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View Full Version : [01-11-2011]Would you sell some AG/miners to open a restaurant?


captainbluff
01-11-2011, 10:03 AM
I'm sitting on a pretty stack of physical and mining shares with some really nice gains. Would you sell some of your stack to start a business? In my case it would be a restaurant, start up cost would probably be under 75K ( divided among 3 - 4 LLC partners ). Lease is about 4600/mo on 1600 sq feet space. Will probably not do it if they want to lock us in for 10 years.

So would you do it?

SilverBullionaire
01-11-2011, 10:05 AM
I would. If it is only a part of the stack, I definitely would, if it was my dream to open it!;)

rodzm
01-11-2011, 10:07 AM
I'm sitting on a pretty stack of physical and mining shares with some really nice gains. Would you sell some of your stack to start a business? In my case it would be a restaurant, start up cost would probably be under 75K ( divided among 3 - 4 LLC partners ). Lease is about 4600/mo on 1600 sq feet space. Will probably not do it if they want to lock us in for 10 years.

So would you do it?
I dont have my own business but just factoring in the economy I would say a restaurant wouldnt be a good idea right now. If it is a franchise then I would be inclined to do it since franchises are established and have made a name for themselves. Cheap food in the way of a fast food franchise wouldnt be too bad but a full scale restaurant maybe not in this economy

999FINE
01-11-2011, 10:08 AM
I worked at a small family owned restaurant that was just starting out for three years..I was there first employee (waiter)... After about two years the guy wished that he had started a club instead, He said thats where the money is. I live in a major city, so this may not be the case for your environment. But i was just saying...It is a nice restaurant, and they got their liquor license recently, that helped boost sales...

I wouldn't do it...I would start a business with my gains though. Just not a restaurant

theplantguy
01-11-2011, 10:09 AM
Just my opinion, but 4 partners in a 1600 square foot restaurant, I don't see how any one is going to make any real money.

govikesgo
01-11-2011, 10:11 AM
I'm sitting on a pretty stack of physical and mining shares with some really nice gains. Would you sell some of your stack to start a business? In my case it would be a restaurant, start up cost would probably be under 75K ( divided among 3 - 4 LLC partners ). Lease is about 4600/mo on 1600 sq feet space. Will probably not do it if they want to lock us in for 10 years.

So would you do it?

I certainly wouldn't ask anyone on here for advice on opening a restaurant. Knowing your rent, square footage, and available funds wouldn't qualify Gordon Ramsay to render an opinion. Fact is over 65% of restaurants fail within 3 years. Also, they want to lock you in for 10 years? Has anyone heard that it's a buyers market out there? He sould be lucky ANYONE wants to rent his place in this economy. Yes it's a GREAT DEAL, for HIM. Not sure how many holders of AG have lost money in a 3 year run.

97guns
01-11-2011, 10:22 AM
opening any kind of business is a HUGE RISK especially in this economy, ie: you have to sell a certain amount of meals just to pay the rent and utilities and your bound to a lease.


when you run the numbers on it and figure out how many hours you have to work for the landlord each month it may not seem as promising.

you will be "married" to the business and have very little personal time, it looks really easy but i assure you it is not, make sure you check it out.

AvergageJoe
01-11-2011, 10:27 AM
Bars and restaurants have a high failure rate. My wife just got out of her (seedy) bar and grill after 6 years. No positive cash flow, constant hassles, etc...

Plus, I am now unemployed so eating out at sit down restaurants has gone way down for us....

It's your decision, but I would not do it. If I were going to do it, I would target a well known franchise like McDonalds or Subway.

Plus as someone pointed out, most people on the Kitco boards thing the USD will go off a cliff in the short term, so what do you think would happen to your business? The only saving grace would be if you had a long term lease without an inflation clause, and it made your rent essentially 1/4 what it is today.

Good luck with your decision.

BetterSafe
01-11-2011, 10:39 AM
I would rank it up there with one of the worst ideas you could do with your stack. Roulette wheel would actually rank higher for me.

Number 47
01-11-2011, 10:39 AM
I was in the restaurant business for 15 years, it's a terrible strain on family. If you are succesful it can be wonderful but as mentioned above, most fail, many in the first year. I would say, too many partners for a start. Asking for trouble IMO. Also, in this climate what is the first thing people cut back on? I would venture eating out.

Now if you had a market for function type events it may be a decent gamble, weddings, parties etc but even then revenue is down as is footfall here in Ireland and hotels and restaurants are folding left right and center. A coffee shop has much lower start up and overheads, this is my next venture but still it is a stab in the dark in the current climate.

I would answer no to your question, sit it out for now.

ChainSawDave
01-11-2011, 10:44 AM
bad idea - - UNLESS > customers paid for all meals with >>>>>>>> SILVER

Moonstruck
01-11-2011, 10:47 AM
No.
NO!
NO!!!

I come from a restaurant background. Even useing all the tricks of buying used equipment and eating stuff before it spoils, puting your kids to work, ect. It has a higher failer rate than your average bussines. Overhead is a Killer!! Power and food costs are high. Customers are fickle. Taxes and red tape and premit costs add up faster than many people think.

No.
NO!
NO!!!

Mtforpar
01-11-2011, 10:49 AM
I tend to agree with the above post about all of the costs. As well, with the number of partners involved I don't see it as a good idea. Usually, the majority of the benefits one can achieve from a small business is by living through it. What I mean is most of your life's needs are met by the business. With three partners that benefit would be eliminated or extremely complicated.

Cynthialee
01-11-2011, 11:00 AM
Regardless of what the worlds economy does the people need to eat.

I would go for it.
Worst case scenario everything colapses and you are stuck running a restaurant that works on barter. Could be fun.

ianian
01-11-2011, 11:07 AM
Have you had success with previous restaurant businesses? If yes then your knowledge of the business should go a long way towards your decision. If not then extensive research and due diligence would be your friend.

Upscale restaurants can be cut throat competition. I've had several clients who own upscale restaurants and I was amazed at a few of the stories. Espionage and dirty tricks. No Kidding.

One of them owned a very upscale French restaurant. He immigrated to the US from Martinique in the 70's and had nearly 100k cash... but instead of starting his restaurant immediately he took a job in a future competitors restaurant - as a dishwasher. Moved up to waiting tables, and then to other positions, cashiering etc. in the course of a year. Learned much of the guy's 'secrets' and used them in his own place to his advantage.

Another owner spoke of competitors placing pants as employees to sabotage things... food prep or whatever.

Found it fascinating and thought someone could write a good book based on it.

Krank
01-11-2011, 11:18 AM
Just my opinion, but 4 partners in a 1600 square foot restaurant, I don't see how any one is going to make any real money.

