Where do people get the money to start small businesses?

[therealdope]

You can get a nice condo in Toronto for $500k. My parents sold their house last year (where I grew up) and bought a very nice condo for $550k. Once the LRT on Eglington is done it will be even easier to get around without a car.

 

[HIMBOB]

Franchises are a terrible business model. you're basically working for the franchisor.

True. Plenty of cases where the franchisor decides they want to change things up and basically take your business.

In that situation its you are your lawyers vs a company many times larger and their lawyers.

I couldn't see myself ever buying a franchise its high risk low reward but if you struggle through and start making great money it becomes high risk high reward as the franchisor sees the potential for profit.

 

[therealdope]

True. Plenty of cases where the franchisor decides they want to change things up and basically take your business.

In that situation its you are your lawyers vs a company many times larger and their lawyers.

I couldn't see myself ever buying a franchise its high risk low reward but if you struggle through and start making great money it becomes high risk high reward as the franchisor sees the potential for profit.

I had a business partner who made money buying land and then leasing parcels to a 'big fast food chain'. That was a good business. he explained to me the franchise model and it made me fucking puke. The amount of risk a franchisee takes on and the non-stop oversight required is unreal. The real killer is that you have to buy your ingredients from the franchisor. They can jack up prices any time. They also make you pay for marketing campaigns and updates to your location. If they change the decor and seating style, you have to update and buy all of the stuff from the franchisor. It's like indentured servitude.

 

[MadSquabbles500]

a lot of asians regularly pool loan money from family members. hell my parents immigrated to the US working practically minimum wage jobs and bought a house in hawaii with straight paper

TS should start considering starting a chinese takeout place. Is much cheaper.

I have a family friend, who started out in NYC, but moved to Toronto in the 80s. That family now owns 24 various kinds of chinese restaurants in Ontario.

 

[MadSquabbles500]

I had a business partner who made money buying land and then leasing parcels to a 'big fast food chain'. That was a good business. he explained to me the franchise model and it made me fucking puke. The amount of risk a franchisee takes on and the non-stop oversight required is unreal. The real killer is that you have to buy your ingredients from the franchisor. They can jack up prices any time. They also make you pay for marketing campaigns and updates to your location. If they change the decor and seating style, you have to update and buy all of the stuff from the franchisor. It's like indentured servitude.

If he just buys commercial triple net properties, he does not have to worry about the actual franchise. He just needs to get franchisees to want to open a location on his property. That will largely be up to the location. So as long as he has the location, he ought to be fine. Also many franchisees, or the franchisor will buy the land first, and do a sale lease back to recoup some money.

 

[HIMBOB]

If he just buys commercial triple net properties, he does not have to worry about the actual franchise. He just needs to get franchisees to want to open a location on his property. That will largely be up to the location. So as long as he has the location, he ought to be fine. Also many franchisees, or the franchisor will buy the land first, and do a sale lease back to recoup some money.

Maccas is a real estate business in many ways.

 

[MadSquabbles500]

Maccas is a real estate business in many ways.

I look up Maccas, and apparently that is Aussie name for McDs employees.

 

[HIMBOB]

I had a business partner who made money buying land and then leasing parcels to a 'big fast food chain'. That was a good business. he explained to me the franchise model and it made me fucking puke. The amount of risk a franchisee takes on and the non-stop oversight required is unreal. The real killer is that you have to buy your ingredients from the franchisor. They can jack up prices any time. They also make you pay for marketing campaigns and updates to your location. If they change the decor and seating style, you have to update and buy all of the stuff from the franchisor. It's like indentured servitude.

I know of few people burned badly luke that.
If they want your location they'll get it somehow.
If you never make a cent they'll still make plenty.

 

[Pugilistic]

There is some merit to it as women flock to who's perceived as the best man or men.

There's never been a time in my life where I've been the obvious choice in the room; no matter what I was doing. That's not to say I haven't been the best in my community at whatever.

It doesn't upset me that women don't flock to me but that's not to say that I don't end up really liking someone from time to time. Usually every couple of years I'll meet a young lady who catches my attention and maybe once a decade I meet someone I really like. I couldn't imagine going through that monthly.

