I am co-owner of a local bar here in town. Sounds like you have questions. ask away ... I think this can turn out to be a good thread. (not that I can provide the answer you're looking for, but I can answer in regards to my situation.)

Where is your business located? Business/Entrepreneurship has always been my passion. Not for the faint of heart, but I respect and would rather my money support businesses like this.


Good read and I hope your business thrives.

 

[mr brown]

(warning, no cliffs. )
competition, yes. When you get into the bar/restaurant market, you NEED to make sure you can attract customers. After all, they are the ones that are going to keep your business open. Here in town, before we opened, we decided on a theme that was a rarity here in town. We decided on craft beers and lots of handles (beers on tap.) At the time, you could go to a bar here and there that had this beer, but NOT that beer. You'd have to go to the next bar to get another "rare" beer. So, we decided to carry about 300 types of bottled beer and put 30 beers on tap. Not the bud lights and the PBRs and the water stuff, but quality IPAs, porters, stouts, ciders, etc. We wanted to make sure that a person could come to our bar and get a Lagunitas IPA, then a 15th anniversay firestone ale, and maybe an Infinium. (of course some of you might not think these beers are that big of a deal, but at the time, there weren't many places you could go that offered the $3.00 bottle up to the $35 bottle.)
When we opened, we were strictly beer and wine. That was unheard of in our part of town because there are 5 bars in our area within a 3 block radius and all of them had hard liquor. So, we began thinking, "how can we get the people that are ALREADY in the area to drink to come to OUR bar?" And the solution is offer something the other's couldn't offer. If we would hvae entered that market with the same businessmodel as the next place, I can guarantee we would be closed already.
Now, there are SO many variables to a business is ridiculous. It's like trying to predict what your customers want next so they can continue to come back. In the short time we have been open (about 3 years) there have been about 8 other places in the same part of town that have opened up with a similar bisiness model. WE KILLED IT for the first 8-10 months WITHOUT hard liquor. Then, these other big businessgroups with other business in the area saw what we were doing and basically did it better. They spent more money on the appearance of their spot, they offered people better prices on the same products, etc. They basically tried to drive us out of the market (just like starbucks does to these mom and pop coffee shops in your local town.)
So, it was back to the drawing board. How can we get people back in here. And beleive or not, customer service and good bartenders will do it for you. People don't mind paying 5-10% more if they're getting great customer services. Like most places that open up with a little hype, people are going to want to go check it out. And depending on the size of your city, your customer service, and the competition, your business will be the NEW SPOT for a while. But, businesses fail because they don't/cant get people to come back. A business will not make money on the first time a customer spends their money at your establishment... its getting them to come the 2nd and 3rd and 4th (etc.) time where you start making money. If thoese people are coming back, they are likely to tell their friends about your spot.. and now you have new customers. Alternatively, if someone comes the first time and they have a terrible first experience, they go and tell a friend (or 5), then those people tell at least one other person, and thats the start of the downward spiral.
Anyway, I think I am getting a bit off topic. I love talking about this stuff and helping other people start up their businesses. I've been helping a few other spots around town, some successful and some not so successful. Part of it is the economy and the time these places are entering the market. Sometimes there is nothing you can do to get a business to get off the ground. MOST people don't have tens of thousands of dollars to place TV/radio commercial ads to inform the public about what you have to offer. . So, the best marketing you can get is a happy customer. Just like all of us reading this, everyone budgets to go out, whether its to eat, a movie, drink a beer, etc. . It's jut a matter of HOW you can get those people wtith their limited budget to spend THEIR hard earned money at your establishment.

can you give us some rough number for the start-up costs associated with starting a bar?

also how you went about getting funding

i have visions of opening a bar/restaurant type establishment a couple years down the road. just stacking paper right now and thinking up ideas

 

[water]

I want to start my own restaurant for different spanish foods. My father makes the best green chilli burritos. All of our friends and family love them and are always telling us to open up our own little place. We just aren't sure if we should go ahead and do it, as we will need to be 100% dedicated to running the place. 