I agree . . . certainly not in this economy unless you've got some fantastic business plan, incredible location, unlimited parking, different menu (like southern Bar-B-Q in northern climate) and you're planning on extremely low end decor with very little investment.

This question somehow reminds me of a place I was taken too years ago in London, Ontario near the University of Western Ontario. I can't remember the name of the place, it may have been called Billy Bob's or Billy Ray's or something like that. It reminded me of an old food mart box store gutted to the inside walls, all painted black with concrete floors. . . . no decor whatsoever. There must have been 30 pool tables and no seats/chairs other than outdoor type wooden picnic tables scattered all through the place. There was a huge horseshoe shaped bar with about a dozen servers behind it. . . no bar stools. I don't think they served any food. The only other staff were guys wondering around and moving empty and full cases of beer back and forth to and from the bar, all wearing black T-shirts with "STAFF" on the back. They looked like they may have been from the local football team. All they served was beer (& perhaps wine) and in plastic or paper cups . . . no bottles left the bar. There were no waiters or waitresses, you went to the bar to order. I believe the music being blasted from the massive speakers was a local radio station . . . maybe WKBW. I was there mid week, maybe about 7:30PM and the place was packed with students. . . hundreds and hundreds of them. I have never in my life seen a business with no decor and obviously so little funding doing such a huge business. They must have made a fortune every single night. I can't even imagine what it must have been like on weekends. We shot a couple of games of pool and left about 9:30 . . . there must have been 150 people in line outside waiting to get in. I'll never forget what I figured was the best business idea I've ever seen. This was 20+ years ago so I have no idea if it's still there. I walked away thinking . . . maybe some day . . .

Anyway, that's my best recollection . . . anyone else know the place?

MiamiFlorida
01-11-2011, 11:18 AM
I'm sitting on a pretty stack of physical and mining shares with some really nice gains. Would you sell some of your stack to start a business? In my case it would be a restaurant, start up cost would probably be under 75K ( divided among 3 - 4 LLC partners ). Lease is about 4600/mo on 1600 sq feet space. Will probably not do it if they want to lock us in for 10 years.

So would you do it?

I've been in the restaurant/food business for 33 years and, not knowing your experience, I've seen more failures than I can count. Then, factor in a flagging economy with tacit signs of recovery and you've got a sure recipe for failure.

I could spend weeks going over every detail regarding staffing, menu, suppliers, state, county and local codes, health code, food saftey, design, layout, equipment... ect.

A menu requires a LOT of consideration, and even before your first customer steps in the door, you need to stock and staff as though you're going to turn your tables at least twice during dinner service. Chances are you'll have extremely high food and labor costs for at least 6 months while you struggle to build a customer base. If the menu works and you kitchen crew is able to execute it flawlessly you might be able to pull enough revenue to remain open another 6 months... like I said, I could go on and on and barely touch everything you need to know about a food service business.

With one owner, you might make a small profit, with multiple partners it may take years before you realize a small profit.

ANYWAY, message me if you have any detailed questions.

Bullion_Bob
01-11-2011, 11:19 AM
I worked at a small family owned restaurant that was just starting out for three years..I was there first employee (waiter)... After about two years the guy wished that he had started a club instead, He said thats where the money is. I live in a major city, so this may not be the case for your environment. But i was just saying...It is a nice restaurant, and they got their liquor license recently, that helped boost sales...

I wouldn't do it...I would start a business with my gains though. Just not a restaurant

I've helped roll out a bunch of high end night clubs internationally. They are a good ride, but not a long ride. Unless you can make them always seem new and exciting, people get bored, and go to whatever is new and exciting.

Restaurant biz is great if you're into that and can offer good value for the food, but it is dirty work.

Spanky
01-11-2011, 11:27 AM
I was in the restaurant business for 15 years, it's a terrible strain on family. If you are succesful it can be wonderful but as mentioned above, most fail, many in the first year. I would say, too many partners for a start. Asking for trouble IMO. Also, in this climate what is the first thing people cut back on? I would venture eating out.

Now if you had a market for function type events it may be a decent gamble, weddings, parties etc but even then revenue is down as is footfall here in Ireland and hotels and restaurants are folding left right and center. A coffee shop has much lower start up and overheads, this is my next venture but still it is a stab in the dark in the current climate.

I would answer no to your question, sit it out for now.

I had a small Gourmet Coffee Shop/Restaurant for 5 Years - opened it with myself and one part-time employee, 5 Years later; we had a full time manager and 16 Employees...long before the Starbucks craze even thought of beginning.. I was lucky to get out of it with my ass..Employees rob you and give your products to their Friends, they "Dump" Shifts and "Tap" the Till, vendors are unreliable, food rots and always taxes taxes taxes...Fees, permits and Inspections. 16 Hour days...falling asleep in the Drive-thru at the bank- wake up when someone honks. It cost me my marriage and my Home..yeah I think it's a good Idea...for everybody else.
FWIW, Some People (Myself included..) believe that the Words "Business Partner" are the ugliest words in the English language.
Good Luck with whatever you decide, just remember, Educations are rarely Fun and never Free.

badfrog101
01-11-2011, 11:54 AM
The most expensive way to learn any business is as the owner.

Just the fact that you are asking that question here is a red flag. WTF do PM bugs know that qualifies us as a group to give advice on restaurants? (Obviously some do.)

If you haven't worked in food service in a variety of places in a variety of positions for several years, then get that experience.

As re: Spanky above, why do your putative partners want you to invest? Are you "sucker money?" There are ways to close down a business, walk away clean with all the money, and leave the partner owing for the credit lines. Always Always ALWAYS control the money yourself. As a businessman, I haven't seen every scam out there, but I've seen and heard a lot of them. A successful business is always a target, and the worst thieves are the govt, which for me was the straw that broke the camel's back. My town govt was trying to illegally collect illegal taxes in an illegal manner. We won two court cases, and I bailed out before the third. They got nothing, but the lawyers made out okay. AFAIK the mess is still going on; the tax was ruled unconstitutional, they were enjoined from even attempting to collect, so they went to the state Motor Vehicle division and got them to write letters saying that we would not be allowed to register company vehicles unless this tax that the court had disallowed was paid. When your own govt is breaking the law, it's time to leave.

Rant, rave. The meds are starting to kick in, so I'm done.

Ag gnostic
01-11-2011, 12:02 PM
A lot of restaurants don't make it.

Taxin
01-11-2011, 12:03 PM
I am a contractor and I would love to have a small restraunt or grill micro brew what have you but to answer the question in short no I would not.Like many others have said the economy is bad and a restraunt is the #1 business to fail! People are cutting back on their disposable purchases and we still are questioning the nations direction and personel tax liabilities. I would hang in there and wait for a better entry point where you may stand a snowballs chance in hell of succeding also with 4 partners there is many different ideas that may cause rift or turmoil. Just my thoughts as at this moment our business is doing ok but as I look ahead there are alot of questions as the king is regulating when he can't get it through legislation.The NLRB and the card check is just one. FWIW :mad:

HighInBC
01-11-2011, 12:06 PM
I am saving up my stack to start a bullion store one day. I figure if I sell it, I should get full retail price for it.