Haha yeah it's kind of too much for me too. Don't think it's healthy the way I'm going about it. I've been taking a "break" from dating but I go out so much that I end up meeting women even when I don't intend to. Now I should highjacking the thread...

 

[therealdope]

If he just buys commercial triple net properties, he does not have to worry about the actual franchise. He just needs to get franchisees to want to open a location on his property. That will largely be up to the location. So as long as he has the location, he ought to be fine. Also many franchisees, or the franchisor will buy the land first, and do a sale lease back to recoup some money.

It was McDonalds. The corp would set up the lease for the franchisee. My partner bought land and got it up to code for McDonalds to build. The franchisee is so beleaguered that they can't afford to but the land so McDonalds sets them up with lease. It's a great long cash position.

 

[therealdope]

I know of few people burned badly luke that.
If they want your location they'll get it somehow.
If you never make a cent they'll still make plenty.

It's just horrible. People think I'm nuts doing tech startups. Tech startups are easy compared to running a food services business. you can be cleaver and make money in tech. Being cleaver doesn't help you in food services, it's just location + a shit load of work and responsibility.

 

[Bob Weeks]

I’m working my butt off in Sales every day for a major bank. I’m doing 48 hours a week, sometimes 50.

I am a top performer in my department and will make about 110k Canadian this year, but I’m getting absolutely nowhere.

Average house here in Toronto costs a million dollars. I live in a crappy apartment in the hood.

I drive a 2008 Chrysler 300.

My friend at work is pushing me to start a small business with him, like a Pizza franchise or something.

Pizza Pizza franchises here need you to have 350k in liquid assets. Who has that Kind of money?

No one that I know.

I don’t care if I sound poor because I am. What’s the alternative? Am I supposed to go back to school
And do my MBA? Study my CFA and make a living in trading?

I like Sales and I’m not afraid to work very hard, but how do I upgrade my life?

The biggest problem young blood is that, we were taught to "get an education." This means, you come from money, and mommy and daddy can pay for you to go to a Ivy school. The alternative is to take on student loans IE BLOOD MONEY. Note: you can file bankruptcy on a house, car, visa cards, line of credit etc. just about everything BUTTTTTTTTTTTTTTTT STUDENT LOANS!!!!

Government education after what, 12yrs is virtually USELESS. Then, another four years for a degree not worth the piece of paper its printed on, and employers know, the education is a joke these days. The prerequisite is over thrown by someone in a position of power. Someone who has contacts or others through networking.

TS, I wouldn't recommend this venture but, if you throw enough shit at the wall, something is about to stick. 110k is not bad but, if you are doing next to 80 work weeks, its POINTLESS. I was listening to a Jordan Peterson post about making 60-65k. Thereafter, you see virtually little upside. If you work 40hrs a week and make 65k or 100k after doing 80hrs a week with OT. Factor in taxes, in travel time, in time pissed away on shit you don't care about, YOU ARE NO FURTHER AHEAD.

The biggest problem is that, we were taught to be slaves to the education system, to be a employee, to get a good job, and pedal our youth to the man. To big business. To the corporations. See where your skills are. Inject them into a entrepreneurial venture of your own choosing. Yes, you have a choice. The same way, you can follow the beaten path or you can create a path. I read a book called Disrupt you by Jay Samit. In keeping with this discussion, everyday, he suggests you right down 3 problems you come across, and then, at the end of the day, debrief with a solution. Solve the right problem and reap the rewards. Rewire your employee mindset to stake your claim, to go into the free market, and win. Don't get it twisted. Its not like the shit you see on youtube. You are putting in 80 hour weeks until you no longer are a one man band man.

 

[Bob Weeks]

It's just horrible. People think I'm nuts doing tech startups. Tech startups are easy compared to running a food services business. you can be cleaver and make money in tech. Being cleaver doesn't help you in food services, it's just location + a shit load of work and responsibility.

I wish I was strong in the programming/comp sci department. I am not though, I once worked in the field on a entry level technical analyst job coupled with a background in marketing and sales once upon a time. Most jobs are going to be outsourced and replaced. Being clever is a game changer especially if you are a risk taker.

Ideally, having a job that pays reasonably well, and then, doing a startup is ideal. You can always reduce yourself to casual or quit your day job all together once things take off. Going to the bank to acquire a mortgage as a entrepreneur with a startup is a great way to get a few laughs though. be warned. It is no joke. If you have a job, keep it, and plug away.

