Question for the Mastermind group

[bretdunlap]

I have started or helped to start about 15 small businesses and presently just started another one. I mention this because regardless of the outcome you will grow, in ways you never imagined. If this is your first venture then everything you think you know will be completely different than now. Second this is the best part of it all, the start up, for me any way. You have the most hope, the excitement of the unknown possibilities. Last just do your homework real homework, get on the ground and ask the guy in the street things. Quick example: when I was getting married I picked a hotel on the beach to do the ceremony we planed well in advance about 5 months. The hotel was going through a renovation we were told that it would be done, over and over again, well in advance of the the event. So about a month before the event I called the hotel l got the same story, this time I walked by the contractors and started a conversation. Jut small talk then I said "man how are you ever going to be done by December" (My date). The contractors chuckled a said "December heck this won't be done till march". The point of the story take nothing at face value had I not asked I would have had 200 family members having to cancel tickets etc. By the way I called the Main company and worked my way to the CEO after a long talk and some real honesty and sincerity he switched my event to a 4 star resort about 20 min down the road and honored the contract of the first hotel. (by the way every hotel in the vicinity was booked solid) In addition he allowed me to pay in 3 payments . Long story but you get the idea do your home work hope this helps I have a tendency to ramble.

[stevenmd]

Thanks Bret. This will actually be my fourth venture.

Update: Scouted locations yesterday. I had a bit of a "sticker shock" when I found out the price per square foot (plus NNN). But it made me even more determined. We found a busy shopping center on a corner with a lot of traffic on the cross streets and a lot of traffic coming into and out of the center. I estimated there to be about 25 businesses in the center, with 5 of them being restaurants. We ate at most of the restaurants and decided, even though they were serving a different type of food, none of them would be direct competition. If anything, the addition of our place would bring them more business over time.

Probably the coolest thing is that behind the center is located the largest sports park I have ever seen. There must be 15 - 20 baseball/softball diamonds, several football fields, etc. So it looks like we will be sponsoring a whole lot of teams!

We initiated conversations yesterday with another financial backer and will meet face-to-face next week.

Overall, a very productive day.

[stevenmd]

$2.35 per square foot plus $0.49 NNN =
Size we are looking at = 3000 square feet
My response =

[bretdunlap]

Is this your first strip mall? I have some experience with that, more of what to look out for. How easy is the towns inspections for build out? Will the land lord do some of the construction? (in times like this a lot can be thrown in to get a good renter)

I had a friend go in to his first strip mall, he and the land lord were on GREAT terms, good guy type of thing. Township got involved and 5 months later they finally opened but, they never recovered from that. Crazy stipulations like moving existing toilets 3 inches away from a wall. Re wiring etc. Funny thing it was a martial art school basically 4 walls carpet and mirrors. I can't imagine a restaurant. I guess it pays to use well established contractors who are local and have a first name relationship with the inspectors.

My first store front business, I was up an running after I painted and got the keys. Luckily I was a local and my dad was a police officer in the town. To get the occupancy license the guy hoped in my car literally poked his head in the door and asked do you serve food.

Positive thoughts guys
PMA

[stevenmd]

You bring up some points that we are currently exploring. Our potential financial backer has opened about 30 restaurants, including my first one when I was 23. One thing in our favor is the current commercial rental market is down. We are hoping the landlord will give us some concessions.

More to come...

[stevenmd]

Update: Turns out we will be able to open the restaurant with about 2/3 of what we originally thought we would have to come up with. Plus, our potential backer seems to think we will be able to gross about 50% more than what we originally thought. This has turned from a good idea to (his words exactly), "...an excellent investment...." In fact, he is so sold on our concept, he is going out helping us look for the remaining investors.

[Colorado Ron]

Thats GREAT news! Keep pushing foward, doing more today than you did yesterday! It will come thru just fine, keep your eye on the goal! Now is when most get nervous and stop pushing foward.

[stevenmd]

Originally Posted by Colorado Ron

Thats GREAT news! Keep pushing foward, doing more today than you did yesterday! It will come thru just fine, keep your eye on the goal! Now is when most get nervous and stop pushing foward.

are you kidding? this is the kind of stuff that propels me even further! we already have a plan in motion to raise the money ourselves in case anything falls through.

[seeker]

Thats great to hear. Make sure to let us know when you launch. Ill have to check it out when in the area.

[stevenmd]

Update: still moving forward, business plan is complete and will be shopped around after the first of the year, met with my "alma mater" pizza place where I worked for 7 year while going through school - they have granted us their recipe and will assist with building codes, etc., and they loved the idea of using their recipe but changing the name to something more marketable.

So all that is left is financing. The owner of my "alma mater" is going to put his house and a few of his buildings up for sale after the first of the year as he would like to use that money to invest in us. Of course, we will still pursue other means of financing.