 

[dc1323]

In the early steps of planning to open an ornamental saltwater fish & coral store. I have a passionate team and the perfect location. The only drawback is that I want to do the store in Upstate NY and I'm in the DMV right now. Also, my partner is in Upstate NY. I'm wondering if this will be feasible because of the distance. For now... I can write the business plan and send it to my partner to revise/add. I'm concerned about what to do when the business starts to materialize. I want to be involved and manage as much as I possibly can but it will be hard once things get running and I still have my regular job.

Having a partner is hard enough in itself. To add distance to the equation... I think you're going to be surprised at what can/will happen. No matter what business you go into, money changes people. It can be a good change or a bad change, but please believe that money WILL change the relationship you have with your partners. Being far away (and not being able to show up for daily decision making) will cause your partner(s) to feel a sense of power/superiority in the decision making because he is physically there to see what is really going on. The excuses might start that "I had to make the decision without you." "you didn’t' answer your phone." "I didn't think it was a big deal."

That kind of stuff just happens. My partner lives blocks away from me, the business is less than 2 miles away from my regular day job... and that sort of stuff STILL happens. Decisions are made for the business without my consent because of my "availability." So, 2 things can happen. You man up and understand that this is a LIKELY possibility, or rethink your position in the company. Maybe you can employ yourself once things get going. Maybe you can just be a financial investor. I know these things seem stupid right now that we talk about them on the internet.. but the alternative to these situations is losing/breaking friendships, worrying about decision making, not knowing what will happen next after the hard work you've put in.. etc. There is so much to think about when you're NOT physically in the place of business because in hindsight, there is always a better way things could have been done.

The other thing is the money. Say your company/business takes off… and you’re away (as you’ve described.) when someone see’s $400 in cash come in a day.. and they take $40 of it because “no one will ever find out,” that’s, in round numbers, $250-$300/week… or over $1000 in cash a month. That’s not a lot when you have a $750k/year business, but who wouldn’t want an extra $1000 that nobody will find out about in their pockets? What about their friends? Do you think they’re going to hook their friends up? do you think they will give them discounts w/out asking you? Are you going to be able to do that from where you live? How are you going to “check” his follow through on the suggestions YOU make for the better of the business?

Anyway, I’m not trying to discourage you. these are all things I’ve learned from getting into business with someone I thought I trusted with my life and my kids. But, like I said, some people are shady. Money changes people… sometimes in good ways, other times like I described above.

In your situation, I would seriously rethink your position in the business OR your location. (most of the time) YOU will get out of the business what you put in. And we can all agree that you will be able to offer more if you live in the vicinity of the business.

 

[dc1323]

Where is your business located? Business/Entrepreneurship has always been my passion. Not for the faint of heart, but I respect and would rather my money support businesses like this.
Good read and I hope your business thrives.

It is located in midtown, sacramento CA. We've had our ups and downs, but at the end of the day, the goal is to make money. When sales are down, costs have to go down. it's like a real life version of the lemonade stand game.

and damn you're right when you say it's not for the faint of heart. When you get into things like angry customers/competitors trying to shut you down by calling the health department and saying you have roaches, or saying that they were hospitalized because your food was not prepared properly... or when fights break out and the cops are called at 1:45 in the morning and you're trying to go home... or when you get home saturday night at 4AM and your kids wake up at 6:45 wanting pancakes.... hahah.. it gets tough.

Thanks for the support.

 

[jdubb1914]

p4l

 

[dc1323]

also how you went about getting funding
i have visions of opening a bar/restaurant type establishment a couple years down the road. just stacking paper right now and thinking up ideas

I made a post a while back in a thread about getting rich/making money... I think it was sometime in january of this year. Here is think. I'm post 120

http://niketalk.com/t/316977/calling-all-rich-and-wealthy-members-lets-discuss-wealth/100_20

I was fortunate enough to be able to save a little bit of money living at home. That's a good foundation to start with.

