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

...and it won't leave me alone. It's an idea I've had rattling around in my head for almost three years, and one that I think could actually be viable if I'm able to make it work. The short version is there's an old, closed historic hotel near where I live that I'd like to renovate, reopen, and turn in to a dedicated motorcycle hotel and campground. Part of the draw would be the history, part would be the fact that Fairbanks is the halfway point for anyone looking to ride the Dalton at least to the Arctic Circle on their big AK road trip. I've started doing the math on potential income and expenses and I'm pretty sure I can make it work. I also have a longer term plan for the property to be open in winters as well but for right now it would be a summer business. I've talked to the current owners of the property and it is available still.

But...

Since I started with the idea I changed from working for a company I hated to one that is actually really good to work for. I make good money, have benefits, am treated well, and generally have no complaints. My only concern is that the owners are getting older and it isn't clear who would be taking over, but that could be a decade from now or next year. I wouldn't be burning a bridge necessarily by leaving, but the size of the company means I probably would be able to come back unless my replacement didn't work out. I feel like I should just be happy that I found a good place to work and should stay in my little slot and be happy with it when there are so many out there who either hate their jobs or barely scrape by.

I'm also concerned about being able to spend time with my daughter and future kids should we have more if I start this. I've seen how hard the principles work at every company I've worked for, especially the owners, but at the same time none of them looked like they regretted much either.

Golden handcuffs, to an extent, are a problem as well. We're not rich but we're not able to survive on one income for long. Our personal CC debt will be gone by the time this starts, but mortgage, utilities, car payments, food bill, etc. will still be there.

Also I think I'm scared of being my own boss, let alone someone else's boss. I've been in charge before but this is... different?

Tell me why I'm crazy one way or the other, and while you're at it tell me your crazy stories. Win, lose, or draw, how to did breaking out on your own work out for you? What were your reasons? Did you leave something good to start or were you driven to it out of desperation for something meaningful to do?

I am interested to see the responses to this thread, but don't have much to offer in terms of advice. I like the idea of being my own boss and taking the leap, but have not yet attempted it. I am more of a Walter Mitty entrepreneur.

I guess I would say don't make the jump unless you are willing to fail. Not saying failure is inevitable, just that you have to be ready for it in case it comes. This is the life version of don't take a car out on track that you are not in position to ball up into a wall.

We watch the Hotel Impossible show. It's amazing the amount of cash needed to renovate a hotel. What is your draw? Why didn't the previous owner make it work?

Working for somebody while you stockpile cash isn't a bad thing.

I don't know anything about running a hotel or the local economy in your area but it sounds like a very niche market in a difficult location to me. Especially if it's going to be a seasonal thing where you expect to make the vast majority of your income in just a couple of months.

If you think there's a solid business case for it, I'd talk to the local government to see if they'd be willing to help with renovation costs or tax deferrals or something to ease the financial burden a bit.

I worked on a crew that renovated an old hotel back in 1987. The owners had substantial pockets cause there was a crew of 20-25 guys working for 6 months to fix up what amounted to a glorified Victorian home. The quality was pretty fantastic but the initial outlay must have been just eye watering.

Good luck but an old hotel has the potential of being a money pit of pretty vast proportions.

Some folk love jobs like commissioned sales. Where the money you'll earn next week is always unknown, but based largely on your hustle. Opportunity is the next door to knock on!

Some folk love jobs that have a steady paycheck. They'll never get rich this way, and they don't care. They know week to week how much money they're going to have coming in, and that's what matters to them.

So, which are you?

skierd wrote: I'm also concerned about being able to spend time with my daughter and future kids should we have more if I start this. I've seen how hard the principles work at every company I've worked for, especially the owners, but at the same time none of them looked like they regretted much either.

Done the start-up thing three times now. Once as the owner and twice with skin in the game but nothing to lose but time. LOT of hours and still far from rich. Good campfire stories from all ventures. MANY sleepless nights. I never knew what a sleep aid was until I discovered the joys of making payroll with air in the account. Tax collectors and state inspectors are all parasites that will drive you crazy; not much different than the local mob that shows up for its "protection" money.

You need a wife who is good if it does not work "Honey, we lost it all and have to be out of the house by the end of the month" has about a 50% chance of being uttered.

The current owners are not rich for a reason. Do you know why? Are you and can you work full time with the wife? This keeps money in the family and makes a huge difference.

My wife and I bought a business with another couple about 2 years ago now. We bought what we knew to be a poorly-run, unprofitable business, and paid a little more than we thought was fair because it was the right opportunity at the right time.

You might think you know how much time and dedication it takes to get a business off the ground, but you would never really believe the real commitment it takes until you do it yourself. Just learning the skills required is a job in itself. Whether it's staffing, infrastructure, accounting, PR, payroll, and pretty much every job imaginable, a small business owner has to figure out how to do it well, and quickly if they're going to succeed. And even if you're very good, you must still be lucky. Many great businesses fail due to market forces well outside their control.

Looking back it seems crazy that we gave up a steady well-paying job to take this on. It has worked out OK so far for us, but there were many times where it looked like it wouldn't, and we'd take a bath.