Briarcutter
01-11-2011, 12:21 PM
Many great things have already been said, I would head them. I guess you have to ask why you want to open a restaurant. To make money? I am not sure that will happen for a long time, if ever? It may sound like a cool fun thing to do. Hang out with the boys, schmooze with customers, have a blast with the help. It does sound like fun but will that really happen? I think it sounds like too much work to me with little reward. I would take the advice of the others that have owned restaurants. You have a sound investment now if you watch it, why sell a twenty dollar bill for 18?

houseofthemoon
01-11-2011, 12:23 PM
Yeah I would do it if I really wanted to lose my money, or at best break even.

Saylor
01-11-2011, 12:53 PM
How to make a million in the restaurant business.

First...you start with two million....:D

MyBids
01-11-2011, 12:56 PM
I would most definitely NOT open up a resturant att.

ChainSawDave
01-11-2011, 01:00 PM
How to make a million in the restaurant business.

First...you start with two million....:D

or to put it another way

> restaurants are the best way to quickly make a small fortune >

start with a large fortune, then open the restaurant !
Proven formula, usuallly works

SilverMerlin
01-11-2011, 01:22 PM
No! If you are looking at financial considerations then do not do it.
You are only asking for problems both from the business, economy and the other member's
of the llc.
Just count your blessings for what you have and wait awhile longer. End of the year you can buy the restaurant, pay cash and have working capital for it .

Concerned
01-11-2011, 01:27 PM
...Midnight Run.

Robert deNiro (bounty hunter) wants to open a coffee shop, his prisoner (a Mob accountant) advices him against it...

greenbeard
01-11-2011, 01:38 PM
Is it a dream of yours to open a restaurants? Is there something about what you will be offering that is unlike anyone else in your area? If yes to both and you trust your partners with your life, then go for it. Good luck!

Chrisadamley
01-11-2011, 02:02 PM
I have been looking into quite a few businesses lately. I must say a restaurant would be my last choice to open.

Firstly the margin on which you make money is so low. Its very hard to be competitive. Though it depends on the area. Where i am there are almost 500 places to go eat in a city over maybe 120k? ....I have learned that location is key to a restaurant success.

I definitely wouldn't sell PM to fully fund the thing with 4 other people. Why not take a loan and just split the down payment? That way everyone is liable if it fails, and also, you get to keep your pm in the meantime. Granted there is interest. but you should consider that if there isn't enough money to pay a loan AND pay the owners enough to live. You probably shouldn't do it.

Just my 2 cents. Opinion only. :)

ChainSawDave
01-11-2011, 02:07 PM
if you just gotta do it, open a Starbuckies franchise, somewhere near a city, , the number of good lookin' women who saunter in to buy that strong bitter express mud amazes me.

you'll make money and all that some sightseeing right in your own store -

RoadLizard
01-11-2011, 02:10 PM
Is it a dream of yours to open a restaurants? Is there something about what you will be offering that is unlike anyone else in your area? If yes to both and you trust your partners with your life, then go for it. Good luck!

I must agree. Ya only live once and MUST do the things YOU want to do when you have the chance. I just purchased a ddream car of mine and didnt even think twice about it. Now is as good a time as any to enjoy yourself. I know that the "save all your money" gurus hate hearing this but too damned bad... Im not gonna save forever and then just die and hand it all to someone else. Screw that.

Live, work, and enjoy. ;)

Scratchee
01-11-2011, 02:23 PM
Are you really asking about a restaurant, which is your current opportunity, or are you asking about starting a business in general?

Starting a business carries significant risk, but it's probably your best chance to break out of the pack and get enough ahead financially to provide long-term security for you and your family. Among businesses you could start, a restaurant is particularly risky due to the very high failure rate.

In my opinion, someone who advises you to buy and hold precious metals in order to get rich is probably counting on everything collapsing around you as part of your "success" in that venture.

My advice would be to study, learn, plan...and go for it, whether it's this restaurant or some other venture.

SilverFinger
01-11-2011, 03:50 PM
I'm sitting on a pretty stack of physical and mining shares with some really nice gains. Would you sell some of your stack to start a business? In my case it would be a restaurant, start up cost would probably be under 75K ( divided among 3 - 4 LLC partners ). Lease is about 4600/mo on 1600 sq feet space. Will probably not do it if they want to lock us in for 10 years.

So would you do it?

My belief...lots us useless info here...could care less about intital start up-investment costs....care less about partners...care less about sq. footage.

I do care about month lease costs of $4500. (that's a critical number)....but the absolute MOST important piece of information left out is what is the month nominal average sales in a poor month- product costs and employees costs....anotherwords what is your bare-bone (in a bad month) monthly profits. If you're only profitting (7,000. -4500) that's 2,500. to divide up by 4 investors....leaves you $625. each...then what happens if something breaks, or energy costs go up. Raising your prices in a bad economy will scare off people and your $7,000. of profit sales in a month will reduce to 6k. You see where i'm headed. again very simplified...but you will need to know your monthly business profits after expenses in advance...before you sign anything long-term.

I have no issues with starting a business....just KNOW your monthly sales profit after costs...else you'll lose your initital investment in the business.

I'd stipulate only a 1 or 2 year trial period to check the waters before I signed a commitment for 5 or 10 years.

I'd build the building myself, stock it, and get the liscensing....in this manner I'd be the sole business owner. Why would you want a land-building owner and 3 others (dead-weight) cutting into your profits.

MiamiFlorida
01-11-2011, 04:02 PM
How to make a million in the restaurant business.

First...you start with two million....:D

LOL, short and to the point, and funny because it's true!

Generally Executive Chefs, like me, go into a restaurant using an "angel investor", experienced people in the industry rarely ever put up thier own capital.

MiamiFlorida
01-11-2011, 04:08 PM
Regardless of what the worlds economy does the people need to eat.

I would go for it.
Worst case scenario everything colapses and you are stuck running a restaurant that works on barter. Could be fun.

They need to eat, but not necessarily at a restaurant...

MiamiFlorida
01-11-2011, 04:17 PM
I know that the "save all your money" gurus hate hearing this but too damned bad... Im not gonna save forever and then just die and hand it all to someone else

This certainly not my intention. And, I strongly believe this is not the time to cash in on metal investments, or start a new business.

jogslvr
01-11-2011, 05:30 PM
My wife and I have owned and operated a small steakhouse for the past 22 years. It makes us a living but it is hard work and we had to make many sacrifices over the years.

