“A small shop built on the ground up.”

If business owns its premises, the owner may be willing to sell you the goodwill or cash business.

Here, boss retains property ownership and you pay what is referred to as NNN or triple net; monthly rent, liability insurance, and annual property tax.

He may also be willing to do seller financing. Here, you would make a down payment (i.e. 20 or 30 percent or more of market value) and he loans you the remaining amount and charges you interest on unpaid balance like a bank would.

Downside

“Most of the competitors are closed and retired.”

Reason for this is shoe cobblers is an industry that has been in decline for a long time.

This is due primarily to shoe design (solid heels, throwaway) and economics (China).

I’d suggest you consider engaging a consultant in your industry (not me) that is capable of working with you to develop a strategic guidance plan.

Although reaching for merger may be an option, it could end up being as fatal a move as not addressing the main issue; lack of sales.

Purpose of plan is to evaluate internal/external environment, assess risk, and determine appropriate objective strategy and tactics.

For example, growth strategy requires stability. In your case, retrenchment may be necessary to first stabilize business.

LOL. Where I live UPS is using USPS to help handle its overflow.

Industry trade associations, there are thousands of them.

Most industries also have trade journals that publish monthly that contain classifieds.

I assume you work alone in home office and do one-on-one with folks looking to buy a home, condo, property, etc.

Most retail service businesses are contact sport. My A/C guy has a fleet of vehicles, 8 technicians, office personal, and warehouse.

He puts in 50 to 60 hours a week. That was after working his ass off for years to build the business.

I’m not sure how you could make room in your current portfolio for a service business.

Even if you could make time, there is notion of best fit to consider.

Are your personal traits a good match with the characteristics of the business under consideration?

For example, service businesses require personal selling, canvassing, SOP’s, QA/QC, inventory management, customer service, hiring and training, payroll, scheduling, etc.

Not to mention financial goals and objectives.

You are doing close to $300K. You might have to sell $2.0 million worth of flooring to make that much.

Even more with a franchise because it takes royalty of six to eight percent off the top.

First, I’d consider somewhere else to do business such as a red state (economic freedom).

Quite frankly, and with all due respect, you represent a high risk.

You are not a citizen. You do not own property or have any assets.

If I lent you money, it would be unsecured.

If you didn’t pay me back, what recourse would I have?

Also, you are going to need a whole lot more than $50K to start up a mom and pop car rental agency.

$50K isn’t enough for operating capital.

As understand it, you sold commercial real estate to fund start up expenses for business that doesn’t own its premises.

If so, good luck with loan and reasonable interest rate.

Are you buy here, pay here?

I’d rather do that plus reconditioning than get into expense of adding on FT mechanic.

Loan amounts are also function of throughput. You haven’t mentioned financials like sales turnover, revenue, profit.

“I’ve sold out and I turned a turned a profit but it really didn’t seem worth all the work I put in.”

This is good place to begin.

Hourly wage = (Total Sales Dollars - $1,000) / Total number of hours making shirts

Assume it takes two hours to make and ship a shirt and you sold them at $40 each.

($2,000 - $1,000) / 100 hours = $10 per hour

If you could get job in convenience store at $15 per hour, opportunity cost is $5.00 an hour.

Opportunity cost is the value of the next-highest-valued alternative use of a resource (i.e. time).

Your solution is to borrow money to make and sell more. However, this will also require more hours to make and sell.

So, to make it worth while, you need to increase price or figure out a way to make and sell for less cost (i.e. faster process, less expensive inputs),

What is best fit?

How well do your personal traits align or match up with the characteristics of businesses you are considering?

Leasing commercial real estate is often considered passive income but it does have nuances to deal with.

Most franchises are contact sport. Moreover, you are required to operate according to franchise business model and not how you see fit.

If goal is to create wealth and protect it long term, private investors tend to buy commercial property. Most franchises do not own their premises.

Unfortunately, your accountant is right.

That’s why I always require pre-payment or 50 percent down and 50 percent upon completion.

Why invest in a company with “lumpy” sales and rising interest expense?

Do you have something to bring to the table that will rectify this and result in growth?

What is the business going to do with your $330K?

There is a when to get a return but how to get return is not the business but rather owner’s net worth?

I would shy away from teaching kids how to take aptitude tests and focus on teaching math skills to kids.

If you want to get a high fee rate, target upper middle income and affluent households.

“Business is doing well, and I can make the current payment with no problem”

Could you have obtained fixed interest rate loan back in 2018?

Do your products meet the FDA labeling and packaging requirements?

R&D means research and development of product or service.

Some companies are vertically integrated. This means it owns most of the stages of its supply chain (i.e. automobile manufacturing).

Part of auto maker’s value chain is R&D department. Its purpose is market research and design new and/or improved products to meet consumer trends.

You have ten year old product that has been eclipsed by better technology and marketability (price).

Good analogy is wireless ear buds and ear buds with wires.

Ear buds with wires can be high quality and dependable.

However, if target market is joggers, runners, or cyclists what would you rather take to market?

It’s not that consumers no longer value quality and dependability. Losing sales suggests they now have desire for more value-added at lower price.

Consequently, making it for less may not be the solution you are looking for.

The older you get the more you realize life’s too short.

Compromise can be a wonderful thing.

How easy is it for everyone to just sit down together and work out something amicable?

Target market appears to be mom and pop looking to retire and consumers.

I have some questions about market potential.

For example, the cash from selling a business usually represents a significant portion of a mom and pop’s retirement nest egg.

Most do not want the business to become a ball and chain around their neck by holding paper. They want the money.

How many ex-friends are there who owe their ex-friends money? What is probability of collecting on judgment from small claims?

How hard is it to evict someone who might then become a squatter?

Moreover, how do you plan to make money? Will consumers be willing to pay transaction fees great enough for you to turn a profit (i.e. 5 percent or so)?

Who is running this drama show? Is it you or the artist that is supposed to be head of studio?

A business needs a leader capable of delegating and managing.

Missteps

- Head of studio has “…no formal agreement with the writer”

- You made agreement with writer instead of head of studio

- “….paid royalty advances….”

- Continue to allow writer to miss deadlines without recourse

What does head of studio do? Draw cartoons all day?

You committed to co-develop and publish not manage the business of studio.

Head of studio should be directing and controlling studio operations and development of its game/product.

Most industries have national and regional trade associations that conduct annual operator surveys and use the data to develop industry benchmarks.

This would include data on sales volumes, revenues, operating costs, number of employees, wages, advertising methods, services offered, etc.

I’d begin by revisiting the business model.

10-year old product (mature), value proposition is quality and dependability.

Sales are in decline due to competitor product that has lower price and offers better technology.

Plan is to make current product for less overseas and then spend money to prospect foreign markets where company has only small online presence.

Sounds like a potential train wreck to me.

For example, is it possible to take 10 year product made in your country and retro-fit it with new technology given the overseas manufacturing process?

Will domestic market (principal sales) accept product manufactured overseas rather than in their backyard?

Will the spread or savings be great enough to offset potential supply chain disruptions (shipping)?

Just because it cost less to offshore doesn’t necessarily mean it’s a good idea.

Maybe money is better spent on R&D to design fresh product that builds on your company’s reputation for quality and dependability.