Bottom line, if it doesn't convert and provide resources, its not a business. Its a hobby. Rea talk!

 

[Bob Weeks]

Haha yeah it's kind of too much for me too. Don't think it's healthy the way I'm going about it. I've been taking a "break" from dating but I go out so much that I end up meeting women even when I don't intend to. Now I should highjacking the thread...

Its the way its suppose to be but most important of all, YOUR MISSION, PURPOSE, DREAM > GIRLS!

Obviously, you bang them out rotten but, not at the cost to your higher purpose and dream. Women come a dime a dozen man. Furthermore, they are cliff hangers slipping out of their aesthetic top form, into bulking cycle, and building a nest to play house with before a divorce and jumping back on the carousel after extracting your resources.

Get a life as in, something more important then getting babes, and they are just falling into your life naturally due to the lifestyle you are living.

 

[therealdope]

I wish I was strong in the programming/comp sci department. I am not though, I once worked in the field on a entry level technical analyst job coupled with a background in marketing and sales once upon a time. Most jobs are going to be outsourced and replaced. Being clever is a game changer especially if you are a risk taker.

Ideally, having a job that pays reasonably well, and then, doing a startup is ideal. You can always reduce yourself to casual or quit your day job all together once things take off. Going to the bank to acquire a mortgage as a entrepreneur with a startup is a great way to get a few laughs though. be warned. It is no joke. If you have a job, keep it, and plug away.

Bottom line, if it doesn't convert and provide resources, its not a business. Its a hobby. Rea talk!

I rented while doing my first startup. Never needed a loan or a mortgage. I don't know how people live with that hanging over their heads.

 

[FierceRedBelt]

Haha yeah it's kind of too much for me too. Don't think it's healthy the way I'm going about it. I've been taking a "break" from dating but I go out so much that I end up meeting women even when I don't intend to. Now I should highjacking the thread...

Now that'll make a good thread.

 

[90 50]

lol, 50 hrs a week.

Lemme guess, life is complicated?

I remember my first part time job.

 

[superpunch]

Well, why do you think western economies are lucky to grow just 2% a year?

 

[superpunch]

I rented while doing my first startup. Never needed a loan or a mortgage. I don't know how people live with that hanging over their heads.

Even in san francisco, there's like $500 a month rent. You just gotta be willing ot live in the ghetto with 10 roommates

 

[Bob Weeks]

I rented while doing my first startup. Never needed a loan or a mortgage. I don't know how people live with that hanging over their heads.

Home owner with a mortgage. It is the one and only debt I see that isn't negative. Its not good by any means but, better then renting IMHO. Its a piece of your own little paradise. With the cost of homes going up, inflation, the fact that your dollar today is going to be worth less tomorrow, it is terrifying. Furthermore, your leader is swearing away your future by pissing away money and increasing your national debt. For all the hate Trump gets, I do believe he intends to swings things around having taken 1 million dollars and turned it into 4.3 BILLION. Sadly, this is peanuts compared to our 20 trillion dollar debt.

Are you familiar with udemy? If you google search, 250 free udemy courses (check reddit), you will find a series of many free courses, some of which I am sure you can pull some knowledge from. Be warned. A good portion of the free ones are useless or basic common sense. Still, worthy to rip through anything that tickles your fancy. Sadly, much of what is there is likely worth more then what people acquired through government education.

Mate, how old are you? Do not lose your sight for entrepreneurship. The ordeal of creating something of true intrinsic value is bloody brilliant yet, ever so fragile and elusive. A business a like a living being and should be treated as such. Don't lose sight of this with chasing pussy or having a gf and getting married only to get divorced losing it all. Yes, bang sloots. Strap up. No raw dog warrior. Travel. Acquire insight through a variety of conventional or unconventional means. I recently smoked dmt. I acquired some insights I had not been aware of before. Read some books like Disrupt you. I have a love hate relationship with Tim Ferris' work like four hour work week; the notion of doing less and gaining more is about as absurd as the fake nattys on youtube or the youtubers that put up pretentious shit about doing nothing yet having it all.

Stay on that grind. Work smarter not harder.