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    5 Replies Latest reply on Jan 11, 2014 8:47 AM by crifjohnson

    Ready to start something!

    jthebuilder Wayfarer

      Greetings and Happy New Year!

       

      I am a retired Soldier, who is 51 years old, and I recently retired from the Army. I served 20 years. During my time in the Army, I swore off working for someone EVER again. I have had several "epiphany's" while in the service as to how what I wanted to do as an entrepreneur after retirement. Those ideas have worn off, or I completely have forgotten what they were. Now, as before, I find myself looking to start a business. 

       

      Since retirement I have worked for a big box store working 15 hours a week. ( I know that I said I wouldn't work for someone again, but hey! I have to have income!) I had a customer there tell me how he is doing as a house "flipper", and he indicated that he usually has three homes going at once, and owns 10 more homes as rentals. The idea of flipping houses sounds great! I know that I could remodel some homes, since I have some experience with home repair! I could bring my son in to assist, and my wife has a degree in finance. (Right now she is working for a big box store as a hiring manager). Now I am seriously considering this venture but I need more information.

       

      I do not have any capital. I know that the Veteran is guaranteed small business loans, and I know that the banks will not just hand me the money either. I thought that I would go and ask for some sort of loan which would finance my first purchase, then remodel, sell and recoup. With that as a first, I feel that then I could pay back part, some or most of the loan off the bat. I just don't know if a bank would even entertain an idea like that.

       

      Secondly, I feel that I could possibly start a gas station / market out next to a thriving market where their business is near a school, and become a successful market owner.

       

      So the bottom line to all of this is where do I start?  

        • Re: Ready to start something!
          LUCKIEST Guide

          Welcome and Happy New year.

           

          You start by writing your Business Plan.

          Your Bus Plan is like a road map to success.

           

          Good luck, LUCKIEST

          • Re: Ready to start something!
            chicagocio Scout

            Hello Jthebuilder, 

             

            At some point you'll need to end up with a business plan. Are you going to do a gas station or a super market? Do you already have a location in mind?  Or a type of location?  When you say "thriving market" I guess I just don't know what that means. Why near a school for example?  As part of a business plan, you'll want to think about how and if you'll use information technology to carry out your day-to-day operations and potentially give you a competitive advantage.  On my site, Chicago CIO  I talk about the value of getting expert IT advice as you think through your business strategy and its advantages. But I think a good start is to have a specific vision of what you'll offer that sets you apart.  You might start here: Starting a Business | SCORE

             

            Does that help at all?

            1 of 1 people found this helpful
              • Re: Ready to start something!
                jthebuilder Wayfarer

                Well, I dont know if I will do a "house flipping" business or a "convenience market". The flipping business is "going big" in my opinion, but I am unaware of the implications and the steps taken to get there. Same as the market, where I dont know how to get there other than walking into a bank and asking for a loan. I feel that if I go with the Market idea the business is near a school and another older market that thrives. High School traffic would help the store thrive. There is also a demand for gas in that area, whereas you have to go another 7 miles to the next station. I feel that I can add a sandwich shop to the market to accommodate more people. I just cannot find a piece of land close to where I want to build it. There are still many unknowns, but I feel that I have to start asking questions to get to a business plan. My question about having a bank finance a house flipping business: Is that a request that is just too far out for a bank to even entertain? Thanks for the replies. Helps build confidence!

                  • Re: Ready to start something!
                    Guide

                    Hi jthebuilder,

                     

                    Welcome to the forum and thank you for telling us a little bit about you and your business ideas.

                     

                    The house flipping can be complicated with many unforeseen problems (as with any construction project). The first thing I would consider is the market. How is the real-estate industry in your area? Are people buying homes? It doesn't matter how wonderful your home renovation project is, if you can't resell and make a profit you will find yourself in huge financial trouble. Second thing is, what type of renovation will you want to start with? You have anywhere from purchasing a handy-man-special to updating renovations. Starting off with purchasing a handy-man-special requires a lot of funding. The financial institutions would probably be less inclined to offer a loan for a large project like that. Flipping a home that just had a face lift might be a better option for you. But again, if you can't sell your renovated home, you will find yourself in a mess. 

                     

                    Just a thought, have you considered starting small and opening your doors to a contracting business instead?

                • Re: Ready to start something!
                  crifjohnson Tracker

                  Hi,

                  Yeah correct there are many unforeseen circumstances with construction project but these circumstances can easily be handle by analyzing some area. According to me first of all you should analyze the market means people are needy to buy home or not. If there is OK condition of market then you should consider  amenities like nearest market, Hospital, school and transport. All the best.