So I've got this business idea... getting over the hump?

In reply to skierd:

I don't think you are ready to be married to this business. I think you are romanced by the idea.

Kind of like a woman...

You can't get the idea of her out of your head. OK, but are you ready to commit to years of good times and bad? Ready to stand by her through the life changes, or the griefs, or the chemo treatments, or whatever other bad things can be part of the fabric of a marriage?

That's what a business like this is like. There will be great things to enjoy and celebrate, but most of the energy will not be chasing the romance. There is a lot of effort fighting through the grit.

I'm definitely in love with the idea, but am trying to see past the rose colored glasses to the lumps, warts, and even the cancers that might be lurking, hence starting this thread. I haven't jumped due to the economic mine field that is starting a business; I prefer trying to plot a course first before running in blindly. My wife is on board so long as I can find a way replace my salary, and without losing the house.

It's funny... I've often dreamed of setting up a similar business. A B&B oriented towards mountain bikers in a location where you can easily ride to trails. My dream usually involves me not having to actually make a living off the business. I call these (I have a few other business ideas as well) "retirement businesses" - something to do and (in theory) make enough money to keep the business afloat and some extra cash, but not really need to be my primary source of income. Or at worst, make enough to pay the minimal bills my mortgage-paid property requires.

skierd wrote: My wife is on board so long as I can find a way replace my salary, and without losing the house.

Right. That's the problem.

100% of the people I know who have been self-employed have had years where their income was negative, many years where their income was less then half of what they were worth.

More than 50% of the self-employed people I know have lost a business.

I like Ian's idea of a business you don't need money from.

A business I don't need money from would mean I'm independently wealthy, and I've already got a plan for that contingency. Mostly it would include looking for places like this to stay at lol.

It's amazing how far the gross income math sways with occupancy rates for the expected season, in both directions. It's also amazing how much rates vary across the city for hotel rooms, B&B rooms, and campsites.

In reply to skierd:

Sounds like you are doing your homework. Excellent.

I don't think hotel rates across your city are very relevant. You need information on dedicated motorcycle hotels and campgrounds. It's a completely different niche market.

You also need to figure out more about the motorcycle treks. The Dalton is over 400 miles long. How many people ride it, and why would they stop at your place? Who is your competition- where else do they stop, and is there an overflow or need??

I would love to do something like this, but I think it would be hard to focus on just motorcycles. I'd lean toward making it a hang out for locals, with a special emphasis on bikes.

Additionally you need data on the success rates of dedicated motorcycle hotels and campgrounds, as well as the average pay to the owner (which would be VERY hard to find).

I have only known of 3 such places. All of them were very cool. All of them were directly on well traveled motorcycle "ride" roads (curvy mountain driver roads). 2 of the 3 were owned by owners that had other income sources. All 3 of them eventually ended up trying to market to the local consumers who were not motorcyclists (I took that as a sign they were having trouble making their niche work).

All 3 have closed.

Sometimes, the problem is often a niche business income can be profitable to an owner-operator, providing the property is paid for. Add a monthly mortgage payment into the equation and things get sketchy. I've seen this in a number small businesses trying to sell when the owner wants to retire and offspring are either unwilling or unable to continue the business. The business makes enough money to provide the owner with a tidy income, but not enough to provide that income in addition to paying a mortgage on the property. The end result is the business closes, contents are liquidated and the property sold and usually repurposed.

Is it possible to run the business while keeping your day job? The best scenario seems like the business would be building equity in property ownership but not much in the way of actual income.

Andy Neuman wrote: Is it possible to run the business while keeping your day job? The best scenario seems like the business would be building equity in property ownership but not much in the way of actual income.

This.

I think that if you did a survey of all the successful entrepreneurs, you would find that their first venture taught then how to do it right the second time. Certainly my situation. Taught me NOT to do it as the one holding the bag; I am a sweat equity dude.

A good business term to learn is "joint and several liability"

Under joint and several liability or all sums, a claimant may pursue an obligation against any one party as if they were jointly liable and it becomes the responsibility of the defendants to sort out their respective proportions of liability and payment

If your name is on a partnership document, the banks will insist on this clause.It means that each and every partner is liable for the entire debt of the company to that lender regardless of your partnership percentage. This is where you could lose it all being a minor partner and where your lawyer reading your contract earns his money.

Toyman01 wrote: The web sites are reserved, some investment has been made. Things could be happening.

If you need someone to do your website, hit me up. That is my current evening/side work that I am looking to grow into a full time gig.

Ok, so now that I've read up to current on this thread I'll comment.

I like the idea of keeping the day job while this picks up. In your case I don't know if that's possible.

In my case I currently have a job that I enjoy, making good money especially for my age, and learning a lot. The downside is it's a job, I have a 120 mile roundtrip commute 4 days a week (240 on the 5th!) Really I don't hate the commute, I've somewhat gotten used to it in the last 6 months since I started here. To an extant I enjoy being able to just drive for a while on my way too and from work. Some days traffic sucks and I miss my old 5 minute commute and dirty hands from working on cars all day. So recently the big idea that's been nagging me is starting my own business in town, small to start doing work in the evenings and weekends until I have grown it enough to live off of it. I already can hardly stand getting home and not thinking of something to do. I need something to work on, or tinker with, and so I've already started doing some stuff in the mean time that gets me a little extra cash now and again. I've always been a bit of an entrepreneur, when I was younger I used to make these keychains and sell them.

The one thing that keeps sticking in my head is something my old boss from the auto repair shop I worked at said. He said the only thing he would change if he could go back, is that he would have started his business a lot sooner. He has worked hard, and long hours, and has struggled a lot along the way, but it is finally getting to the point where it has really paid off.

I'll have to write more on this whole idea later, when I have a little more time, but I'll leave you with this: the classic quote "If you work doing something you love, you'll never work a day in your life"

Make sure it's something you really want to do, and if so find a way to do it.