Buying an Old 'Bux

May 21st, 2008, 10:54 PM #1 (**permalink**)

A local Starbucks with great earnings* and goodwill is being closed by the licensee. The customers are bummed, as it is the only coffee shop or hang-out for 10 miles in all directions.

The location is for lease.

Should I grab it and create my own coffee shop with the same fixtures/staff/management?

*I am intimately acquainted with the real performance of the biz, because I'm dating the current manager.

May 22nd, 2008, 01:28 PM #2 (**permalink**)

For what purpose? Is this a Fastlane venture? Or will you be buying a job?

Unless your objective is to start franchising coffee shops under your own original brand to compete with Starbucks, I would run the other way. I don't like business ventures that don't have a Fastlane time horizon.

Buying a coffee shop is not Fastlane -- building a new coffee shop brand and then franchising (or chaining it) is. So unless your objective is to build, brand, and replicate (and compete with Starbucks) I wouldn't bother. Is this the plan, or a piece of the plan?

Unless you can cash-flow this business without mortgaging your life away in management, I don't like it.

Also, the relationship with your GF will complicate things.

MHO.

MJ

May 22nd, 2008, 04:02 PM #3 (**permalink**)

See if the owner of the building is willing to sell, build the coffee business up, buy the RE, then sell the business to someone who wants to own a job and let them pay your mortgage. voila! Free commercial property! right?

This "kiyosaki" formula....buy a business, use the business to buy RE, retire rich retire young!

All easier said than done!

*my uncle actually did this, except he started an outdoor sporting goods store (The Trail Head) in Missoula, MT, eventually bought a good size commercial building in downtown Missoula, sold the business to someone else and now he is more or less retired off the property's income. And to tie the thread together, Starbucks is one of his tenants.

May 22nd, 2008, 05:19 PM #4 (**permalink**)

Yeah, coffee is NOT my plan, but I wondered if I could incorporate it. I keep trying to explain to my GF that we don't want to be shopkeepers. She keeps trying to explain that she doesn't want to be a millionaire. LOL!

May 22nd, 2008, 06:07 PM #5 (**permalink**)

If it will cash flow with management in place why not let it be a part of your empire? As MJ mentioned you could chain or franchise the business or it might just be some additional cash flow. Another possibility would be trading stock if you can buy the shop for a low enough price. For example, you may come across someone who is sick of rental properties and will trade in your favor for a career change into the coffee business.

Be very, very careful with the GF aspect. She may be an excellent manager but if you lose the GF you will lose the manager.

May 22nd, 2008, 08:02 PM #6 (**permalink**)

Focus. Focus. Focus.

This question tells me you do not have a well developed and fleshed out PLAN in place.

Once you do, you will not be distracted by the deal of the day.

Sorry. I know you hate it when I bring this up (over and over . . )

-Russ H.

May 22nd, 2008, 09:45 PM #7 (**permalink**)

Quote:

Originally Posted by White8

If it will cash flow with management in place why not let it be a part of your empire?

Yes! And that's what I'm doing: laying the groundwork for an empire.

Quote:

Originally Posted by Russ H

you do not have a well developed and fleshed out PLAN in place.
Once you do, you will not be distracted by the deal of the day.
Sorry. I know you hate it when I bring this up (over and over . . )

Yeah, that horse is dead.
In accordance with my goals and values: 90% of my energy is in writing/publishing/promoting my eBook right now. 5% is in laying the groundwork for the revenue/opportunities that will come from that. 5% is in creating a presence on the local level.
The coffee shop is tempting, because it is cheap, cashflows, and is turn-key.

But... if owning it is too distracting or dilutes my leverage too much, I won't do it.

May 22nd, 2008, 10:10 PM #8 (**permalink**)

Horse may be dead, PEERless.

But I'll continue to point out the lack of focus or direction of your PLAN.

Until you really deal with where you want to go and HOW you will do it, your PLAN is little more than a random sequence of ambitious dreams.

No FOCUS. No DIRECTION.

You may feel I'm wasting my time w/you (means I probably am).

At this point, my comments are more for the benefit of others reading this thread (and the other threads where you outline your latest investment dream of the week/month).

MJ put it more diplomatically, but he still wonders how this fits in with your PLAN:

Quote:

Originally Posted by PhxMJ

What purpose?

Is this a Fastlane venture?

Or will you be buying a job?

Unless your objective is to start franchising coffee shops under your own original brand to compete with Starbucks, run the other way.

I don't like business ventures that don't have a Fastlane time horizon.

Buying a coffee shop is not Fastlane -- building a new coffee shop brand and then franchising (or chaining it) is.

So unless your objective is to build, brand, and replicate (and compete with Starbucks) I wouldn't bother.

Is this YOUR PLAN, or a piece of YOUR PLAN?

Unless you can cash-flow this business without mortgaging your life away in management, I don't like it.

And so it goes . . .

-Russ H.

May 22nd, 2008, 10:32 PM #9 (**permalink**)

^I see where you're coming from, and I definitely appreciate the advice of fastlaners -- which I obviously am not (yet).

I just don't see why grabbing freebies along the way is wrong. I don't want to be 50, saying "why didn't I do that thing that came along when I was 20?"

Along the lines of focus: It seems like the brands I remember are "From the guy who brought you ___!" or "From the same people that made ___!" What's the matter with "From the guy who made that cool little coffee shop downtown!"? I realize it's a laughable parallel, but what is wrong with small successes along the way?

May 22nd, 2008, 11:45 PM #10 (**permalink**)

Quote:

Originally Posted by PEERless

. . .what is wrong with small successes along the way?