1. You best have a solid niche. We had little to no competition and are locted next to a large military installation.

2. You best have plenty of money in reserve. We lost money for 3 straight years before breaking even in the 4th year.

3. You better have other income to start.

We owned the land and building and had no rent to pay. If we had had to pay rent, we would have gone under in the first two years. Without my wife's nurses salary, we would have gone broke in the first year. I did all the renovations and all the cooking and dishwashing the first two years.

4. Trust me, you don't want partners.

5. It doesn't get easier as time goes by.

6. Plan to give up all other activities, including vacations.

7. Plan to work twice as many hours.

8. With this economy of scary unknowns, I wouldn't dare try it today.

Its still hard to sleep sometimes knowing that TSHF may come at any time.

Good Luck

ChainSawDave
01-11-2011, 05:49 PM
To summarize this entire thread, >>> our discussion is to choose between a stack of metal vs the American Dream of opening your own business.

It's a SAD SAD commentary on where America is at because it seems > the American Dream is getting voted down in favor of some shiny metal that just sits around in a box.

We can all argue the reasons why investing IN America and the American dream is dying but the fact that it is dying seems harder and harder to deny.

In 1950, in 1980 or even 1990, it probably would have been a much higher vote FOR opening a small business. But NOT today.
American the beautiful, slip sliding away, a percent at a time,

Radar
01-11-2011, 05:54 PM
Like others have said, a restaurant is a risky venture and most fail. You'll be glad that you held onto your silver when the SHTF. Just my opinion.

govikesgo
01-11-2011, 05:55 PM
Regardless of what the worlds economy does the people need to eat.

I would go for it.
Worst case scenario everything colapses and you are stuck running a restaurant that works on barter. Could be fun.

No, worst case scenario, his partners give up and want out, Construction overruns put him out of business and out of money BEFORE he opens, Economy tanks and while you're right, people do need to eat, they generally will eat franks and beans before steak if it comes down to that or the mortgage. FUN? This is a person's livelihood you're talking about. Fun is going out to dinner with your friends, not watching your life's work tip on the balance of fickle people and partners. MY GOD!!

govikesgo
01-11-2011, 05:58 PM
Have you had success with previous restaurant businesses? If yes then your knowledge of the business should go a long way towards your decision. If not then extensive research and due diligence would be your friend.

Upscale restaurants can be cut throat competition. I've had several clients who own upscale restaurants and I was amazed at a few of the stories. Espionage and dirty tricks. No Kidding.

One of them owned a very upscale French restaurant. He immigrated to the US from Martinique in the 70's and had nearly 100k cash... but instead of starting his restaurant immediately he took a job in a future competitors restaurant - as a dishwasher. Moved up to waiting tables, and then to other positions, cashiering etc. in the course of a year. Learned much of the guy's 'secrets' and used them in his own place to his advantage.

Another owner spoke of competitors placing pants as employees to sabotage things... food prep or whatever.

Found it fascinating and thought someone could write a good book based on it.

I would assume he has NO experience in the restaurant business or he wouldn't be asking that question. Other than a boat, there's not a bigger hole you could throw money into.:(

ChainSawDave
01-11-2011, 06:01 PM
A friend of mine is a contractor who has a niche doing work in several successful restaurants.

The city beauracracy is horrific, the layers and multitudes of inspectors, the fee's, the liscenses for many many aspects of the restaurant.
Won't even talk about the fines, big big bucks, sometimes thousands.

Don't think there is just one liscense or permit, no no no, it's MANY.
Every liscense or permit costs hundreds or more.
A crane briefly came out to put a sign up on front of restaurant. The FEE to allow the crane to set up on the city street for less than an hour early one morning ? >> $ 2,000, not including price of crane.

Annual liscence for a canopy over sidewalk, AND, A LINE ITEM ON THE COMMERCIAL PROPERTY TAX BILL > FRESH AIR USAGE.

Yes, the city of Chicago CHARGES for the air we breathe

Example, popular successful restaurant on N Wells St, Chicago, > Sal Picone, just did huge addition. They pay 100,000 property taxes. They PAY extra for the footprint of the dumpster that sits in the alley behind the restaurant > $500 a year. Is not $500 a lot of money ? it still is.

Our ever increasting statist, taxing, regulating, fee charging government is strangling the American Dream.

Open a business or get a box of shiny metal, sad to say, get the metal.

RoadLizard
01-11-2011, 06:03 PM
This certainly not my intention. And, I strongly believe this is not the time to cash in on metal investments, or start a new business.

I know - I didnt mean to make it sound too harsh. Sorry if I did. :)

What I meant was: If thats what you want to do then go for it. Now, if the whole thing will be financed by PMs then thats a slightly riskier issue. How about a business loan or something?

govikesgo
01-11-2011, 06:21 PM
To summarize this entire thread, >>> our discussion is to choose between a stack of metal vs the American Dream of opening your own business.

It's a SAD SAD commentary on where America is at because it seems > the American Dream is getting voted down in favor of some shiny metal that just sits around in a box.

We can all argue the reasons why investing IN America and the American dream is dying but the fact that it is dying seems harder and harder to deny.

In 1950, in 1980 or even 1990, it probably would have been a much higher vote FOR opening a small business. But NOT today.
American the beautiful, slip sliding away, a percent at a time,

This has nothing to do with PM. Although he asked if he should use a small part of his stack, the responses were from those who know the food business. In the BEST of times it's a sketchy proposition. In these times it's suicide. I guess if he wants to live the American Dream then he should open it, go bankrupt and start all over. That seems to be the way things are done lately. As some have stated, it could take 3 years to finally turn a profit. You know what would be more profitable? Buy something, say 1 oz of silver for $30 and sell it 12 months later for $31. You would be WAY ahead of the game. Do that for 3 years while still keeping your job and you may have saved $75K.

fastmover
01-11-2011, 07:36 PM
Magic 8 ball says...ask again later. Sorry.

ernest
01-11-2011, 07:57 PM
I'm guessing you're going to have some capital gains if you cash in.

Rent does seem a bit high for the square footage.

Partners are tough.

Do your due diligence. Twice.

If the numbers work, go for it.

sliver573
01-11-2011, 08:04 PM
How about waiting until gold/silver are in a bubble and then cash in, open a restaurant

Copperhead
01-11-2011, 08:15 PM
To each his own but I have a friend who owns a successful restaurant and she wants out. Long hours, hard to keep honest hardworking employees and everyone and their grandmother seems to be opening one up around here, just to name a couple of reasons.

Roadrunner777
01-11-2011, 08:32 PM
I do some work in point of sale equipment across retail and hospitality sectors. We are very cautious about extending credit to new restaurants, and offer deep discounts on systems that are pre-paid. Why? Because new restaurants are risky business in any economy, but especially risky now. Something like a third of our new customers didn't make it through the first year.

