Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Business > HardcoreUnemployable.com

HardcoreUnemployable.com This is a forum to discuss issues on life and the pursuit of happiness. It's also a support group for those who need to be their own boss and canít work for anyone else. Learn the skills to be an entrepreneur and start your business. You can read more on these topics at my blog HardcoreUnemployable.com

Tanning salon


HardcoreUnemployable.com

This is a forum to discuss issues on life and the pursuit of happiness. It's also a support group for those who need to be their own boss and canít work for anyone else. Learn the skills to be an entrepreneur and start your business. You can read more on these topics at my blog HardcoreUnemployable.com
Reply
 
Thread Tools Search this Thread
  #1  
Old 04-19-2009, 04:34 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,569
Rep Power: 10
Steve has disabled reputation
Default Tanning salon

There are a lot of people who are losing their jobs due to the current state of the economy and they are looking for businesses to get involved in. I had the opportunity to talk with such an entrepreneur and he was opening a tanning salon. When I asked him why that he said because he thought it would be easy.

As we got into the discussion a little bit it quickly bubbled up that this was not going to be a walk in the park. His previous job paid him over $90,000 a year. Along with that salary, he had acquire some pretty high expenses as well. Over $15,000 a year in property tax on his home. A $3,000+ a month mortgage and the list went on and on.

What could he do to help stop the bleeding? That is the question he asked me. It's a great question with a simple enough answer. Sell all that you don't need now. The tough part is, he is underwater with the house and if he sells it, he would lose any equity he had in it.

In an ideal world, we could all one day wake up and decide today was the day we are going to be our own bosses and quit our job. Then we could pick some kind of business to start and we would be up and running within a week and be making the same amount of money.

The reality of it is when you step out of your full time job and decide to open up a new business, you can expect to not make any profits for years, if ever! Most business that are started fail. Why? The simple answer is lack of capital but the larger answer is you just didn't give yourself enough time to pick up the pace and learn about your new business before you ran out of money to support it.

You can't start a new business and carry on expenses you acquired when you had a full time job. It's simply not going to work. To make your new life work, you are going to have to shed all the dead weight and only then might you have a chance.

If I were him and I wanted this new business to work, I'd sell everything and live in a tiny room in the back of my tanning salon for a year or so until it started producing a profit. Give your new business a chance to survive. Rid yourself of as many of your expenses as possible before you start.

What's your view on this?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 04-19-2009, 05:48 PM
turfmaster's Avatar
turfmaster turfmaster is offline
Senior Member
 
Join Date: Apr 2009
Location: Midwest
Posts: 366
Rep Power: 7
turfmaster is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
Steve,
I agree it is hard enough to start a new business even if you have the capitol and the knowledge of that business. But having all the debt that he has is just going to put a lot more pressure on him for the tanning salon to succeed My wife and I opened up a small retail specialty store back in 1999. We were buying a profitable business according to the CPA that looked the books over before we bought. The 1st year our best of 3 years in the business we broke even. Then in 2000 the economy started going south. We all know what happened in 2001 with the terrorist attacks. Luckily we both had full time jobs to carry us through that ugly time. Also our home and cars were payed for.
I can't imagine having all that debt that he has.
Reply With Quote
  #3  
Old 04-19-2009, 05:57 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,569
Rep Power: 10
Steve has disabled reputation
Default

Oh that is fantastic!

Can you tell us a little about what kind of store it was? What did it specialize in?