The things you talk about here are not small, Skyler.

They are HUGE time sinks.

FOCUS is key to achieving what you want, FAST.

FOCUS and DIRECTION.

And LEVERAGE (in that order).

If your e-book was about coffee, or your plans for empire were coffee based, then starting a new coffeeshop in this location makes sense.

If not, then it's just noise that takes you away from your path.

The more you are attracted by bright shiny investment objects (here!, then there!), the more they will distract you.

Yeah, it's fun. But it's the equivalent of making a car do donuts;

You just go in circles, fast.

Quote:

Originally Posted by PEERless

I don't want to be 50, saying "why didn't I do that thing that came along when I was 20?"

That's the real irony.

Without focus and direction, you could get to 50 and say,

"Where the hell am I?

How did I get here?

How come I never got rich?!?"

-Russ H.

You Tube

May 25th, 2008, 11:18 AM #11 (**permalink**)

Quote:

Originally Posted by Russ H

If your e-book was about coffee, or your plans for empire were coffee based, then starting a new coffeeshop in this location makes sense.

So keep it to one industry/sector? I can do that. I suppose it's just remnants of my old investing-style of diversification...

May 27th, 2008, 11:55 AM #12 (**permalink**)

Quote:

Originally Posted by Russ H

Focus. Focus. Focus.

This question tells me you do not have a well developed and fleshed out PLAN in place.

Once you do, you will not be distracted by the deal of the day.

Sorry. I know you hate it when I bring this up (over and over . . )

-Russ H.

Really embracing this concept has been life-altering for me. Opportunity is everywhere, and for a long time that really overwhelmed me; and it wasn't until I sat down to write out a plan that I got clarity. Before I chased every opportunity that passed by and I often felt exhausted and frustrated at the end of the day. Now I view myself as lion sitting on a hill watching a herd of gazelle run by. I know that in order to eat, I have to focus on one, chase it down, sink my teeth into it and not let go. Take the time to make and follow a plan. You won't regret it.

May 27th, 2008, 12:17 PM #13 (**permalink**)

Quote:

Originally Posted by Russ H

Focus. Focus. Focus.

This question tells me you do not have a well developed and fleshed out PLAN in place.

Once you do, you will not be distracted by the deal of the day.

Sorry. I know you hate it when I bring this up (over and over . . )

-Russ H.

Follow
One
Course
Until
Successful

May 28th, 2008, 06:35 PM #14 (**permalink**)

Don't end up like this guy.. lol

http://snappingphotos.com/wp-content...8ecf8427e.jpeg

May 28th, 2008, 06:57 PM #15 (**permalink**)

Quote:

Originally Posted by PEERless

A local Starbucks with great earnings* and goodwill is being closed by the licensee. The customers are bummed, as it is the only coffee shop or hang-out for 10 miles in all directions.

Why would a business with "great earnings" and no competition close it's doors?

What am I missing here?

May 28th, 2008, 07:14 PM #16 (**permalink**)

Quote:

Originally Posted by Peter2

Why would a business with "great earnings" and no competition close it's doors?

What am I missing here?

Ah. The licensing company is in ski resorts, and they are consolidating by closing all outlets not associated with a resort.

May 28th, 2008, 07:17 PM #17 (**permalink**)

I just want to say that Branson of Virgin doesn't focus. He's got his name in all industries. That's what I want! Granted he built up the record store first, so I see the model of focusing first. I hereby accept this advice. I'll focus for now, but I want to slap the PEER brand all over the world later on.

May 28th, 2008, 09:44 PM #18 (**permalink**)

I really have the same feeling as you PEERless although am trying to change to a fast lane approach. I feel that money no matter what business it is from is the same so just get as many cash flowing businesses as possible.

I found yveskleinsky quote interesting because aren't you working on renting cabins and a computer business? I don't know enough about the computer business to know if they are related.

May 28th, 2008, 09:44 PM #19 (**permalink**)

Quote:

Originally Posted by Russ H

The things you talk about here are not small, Skyler.

They are HUGE time sinks.

FOCUS is key to achieving what you want, FAST.

FOCUS and DIRECTION.

And LEVERAGE (in that order).

If your e-book was about coffee, or your plans for empire were coffee based, then starting a new coffeeshop in this location makes sense.

If not, then it's just noise that takes you away from your path.

The more you are attracted by bright shiny investment objects (here!, then there!), the more they will distract you.

Yeah, it's fun. But it's the equivalent of making a car do donuts;

You just go in circles, fast.

That's the real irony.

Without focus and direction, you could get to 50 and say,

"Where the hell am I?

How did I get here?

How come I never got rich?!?"

-Russ H.

http://www.youtube.com/watch?v=T2tP606HkYI

I'm beginning to think Skyler may not be the only one focusing improperly lately. I've been noticing myself struglling in this area too. I think sometimes creativity can get the best of you until you have learned how to manage it. Any other strategies for this in particular other than the planning threads?

I'm assuming the plan master (Russ

) would direct us to The Plan thread for all additional inquiries instead of here?

May 28th, 2008, 09:49 PM #20 (**permalink**)

Quote:

Originally Posted by mtnman

I'm assuming the plan master (Russ ) would direct us to The Plan thread for all additional inquiries instead of here?

Ya mean this thread?

PEERless, are you ready to spend at least 15-20 years FOCUSING on one business?

Branson spent his first 15 years focusing on media (mostly music): 1969-1984

In fact, it wasn't until the 90s that he really diversified.

-Russ H.

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