SlumTodd_Millionaire
Most Hated Member
That hasn't been my experience at all. Are you paying minimum wage?
Donut Truck/New Perspective
- Thread starter mrivc211
- Start date
That hasn't been my experience at all. Are you paying minimum wage?
mrivc211
Well-Known Member
No. In fact, my baker who was SIGNIFICANTLY overpaid(my belief was take care of your own and they will take care of you) quit after screwing up so badly. He then went to a hospital and filed a bogus work injury claim and is trying to sue. Turns out he's filed for Bankruptcy, owes the IRS money on a tax lien, and has done some shady stuff in the past. The average baker in this area takes home between $12-18/hr. I was paying my guy close to $27/hr. All it did was make him greedy and lazy. Luckily my girlfriend is an attorney and can discredit his character enough that his attorney won't want to touch him as a client. You guys still want to open your own business? 
There's so many hats and you as the owner have to wear them all.
There's so many hats and you as the owner have to wear them all.
SlumTodd_Millionaire
Most Hated Member
Sorry to hear it. I wouldn't let it cloud your perception of everyone, though. I've hired two new employees in the last few months, and both of them turned out to be absolutely top notch. Both are only entry-level jobs, but I still had no problem finding very qualified and very talented candidates. Perhaps you just had some bad luck?
You guys still want to open your own business?
I love it! Yes, it's much different than blocking in, shutting off the engines, and going home to completely forget about work. But frankly, that was boring. I'm having the time of my life, even though it can be stressful. It's not for everyone, but for those who have the "entrepreneurial spirit," there's no other way to live. On the one hand, I wish I would have discovered sooner that this is what I should have done with my life, but on the other hand, I know I wouldn't have been able to handle all of the complex aspects of running a business if I hadn't gotten the life experience under my belt first. So it's all turned out for the best, and I'm looking forward to surrendering my seniority number in a few months and never looking back.
mrivc211
Well-Known Member
Yes, agree 100%.
I agree. I could have easily ended up with one bad apple. My buddy currently flies at WN and is roughly at year 7. He calls me daily telling me he wants to quit and have his own business. I try and make sure he realizes what he's really giving up before he takes the plunge.
DE727UPS
Well-Known Member
"My buddy currently flies at WN and is roughly at year 7. He calls me daily telling me he wants to quit and have his own business."
Yeah. Ummm.....
Be sure he can make 200K with "his own bidness" before you let him pull that trigger. I know his upgrade time could be a decade and he might not be fond of how the job is going. But there aren't a lot of self employment gigs out there where he can replace a SWA 7 yr F/O salary. You making that with the donut thing? Hope you are....
Yeah. Ummm.....
Be sure he can make 200K with "his own bidness" before you let him pull that trigger. I know his upgrade time could be a decade and he might not be fond of how the job is going. But there aren't a lot of self employment gigs out there where he can replace a SWA 7 yr F/O salary. You making that with the donut thing? Hope you are....
SlumTodd_Millionaire
Most Hated Member
You'd be amazed what can be accomplished with some hard work. Making 200k is not only possible, but far more is readily attainable if you're willing to work for it.
15k/month revenue selling donuts? Wow. I never would have thought. Congrats. I'm jealous. Where at?
I started a business and it tanked taking every last penny I had with it (actually it was the government stepping in to say it was a felony to do what I was doing but whatever). I learned a ton about running a business from it and would love to dive back in.
I started a business and it tanked taking every last penny I had with it (actually it was the government stepping in to say it was a felony to do what I was doing but whatever). I learned a ton about running a business from it and would love to dive back in.
BeRich
Very Special Agent
hook_dupin
Well-Known Member
Turns out that it's illegal to hire children to move drugs around the world. Bummer.
mrivc211
Well-Known Member
As everyone in retail says: Location Location Location! I know a store selling 30K/month and another selling 97K/month. I know some that went out of business. It's all about location!
mrivc211 said:
We're talking about the little sugary pastries deep fried and glazed in delicious goodness right? I'm dumbfounded on those numbers. How much could a donut go for?
If you tell me where (here or on PM) I will seriously make an effort to come try one. Still waiting on that write up too.
SlumTodd_Millionaire
Most Hated Member
Me too! I need to look into the donut business.
Curious what the margins are, though.
'murica
mrivc211
Well-Known Member
I know it sounds crazy but it's not only about your stores location within the city, but also within the country. You have to look at average household income in your area. The city I grew up in and still live in, and have one of my stores in has a population of 229,985 residents with an average household income of $121,455. That's a lot of extra money to spend on goods and services. Compare that to Fargo, North Dakota which has a population of 105,549 and an average household income of $44,611. Keep in mind that FAR has an area of roughly 49 sq miles and Irvine has 66 square miles. So that's roughly double the amount of people packed into an area thats only 25% larger.