Everything depends on the scale of your business. Fortunately for me, the building we're in, the corporation owns. (I am president of the corporation.) So, we almost pay ourselves. (its more complicated than that, but there are benefits.)

So, the size of the building matters. that directly affects the amount of equipment you buy. If you can fit 60 people in your bar, you might buy 70 stools. My place fits close to 200.. so we have A LOT more seating. Our bar is almost 50 feet long... our walk in is 15ft x 20ft. So our scale is larger. I'm sure you get the point.

Just make sure, in the bar/restaurant business, that you have cash to start. Everything NOT involving the daily operations of the business is expensive. Permits, inspections, fines, fixing broken stuff, replacing old equipment, paying sales taxes, etc. MAN it gets expensive. To not mislead any of you, I would say that you want to have about a month of average monthly sales in the bank to be COMFORTABLE. But, realistically, you want to have at least 30% - 40% of monthly sales. If you're monthly sales are 100k, you want to have about 30-40k saved up, ready to spend at a moments notice... BIlls pile up fast.

The good thing you'll run into is credit and competition from vendors. Vendors want AND need your business. They are sales guys like the footlocker employee that offers you his friends and family discount when you already have a coupon in your pocket. They try to BS you into buying more things... they are in competition w/ the next sales guy. Here in town, we have 3 main beer distributors and 3 little ones. The 3 big ones always try to out do each other, so that only benefits my bbusiness. They will almost ALWAYS start you off with credit. They will give you ... say $5000 in product and give you 7, 14, 21, or 30 days to pay. If you come through with you end of the bargain, you will get good terms... and basically they will front you product. That's great... because the other 2 vendors will ask you your terms.. say.. "okay, i'llgive you $6000 in credit.. with 21 days... and a case of WHATEVER. The 3rd person comes in with something nice too.. so now you have 15k in product that you haven't had to pay a dollar for... and they let you do the selling. So, that is one benfit.

Food vendors typically do the same thing... only you might have ONE main food vendor.. and since food is ... since it spoils faster, you will almost always have shorter terms.

Again, as to not mislead anyone, the scale of your bisiness, your taste as a person, the details you want to put into your final product, the taste you have as a person, the comfort you want to offer the customer, etc... all those things can change start up costs from $65k well over $100k. And when starting a business, $40k is much better in the bank than decorations on your walls and inventory in your back room.

Hope this helps. If you have specifics, please ask. I will do whatever I can to help.

 

[curbsideprophet]

P4L

Quickly, I've considered starting a reputable (somehow) publishing firm for minorities....

I'm tired of seeing the "Ethnic" section of Borders swarmed with books of swole chocolate dudes on the cover grasping his woman passionately.....give me some freakin substance bro

 

[mmg]

@DC

What was the hardest part of starting your business ?

How soon did you start turning a profit?

I read you still have a another job? Does this not make enough money? Any reason why both ?

 

[dc1323]

@DC
What was the hardest part of starting your business ?
How soon did you start turning a profit?
I read you still have a another job? Does this not make enough money? Any reason why both ?

I'll answer in that order.

The hardest part, personally, is being away from my family. Between my other job, soccer, shoes, my kids, my house, my family in general... i'm always freakin busy. I hated being away from everyone. I would get off work at 4-5... but my lunches and about 3-4 hours after work and the weekends were spent trying to run a business. Weekends were late, etc. I hated being away from my family.
In regards to the business part of it, the hard part is knowing HOW to spend your money. there isn't this endless well of money that we had, so we had to pass on things we REALLY wanted to do. And that led to alternatives.. or completely eliminating those ideas from the business plan. When money is slow, (sales are low) sometimes we had to choose which bills to avoid... or work with people to try and make arrangements that suited both parties. When money is flowing... theres is little issue within employees/partners in the business. When money is slow, thats when all the problems start... and that's the hard part. Learning the BEST way for your business to spend the money generated from sales.