What made you want to do that and how were you able to manage it with a full time job?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #4  
Old 04-19-2009, 08:41 PM
turfmaster's Avatar
turfmaster turfmaster is offline
Senior Member
 
Join Date: Apr 2009
Location: Midwest
Posts: 366
Rep Power: 7
turfmaster is on a distinguished road
Exclamation

It was a little store inside a local mall. We sold little nick nacks, beanie babies,
collectible items, t-shirts, beads, greeting cards etc. It did about $300.000/year in sales. Friends of ours sold us the biz. They had it for about 5 years. My wife did the product ordering and book work and I did the delivering and stocking of product. We also had 6 part time employees running the cash registers and stock. I personally think there is luck involved with running a successful business as well. Had it not been for the recession and terrorist crap I think we would have survived. I worked full time as a Tool & Die Maker plus had 6 mowing accounts and my wife was a full time nurse so it was easy for us to walk away however we lost a lot of money. Retail can be tough. You have to put a lot of money up front for product and hope that it sells. A service type business such as lawn care or landscaping is much easier to start for sure. If you fail your investment is still worth something. Specialty retail the unsold product is worth pennies on the dollar. I know someone who was in the tanning salon biz and it is tough. You better have low rent and own 80% of your beds. Also have to up sell lotions and cremes etc. or forget it not enough money in it.
Reply With Quote
  #5  
Old 04-19-2009, 08:50 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,569
Rep Power: 10
Steve has disabled reputation
Default

That is amazing.

See the average person looking at this story is going to see $300,000 a year in business and they are going to lose their minds. They will quit their jobs on the spot to dive head first into something like that.

Can you talk to us a bit on why a business that takes in $300,000 in a year doesn't mean you are going to have $300,000 in your pocket at the end of the year.

What kinds of costs and expenses were involved? Especially since you ran it in a mall where it can cost a premium.

Also did you ever find out why your friends sold it?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #6  
Old 04-19-2009, 09:40 PM
turfmaster's Avatar
turfmaster turfmaster is offline
Senior Member
 
Join Date: Apr 2009
Location: Midwest
Posts: 366
Rep Power: 7
turfmaster is on a distinguished road
Thumbs down

Well let's see. The rent was $4000.00/ month. Employees part time wages $4000.00/month. Insurance, workmans comp. $500.00/month. Taxes paid quarterly(I don't remember), accounting fees and pay roll service $200.00/month, advertising other supplies $250.00/month. These are costs just off the top my head I'm sure there's more. Now our basic mark up was 100%.
So if we averaged $20,000 in sales we spent $10,000 in product. add that to your monthly costs. In retail your sales in the 4th quarter equal what you sold in the first 3 quarters.
Our friends were expanding their business in other directions. Needless to say we are not friends anymore but are still cordial when we see them.
$300,000 sounds great but that's a gross number. I know a guy of a local landscape co. that grossed $400,000/ year and sold his business because his bottom line wasn't there. Way to much overhead in new trucks, equipment, building etc.

Last edited by turfmaster; 04-19-2009 at 09:48 PM.
Reply With Quote
  #7  
Old 04-19-2009, 09:44 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,569
Rep Power: 10
Steve has disabled reputation
Default

That is fascinating!

It's neat you have cross trained in these different fields because you are more aware about how businesses operate than many others.

Would you ever open another retail location? If so what would you like to do or sell?

I can't imagine working full time and then trying to manage a store as well. That alone seems like a full time job in and of itself!
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #8  
Old 04-19-2009, 10:16 PM
SuperiorPower
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Steve View Post
What could he do to help stop the bleeding? That is the question he asked me. It's a great question with a simple enough answer. Sell all that you don't need now. The tough part is, he is underwater with the house and if he sells it, he would lose any equity he had in it.
Absolutely. You have to reduce your "liabilities". I have been experiencing some especially tough times this entire year since I have not been able to get ANY overtime since middle of January. As such, I avoided making myself a truck payment despite the fact I believed I needed the truck badly. So happens that had I purchased a truck I would not have been able to make the payments.....

Quote:
Originally Posted by Steve View Post
What could he do to help stop the bleeding? That is the question he asked me. It's a great question with a simple enough answer. Sell all that you don't need now. The tough part is, he is underwater with the house and if he sells it, he would lose any equity he had in it.
Sell it now before you loose it all..... If he keeps it and his business does not make enough profit to support himself and the house, etc., he stands to loose everything: equity, house, and lots of money... That make sense?

