Herman School of Business
Hold the Flapjacks!
What started less than two months ago as an idea my wife actually suggested first, that the only restaurant near our home should be a gold mine, has now been through the final stages of analysis and a decision has been made.
To buy or not to buy, that is the question.
While many Dreamers take months and even years before taking the plunge…serial entrepreneurs leap into the swimming pool of new ideas much faster. The accelerated speed of time from the light bulb going off over your head, then your brain flying through the various steps that must occur before actually following through on the idea, and ultimately making a final decision are compressed thoughts that everyone must go through, but from practice and experience, it just doesn’t take as long.
We saw an empty restaurant where it should have been filled. BOOM, the idea hits to buy it. We approach the owner and discuss a price. We ask for sales data, an equipment list and the lease. We go study traffic patterns at the location. We write up a business plan from past experience in the restaurant business to know our cost structure. We talk with our family and friends, those SKEPTATORS, you know, “skeptical spectators” who always have something to say, and it is usually negative. We analyze the amount of money required to make the buy and sustain losses for six months. My wife and I then discuss a division of labor, as we planned to be partners in this venture. We talk about hours of operation, and delivery ideas for the restaurant, including a mini-bus making rounds throughout the housing/apartment/condo area to encourage customers to just “hop on the bus” and join their neighbors for a meal. We are certain it will work. The numbers indicate we can make between eighty and one hundred thousand dollars per year, and that by year three we can make more than double the money we invest up front. It’s a winner!
And then we decide NOT to do it. The verdict is in and time is the culprit. Neither my semi-retired wife, nor I want to be time slaves at this venture. So, while it works financially, this shows that other considerations besides money also come into play when you get behind an idea. I have seen so many people who would jump off the bridge and embrace this business without ever considering the time element involved. When the short-order cook calls in sick on Sunday morning my wife would be flipping eggs instead of enjoying the church service we attend regularly. And when I have a chance to speak before a college audience, or watch baseball with my buddies this summer; who, would run the front of the restaurant?
In two months we went from idea inception, through a thorough analysis of the why’s and why not’s, and we have made an intelligent decision. To celebrate the decision we went to dinner last night. At the restaurant we are not going to buy! There were only six other people eating there.
- Posted: 5 February 2008
- Comments: 1
- Category: Business success
John,
I,for one, am happy you will still have time to write on this “getting better all the time” blog. There is a reason that I generally don’t work with restaurant franchises. You stated that reason.
Joel Libava
Written by Joel Libava on 5 February 2008