TrollfaceDeux
Pronouns: zie/zhem/zer
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Adventures with Lyrical: Buying a Business (REPOST)
- Thread starter Shonuff
- Start date
Jysin
Ahn'Qiraj Raider
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Just read this entire thread start to finish over the last couple days. Really inspiring
Shonuff
(Lyrical). I have busted my ass as an IT defense contractor overseas for the last decade. My original intent was save money for buying a house / car in cash when I return home. I am quickly approaching that goal + half a mil saved away in 401k. After reading this thread though, I can't help but think that house savings would be better spent buying a business (after due diligence). Problem is, I would have no idea where to start. It's a nice "problem" to have... but now I have no idea what to do when I move back stateside. Debt free life or buy a business and make my own money.
Thanks for sharing over the years. It truly is a fascinating read. Congrats on paying off the business loan!
Shonuff
(Lyrical). I have busted my ass as an IT defense contractor overseas for the last decade. My original intent was save money for buying a house / car in cash when I return home. I am quickly approaching that goal + half a mil saved away in 401k. After reading this thread though, I can't help but think that house savings would be better spent buying a business (after due diligence). Problem is, I would have no idea where to start. It's a nice "problem" to have... but now I have no idea what to do when I move back stateside. Debt free life or buy a business and make my own money.Thanks for sharing over the years. It truly is a fascinating read. Congrats on paying off the business loan!
Shonuff
Mr. Poopybutthole
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Thanks guys. It's a bit unnerving how much discretionary cash there is, now that I'm not obsessed with eliminating all debt. I've been paying myself $7,500 a week since I paid the business off. I need to quit buying dumbshit, and start investing again. To get here, I had to plunder my 401k, and I've only got 27k sitting in there right now. Had I kept the money in there, it would be at 250k.
Yet, I'm running around buying stereo upgrades and arcade cabinets for my mancave. Time to get serious. I don't want all of my eggs in one basket. That's risky. Most business owners I know spend all of their cash while neglecting retirement, and are counting on being able to sell the business and retire off of the funds. Except what happens when the business goes under?
I've been somewhat disciplined the last nine years, only paying myself $1k a week (I'm in the midwest). Now I'm paying myself 7,500 a week, buying dumbshit. Most of the 7,500 a week is in expenses I cut, or debt I paid off.
Yet, I'm running around buying stereo upgrades and arcade cabinets for my mancave. Time to get serious. I don't want all of my eggs in one basket. That's risky. Most business owners I know spend all of their cash while neglecting retirement, and are counting on being able to sell the business and retire off of the funds. Except what happens when the business goes under?
I've been somewhat disciplined the last nine years, only paying myself $1k a week (I'm in the midwest). Now I'm paying myself 7,500 a week, buying dumbshit. Most of the 7,500 a week is in expenses I cut, or debt I paid off.
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Shonuff
Mr. Poopybutthole
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Just read this entire thread start to finish over the last couple days. Really inspiring
Thanks for sharing over the years. It truly is a fascinating read. Congrats on paying off the business loan!
Thanks. Imagine what you could do if you rolled that 401k over into a trust, while paying no taxes on it? 110k is what it took for me to be making 7,500 a week. Of course, it took nine years of polishing the business to get to that point. If I had 500k sitting, I know I could generate 50k a month doing something (what I don't know). As the saying goes, once you have money, it's easier to make money. And yeah, I bet the farm, but most wealthy people make several "bet the farm" decisions over their lifetimes. People thought I was crazy back then, killing my 401k like that.
I can refer you to the company I used, if you want. I rolled my 401k into a trust, paid none of the tax penalty, but paid the Lawyer and CPA 5k to handle it. As a caveat, you'd need to be a c-corp (taxes are incredibly high for that type of structure). You have the freedom to move your 401k funds around, but the government is going to get those taxes back when you are paying out 44% of your action before state taxes.
Shonuff
Mr. Poopybutthole
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It might require a new one. I have a trust that owns my c corp. It's pretty complicated, but legal. Like my CPA said, when you do this with the 401k, they don't like it, and you are being watched.
Shonuff
Mr. Poopybutthole
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Guidant Financial does this stuff all the time, and has the info (401(k) Business Financing).
Understand, if you are doing this, you better be buying something that shits gold, or you are going to be set back a decade or two financially.
Understand, if you are doing this, you better be buying something that shits gold, or you are going to be set back a decade or two financially.
Shonuff
Mr. Poopybutthole
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So I tried an experiment that last three months. I've been spending $1,000 a month on google adwords. I listened to eBay and turned it off, and measured the results. My hits from google are still roughly the same as they were last year (about 20%), even though I'm spending 0 on it now. So I concur with eBay. I advertise enough in other areas. People hear about my business through other advertising or a friend, and then they look us up on google and call.
It's like going outside and finding $250 laying on the ground once a week.
Shonuff
Mr. Poopybutthole
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So, I just fired a guy today. He's a fuck up. In the last year, he drove a truck into shopping center sign, broke his back and leg by not using proper technique, and pissed off a major client today. That was the straw that broke the camel's back. This client has been 5% of our business this year. It's a construction company. They were waiting on us to come out, they couldn't start until we did our part. My Estimator didn't pay attention and realize that he couldn't do the work without taking some pre-steps that would take a week.