Basically, how risk-averse are you? And how much do you value your time? If it's money you're looking for, you'll likely be paid less than minimum wage for years in terms of hourly wages.

How long is the riding season close to the arctic circle? What's the draw the rest of the year?

Do it. I've started one small business and closed it (after making an OK living at it for 2 years) and am about to start another. I call it my MBA from the school of hard knocks.

One option if you don't want to leave your job is to find a partner. If you are the financial backer (or loan getter) then having a partner who does all the full time work can be workable. Of course, you probably have to split ownership significantly in that case. You will have to work hard to find the right person, but it can work. A close personal friend of mine started like that with Sonic restaurants. He was the financial partner and got a partner to do the day-to-day work. Now they own like 10 sonics, a few taco bells, a starbucks, and are selling a huge plot of land to build a hospital.

Worked for him.

Do you have to quit your current gig if your family lives in a room in the hotel and your wife/family can work there full time to run the business? It eliminates one mortgage and provides slave labor until you can pay yourselves. Just like farming.

If I'm running a business where people intend to sleep on property I own, I want to be able to live there as well.

You just built a new house, so that complicates things.

My thought would be to simply add onto your current property with an a garage/MIL suite that maybe has 3-4 locking rooms with individual (small) bathrooms and shared common/cooking area.

I've been self employed for 10 years. Do it, but do it with your eyes wide open. It is work. Hard work. You will have no set hours, no set vacation, no weekends, for years. You may end up flat broke.

I'm on the road today and will try to post more when I get to a computer.

If you can make the numbers work, do it.

Since it was brought up a couple times, the hotel is currently closed because the current owners own a second business in town that is very similar and we're tired of competing against themselves. The second restaurant was busier and easier to get customers to as they basically roll up to the other hotels in town with a bus and load up with scheduled pick up and drop offs. When the economy dumped in 2008 they kept the in town restaurant and closed the gold camp. Quoting the owner "we just had too much between the two properties and the Ester spot really needs a manager that can be there and not split between there and town".

On that note, I'd be the sweat equity partner in this situation. Currently doing research on the volume of riders from out of state but just judging from what I see in front of hotels in town and from my own experience it would be enough. Season is mid May through mid September, and about half of my current customers manage to make a living on seasonal work alone doing similar work so I know it's possible.

Holy Great Wall of Text!

If you have someone willing to front the cash, that makes things a little less painful. Would that be a loan you are responsible for if things fail or a partner with cash in the game?

If it's a loan, keep in mind you would still be on the hook if you go out of business.

If it's a partner, you need some very clear partnership papers (LLC), that show ownership, management, and a exit strategy. Make damn sure you aren't doing all the work, for just another job.

Are you partners for life, where he gets a share of the income? Or a set term where you buy him out or he buys you out? That needs to be in writing.

Having a business partner is a lot like being married. There is a good chance you will spend more time with him/her than you will with your wife. My business partner is at the top of my frequent caller list. (That bothers my wife on occasion.) If you think a divorce can be messy, partnerships breaking up, can be as bad or worse. My business partner drives me nuts at times and I'm sure I do the same to him. You have to be able to deal with that on your worst day, to keep the business moving forward. And do it in a professional manor. If it becomes you verses him, you're finished as a business. That goes triple for family. If they are family, make sure that work stays at work. My son works for me, I can't stress that enough.

Hire an accountant. Yes you can do it yourself, but you will spend countless hours wading through the reams of government paperwork, trying to make sense of it. Let the pros do what they do best, so you can concentrate on doing what you do best. I email my accountant a couple of Quickbooks reports, the check stubs and the bank statement on the 2nd every month. Around the 10th he stops by the office with his reports, any government forms that are due already filled out, the addressed envelopes for the government forms, and how much to write the checks for. It takes me 10 minutes sign the forms and write the checks and mail them. It's well worth the money spent.

When you are breaking down the numbers, expect the worst. Does your wife work? Will you be drawing a paycheck from the start? I went 8 months without a paycheck. My wife went back to work for 2 years, but it was still extremely tight for a while there.

I also went 4 years without a vacation. We are a service company with 24/7 service. So I was on call every day for 4 years. That sucked. The first week I could turn my phone off was bliss, almost to the point of orgasm. You can't imagine how much I hate my cell phone. Things are better now. Today I was home by 3.

Have you every written a business plan? If not, start there. Putting things on paper helps me ask the questions and track down the answers. Be optimistic. It doesn't hurt to dream big, but having a plan to get there is important to actually making it happen. It's easy to drop into a rut and stay there. Write the plan.

When you are writing the plan, don't lie to yourself. Add up payroll, building expenses, services, lock stock and barrel. Can you make that much money in a month, including paying yourself? Be prepared to walk away if it looks like things just won't work. Trading nickles for nickles isn't the way to make money.

You might shoot this couple a line and see if they will answer some questions. Three Step Hideaway He has a setup that caters to the dual sport motorcycle crowd, in Utah. They opened 3-4 years ago and started from scratch. I don't know them personally, but have followed their progress on FB and ADVrider. He seems like a decent guy online. I'd reach out to him. Most guys that are self employed don't mind running their mouths and sharing some knowledge. You are 1000 miles away so he should be willing to offer suggestions.

