Madding;4529723; said:
I'm sure it's been discussed before, but who here actually owns or manages an LFS? Is the income worth the start-up costs? Can you support yourself and/or your family with this career choice?
Any input is appreciated.
Michael
Michael:
Living in Arizona and in the poorest county in the state, I have done the leg work of opening up 2 businesses. My second one being an actual LFS, as our town does not have one. The closest LFS between 8 towns in 2 counties, is 55 miles away from my house. Now with doing the economic studies for these two counties, it is not a plausible or feasable thing to do as the economy, 10 years ago would not support opening up another LFS for these two counties, let alone now, where jobs are truly scarce.
I'm positive if a person had the capital ($$$) to begin a business like that, it would take some mega bucks. Each owner is different. Many, many, variables in the planning stages of owning a business. If you yourself do not have the money, how will you acquire the start up costs and keep it running over the next 5 years? Many first time business owners close their doors within the first 5 yrs of their tenure. End result having to file for bankruptcy.
Acquiring business loans from most if not all financial institutions and the Small Business Administration is next to if not totally impossible right now, and not cracked up to what most financial institutions say about it being easy to do. You would be required to have the means to finance your business venture 100% before they would approve a small business loan. I'd say 150%, in order to be able to repay a loan (should you have a bad month for sales). You have to remain in the black (staying completely out of the red) for at least the first 5 years of your business, in order to keep from having to foreclose on your loan. Hence, closing your doors. After the first 5 years, is when things become a bit more stable and you usually begin to show a noticeable growing profit margin.
Is the income worth the start-up costs?
The income is pretty much what you make it. If you as a new owner of a business can live within your own basic human means for the first 5 years of business ownership, I would say yes, it is possible.
You and your family would have to make some definite and sometimes unwanted sacrifices. But like I said, you don't start seeing a profit for at least the first 5 years of owning a business. Any business. It just really depends on how bad you want it and how driven you are to succeed in your business.
Can you support yourself and/or your family with this career choice?
Again, if you do not live above your basic human means, it can be done. But it takes a full hearted effort from ALL family members to fully commit to willingly make the necessary sacrifices. If they agree the necessary and unwanted sacrifices, and they do not fully commit themselve in action, you will fail.
If you want to, PM me for more details.