Needless to say, this client fired us. So I fired the Estimator. I gave him a chance, by talking to him and trying to counsel him. He refused to listen and walked away, saying I was being a hardass.
This client has sent us two weeks' work every year for the last five years. So the Estimator cost everyone in the company two weeks' pay for a bit. The Office Manager said the client was so mad, he probably won't use us for a year or more.
We did contact the client and let him know the Estimator was fired, for not paying attention. What he missed was so incredibly obvious. There were power lines that needed to have their power cut, and removed by the utility company. People die messing around power lines like that on the job.
Needless to say, this client fired us. So I fired the Estimator. I gave him a chance, by talking to him and trying to counsel him. He refused to listen and walked away, saying I was being a hardass.
This client has sent us two weeks' work every year for the last five years. So the Estimator cost everyone in the company two weeks' pay for a bit. The Office Manager said the client was so mad, he probably won't use us for a year or more.
We did contact the client and let him know the Estimator was fired, for not paying attention. What he missed was so incredibly obvious. There were power lines that needed to have their power cut, and removed by the utility company. People die messing around power lines like that on the job.
Palum
what Suineg set it to
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Shonuff
Mr. Poopybutthole
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Sad thing is, he wasn't backing up. He was driving into the shopping center to get supplies.
The last bit of conversation yesterday is that there's nothing wrong with any of this. Oh, I neglected to say I have a huge mystery dent in the estimate car I had him in, and he once drove over a piece of equipment not paying attention, costing me $700.
The last company he worked for, he was fired for, guess what, breaking a piece of equipment because he wasn't paying attention while using it.
Palum
what Suineg set it to
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I realize retrospect is a powerful drug, but what made you hire this guy in the first place?
I've realized a lot over the years with mistakes and successes in hiring decisions, lessons learned and watching people light many bridges on fire.
Shonuff
Mr. Poopybutthole
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I believe people learn from their mistakes. At least most do.
But I realized yesterday this guy isn't capable of doing better. When he screwed up with the client, he blamed me, the Office Manager, the crew leaders and even the customer. He even made a statement that he ran the estimate when he first started working here and was in training (untrue, he ran it last week). The mistake was clearly his, but once again, he followed the same pattern he always has. Screw Up - Cover the Problem Up and rinse and repeat.
One thing I can't stand is when an employee screws up, and then tries to sweep it under the rug. Because you are losing customers doing that. This is how businesses go bankrupt. I've seen it time and time again. You have to make sure the customer is happy.
Tarrant
<Prior Amod>
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Majority of my build out finished up yesterday, game assembly begins today and will involve 12 hours days for the next 10 or 12 days. Doors should be open by the end of the first week of Sept.
Who knew renovating 4000sq ft of office space would be so much work? lol
Who knew renovating 4000sq ft of office space would be so much work? lol
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Tarrant
<Prior Amod>
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Website, booking site, transition portals all go fully live tomorrow. We have about another week/ten days before build is complete. Launch party is tomorrow (I have around 60 confirmed on facebook so far with more coming in from the mail chimp campaign I sent out two days ago) , our open date is going to be sooner than i anticipated with the delays the city gave me so I'm going to put a minimal offer out on Groupon for additional marketing since i only really have to pay for that on the back end. I've used Groupon in the past with decent success so I don't mind using it again.
I'm going to end up having a small claims tiff with my contractor who cut two doors and moved electrical that he wasn't authorized to do (it was't in the blueprints. he cut the doors in the wrong spots that were the original spots but the finalized blueprints had them in different ones. his workers didn't have the updated ones, that he even admitted through email) He's charging me for the extra work and I'm refusing to pay for said unauthorized extra work that was his fault.
Things are going well but I'm burning the wick at both ends at the moment and the 16 hour days are getting to me. I have about another 10 days of them probably and then i think i can scale it back.
I'm going to end up having a small claims tiff with my contractor who cut two doors and moved electrical that he wasn't authorized to do (it was't in the blueprints. he cut the doors in the wrong spots that were the original spots but the finalized blueprints had them in different ones. his workers didn't have the updated ones, that he even admitted through email) He's charging me for the extra work and I'm refusing to pay for said unauthorized extra work that was his fault.
Things are going well but I'm burning the wick at both ends at the moment and the 16 hour days are getting to me. I have about another 10 days of them probably and then i think i can scale it back.
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Shonuff
Mr. Poopybutthole
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Get used to it. I have more than one Crew Leader and an Office Manager, and I'm logging a shitton of hours being short only one Estimator. There are times when I'm only working six hours a day. Times like this, I'm working longer hours than anyone else in the company.
I feel like I'm getting to old to be so hands on. But I'm the only guy that can hustle up work right now.
Tarrant
<Prior Amod>
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It's not something I'll need to get used to, my old business required those hours often, this one wont. It's one of the reasons I choose it. Hell, I'm only open to the public 4 days a week. I have three part timers, I'll be good.
The 16 hours a day I've been doing have all be construction, renovation and wiring. Its tiring. Once I'm open the most strenuous thing I'll do it get up from my operators station to walk to the other end of my space to where my kitchen is to get a water from the fridge.
The 16 hours a day I've been doing have all be construction, renovation and wiring. Its tiring. Once I'm open the most strenuous thing I'll do it get up from my operators station to walk to the other end of my space to where my kitchen is to get a water from the fridge.