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Old 06-27-2006, 12:23 AM   #1
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Opening a BBQ Restaurant

well, I can't sleep, so here I am. I would appreciate your opinion.
I am dangerously close to taking a deal that would allow me to sell
bbq out of a convenience store here in Myrtle Beach. There's been
a lot of hair pulling and cigarette smoking over the past 3 days.
I think I can get in for 27 thousand, and that's pretty much what
the bank told me I can get. Veeeery close.

The rent is only 1200 a month. If I make 100 bucks a day, that's
3000 a month. Then there's employees (part time), insurance,
etc.

I've been meeting with friends and advisors for the past few days.
I value their opinions greatly. I also value you opinion, and I'd like
to hear from you.

This could ruin my life, or improve it. I'd be working my ass off
for a little money, risking losing my house. I've heard the horror
stories of people losing everything by doing something like this
and now they are greeters at Walmart.

I've got some things in my favor, and some things against me.
I'm so close in the decision that I'm actually asking you idiots.


Thoughts?
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Old 06-27-2006, 12:53 AM   #2
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The operating costs/projected profits are close. Could make 150 a day.
Being in radio, I've got free advertising. I wouldn't quit my morning show job until I felt I needed to. It pays the bills. At a profit of 4 bucks a ticket, I only need 25 orders to make it even. It could work. It might not.
Thanks for your good wishes.
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Old 06-27-2006, 12:56 AM   #3
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Re: Opening a BBQ Restaurant

Quote:
Originally Posted by Captain Morgan
I'd be working my ass off
for a little money, risking losing my house. I've heard the horror
stories of people losing everything by doing something like this
and now they are greeters at Walmart.

Thoughts?
Cappy...is this going to be a hobby or an income you'll be depending on ?

If your going to be working your ass off for a little money, why not try to start off working for someone else for a while. That would give you a chance to see other peoples mistakes first hand, get to know some distributers, ect. Working a lot of hours for good money is one thing, but Id be hesitant to get into something thats not going to reward me for what my time and effort are worth...Plus, with the $27,000 loan, if you dont like it, Id assume you'd be committed for some time.

But, If you forsee a nice profitable buis. after a few years of "paying your dues" , that would make all the hard work worth it ! My brother owns his own buisness and he puts in 15 hour day, some times, for weeks on end. I see the toll it has taken on him, and all that he's missed and sacrafised for his buis. I personally dont have the dedication....
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Old 06-27-2006, 12:58 AM   #4
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I'd be working looong hours for pretty much nothing for at least a year.
That said, my afternoons are open.
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Old 06-27-2006, 01:13 AM   #5
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Would this be you first time owning your own business? Having owned my own business I can only say it is not for everybody but their is only one way to find out. My business was very profitable but i still gave it up about a year ago. All the stress, headaches, and time away from the loved ones made all of the money so usueless. For the last year I have been working for somebody else and really enjoying watching my boss pull his hair out. If you love it then its worth it even if the money is not there.
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Old 06-27-2006, 02:07 AM   #6
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I don't quite get the set up Cap. Your selling Q out of a now functioning convenience store that is going to remain that? Or you're taking over the store? If so, why is the convenience store closing? What kind of cooker will you be using? Cooking on site? Remodeling costs? You certianly have to upgrade from the WSM just for capacity.

The rent is $1,200/month...what are the utilities, insurance and other costs associated with opening the doors per month, advertising costs?

Location, location, location....is there a market in that location for a Q "joint" or is it flooded with other eating opportunities?
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Old 06-27-2006, 02:26 AM   #7
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Get hot chicks showing some skin while serving up your grub and you will be just fine! lol
Long hours, little profit if any for quite awhile. Rent, taxes, paper work piled high, health department inspections, permits, accountant fees, unemployment insurance, workers comp, liability insurance, ect, are the ONLY things that keep me from going global. :biggrin:

I have a construction company for which I pay all the above insurances, and do all the paper work for. It can be a beeeotch. After you figure out all the ins and outs, legal or not, you get used to it. Most of the crap I fill out and send to the State and Feds is their formality bullcrap with a check inclosed to them. Monthly. Never fails. Never has stopped. You just learn to deal with it.
If this is a passion, go for it. You only live once. If you dont, somebody else will.
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Old 06-27-2006, 05:39 AM   #8
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Quote:
Originally Posted by Bryan S
Everybody that eats my cooking says i'm in the wrong business.
They think you're in the cooking business. :lmao: :lmao: :lmao:
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Old 06-27-2006, 06:57 AM   #9
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Cappy, can you afford to lose the money? Will you be able to survive and pick up where you left off if the business failed? It's a big desision. I'm like crazy white man, and just the opposite of you. I've been self employed for the past 30 years and at the end of this year I'm contimplating calling it quits and working for somebody else, but I have a couple other reasons for it. You have my number if you want to give me a call. Good luck with your desision.
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Old 06-27-2006, 07:16 AM   #10
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Bruce, the store will remain open. There's an exisiting kitchen
with seating for about 25 inside the store. The deal includes all
utilities except for gas. I'll have to buy a Cookshack smoker for
about 5 or 6 grand.

If I lost all the money, I'd probably be in debt for the rest of my
life. It sounds like a good deal, but it's still very risky.
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Old 06-27-2006, 08:21 AM   #11
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Re: Opening a BBQ Restaurant

[quote=john pen]
Quote:
Originally Posted by "Captain Morgan":3ek2piu4
I'd be working my ass off
for a little money, risking losing my house. I've heard the horror
stories of people losing everything by doing something like this
and now they are greeters at Walmart.

