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Money behind a business question

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Money behind a business question

Old 01-24-2013, 06:55 PM
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My wife and I have been looking for something to invest in and I came up with this idea, I can think of a dozen reasons myself to shoot it down but want to hear from you all what you think or the risk/reward.

Like I said we looking for some income when we retire and we have 2 cousins (1 married to a cousin) that arrived from Peru (yes legally), they don't speak English well yet but are taking classes and practice with us, they currently work labor intensive jobs he, construction, she, fast food.

They both have exp. in the food industry back in Peru and while things are done differently here it's the same premise. I'd like for one or both of them to geta job working in a pizza place to learn the business while getting paid to learn, once they have a year or so under their belt I was thinking of sponsoring them in their own pizza place.

It would be our money and our risk (if we did this) and like I said I'm well aware of all the pit falls that could and many will pop up even under the best circumstances but the pay off could also be pretty good if it works out.

So your thoughts, thanks.
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Old 01-24-2013, 07:01 PM
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Family and money dont mix.
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Old 01-24-2013, 07:02 PM
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My thoughts are that they represent what used to be common; honor and respect.

If you see these same traits, then enjoy helping them reach the American Dream.
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Old 01-24-2013, 07:11 PM
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Where do you live? Do you have competition? How mucg would you charge a pie? Are you doing other food and will it be like a restaurant? Will you be delivering?? Are you Italian? Are you going to be importing your water and flour yeast and cheese? Honestly,,, The business is not for you, Find a different business, Its a hi stress business, You want to retire and be stress free, Not have added stress,, Look to get into something else less stressful business wise,,,
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Old 01-24-2013, 07:20 PM
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Originally Posted by tintdr View Post
Where do you live? Do you have competition? How mucg would you charge a pie? Are you doing other food and will it be like a restaurant? Will you be delivering?? Are you Italian? Are you going to be importing your water and flour yeast and cheese? Honestly,,, The business is not for you, Find a different business, Its a hi stress business, You want to retire and be stress free, Not have added stress,, Look to get into something else less stressful business wise,,,

Your getting way too far ahead of yourself with some of your questions. we'd charge the prevailing rate for a pie, we live in North Jersey, there is a small city called Patterson, NJ with a high population of Peruvians where they would fit right into. There is competition and always will be, if your the forst someone else will start up soon after to try and cash in, in a city enviornment. It would be a mostly take out place with a few tables but nothing fancy. The only stress we'd get would be if the business was failing, if the business was going well (after the forst few years) we can monitor cash flow via cpu/internet amount of product being ordered etc. No need to import water in NJ, the water is some of the best there is, just like NYC, all water comes through 100+ yr old pipes from upstate. as for floor, cheese and yeast, it's availible from any supplier and you learn about them from the place you work at while learning the business.

I should add that I would also get a job at an existing place just to offer advice and help out while the business is starting out.
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Old 01-24-2013, 07:28 PM
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Paterson has enough pizza joints. Why not an authentic Peruvian take out? With some good chicha morada a must!

Last edited by NJFISH; 01-24-2013 at 07:45 PM.
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Old 01-24-2013, 07:36 PM
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Originally Posted by captbone View Post
Family and money dont mix.
Start with this advise.
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Old 01-24-2013, 07:38 PM
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And that the food industry has the highest failure rate of any small business.
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Old 01-24-2013, 08:00 PM
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Originally Posted by NJFISH View Post
Paterson has enough pizza joints. Why not an authentic Peruvian take out? With some good chicha morada a must!
Patterson also has a bunch of Peruvian take out places, we eat at one every week, great food, inexpensive but there are 4 on 1 block.

I'm using the Pizza idea as an example but being Pizza is consumed more then anything else besides burgers I thought it would be a good idea.

Most likly this won't happen but still want to pick your brains.
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Old 01-24-2013, 08:16 PM
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there seems to be a wealth of info in this thread and it seems to be on topic with yours.

http://www.thehulltruth.com/dockside...need-help.html
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Old 01-24-2013, 08:25 PM
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Look I don't know much about restraunts it's not my cup of investment tea. I can tell you I've been in the apartment biz for 25 years if you want a good return on investment and retirement income buy a 3 unit or an apartment building. You buy a building for 300k or put a downpayment of 60k make a little money for 15 years then collect the rent it makes. If you pay cash you just collect the rent the rest of your life...worked out well for me
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Old 01-24-2013, 10:03 PM
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Unless you on a small pizza shop in Newark, the best way to make a million in the restaurant business is to start with 2 million.
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Old 01-25-2013, 03:00 AM
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Peruvian slave master!
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Old 01-25-2013, 03:23 AM
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If its money you can loose then do it..... Most business' fail in the first year....
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Old 01-25-2013, 03:58 AM
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Can't think of a tougher business than the restaurant business
Can't think of a tougher restaurant to distinguish yourself from competition than pizza

From an ownership standpoint you would need to secure your investment with an agreement with your cousins that prevents them from leaving and starting their own place (don't think they won't). They'll need a piece of the ownership AND a non-compete clause that BOTH of you sign (the best agreements protect both parties) to keep them working hard while you're counting your money from a smart phone on the beach in the Caribbean
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Old 01-25-2013, 04:18 AM
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A real good friend of mine decided one day to open a Chicago Style pizza place with her best friend. She put up the money and the friend worked it. She asked my advice and I simply told her it would not work and she and her friend would hate each other in the end. Six months and 60K later, her friend is back in Chicago and they are hating each other. I think she had to pay off the lease early and got pennies on the dollar for the equipment.
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Old 01-25-2013, 05:07 AM
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All sound advice, thanks.

If we went into it at all I'd be buying used equipment, ovens, mixers etc. We'd both own the business and something drawn up that gives them a bigger stake once the business reaches a certain number of years. I'm not greedy but am well aware that we most likly hate one another at some point during the process so a devorce would have to be built in to any agreement.

I own 4 proerties now and am looking to diversify somewhat and help out a hard working couple at the same time.
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Old 01-25-2013, 05:43 AM
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In Paterson....I don't think so.
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Old 01-25-2013, 06:16 AM
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Believe it or not, not everyone has the ability to run a restaurant.
Not everyone can run a retail store, although they look terribly simple to run.
Not everyone succeeds in restaurants and retail because a skill set is required to make each successful.
If the person you hire to run the business does not poses the right skill set, the business will never reach it's potential.
Hard work and honesty are great traits to hire, but those are not the only traits needed to be successful.
Managing people, inventory and money requires skill.
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Old 01-25-2013, 06:23 AM
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Call PMurphy. Apparently he has the Midas Touch with pizza joints.
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