If you had to use $10,000 to start a small business, what would you do?

[Se7en62]

CPG Food and Beverage. That's where I've made my living for the better half of the past decade. Multipliers when a CPG company gets sold to a big boy can be 10x annual revenue. Typical multipliers are 3x-5x after 5 years if successful. Examples of some top dollar sales would be Sweet Leaf Tea that sold to Nestlé for $350M after 13 years of independent business, and Krave Jerky that just sold to Hershey's for $200-$300M after 7 years. There are others, but it takes a few years, however starting out with $10,000, I know exactly what I'd bring to the table and why and I won't say any more than that unless we sign a mutual NDA, you have $, and are willing to run point on the project with me as a stake holding board member. I've managed and directed production, operations, marketing, branding, brand infrastructure, retailer sales, distribution expansion, and national roll-outs for half a dozen brands that you probably have in your pantry or fridge right now so I know this industry like the back of my hand and I'd bet my ass on it.

 

[breakingcontact]

I still say pimpin' is where it's at, regardless of what Kane says!!


(BC will get that reference)

Well...it ain't easy...

 

[Exile Machine]

I started Exile Machine LLC about six years ago with $150 and a lump of clay. $10K startup money while helpful is not needed if you have an idea, a determination to forgo all else to pursue it, and a family that will back you up 110%.

-Mark
Edit to add: My engineering degree and MBA were somewhat helpful as well...

 

[Mike1234567]

I'm admittedly a bad business man but, IMHO, $10K will barely get one started "PART-TIME" via a venue such as eBay. "IF" the founder is simultaneously "EXTREMELY" diligent regarding self-promotion then "HOPEFULLY" within a year or two (or more) that founder can break away as an independent business person.

 

[matefrio]

I already repair guns for the family and friends on occasion. I'll probably just stick with that for a while. It's just me. No bills. Pure fun.

Isn't that a hobby, not a business though? He wants to grow the initial investment.

 

[karlac]

Coin operated goat wash in the Texas hill country...

Seriously, invest in a small tract suitable for storage buildings near growing urban /recreation area.

 

[benenglish]

Also this brings up a good point. A lot of folks, if they studied what they were really doing from a business approach would realize they dont have a small business, but a hobby.

Over the course of my working life, I had more occasions than I can remember to provide financial counselling to people who had two businesses. One made money, the other was their heart, their passion, the thing they really wanted to do in life. In every case, they sacrificed the profitable business to keep their (inevitably money-losing) side business going.

 

[Skip]

BBQ Food Truck

"Character is doing the right thing even when no one is watching"

 

[A.Texas.Yankee]

BBQ Food Truck

"Character is doing the right thing even when no one is watching"

10 g's is barely a down-payment on a truck.

 

[Skip]

Hey, get out of my delusions.....lol

"Character is doing the right thing even when no one is watching"

 

[benenglish]

WARNING - POSSIBLY OT, CERTAINLY DEPRESSING

Coin operated goat wash in the Texas hill country...

In the little town where I grew up, there was one coin-op laundry. The owner made a good living. He had a nice house, all paid for. He used to brag that the Coke machine in the corner, all by itself, had put his daughter through college.

One day, a man knocked at his door and asked if he owned the laundry. Upon confirmation of that fact, the man identified himself as being from the IRS and said he was curious about the Taxpayer Identification Number of the laundry. He couldn't find it in IRS records nor could he find any record of any taxes ever being paid by the business, either under a business number or the SSN of the owner.

The owner was like a deer caught in the headlights. "Taxes? I have to pay taxes?"

For more than 4 decades, he'd never paid a penny in taxes. Due to his advanced age, the criminal case was dropped but he was hit with all the back taxes, penalties, interest and (very important and expensive) civil fraud penalties applicable. The business was sold off. His house was seized and sold. He wound up penniless living with one of his adult children.

I have no sympathy. He was an idiot.

My point: For anyone thinking of starting a small business of any sort, it's smart to pay some attention to legal requirements. Permits, fees, licenses, taxes, etc. may be things we don't like and, in many cases for philosophical reasons, don't even think should exist. But simply ignoring them is beyond stupid.