On top of that, I think I read this will consist of 4 partners. That's 3 too many, in my opinion, particularly if they are the non-silent type.

However, some of the most satisfied (obsessed/committed) people I know own restaurants. If it is where your soul points, then you must do it. You may have to make more than one try at it. I would suggest talking to an accountant about minimizing personal financial risk, so you can make another try at it if need be. An LLC comes to mind, but I'm no accountant.

Good Luck!!!!!!

fastmover
01-11-2011, 08:58 PM
Magic 8 ball says...ask again later. Sorry.

8 ball working now - if you have the bug to do this, then I would go franchise or buying an already established, positive cash flowing business. This would cost more, but would probably limit the downside. Startups are statistically against success...our retail business was a niche that allowed us to escape after two years with minimal loss, but we a) got the retail business owner bug out of our system (American dream component?) and b) gained an MBA via real-world experience to go with academic MBA.

Good luck regardless.

FM

Moonstruck
01-11-2011, 09:06 PM
They best way to make $$ opening a new restaurant. Is to find 2-4 suckers.. err investors. Pocket up to 1/3 of the start up $$. Skim off the top and bottom, till the partners give up and then close down. Pocket most of the $$ from selling off bussines assets. Move somewhere else and do it all over again. :eek:

DYODD

GenRipper
01-11-2011, 11:46 PM
Buy some realestate. With the dollar about to be heavily devalued, it would be a great time to own some debt. Buy something that breaks ever with rent and sit on it for 20 years.

Bassplayer
01-12-2011, 12:11 AM
I'm sitting on a pretty stack of physical and mining shares with some really nice gains. Would you sell some of your stack to start a business? In my case it would be a restaurant, start up cost would probably be under 75K ( divided among 3 - 4 LLC partners ). Lease is about 4600/mo on 1600 sq feet space. Will probably not do it if they want to lock us in for 10 years.

So would you do it?

short answer - no! would not do it...

DaleGribble
01-12-2011, 12:23 AM
Some here have mentioned a coffee shop. In my area, Fargo, this is a hot item. We've really only got the big name coffee shops plus maybe 4 or 5 family-owned ones. The family owned ones are in real good areas. Just my opinion, but if you can find a place by the local university, might not be a bad idea. At least in Fargo it is.

Jonathon Ross
01-12-2011, 12:27 AM
I'm sitting on a pretty stack of physical and mining shares with some really nice gains. Would you sell some of your stack to start a business? In my case it would be a restaurant, start up cost would probably be under 75K ( divided among 3 - 4 LLC partners ). Lease is about 4600/mo on 1600 sq feet space. Will probably not do it if they want to lock us in for 10 years.

So would you do it?

I have no opinions on the potential restaurant site but I would be willing to sell metals to make a bet on myself.

refrep
01-12-2011, 12:32 AM
I'm sitting on a pretty stack of physical and mining shares with some really nice gains. Would you sell some of your stack to start a business? In my case it would be a restaurant, start up cost would probably be under 75K ( divided among 3 - 4 LLC partners ). Lease is about 4600/mo on 1600 sq feet space. Will probably not do it if they want to lock us in for 10 years.

So would you do it?

To many taxes, regulations, and rules. I would just add to your physical stash and sit on it. The best thing... No Taxes by sitting on it... :D

SilverGal
01-12-2011, 12:33 AM
So would you do it?

No I wouldn't, I would simplify my life, now is not the time complicate it.

Goldbrix
01-12-2011, 12:34 AM
I'm sitting on a pretty stack of physical and mining shares with some really nice gains. Would you sell some of your stack to start a business? In my case it would be a restaurant, start up cost would probably be under 75K ( divided among 3 - 4 LLC partners ). Lease is about 4600/mo on 1600 sq feet space. Will probably not do it if they want to lock us in for 10 years.

So would you do it?


To steal a phrase from Indoor Football: " The easiest way to become a millionaire in Pro Sports is to start out as a MULTI-MILLIONAIRE".

I'd feel better about it if there were NO PARTNERS / Multi-LLCs.
Make it your baby.
Put your azz out on the line for it all.
Be there when the doors open, until they close, 365 if there are no Blue Laws in your area.
Do Not expect a vacation or weekend off for the first few years. ( The average business FOLDS within the first 5 years, Restaurants the first TWO! )

I would almost guarantee one "Partner" ( if not more) will expect the others to carry his water. Then there goes the neighborhood.

PLUS
FOOD SERVICE INDUSTRY has some of the lowest margins of profit due to competition.
Constant turn over of help,
Constant training of replacements, .....

Otherwise, Have At It!
Best of Luck,

buythedips
01-12-2011, 12:39 AM
hell no!!!!! in this economy???????? dollar about to implode!!!!!!

open a we buy gold store :)

Goldbrix
01-12-2011, 12:41 AM
They best way to make $$ opening a new restaurant. Is to find 2-4 suckers.. err investors. Pocket up to 1/3 of the start up $$. Skim off the top and bottom, till the partners give up and then close down. Pocket most of the $$ from selling off bussines assets. Move somewhere else and do it all over again. :eek:

DYODD


This exact scheme happened to a friend of mine. One Partner always accusing the other of every little thing that went wrong or unexpected.

The guy now re-models most of the Tony Romas in the Mid-West.
And is making a good living and less stress, according to him.

prunggu
01-12-2011, 12:47 AM
Why don't you start something small that you can run yourself like a hotdog stand?

the_sirius_one
01-12-2011, 12:52 AM
No I wouldn't, I would simplify my life, now is not the time complicate it.

+1 This is the consummate post.

And I'm Sirius

Chrisadamley
01-12-2011, 02:23 AM
Oh...i think i read original post wrong.

So TOTAL startup cost is only 75k? That is not alot IMO.

I thought at first that was just your share.

With 3 other partners....thats what...18kish for your part?
.......

Figure out how long it would take you to get that investment back if you did moderate business.

If that time is under 4 years, then i would say its worth it. Granted you dont have to work there 60+ hours a week. That wouldn't be a bad investment. Considering the risk is only 18k and you have 3 others to split the cost/risk.

assesingsit
01-12-2011, 06:19 AM
restauranteur.
I wrote a reply it vanished
The wife and I ran and owned restaurants 1 owned 2 rented we got out at the right time for varying cicumstance IM me will give details
and my biz
have a two year plan in writing?
2 years operating capital in the bank?
Good location?
ability to do it all?including maint.
possibility of ditching 3 pests ? or buy them out , In a precondition contract
willingness to work 12-16 hour days every day

to many to list in a repost

RoadLizard
01-12-2011, 09:41 AM
I understand all of the posts mentioning the risk involved. However, if noone ever took any risks the country wouldnt very successful, would it? Just a thought. ;)

Taxin
01-12-2011, 12:49 PM
I understand all of the posts mentioning the risk involved. However, if noone ever took any risks the country wouldnt very successful, would it? Just a thought. ;)

Very true but risk and reward should be considered

GenRipper
01-12-2011, 01:23 PM
The last time I thought about looking at franchises, I started to think of the human element. Imagining having to hire a bunch of dirtbags willing to work for 6 bucks an hour. I was one of those when I was young, and at 6 bucks an hour I was a dirtbag.