Profits were tricky becase it seems like every single time we had a good money, we had a new bill/expense. I want to say that we KILLED in the first few months with gross sales of around 45k-50k/month. That was great because overhead was right around 25k-30k/month. So, in round numbers, we were "profiting" about 15-20k a month for the first few months. When that honeymoon period was over and the newness of the business went away, sales dropeed, but we adjusted our overhead. We had an idea of how the regular bills were going to be handled and how we could afford them. You get in a groove. THen we got full liquor,... and the scale of teh business went up. Overhead went up (cause liquor can be expensive) but so did our average tab. There is HUGE amounts of profits in a bottle of liquor... compared to a bottle of beer. It's night and day.

But, to answer that simply, i would say about 10-14 months. I give that range because like I said, there are fees that are paid annually... fills that change monthly (i.e. heater and air conditioner) your sales change, stuff breaks.. etc. I think we FINALLY got out of the red in about month 11 or 12. Having said that, sales have been low these last few months because of MANY THINGS.... so last month.. there wasn't this so called "profit." More adjustments have to be made this month.

About my other job... i'll make close to 80k this year. This job, for the lifestyle I live, makes plenty of money. My girl has a job that makes the same amount of money I do.. and with all the other side hustles I have, I bring home close to 5k a month (that's spending money... not gross.) That might not be BALLIN to most of you rich niketalkers, but everything I have is paid for (minus my house... haha.) Its not really about how much money you bring home.. its really about how much money goes out. I put plenty of money away for my self and my kids every month... and i can pretty much live the lifestyle I choose. I am a simple dude though.. so that allows for my bank accounts to have more than most people.

The bar... i'll say it like this. Whenever I've had a big expense that I can write off, i use the money from the business. Whenever I want spending money to buy my kids or my famly something nice.. or take a trip, it's at my disposal. If I wanted, I would be able to take (on average yearly) about 6-7k a month home from the business. But, I put most of th emoney back into the business because thats what people like. I'd rather have $1000 for the next 15-20 years than have 6-7k/month for the next 24 months... see what I mean.

 

[rightguard]

nice story DC. so strong clients have made you strive through the competition?

 

[dc1323]

nice story DC. so strong clients have made you strive through the competition?

If I am understanding you correctly, I wouldn't say it's strong clients, but rather strong/friendly customer service. It also helps that since we are in a neighborhood, we get a lot of regulars. Like I said, it's about getting people to come back... and I think we've done a decent job in that part of the business.

anyone else have stories so I don't fee like I've thread jacked? Sorry OP

 

[bawayfrombless]

great reads...

My freshman year of college(3 years ago) I wrote a business plan to start a shaved ice stand near chicago's zoo.
soon after i remember wanting to own a barber shop..then i think i wanted to make t shirts using a friends serious artistic talent.
...ideas come up daily.. i dont know if I'm thinking unrealistically but in any decent field, with the right location and startup $$$ I know I can make it happen.

.I can't imagine anything else for the long run beside being the decision maker.

right now Im a local retail store.right hand man of the owner learning a lot but stagnant.

getting my degree is feeling like a nuisance but Ive come to far to not finish.
dollar and a dream man, I know im going to be doing it someday.



sorry this post was a mess of ideas :x

 

[villansfinest]

*edited*

I've known a lot of people with ideas for bars. I would highly encourage anybody interested in starting a venture like that to check with your local boards and regulatory agencies for information about permits or restrictions.

best of luck to all of NT's entrepeneurs!

 

[dc1323]

DC, would this happen to be Alley Katz?

with all due respect, the place doesn't really matter...

Like i said,.. i've been involved in a few places of business, some profitable and others utter failures. I am not going to deny or confirm anything

 

[bawayfrombless]

*edited*
I've known a lot of people with ideas for bars. I would highly encourage anybody interested in starting a venture like that to check with your local boards and regulatory agencies for information about permits or restrictions.
best of luck to all of NT's entrepeneurs!

could you talk more on this