That's all I got for now.

Do it. And if this idea falls through, don't stop looking. I have spent the last couple of weeks formulating another business idea. Call it my retirement strategy, something portable that can go on the road. The web sites are reserved, some investment has been made. Things could be happening.

A long time ago, I bought a business with two partners. Neither of them worked as hard as I did. Neither of them did quality work like I did. Neither of them put in the hours that I did. Neither of them cared that we had an unfair situation because they were getting the benefits.

I eventually bought them out and undid all of their shenanigans at a great loss of my time, money and reputation.

Because of this, I strongly advocate that people never go into business with a partner.

In reply to jimbob_racing:

About half the people I talk to, who have been in partnerships, say the same as you. About half don't.

That runs about the same percentage as marriages.

Pick your partners like you are picking a wife and make sure the prenup is explicit about how the breakup occurs if things don't work out.

jimbob_racing wrote: A long time ago, I bought a business with two partners. Neither of them worked as hard as I did. Neither of them did quality work like I did. Neither of them put in the hours that I did. Neither of them cared that we had an unfair situation because they were getting the benefits. I eventually bought them out and undid all of their shenanigans at a great loss of my time, money and reputation. Because of this, I strongly advocate that people never go into business with a partner.

my childhood best friend's family owned a machine shop with FIVE partners. He and his brother are leveraged to the hilt but finally shook off the (grandkids of the) last partner.

Bought them out one at a time. Now they finally have a business worth owning.

In reply to jimbob_racing: Dave Ramsey, our favorite cheapskate says to never have a partner for your exact reasons.

This week I would tell you not to do it but in March I'd say working for yourself is the best thing ever.

Being as tight on money as you say you are currently I would recommend against it, starting a new venture generally turns into little pay with a lot of sweat equity.

The thing about partners is true, most partners think they out work the other ones. Employees are much better since you can get rid of the ones you don't appreciate easily. My grandfather always tells us, "never go into business with friends or family. If something goes wrong it will be the end of a friendship or the splitting up of a family." I am the 6th generation in the family business, he never was good at listening to his own advise.

You will never know how much anxiety you can have until you run your own business.

If you could live there while fixing it/operating it then that can go a long way. 2 mortgages, 2 light bills, 2 heating costs.... That alone would scare me away in FBX.

That being said if you did it, we'd roll up and stay a weekend before doing the hot springs in the Fall.

Well it's all pie in the sky until I start crunching hard numbers I guess. I think I'm doing an ok job at estimating income, or at least potential income, but estimating expenses is harder. I'm going to set up a few meeting with the current owners after this season ends and see if we're even looking at the same book or even chapter, let alone being on the same page.

The property sits on about 10 acres, includes the main hotel building, 3 bunkhouses, a bathhouse, a gift shop, a saloon with active liquor license (actually, the bar's still open in summer, maybe I should stop in for a drink this weekend ), a couple historic buildings from the gold rush era, and a large open but partially overgrown area that was the campground at one point. My thought would be to get the campground cleared and ready, open it and the bar next summer while renovating the hotel, and see if I could go part-time at my current gig so there's still some income flowing in. After a year or two open the hotel, bar, campground, and shop, and quit the other job.

Do It! Sounds like a blast.

I spent nearly 30 years self-employed owning several businesses. I currently have a real job.

I miss it like crazy. There are a lot of bad decisions I would be willing to make to be self-employed again.

But that is mostly because it it in my DNA. It's not about success, or status, or power, or freedom, for me. It's just who I am, am I am perfectly content living without money to be who I am.

So, my advice would be- run away. Don't even think about it.

If you have contentment with where you are, and any question at all about doing this, then it's not in your DNA. This is not something you can do casually. It will consume you, your time, your marriage, your hobbies, your money, and every relationship you have.

The fact that you haven't done it already, tells me that you are not ready to burn your bridges and chase this. It's not who you are.

Even with it being who I am, I would hesitate on this deal. Waay too niche, waay too small a market, and almost no margin or market for expansion.

If the previous owner was tired of competing with themselves, what makes you think they will share business with you? They are getting a monkey off their back, and they will be your biggest competitor, and they are MUCH better at it than you.

I did that once too. Bought a nice coffee shop- a business I knew nothing about, and tried to compete with other people better than me. All I really did was buy his debt. I will be paying for that mistake for the next 20 years.

I'll concur with SVreX on this one - you either have it in your DNA, or you don't. I don't. Despite that, I've owned my own official/legal business for ~6-years, although it was only a part-time/2nd job endeavor.

Quite honestly, I got burnt out...even though I'd pared it back to only the most profitable parts of the business, and I was earning $10-$12k extra per year working just 20-30 hours per-month. Still, I'd reached a point where I wanted to get my life back and just no longer gave 2-berkeleys about the business(there were other factors too, like serving on our village board). Since it was a customer-service business, that's not really the attitude to have...

I still get calls from customers, and I've done a handful of jobs over the past year. Who knows, maybe I'll pick it back up at some point, but I like the pace of my life a lot better as it is now, even if my bank account doesn't agree with me.