Quote:
Originally Posted by Steve View Post
If I were him and I wanted this new business to work, I'd sell everything and live in a tiny room in the back of my tanning salon for a year or so until it started producing a profit. Give your new business a chance to survive. Rid yourself of as many of your expenses as possible before you start.

What's your view on this?
I guess it all comes down to this: How bad do you want this business to succeed??
Reply With Quote
  #9  
Old 04-19-2009, 10:42 PM
turfmaster's Avatar
turfmaster turfmaster is offline
Senior Member
 
Join Date: Apr 2009
Location: Midwest
Posts: 366
Rep Power: 7
turfmaster is on a distinguished road
Default

It was definitely a strain on our 2 kids. Most of my friends and family consider me a workaholic but I always managed to be involved in their school and sports events when they were growing up. I will never go into retail again. At this stage of my life I still enjoy my lawn care business. Love the work and interaction with some of the customers.
Reply With Quote
  #10  
Old 04-19-2009, 11:15 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,569
Rep Power: 10
Steve has disabled reputation
Default

Quote:
I know someone who was in the tanning salon biz and it is tough. You better have low rent and own 80% of your beds. Also have to up sell lotions and cremes etc. or forget it not enough money in it.
Do you ever talk to your friend about if they would like to experiment with any other businesses? Do you know why they chose the tanning salon versus other business ideas?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
best way to.....
Wolf4dk
Today 11:35 AM
Today 11:35 AM
by Wolf4dk
0 24
Your 2015 summer review.
Steve
Yesterday 11:01 AM
Today 11:19 AM
by Wolf4dk
1 52
SCAG Tiger Cat DECK...
rower30
08-24-2013 10:07 AM
Yesterday 02:51 PM
by Sunpointair
12 4,915
John Deere 667a
acrajchel
08-30-2015 10:00 AM
Yesterday 11:06 AM
by Steve
4 109
Dane Scag
Steve
08-28-2015 12:29 PM
08-28-2015 12:29 PM
by Steve
0 89
24 and 50 acre cemetery...
grassmasterswilson
08-18-2015 10:09 AM
08-26-2015 02:42 PM
by Steve
13 572
Rookie business question...
WarriorLandscapingCAN
08-05-2015 05:20 PM
08-26-2015 02:33 PM
by Steve
3 423
How to clean an old...
rmccutchan
08-16-2015 05:23 PM
08-26-2015 02:31 PM
by Steve
9 441
how to make customers...
Bradcook21
05-27-2015 05:04 PM
08-26-2015 12:25 PM
by kslawn
19 3,782
Needing a website built
burtle
06-17-2015 09:02 AM
08-25-2015 11:31 AM
by acrajchel
9 2,492
Big mowing job
Bradcook21
07-30-2015 03:57 PM
08-25-2015 11:23 AM
by acrajchel
17 1,020
ZTR Review
Shark1611
05-31-2012 10:42 PM
08-25-2015 11:16 AM
by acrajchel
8 3,783
Hi Everyone
mmays29
08-25-2015 08:16 AM
08-25-2015 11:15 AM
by Steve
3 135
Should I buy this Exmark...
googus
07-03-2015 09:22 AM
08-25-2015 11:08 AM
by acrajchel
11 1,213
Old Business New Owner
Toyman
06-17-2014 08:57 PM
08-25-2015 11:00 AM
by acrajchel
17 1,603
Hi everyone! We're new...
alltrades
08-22-2015 12:46 PM
08-24-2015 10:41 AM
by Steve
2 187
CAn I get some help with...
rootytalbot
08-11-2015 06:14 PM
08-24-2015 10:36 AM
by Steve
12 544
Hi
Wemowjunction
08-16-2015 08:45 PM
08-20-2015 01:46 PM
by Steve
11 429
Drive cable bad?
SGL1
08-10-2015 11:16 PM
08-20-2015 01:41 PM
by Steve
5 389
Hey there everyone
Cole8999