The only investment that comes close to being a part time gig is property ownership. At least in this case you can farm out labor if you get busy with life. Unfortunately if you have a well paying job you WILL NOT be able to claim depreciation.

Own some debt, and then you can smile every time the US monetizes their debt because they will be monetizing yours too. ;)

SilverFinger
01-12-2011, 03:58 PM
My wife and I have owned and operated a small steakhouse for the past 22 years. It makes us a living but it is hard work and we had to make many sacrifices over the years.

1. You best have a solid niche. We had little to no competition and are locted next to a large military installation.

2. You best have plenty of money in reserve. We lost money for 3 straight years before breaking even in the 4th year.

3. You better have other income to start.

We owned the land and building and had no rent to pay. If we had had to pay rent, we would have gone under in the first two years. Without my wife's nurses salary, we would have gone broke in the first year. I did all the renovations and all the cooking and dishwashing the first two years.

4. Trust me, you don't want partners.

5. It doesn't get easier as time goes by.

6. Plan to give up all other activities, including vacations.

7. Plan to work twice as many hours.

8. With this economy of scary unknowns, I wouldn't dare try it today.

Its still hard to sleep sometimes knowing that TSHF may come at any time.

Good Luck

Wow, exactly my thoughts but you said it better....definately own the land and building and don't have any partners (dead-weight)....unless they are wanting to be on the partnering dead-weight side of the business. lol

Reminds me of those school project teams where one person does all the work and two others ride the one workers coat-tails.

People think restaurants are money makers...when all they see is the food and money being taken it....they need to check behind the scenes...all the logistics to get food there and prepared.

chaoticmayhem
01-12-2011, 04:50 PM
I was in the restaurant business for 15 years, it's a terrible strain on family. If you are succesful it can be wonderful but as mentioned above, most fail, many in the first year. I would say, too many partners for a start. Asking for trouble IMO. Also, in this climate what is the first thing people cut back on? I would venture eating out.

Now if you had a market for function type events it may be a decent gamble, weddings, parties etc but even then revenue is down as is footfall here in Ireland and hotels and restaurants are folding left right and center. A coffee shop has much lower start up and overheads, this is my next venture but still it is a stab in the dark in the current climate.

I would answer no to your question, sit it out for now.

Not all restaurants are doing bad and not everyone is hurting enough to stop eating out. The rich are still rich and if you look at retail sales over the holiday season it was high end stores that made profit. In this day and age it might pay to cater to a certain clientele...no matter what business you venture into.

Gold Standard
01-12-2011, 05:45 PM
Unless you understand the business from top to bottom I would not even consider opening a restaurant. In my view it is one of the quickest ways to lose a great deal of money.

If I were to open a restaurant I would start small and rely on myself and family to staff the restaurant. During a startup the owner will need to be involved in all aspects of the business - assume 80 hour weeks.

During the crucial first year for a new restaurant I would not put my reliance in hired help who at no risk to themselves can destroy a restaurant's reputation.

MiamiFlorida
01-12-2011, 06:41 PM
No I wouldn't, I would simplify my life, now is not the time complicate it.

Well said. For me, silver and gold have allowed me to simplify and bring balance to my life. Last month I began to ask myself why am I working myself into the ground when I have gold and silver that continue to appreciate in response to economic chaos.

So why ponder how you can put your metals to work for you, when you can instead let the metals do what they do best in a floundering economy; work for YOU.

MiamiFlorida
01-12-2011, 06:44 PM
http://www.businesswire.com/news/home/20110112005412/en

Business Wire - A Berkshire, Hathaway Company

"Americans to Dine out More in 2011 but Will Scrimp on Check"

"Despite slow but positive movement toward recovery, 2011 will present significant challenges for the restaurant industry across all sectors, says the study. Most importantly, rising commodity prices – including gasoline, logistics (warehousing, transportation) and food products (in particular “center-of-the-plate” items) – will force restaurants to choose between passing those costs on to today’s hyper-price-sensitive consumers or absorbing the costs and possibly suffering further setbacks on the road to recovery."

SilverGal
01-12-2011, 07:40 PM
Well said. For me, silver and gold have allowed me to simplify and bring balance to my life. Last month I began to ask myself why am I working myself into the ground when I have gold and silver that continue to appreciate in response to economic chaos.

So why ponder how you can put your metals to work for you, when you can instead let the metals do what they do best in a floundering economy; work for YOU.

Yep, that's pretty much how I see it too!

SecretGoldfish
01-13-2011, 03:18 AM
i've considered swapping some color for a food truck . . .

little overhead, most of the startup cost can be recouped by simply reselling the truck if it doesn't pan out

easy to change your 'business model' with a truck, possible to expand if you find a working niche idea

yeah, i think about it

SilverFinger
01-13-2011, 07:05 AM
i've considered swapping some color for a food truck . . .

little overhead, most of the startup cost can be recouped by simply reselling the truck if it doesn't pan out

easy to change your 'business model' with a truck, possible to expand if you find a working niche idea

yeah, i think about it


Sounds good, if things don't pan out...you can always spend time shining the truck's SS and fix up the motor and resell for more dollars...or for more gold/silver.

OrangeCrush
01-13-2011, 07:33 AM
I'm sitting on a pretty stack of physical and mining shares with some really nice gains. Would you sell some of your stack to start a business? In my case it would be a restaurant, start up cost would probably be under 75K ( divided among 3 - 4 LLC partners ). Lease is about 4600/mo on 1600 sq feet space. Will probably not do it if they want to lock us in for 10 years.

So would you do it?

To start a business, absolutely. I myself sold some of the gold my father passed on to me to start up my photography business. With that being said starting a restaurant in this economic climate, not a chance in hell. The failure rate for restaurants in a positive economy is horrendous. Keep your stack.

ernest
01-13-2011, 06:22 PM
Since you're on this site, and you and your partners have 75 grand to toss around, why not package prepper food? Buy bulk, mylar, containers and O2 absorbers. Sell to your friends and contacts, like a co-op. Low overhead, no employees, and if the business doesn't work out, you and your partners still have the food prepped.

