Met a wannabe business person tonight
by, Oct 23rd, 2010 at 04:59 AM (794 Views)
On my walk I stopped in at the nearby Quickie to spend my pocket change. I was in the mood for some carbohydrates and being naughty; taking the quick path instead of making something.
The clerk asked me about what I do... So I admitted the truth. Turns out, he's going to the local college for business. Told me he was wanting to get a 90,000 loan to open a skater shop inside the desolate mall, directly in front of a highschool along probably the most bustling street of the city.
Talked a little about general business stuff, I got to telling him about the internet cafe I was going to, but never did open, along with the loan program for that. Now that I think about it, he was probably considering getting a franchise...
I'm going to go back a little later when I take a break to point him out to what our gov offers. Actually, I'll point that out here too: Welcome Page | Page d'accueil
Later I went back on break to bring him the info. Turns out the lease on the mall is pretty prohibitive, (5 grand a month) and I fear for his chances of success with that idea. Just maths bad... $90,000 loan over 10 years = 1,000/month, + 5,000/month = 6k, minimum overhead. This city has a total population of around 24,000 with a relatively low median income (something like 18,000/working person.) So assuming they sell $100 worth of skateboards or equipment at a time, they need to make 60 sales... Actually, let's double that and assume the merchandise is 100% markup. So 120 sales a month. I know that's under a half percent of the population buying things, but... Much of the population is too young, much is too old, and only a fraction of the rest have a chance of even being interested... The more I consider it, the less viable it seems. Especially now that I checked our 2006 census... There's maybe 6,000 people between the ages of 10 and 29.
I almost feel like I sold him up the river now...