08-16-2015 04:42 PM
08-18-2015 04:35 PM
by Steve
3 272
Help with a truck
bdodson89
04-27-2015 08:15 PM
08-18-2015 11:47 AM
by rmccutchan
7 989
I need some aeration...
rootytalbot
08-14-2015 12:32 PM
08-18-2015 07:59 AM
by rootytalbot
7 414
Say Hello !!!
Steve
03-19-2007 11:18 AM
08-17-2015 04:34 PM
by Steve
1,229 406,248
Whats wrong with this...
GreenWorx
07-28-2015 07:56 PM
08-16-2015 11:42 PM
by rmccutchan
3 611
What's your next...
Steve
05-15-2015 11:54 AM
08-16-2015 11:09 PM
by SC93
16 1,269
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
08-14-2015 11:08 PM
by scaypa
95 11,514
New Biz
kufnerins
08-14-2015 05:52 PM
08-14-2015 08:56 PM
by Steve
1 228
Chemical and Fertilizer...
rmccutchan
08-09-2015 10:36 PM
08-13-2015 11:11 PM
by rmccutchan
6 428
String trim BEFORE mow...
Mr. Mow
04-12-2015 08:13 AM
08-13-2015 02:10 PM
by rootytalbot
12 2,101
Hello all thinking about...
bernie
08-11-2015 04:28 PM
08-13-2015 10:33 AM
by Steve
8 390
Logo Help Font Color
LZLC
08-08-2015 09:26 PM
08-12-2015 03:50 PM
by Steve
4 369
Pricing issue
Mr. Mow
07-07-2015 06:15 AM
08-12-2015 12:30 AM
by Jeff1
20 1,839
My new mower
Chilehead
08-08-2015 09:09 PM
08-11-2015 08:36 PM
by Chilehead
9 540
Thought this was a good...
Just for Cuts
08-06-2015 03:38 PM
08-11-2015 10:54 AM
by Steve
8 535
Plowing pricing
jcurr33
08-08-2015 04:58 PM
08-11-2015 10:51 AM
by Steve
6 493
Should I upgrade my back...
googus
08-07-2015 10:50 AM
08-11-2015 10:44 AM
by googus
7 458
Keeping it clean....
Wolf4dk
08-09-2015 11:31 PM
08-11-2015 06:34 AM
by Chilehead
7 385
I have been rude and...
biglee
06-15-2015 10:11 PM
08-10-2015 09:41 PM
by stallman419
12 2,771
Newbie Saying Hi.
LZLC
08-08-2015 09:22 PM
08-10-2015 11:20 AM
by Steve
1 273
How much do I charge to...
Chris Herrera
08-06-2015 09:30 PM
08-09-2015 11:31 AM
by biglee
2 416
scag SWZT review!
mattthelawnguy
07-23-2015 02:28 PM
08-07-2015 03:26 PM
by Steve
17 1,165
Best commercial contract...
sanlanct
08-04-2015 12:18 PM
08-06-2015 06:20 AM
by sanlanct
2 411
I came across this on a...
rootytalbot
08-02-2015 11:04 AM
08-05-2015 08:17 PM
by SC93
9 645
Help bidding a hedge...
hopolb33
08-02-2015 06:09 PM
08-05-2015 02:07 PM
by Steve
3 448
recycler toro 22"
rvezakis
08-03-2015 12:10 PM
08-04-2015 11:47 AM
by Steve
1 330
» Popular Tags
ad landscaping advertising aerocore applying bark billy goat brushcutter blowout bob villa bush collections contract help curb appeal services deliquentaccounts demonstration design door hangers edging employee problems equipment dealer equipment rental facebook flyers free advertising free lawn care google growing a lawn care business hiring how to hydro increase customers jobs landscaping landscaping training lawn aeration lawn care lawn mowing marketing more customers business mr dave mulch new business ordinance past due per hour charge per hour service plowing pricing profit on employee roundup scag secrets to landscaping sell the vision seo shell shreaded solo solo backpack sprayer sq ft square foot swzt tree tree pics up sell employee walk behind web design website website design winterization wood www.greenturion.co.za
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 04:10 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 04:10 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy