Forums: Discussions for entrepreneurs and small business.

My name is Paul Johns. I have worked in every aspect of the food industry, among many other things. My dream is to work for myself and food is one of my passions. If I told you about my assets, you`d probably laugh. I filed bankruptcy last year in an attemp to clear my credit of years of abuse (oh, to be young and stupid).

 These days, I`m very ambitious, and watch my credit carefully. My problem is that I have no resources and no backing. My idea is a diner/eatery that would serve many breakfast choices, and gormet coffee. At lunch I would have a hamburger buffet, a soup and salad bar, and a bar that would rotate from day to day between pizza, specials, etc for lunchtime customers on the go. For dinner, I would have classic favoites, with my own modifications and promote an environment where families can go to get quality food at a low cost. I like the idea of bringing busy families together to reconnect. I`m putting together a few things that you would typically have to go to separate places to get.

 I have a tremendous amount of experience with the coffee business, so I would focus on an influx of morning customers (potentially with curbside service). With a Nextel phone, I can take credit card payments at someones car. I would specialize in hamburger toppings you are farmiliar with, and some that you are not for ultimate customization, but at a standard price so as not to penalize customers for they`re tastes. Soup and salad bars would cater to a healthy fair, and we would promote this as a light fair on the go.

 I have extensive experience in the pizza industry, both common and gormet, so I would need an oven to accomodate this, but the rest is very simple to maintain. Desserts I have not decided on yet. It may be just as profitable to outsource as to make homeade.

The reason I chose this structure is because nothing like this exists in New England, and the potential to expand would be only a matter of capital.

 My waitstaff would be focused on inside customers, with one server focusing on take-out. They would carry both change and a device to take cc payments. One person would focus on coffee and dessert. One would maintain the buffet. Two to three would cater to guests. I myself would be a wildcard. I would have a chef with a line, and a prep cook. I would be in charge of inventory and financials. A manager would eventually be put in place to ease the burden of operations. I am prepared for the endless days and nights of running a business. I welcome the hard work that it takes to be a business owner.

 I have a background in sales and marketing, and extensive computer training. I`m great with organization and numbers. The main reason that I want to start a business is probably the most common reason, I`m tired of working extremely hard for someone elses gain. I feel like it is time for my contribution to the world.

This will be my first business. It will be a success because i am aware that businesses need to constantly change and adapt. Here`s an example. I run a cell phone store for a family member who has 50 stores. The store i run is known for being in a bad area whos customer base is not expanding, but is consistent. When i took over this store, I realized that our focaus shoud be businesses and corporate accounts. I started steadily going door to door and eventually massed a huge database of new business customers.

 Retail is changing for this industry, the competative edge comes from managers who think outside of the retail box. This is how i plan to approach my business. If things don`t work, you constantly try new things, better specials, target certain dynamics, etc.

I`m certain you folks already know all of this, but what I would like is your advice. Where to start. How to make the first move. I eagerly await your comments.

Regards,

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Paul Johns Ambition to spare. Future entrepeneur. Pauljohns2001@yahoo.com

Boy howdy, does this sound familiar! Been there, done that, and got a box of tee-shirts. On the other hand, it`s been an "adventure," as my mom would say, and I`ve learned an awful lot of things.

What about maybe buying a small business? While visiting Wisconsin last year, looking at houses for sale, we bumped into "businesses for sale." There was a Vienna Hot Dog franchise, in a great location, in a small town, for a very reasonable price. I think the entire thing would have come to about $65K.

Being a cooker kinda person, I toyed with the idea of using the franchise to make hot dogs, but to also offer some of my own creations. It`d be relative to the franchise regulations, but if not "Vienna," maybe something else?

Another lady we met on the same trip, came to Wisconsin and went to work as a bartender in a mostly-bar that offered food. She began to improve the service, menus, and so forth, and not long after found out the business was in trouble. The owner didn`t have good business sense, was getting older, and so forth.

So she worked out a deal where she`d become a partner in the business. They used creative financing, with the help of the bank, and she bought into the bar. She expanded the food services, improved the marketing, and her equity is increasing. When the owner decides to call it quits, she`ll have built up enough money to probably take over complete ownership.

It comes down to your business sense, which sounds maybe like you could use a good accountant, and finding someone who wants their business to continue, but also wants to retire.

Finally, consider Portillo`s Hot Dogs. 30 years ago, living in Villa Park, I`d pass this tiny little shack---and it really was a shack!---on the corner of two streets. It literally took up only enough space for 1 person, a fridge, and some hot dog makings. But the hot dogs were really really good!

Now, Portillo is a millionaire, and was written up in many magazines. His absolute has been exacting standards and very high quality, and it`s paid off. But he started with about the equivalent of a pushcart, selling on street corners.

Paul,

I can really relate to you, friend.  My wife and I are hoping to buy an existing elder-care facility.  We both have years of experience and all the necessary skills in operating this kind of business.  In fact, we ran the place until a year ago. 

Our only problem?  No money.  We`re looking for a lender who will weigh our experience & skills as heavily as the ability to put up a down payment.

Hope it goes well for you and maybe someday we`ll meet at a SBA Convention!