If you want to get the blessing of the local Health Department, it's not that hard. I did it and it was not expensive. A couple of hundred dollars for drawings, equipment and approval.

Nostradamus
01-13-2011, 06:30 PM
No way especially with partners...

captainbluff
06-29-2011, 10:47 AM
Thanks for all the input. Just a quick update, I went forward with my plans to open a restaurant. We took over an existing restaurant for free ( tenant was kicked out for not paying rent for 6 months ). Put in a total of 100K among 4 partners for renovation. It's been a great learning experience thus far dealing with contractors and vendors. It is scheduled to open in mid July. So far I haven't sold a single ounce of AG/AU, I took a loan against my 401k instead. Of course majority of my share of profits will go towards AG/AU, mining and dividend stocks.

Obediah
06-29-2011, 10:54 AM
No way especially with partners...My experience with partners has been the same. I've a friend who has a skill, he is debt free and is just coasting along making a living in what he calls a semi-retired mode working as a hobby when he wants too.

sammy
06-29-2011, 11:38 AM
For a small startup, ONE partner, that has skills you
don't, can be the key to success.

Cappy already jumped in so the followng comment is
for others: When I was young, and poor, an accountant
friend said, "Sammy, get a hot dog cart (http://hotdogprofits.com/blog/wp-content/uploads/2009/03/hot-dog-cart.jpg), they're little
gold mines, the numbers are amazing." Then he went
on to enumerate the many reasons why. I didn't do it,
but finally succeeded with a partner in
a different small business.

Greenback
06-29-2011, 12:14 PM
Thanks for the update Captain, best of luck to you and keep a close eye on the numbers....

captainbluff
07-10-2013, 09:45 PM
Another update:

Over 2 years into the restaurant and we finally turned profitable late last year. I ended up selling more of my AG and AU to cover the operating losses from the first year. We are planning to issue our first distribution this week, I will most likely use it to buy shiny metals.

I was really hesitant getting into the restaurant business back in 2011 because I was such in a doom and gloom mindset thinking the economy will collapse and hyperinflation will ravage everyone. I've learned not to let the impending collapse stop me from achieving my business goals. If it really gets bad then my restaurant and my other businesses are the last things I need to worry about.

Back to the restaurant, I pretty much just help out with marketing and other administrative stuff since I still have my job in IT. My restaurant currently has a profile on yelp with an average of 4 star rating out of 5. I'm always looking for ways to bring in more customers, especially for dinner.

http://www.yelp.com/biz/super-pho-herndon

absum
07-11-2013, 01:16 AM
i think if you went with chipotle iT could work. Although i know nothing i do know that chipotle burritos almost cost 7 bucks and chipotle is ALWAYS packed. who knows

absum
07-11-2013, 01:26 AM
oops didnt realize how old this is

SilverDollarDaryl
07-11-2013, 06:30 AM
They best way to make $$ opening a new restaurant. Is to find 2-4 suckers.. err investors. Pocket up to 1/3 of the start up $$. Skim off the top and bottom, till the partners give up and then close down. Pocket most of the $$ from selling off business assets. Move somewhere else and do it all over again. :eek:

DYODD

This doesnt work out in the long run either. I have an acquaintance, nice guy but not the sharpest tool in the shed. He has done exactly this at least 4 times in the 25 years I know him.

He's 51 now and lives in his 82 year old fathers basement rent free. His Dad is regretting the invite and is already being sued by 2 neighbors.

This only works out if you are thrifty and this particular fella still managed to spend more than he earned (and stole from his partners). Funny thing is, if the partners took home stuff that would go bad the next day, he still demanded his share of it.

Theft, greed, all that stuff never work out in the end either.

PS: Bought some silver from him the other night. Checked it out when I got home. Was supposed to be 100 halves. Got 90 halves and the rest mixed dimes (Not even all the same kind). Called the next day and got the xplanation that since he gave me a "good deal" it should be ok. He made a better deal with someone else afterwards, and couldnt believe I didnt understand why he did it (without telling/ asking me).

Hopefully if the OP goes forward, he doesnt wind up with partners like that. I know this particular gentleman is looking for someone just like OP to put up money or finance his next venture.

captainsilverton
07-11-2013, 07:00 AM
Another update:

Over 2 years into the restaurant and we finally turned profitable late last year. I ended up selling more of my AG and AU to cover the operating losses from the first year. We are planning to issue our first distribution this week, I will most likely use it to buy shiny metals.

I was really hesitant getting into the restaurant business back in 2011 because I was such in a doom and gloom mindset thinking the economy will collapse and hyperinflation will ravage everyone. I've learned not to let the impending collapse stop me from achieving my business goals. If it really gets bad then my restaurant and my other businesses are the last things I need to worry about.

Back to the restaurant, I pretty much just help out with marketing and other administrative stuff since I still have my job in IT. My restaurant currently has a profile on yelp with an average of 4 star rating out of 5. I'm always looking for ways to bring in more customers, especially for dinner.

http://www.yelp.com/biz/super-pho-herndon

you have other business's and YOU WERE asking a silver forum about the possibilities of another business and how to enter it with your monies contributed??..? just saying..

good luck by all means... all must eat.

we are in the process of starting a "gluten free" snack and desert product line to distribute.. though i would not ask the forum...i might tell them in a long winded rant though...LOL

hey keep it going if in so all is well... captain BLUFF.! the yelp looks pretty good...

INMA

captainsilverton
07-11-2013, 07:06 AM
No way especially with partners...

most alll our partnerships have been well suited... so i would not quite say that is a definite^^^^^^ NO WAY ESPECIALLY WITH PARTNERS...as rogue as i am, and have belief in a one man show...thogh it is often hard to all by oneself.. we have 6 running business's, all profitable for all parties and partners, and maybe more business's, if ya stretch the definition a bit...most partnered, and thank God for the partners... pick them properly and let them know who is in charge, be it one of them or yourself... just my 2 cents worth...

INMA

captainbluff
07-11-2013, 09:33 AM
most alll our partnerships have been well suited... so i would not quite say that is a definite^^^^^^ NO WAY ESPECIALLY WITH PARTNERS...as rogue as i am, and have belief in a one man show...thogh it is often hard to all by oneself.. we have 6 running business's, all profitable for all parties and partners, and maybe more business's, if ya stretch the definition a bit...most partnered, and thank God for the partners... pick them properly and let them know who is in charge, be it one of them or yourself... just my 2 cents worth...