The guy who has the shop that grosses 97K........he has even more people packed into a small area. Think downtown.
mrivc211
Well-Known Member
You're margins really depend on how much owner involvement there is. It can be anywhere from 10% to 30%. Theres a subway next door to me that was failing. Back in 2012 when I was looking for my first store I was interested in the shopping center that my second store is currently in. We couldn't come to an agreement. But at that time the subway was going in and being built. I talked to the contractors and the owner put in about $150,000 in it. It has a college located across the street and decent foot traffic so there was no reason why it should have been failing. Except, the owner was never there. Thus employees started running amok. Showing up late, always calling in sick(lack of a boss yelling at them), not keeping the place clean, bad customer service, you name it, it was happening. So the old owner sold to a guy who currently has 13 of them. He runs them with his 2 sons. Since they bought him out, they've increased sales 27%. Every time I walk in there the employees are being counseled and the place is run like a tight ship. They're margins are about 10%. Does subway have the same issues as I do? Heck yes. I know because owners talk to each other just like employees talk to each other. Owners learn how to run their businesses thru this. For example, I had a bad employee. So bad that when I hired new employees, she was so bold she would tell them not to do anything but sit there and collect a paycheck. She was poison to my business. What was I going to do? Call HR? lol. I wanted her to quit. I couldn't fire her because I'd have to pay unemployment. So I made it miserable for her to work at the store. Since she didn't clean or contribute I gave her the worst schedule possible. She was obligated to work the schedule. I gave her 1 shift per week after I hired 2 other employees and gave them all the hours. She only last 2 weeks before quitting. Keep in mind, this is after counseling her numerous times on doing her job. Cleaning, better customer service, taking ownership and pride. After a while you just have to accept some people don't want to work, are lazy, and lie about pretty much everything. She had a back talking problem and was raised by bad parents. (I spoke to the parent when they accused me of stealing from her check when I am required to take out taxes per the law).Me too! I need to look into the donut business.
Curious what the margins are, though.
Do you still want to own a business?(referring to everyone)
KLB
Well-Known Member
I guess it comes down to hiring the right people for your business. I recognize this can be difficult at times and people can easily trick you. There are some companies that have figured out the secret formula to this though. In n Out for instance... I've never had a bad experience at any of their chains.
It comes down to company culture. It is very important to hire people that fit what you'd truly want to represent your business. If I were an owner I'd be looking for that "it" factor. I'd pay extra to get it also. Your employees can make or break your business.
The owner hands on approach is great though. I worked at an Arby's as a teenager for an owner who owned three chains. I worked there for a year and only saw the owner twice. It would have been awesome to see him getting his hands dirty and working beside us employees. It does something for morale.
It comes down to company culture. It is very important to hire people that fit what you'd truly want to represent your business. If I were an owner I'd be looking for that "it" factor. I'd pay extra to get it also. Your employees can make or break your business.
The owner hands on approach is great though. I worked at an Arby's as a teenager for an owner who owned three chains. I worked there for a year and only saw the owner twice. It would have been awesome to see him getting his hands dirty and working beside us employees. It does something for morale.
You're margins really depend on how much owner involvement there is. It can be anywhere from 10% to 30%. Theres a subway next door to me that was failing. Back in 2012 when I was looking for my first store I was interested in the shopping center that my second store is currently in. We couldn't come to an agreement. But at that time the subway was going in and being built. I talked to the contractors and the owner put in about $150,000 in it. It has a college located across the street and decent foot traffic so there was no reason why it should have been failing. Except, the owner was never there. Thus employees started running amok. Showing up late, always calling in sick(lack of a boss yelling at them), not keeping the place clean, bad customer service, you name it, it was happening. So the old owner sold to a guy who currently has 13 of them. He runs them with his 2 sons. Since they bought him out, they've increased sales 27%. Every time I walk in there the employees are being counseled and the place is run like a tight ship. They're margins are about 10%. Does subway have the same issues as I do? Heck yes. I know because owners talk to each other just like employees talk to each other. Owners learn how to run their businesses thru this. For example, I had a bad employee. So bad that when I hired new employees, she was so bold she would tell them not to do anything but sit there and collect a paycheck. She was poison to my business. What was I going to do? Call HR? lol. I wanted her to quit. I couldn't fire her because I'd have to pay unemployment. So I made it miserable for her to work at the store. Since she didn't clean or contribute I gave her the worst schedule possible. She was obligated to work the schedule. I gave her 1 shift per week after I hired 2 other employees and gave them all the hours. She only last 2 weeks before quitting. Keep in mind, this is after counseling her numerous times on doing her job. Cleaning, better customer service, taking ownership and pride. After a while you just have to accept some people don't want to work, are lazy, and lie about pretty much everything. She had a back talking problem and was raised by bad parents. (I spoke to the parent when they accused me of stealing from her check when I am required to take out taxes per the law).