Thoughts?
Cappy...is this going to be a hobby or an income you'll be depending on ?

If your going to be working your ass off for a little money, why not try to start off working for someone else for a while. That would give you a chance to see other peoples mistakes first hand, get to know some distributers, ect. Working a lot of hours for good money is one thing, but Id be hesitant to get into something thats not going to reward me for what my time and effort are worth...Plus, with the $27,000 loan, if you dont like it, Id assume you'd be committed for some time.

But, If you forsee a nice profitable buis. after a few years of "paying your dues" , that would make all the hard work worth it ! My brother owns his own buisness and he puts in 15 hour day, some times, for weeks on end. I see the toll it has taken on him, and all that he's missed and sacrafised for his buis. I personally dont have the dedication....[/quote:3ek2piu4]
I agree with John not to mention one of the reasons bussiness fail is that they don't have enough capital early on if your streaching yourself thin to start you might want to consider passing for now. But I also would hate to be my own boss. I have friends that own their own businesses and it is a 24/7/365. I like ending my work day and not having to worry about selling x # of sammies by the end of the month.....On the other hand you might always ask yourself what if? It's like playing high stakes poker dont' get in if your not prepared to lose everthing...Most people I know who are in the buss, it wears on them it's a lot of hours and no time off....
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Old 06-27-2006, 08:23 AM   #12
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Quote:
Originally Posted by Captain Morgan
Bruce, the store will remain open. There's an exisiting kitchen
with seating for about 25 inside the store. The deal includes all
utilities except for gas. I'll have to buy a Cookshack smoker for
about 5 or 6 grand.

If I lost all the money, I'd probably be in debt for the rest of my
life. It sounds like a good deal, but it's still very risky.
Ok from the point of view from someone who helps run a family business, it can be a pain , but in your case Jim you do not really have any BBQ competiton that I know of that can match what you can do. I have had similar thoughts a local BBQ joint is for sell here in our area , and I have considered it. I say go for it . Just remember what we talked about at Smoke at the Beach use wood dont go gas it will make the difference. We were taught the same way when doing BBQ stick with that and you well may have a winner on your hands. Just keep your cool when it comes time for writing pay checks, paying the bills, insurance , ect , they will get to ya after awhile trust me on this I know from experiance.
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Old 06-27-2006, 09:07 AM   #13
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$1,200 a month for rent. Is it "NNN"? If it is, expect to pay in addition to the rent your allocated share of the buildings property taxes, hazard insurance on the building and all inside maintenance and a portion of "common area maintenance" (sidewalk shoveling, bathroom cleaning if the building a public can, window cleaning.) Commercial owners don't like to pay for anything themselves.

How many square feet are you getting for the $1,200/month. Compare that to other available locations, even if you don't like them...might give you a better negotiation position.

Lastly, how long is the lease? 1/yr, 3yr? Is there a renewal clause and a cap on rent increases?

These questions apply to any business and need to be addressed prior to signing anything.
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Old 06-27-2006, 09:13 AM   #14
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From talking with Jim, this place is a "turnkey" business minus the smoker. IMO, with what he's getting he's getting a big bang for his $1200 bucks.
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Old 06-27-2006, 09:20 AM   #15
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I agree with Larry! You'll do great Jim!! Keep us informed on how it goes!! =D>
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Old 06-27-2006, 09:41 AM   #16
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it's not a triple net lease. A free standing dairy queen here is going for
10, 000 a month. Property values have exploded here.
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Old 06-27-2006, 09:42 AM   #17
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I have seen both sides of business. Succsess and failure. When you are flying high the creditors are your best freind. When you are failing the creditors all turn their back on you. $27G is not a lot of money to open a business. You would loose a lot more sleep at $250G.

The thing is, I wish I was back in business instead of working for someone else. Yes it was a tiger by the tail. I was married to the business. There were lots of legals to deal with but it was mine.

Your passion for wanting to do things your way is not going to go away. Your desire to be your own boss and live or die by your decisions is going to eat at you until you either do it or put it to bed. Money made by your own hands has more meaning than money made from punching the clock.

You will work your ass off for you.


What do you hope to accomplish?

What is the end result that you desire?

Some of the happiest people in the world come home stinking to high Heaven at the end of the day.( Borrowed from the movie Bruce Allmighty)

Is your family prepared for you to be consumed by this business?

Will you be working with other family members?

The best idea has already been said. Try working for someone already in the business for a little while. Once you get a feel for how it really is then you will know a lot more. I learned a lot about the resturant business just by eating at the same place every day for lunch.

Good Luck.
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Old 06-27-2006, 11:57 AM   #18
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Cap'n

I became self-employed 28 years ago and have never regretted it. Early on there were periods when I worked long hours and didn't make much money. But now I cannot imagine working for someone else. The secret is getting a core of loyal employees and treating them well.

This is one of those forks in the road of life that you'll always regret if you don't take it.

BTW, what is going to be the name of the new business?

Griff
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Old 06-27-2006, 12:16 PM   #19
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I was thinking of calling it "Eat"
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Old 06-27-2006, 12:19 PM   #20
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Capt...sounds like its decision time...lol Good luck on whatever you decide !!
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