INMA

You couldn't have said it any better, no way I will go into a partnership unless I really know the person(s). I think one of the key is being able to listen first before talking. I see this restaurant more of a launching pad that will allow me to do other businesses, a small commercial space with at least 4 retail shops is very interesting. A coworker of mine owns 3 liquor stores, the first two are rented space. The 3rd one he bought commercial space with 3 retail space, converted one to a liquor store, then rented the other 2 spaces. It makes so much more sense to own than to rent, as renter you have no control of CAM!!
Ok back to work for me :)

Good luck with your gluten free product, i think you will find that market very profitable as there is a big push for eating healthy. Thanks for checking out my yelp page!

some_math_guy
07-11-2013, 10:06 AM
Do you plan on making a 300% return within 3 years on your restaurant, or 1000% within 10 years? Because if not I wouldn't bother - your silver will easily do that, and requires no effort from you except the willpower to WAIT.

You should sell your silver and invest in stocks, real estate, and businesses only AFTER silver has become over-owned, over-bought, over-hyped, and over-valued. Silver is about as far from those things as is humanly possible at the moment.

Another way of looking at it is...if you wait a few years, you could buy 3 restaurants instead of just one with the same amount of investment capital (your silver). Silver will be a road to true wealth if have patience over the next 5-7 years.

I'm sitting on a pretty stack of physical and mining shares with some really nice gains. Would you sell some of your stack to start a business? In my case it would be a restaurant, start up cost would probably be under 75K ( divided among 3 - 4 LLC partners ). Lease is about 4600/mo on 1600 sq feet space. Will probably not do it if they want to lock us in for 10 years.

So would you do it?

captainbluff
07-11-2013, 11:45 AM
Do you plan on making a 300% return within 3 years on your restaurant, or 1000% within 10 years? Because if not I wouldn't bother - your silver will easily do that, and requires no effort from you except the willpower to WAIT.

You should sell your silver and invest in stocks, real estate, and businesses only AFTER silver has become over-owned, over-bought, over-hyped, and over-valued. Silver is about as far from those things as is humanly possible at the moment.

Another way of looking at it is...if you wait a few years, you could buy 3 restaurants instead of just one with the same amount of investment capital (your silver). Silver will be a road to true wealth if have patience over the next 5-7 years.

This is an old thread from over 2 years ago, I was just updating it :)
Don't worry I still have my metals, but it actually was a good move to sell some to fund the restaurant, since AG has has been falling for 2 years. I have created income which is what I wanted, that income will buy more metals :)

WhatsUpDoc1958
07-11-2013, 12:02 PM
Obamacare costs will kill your business

Nonsense. All restaurants are converting their full-time employees to part timers to avoid coming under Obamacare regulations.

What some_math_guy has to say has merit, though.

captainsilverton
07-11-2013, 12:19 PM
Do you plan on making a 300% return within 3 years on your restaurant, or 1000% within 10 years? Because if not I wouldn't bother - your silver will easily do that, and requires no effort from you except the willpower to WAIT.

You should sell your silver and invest in stocks, real estate, and businesses only AFTER silver has become over-owned, over-bought, over-hyped, and over-valued. Silver is about as far from those things as is humanly possible at the moment.

Another way of looking at it is...if you wait a few years, you could buy 3 restaurants instead of just one with the same amount of investment capital (your silver). Silver will be a road to true wealth if have patience over the next 5-7 years.

great to look back, though it usually serves no purpose to live in the past, but reexamining it is fine and the astute thing to do..self employed or captainbluff's restaurant, with a well thought out business plan, sure was a better deal then waiting for silver to explode...

SMG also forgets the passion behind some folks who start a business and why..... that passion often can lead to a great income...

though in the same breath PM's may very well recycle towards much higher values... hmmm..


INMA

darkseid1998
07-11-2013, 12:29 PM
A restaurant business is very tough and competitive. You had better not just have good food but GREAT food. There is a lot of overhead and if you don't sell the dishes, you may even have to waste the food due to spoilage. The longer you don't sell the inventory, the worse it will taste. On top of that you have to deal with inspectors, property, regulations, taxes, etc.

Holy_Peanuts
07-11-2013, 01:36 PM
Another update:

Over 2 years into the restaurant and we finally turned profitable late last year. I ended up selling more of my AG and AU to cover the operating losses from the first year. We are planning to issue our first distribution this week, I will most likely use it to buy shiny metals.

I was really hesitant getting into the restaurant business back in 2011 because I was such in a doom and gloom mindset thinking the economy will collapse and hyperinflation will ravage everyone. I've learned not to let the impending collapse stop me from achieving my business goals. If it really gets bad then my restaurant and my other businesses are the last things I need to worry about.

Back to the restaurant, I pretty much just help out with marketing and other administrative stuff since I still have my job in IT. My restaurant currently has a profile on yelp with an average of 4 star rating out of 5. I'm always looking for ways to bring in more customers, especially for dinner.

http://www.yelp.com/biz/super-pho-herndon

Ill be sure to write an awful review :D.

Jokes my friend! Ill give it 5 stars even though I live in another country :D

Congrats on turning profitable. Restaurants are a tricky beast.

Curious, how did you choose what kind of restaurant to open?

Capt_Spalding
07-11-2013, 01:43 PM
No.

If it were me id open a "we buy gold and silver" store.

NjStacker22
07-11-2013, 01:44 PM
Just saw one on CL for $90k the other day :D

captainbluff
07-11-2013, 02:25 PM
Ill be sure to write an awful review :D.

Jokes my friend! Ill give it 5 stars even though I live in another country :D

Congrats on turning profitable. Restaurants are a tricky beast.

Curious, how did you choose what kind of restaurant to open?

Hehe thanks! All of my partners are Vietnamese and they can cook really good :)

windweaver77
07-11-2013, 03:20 PM
Hehe thanks! All of my partners are Vietnamese and they can cook really good :)

I knew a family here in Central Illinois of Vietnamese people who started a restaurant. They lived at that place and made good food. THe problem was the economy hit the shitter and they were working all month like slaves just to get the rent paid. They signed a long term lease. The location was near a bunch of bars and I was friends with the daughter. I told the owner to open as the bars close . This was good for money but dealing with drunks was not worth it to her in the end. Eventually all the work could not pay the rent.

My point is good food is not what matters. There are so many factors. Many of them are outside your control. I would do my research. Who had the lacation before you ? What happened to them? DYDD

Fagin
07-12-2013, 07:23 PM
This is an old thread from over 2 years ago, I was just updating it :)
Don't worry I still have my metals, but it actually was a good move to sell some to fund the restaurant, since AG has has been falling for 2 years. I have created income which is what I wanted, that income will buy more metals :)

Sounds like You made some good decisions there. Owning a business can be very rewarding. That baby of yours, the restaurant, makes all your hard work that more satisfying. You were wise to weigh the advice given in regards to silver. Be wary of those & their unsupported pie in the sky claims. I’m sure you’d rather take your chances on the things that you can control as opposed to something that may never happen. Silver is a fun hobby, but running a business can be a money making machine, then one day, you sell it & retire happy.
Check out this book; "The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It."