Do you still want to own a business?(referring to everyone)
Yes. I grew up in a family business. Toughest was walking away and starting a new career in flying. I will end up owning my own hardware store someday.
I would love a donut store but I could easily see zero margins with me in it.
KLB
Well-Known Member
This is an interesting thread, and it brings several thoughts to mind.
First, many of us have grown up or worked in a culture that punishes failure. Maybe you have heard of a business person who was fired or wasn't promoted after making a decision that didn't pan out. Or maybe you've heard of a person who put all of his own money into a concept that didn't go anywhere. In most regions in the States those people are often labeled as "failures" and treated as unworthy. In my generation the parents and grandparents would use those "failures" as an illustration of what we shouldn't do, and they would encourage us to seek a nice, safe job with a big company. Well, think of all the big companies that have had massive layoffs or have shut down over the past decade, and decide for yourself just how good that advice was.
By contrast, some cultures embrace risk-taking, and attach no stigma to a person who has tried and failed. From what I've seen in China, Hong Kong, and Singapore, even if he's failed multiple times, the person who has the balls to try to start his own business is held in higher regard than the guy who follows the "safe" path of working for someone else. That's a cultural trait that I admire.
Second, mrivc has addressed a number of the elements of success, and I particularly like his focus on processes, customer service, and understanding costs. I would add one thing to the list: understand yourself, too. Are you an introvert or an extrovert, detail-oriented or "big picture," can you maintain your focus for a long time or do you tend to get distracted easily? You can see how being an introvert might not be a good thing for a prospective tavern owner, how being a "big picture" guy might not be suited to writing iPhone apps, and how an easily distracted person might not be able to stick with it long enough to see a startup through the initial phases.
If you know yourself well you can make a much better decision about the type of business you are best suited for, and you can hire people who have the traits that you lack. Use personality profile tools like Myers-Briggs, Big 5, Strengthsfinder, DiSC, etc., to gain insight into yourself, and use objective research to determine the traits that are necessary for success in the business you are considering.
Finally, whatever business you consider, be very clear about the need your product or service is fulfilling. I've seen dozens of entrepreneurs fail because they came up with a clever idea, but the market had no need for the offering.
We need more risk-takers and innovators. My hat is off to those who strike off on their own.
First, many of us have grown up or worked in a culture that punishes failure. Maybe you have heard of a business person who was fired or wasn't promoted after making a decision that didn't pan out. Or maybe you've heard of a person who put all of his own money into a concept that didn't go anywhere. In most regions in the States those people are often labeled as "failures" and treated as unworthy. In my generation the parents and grandparents would use those "failures" as an illustration of what we shouldn't do, and they would encourage us to seek a nice, safe job with a big company. Well, think of all the big companies that have had massive layoffs or have shut down over the past decade, and decide for yourself just how good that advice was.
By contrast, some cultures embrace risk-taking, and attach no stigma to a person who has tried and failed. From what I've seen in China, Hong Kong, and Singapore, even if he's failed multiple times, the person who has the balls to try to start his own business is held in higher regard than the guy who follows the "safe" path of working for someone else. That's a cultural trait that I admire.
Second, mrivc has addressed a number of the elements of success, and I particularly like his focus on processes, customer service, and understanding costs. I would add one thing to the list: understand yourself, too. Are you an introvert or an extrovert, detail-oriented or "big picture," can you maintain your focus for a long time or do you tend to get distracted easily? You can see how being an introvert might not be a good thing for a prospective tavern owner, how being a "big picture" guy might not be suited to writing iPhone apps, and how an easily distracted person might not be able to stick with it long enough to see a startup through the initial phases.
If you know yourself well you can make a much better decision about the type of business you are best suited for, and you can hire people who have the traits that you lack. Use personality profile tools like Myers-Briggs, Big 5, Strengthsfinder, DiSC, etc., to gain insight into yourself, and use objective research to determine the traits that are necessary for success in the business you are considering.
Finally, whatever business you consider, be very clear about the need your product or service is fulfilling. I've seen dozens of entrepreneurs fail because they came up with a clever idea, but the market had no need for the offering.
We need more risk-takers and innovators. My hat is off to those who strike off on their own.