- Business should be manageable without us physically working there: I hired a full-time manager who takes care of operation and HR aspect of business. Personally I spend 2-3 hours per week to manage the business where my work is to enter account and payroll information into a spreadsheet and send it to my accountant. Accountant takes care of payroll and account.
My wife was supposed to manage operation aspect of the business but as I mentioned in the blog, she became pregnant and couldn't go to the store.
So without working at the store, we have been managing business successfully.
- Existing Profitable business:
Because of existing profitable business, from the day one, we are profitable and don't have to worry about whether business will make money or not. No worry about when would it break-even and when to cover the loss.
- Well Known Franchise: Once I bought Dairy Queen, atleast two other business selling ice-cream/smoothie started in our shopping complex. One already closed and other is struggling. Thanks to well know brand of Dairy Queen, we have been growing!!
- Business in 10 miles radius from home: It's very convenient and sometime on the way to work or back from, I go to store and pick up payroll information or sell receipts.
- Business with revenue more than 300K: In the current economy condition, we are still profitable due the revenue was more than 300K and even revenue decreased in one of the year, we didn't make loss.
- Location: Location is the most important !! In current economy, we have infact grown compared to when I took over the business. There are mainly two reasons. a. Many small ice-cream stores who were making little profit were affect by economy and eventually closed down. 2. Ice-cream is one of the cheapest way to entertain your family and kids. Instead of spending $100 at expensive restaurant , people prefer to bring their family at ice-cream store and within $20 or less, every one is happy !!
- Buy a business before buying house: I bought this business in Sept'2006. Think if I would have bought a home in that market? By this time, I would have lost 20-30% of my home value !! Buying business gave me two things. a: Confidence and safety: I know that even if I loose a job, I can still survive on my business. b. I paid off 50% of my loan in two years so my credit score is now 800+ and have 50K+ line of credit. Now I can buy a home anytime and pay mortgage from business income.
Saturday, May 30, 2009
This is a quick blog to let you know about business decision I took two years ago based on seven criteria defined in My First Business In USA. Let's revisit these criteria again based on my current business status.