Okay we have a great location picked: only drive thru one a major commuter road w/ space for a small retail shop inside. I have a great supplier who works with other small coffee shops in the state. I have the plans laid out and everyone thinks its great idea.

But for renovations/supplies/ect its coming out 300k. Is that a horrible idea?

I have reached out to local agencies and haven’t found grants and I don’t feel comfortable asking family.

I’m torn between you only live once/this is my dream and omg I want to throw up.

  • justbrowzingthru@alien.topBEnglish
    1·
    1 year ago

    So how long is the loan?

    How much is the monthly debt payment?

    Personal guarantee on the loan?

    Any collateral on the loan?

    Retirement account loan?

    Then look at your realistic business plan.

    I assume you have one.

    How many realistic cups of coffee per day/month do you need to cover all expenses including cogs, rent, payroll, marketing, credit card processing fees, healthcare benefits, pto, supplies, the debt payment etc…. And still leave a buffer to cover a $10% profit plus 50k per year salary for you.

    Then if your numbers show you can still make a really nice profit, go for it.

    If it shows maybe 10% profit or less, it’s a run, with inflation and the economic and interest rates, it’s risky. Unless you know for sure that a major employer is moving in next door, major shopping is opening, apartments moving in, but that is never guaranteed these days.

    If it show a break even or loss, it should be a nope.

    Unless you own the building outright.

    Now if the loan does not come from your funds, family funds, or from a retirement account, and DOES NOT have personal guarantees or personal collateral or any of your real estate as collateral,

    Well, then you have more wiggle room to chose you dreams since it’s someone else’s money.