Invest-to-own Cigar Lounge
- Thread starter btowens
- Start date
Kidrock
Smoking 50RG Less W/Farai
Depending on which state, tax bracket, possible fda regulation later down the line, permits, and business experience.
Man so many factors to consider, but here in California would never do it.
I'm not sure what "invest to own" means. If you're investing money, you should get an ownership stake on the basis of that investment. Unless you're making a convertible loan to the owners; I'd want to know the terms better to make a decision there.
If you want some informal advice on this, shoot me a PM with more details on the terms. I do this stuff for a living, very happy to help.
If you want some informal advice on this, shoot me a PM with more details on the terms. I do this stuff for a living, very happy to help.
orangedog
Navin R Johnson
Convertible secured debt, or secured debt with warrants, would be the best way to approach this for my $. And yes, a whole lot of factors would go into it, location, business plan, taxes and regulations, etc.
But the approach is appetizing.
Rupe
Suburban robot that monitors reality -BOM Feb.'13
If the decision was based only upon job satisfaction I would do it in a hearbeat!! Everyone wants the chance to make a living from their hobby and do something that they love.
From a business standpoint though I would be very careful. Make sure that you have your ducks in a row and your ass covered. I worked for the same company for 22 years before I went into the tool business (selling to my old company). The money I spent on advice from a lawyer and an accountant were invaluable!
Skitalets offer to help you is a wonderful gesture...be sure and heed his advice.
From a business standpoint though I would be very careful. Make sure that you have your ducks in a row and your ass covered. I worked for the same company for 22 years before I went into the tool business (selling to my old company). The money I spent on advice from a lawyer and an accountant were invaluable!
Skitalets offer to help you is a wonderful gesture...be sure and heed his advice.
I agree, you need to really take the time and vet everything. Many smaller B&M are hurting, and a lot of turn depends on keeping things well stocked which requires quite a bit of up front money. I lot of people under estimate the amount of start up capital needed for a venture like this.
Yep... Also location, location, location... Are there any others near there? Are they hurting? Why are they hurting? If they are, is it internal issues? Will this one be different from the existing ones in the area?
Just things to ponder...
Fourtotheflush
BoM Apr 12'
1 - No way would I do this in MA.
2 - I would not invest knowing partial ownership will be coming down the line.
If you invest you should be a % owner at startup.
even if its a small %with the ability to grow.
2 - I would not invest knowing partial ownership will be coming down the line.
If you invest you should be a % owner at startup.
even if its a small %with the ability to grow.
In NY state, no...not at all.
Otherwise, it would depend on:
--Who the partners are and can I trust them?
--What is their cigar knowledge?
--What is their retail experience? Business ownership experience?
--How much of a say do I have in daily operations?
--What brands to they plan to carry?
--What type of clientle are they looking to have?
--What is the area like and what types of businesses are nearby? (Putting a lounge in an area dominated by gyms, health food stores and vitamin shops probably isn't a good idea.)
Otherwise, it would depend on:
--Who the partners are and can I trust them?
--What is their cigar knowledge?
--What is their retail experience? Business ownership experience?
--How much of a say do I have in daily operations?
--What brands to they plan to carry?
--What type of clientle are they looking to have?
--What is the area like and what types of businesses are nearby? (Putting a lounge in an area dominated by gyms, health food stores and vitamin shops probably isn't a good idea.)