California Entrepreneur!
- Thread starter mmdozer1
- Start date
Hello Ciggy,
Thanks for your resonse. My background is working with startups and or businesses that are in need of a turn around. My expertise is in sales and marketing with significant experience managing the back-end operations, in addition to overseeing business units from A-Z. Salaries and bonuses have always been interesting but equity positions based on surpassing goals and targets are what drives my burning desires. Now it's time for a change to go completely on my own and to shift the lifestyle.... traveling 60% of the time and running 70-80 hrs. per week. Not to say that running your own business will not require extensive time, but it is your business and there indeed is a different ring to it. Would'nt you say?
What to you do Ciggy?
Cheers from California.
Thanks for your resonse. My background is working with startups and or businesses that are in need of a turn around. My expertise is in sales and marketing with significant experience managing the back-end operations, in addition to overseeing business units from A-Z. Salaries and bonuses have always been interesting but equity positions based on surpassing goals and targets are what drives my burning desires. Now it's time for a change to go completely on my own and to shift the lifestyle.... traveling 60% of the time and running 70-80 hrs. per week. Not to say that running your own business will not require extensive time, but it is your business and there indeed is a different ring to it. Would'nt you say?
What to you do Ciggy?
Cheers from California.
Hello CWS,
Thanks for you input. I see that in analyzing the market. Like most businesses survinging this environment only the strong will survive and consolidation is a natural course. I am more concerned with the uncertainties with government. My view is that we have 5 years before the culture completely shifts, which will force goverment to essentially move their agenda to further constrain tobacco use including taxes and where and when to utilize. The spot I am looking at is established and is running at a 21% net profit on 500K+ in annual sales. Surrounding demographics are good, competitiion appears to be in check, price is attractive and contracts are in place with key suppliers, and location is not perfect but good.
Welcome any additional feedback.
Cheers.
Thanks for you input. I see that in analyzing the market. Like most businesses survinging this environment only the strong will survive and consolidation is a natural course. I am more concerned with the uncertainties with government. My view is that we have 5 years before the culture completely shifts, which will force goverment to essentially move their agenda to further constrain tobacco use including taxes and where and when to utilize. The spot I am looking at is established and is running at a 21% net profit on 500K+ in annual sales. Surrounding demographics are good, competitiion appears to be in check, price is attractive and contracts are in place with key suppliers, and location is not perfect but good.
Welcome any additional feedback.
Cheers.
The problem I have found is that tomorrow, someone with more money than you can open a shop down the road. I am an investor in a couple. The one in CA is up and down. EVeryone was going to sell a few years ago and now same folks are just watching. It was the tax situation that drove most out. Paying the tax UPFRONT per box or stick and carrying that cost until you sell has killed many a shop in SoCal. 21% Net profit is good. I assume this was an owner operator that put 100% of his time six to seven days a week to make those numbers. Employ a guy for the week ends and your cut a third off that number. Taxes go up again )ad they will) you cut another 20%. Box sales are horrible because everyone buys off the internet versus paying the CA sale and tobacco tax. Most successful shops I have seen sell booze, wine and comfort.
Good luck.
LongDuckDong
Wat's happenin hot stuff?
Welcome to the family.
Chuck,
Thanks again and great input. I agree with you that internet sales should be a concern, though my intentions are to launch a web commerse site and look to run it as a members only platform. This is where I intend to expand and diversify the business in to top shelf ports, wines, scotch, etc... At least, in my early stage of trending this what I am looking at. Competitors with larger war chests are always going to be a present danger to any business, so for me it is a matter of offering a great experience and great value to sustain a loyal base of customers. Moderate tax increases can be passed along or shared through moderate price increases, although you are absolutely correct that at some point the consumer will reject the higher levels. Also, the profits are high enough that a part time side kick, preferrably a retired former executive with world travel experience looking for a place to meet and greet and make a little extra cash, is in the plans.
Chuck given your past and current investment relations in shops, and your expressed sentiment, I get the impression that this line of business is destined for failure. Am I reading your accurately?
Thanks again.
Thanks again and great input. I agree with you that internet sales should be a concern, though my intentions are to launch a web commerse site and look to run it as a members only platform. This is where I intend to expand and diversify the business in to top shelf ports, wines, scotch, etc... At least, in my early stage of trending this what I am looking at. Competitors with larger war chests are always going to be a present danger to any business, so for me it is a matter of offering a great experience and great value to sustain a loyal base of customers. Moderate tax increases can be passed along or shared through moderate price increases, although you are absolutely correct that at some point the consumer will reject the higher levels. Also, the profits are high enough that a part time side kick, preferrably a retired former executive with world travel experience looking for a place to meet and greet and make a little extra cash, is in the plans.
Chuck given your past and current investment relations in shops, and your expressed sentiment, I get the impression that this line of business is destined for failure. Am I reading your accurately?
Thanks again.
I hate to burst anyone's ideas. Best suggestion is to go to shops, good shops, get to know the guys the own them and ask. If you know the area go on up to Thousand Oaks to Old Oaks Cigars. Albert and Arsienne. Tell them I suggested you drop by and talk about owning and running a cigar shop. They owned four now two. They sell excellent cigars, have a good shop, top flight booze, have a "tasting" license to sell tastes of wine, booze and beer. They have an expanded room in the back and a cuban roller. Top notch shop. Ask him how he is doing. All I am saying is get the facts. Not that long ago the state tried to pass a 48% increase. It lost by a hair. If it went down many of the guys I know were going to just shut their doors. CA is tough. Good luck. You set it up within range and I'll come by.