 

[benenglish]

BBQ Food Truck

10 g's is barely a down-payment on a truck.

But 10 g's will buy a BBQ Food Bike/Cart. Houston is hostile towards them but in big cities where they are encouraged, food carts support many families.

 

[karlac]

Coin operated goat wash in the Texas hill country...

WARNING - POSSIBLY OT, CERTAINLY DEPRESSINGIn the little town where I grew up, there was one coin-op laundry. The owner made a good living. He had a nice house, all paid for. He used to brag that the Coke machine in the corner, all by itself, had put his daughter through college.

One day, a man knocked at his door and asked if he owned the laundry. Upon confirmation of that fact, the man identified himself as being from the IRS and said he was curious about the Taxpayer Identification Number of the laundry. He couldn't find it in IRS records nor could he find any record of any taxes ever being paid by the business, either under a business number or the SSN of the owner.

The owner was like a deer caught in the headlights. "Taxes? I have to pay taxes?"

For more than 4 decades, he'd never paid a penny in taxes. Due to his advanced age, the criminal case was dropped but he was hit with all the back taxes, penalties, interest and (very important and expensive) civil fraud penalties applicable. The business was sold off. His house was seized and sold. He wound up penniless living with one of his adult children.

I have no sympathy. He was an idiot.

My point: For anyone thinking of starting a small business of any sort, it's smart to pay some attention to legal requirements. Permits, fees, licenses, taxes, etc. may be things we don't like and, in many cases for philosophical reasons, don't even think should exist. But simply ignoring them is beyond stupid.

Lousy businessman. Coulda had an Ag exemption and government subsidy for the goat wash.

 

[Charlie]

'Think I'd buy a used limo, fix it up and take folks (retirees, lady's clubs, etc.) on wine tours from Austin, San Antonio, or maybe further to Fredericksburg or other small towns with wineries around. I hear it's good money (but boring). Not sure if the limo folks don't also get money from the wineries as well as the customers. Only drawback would be they probably don't want the driver(s) to do any wine tasting!

 

[matefrio]

How about shooting instructor\CHL? Become a teacher.

 

[Mexican_Hippie]

Or...

Build a business plan, borrow the money, buy two limos and hire two drivers. Advertise. Take orders from said patrons online and via phone.

Do this on this side of your current job or retirement pension. Let them work off your loan for you until everything is paid off.

As you grow the business, and it allows, hire a manger to run it for you.
Move on to next business and keep this revenue stream or sell it and invest.

 

[Skip]

Or...

Build a business plan, borrow the money, buy two limos and hire two drivers. Advertise. Take orders from said patrons online and via phone.

Do this on this side of your current job or retirement pension. Let them work off your loan for you until everything is paid off.

As you grow the business, and it allows, hire a manger to run it for you.
Move on to next business and keep this revenue stream or sell it and invest.

I'll help, I used to be a chauffeur. Arrow Limousine and Bridle Bar Limousine service.

Edit: Forgot to add, LOL.
Not doing limos EVER again.....lol

"Character is doing the right thing even when no one is watching"

 

[breakingcontact]

Or...

Build a business plan, borrow the money, buy two limos and hire two drivers. Advertise. Take orders from said patrons online and via phone.

Do this on this side of your current job or retirement pension. Let them work off your loan for you until everything is paid off.

As you grow the business, and it allows, hire a manger to run it for you.
Move on to next business and keep this revenue stream or sell it and invest.

I like this except the borrowing money part.

 

[karlac]

I like this except the borrowing money part.

If the opportunity is a good enough to invest your original $10,000, it should be good enough to consider leveraging the original investment with judicious borrowing. Borrowing against equity/skin in the game can be the difference between success and failure of a start-up.

 

[Vaquero]

Give me 100,000.00 (sustenance for a year)
And I'll open doors no one knew existed. I'm too dang busy earning a living to r&d the next "game changer".

Maybe I'll live long enough to retire and jump through the hoops required to make it happen.