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PurEnergy

New Contributor
Jan 4, 2008
177
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MJ, I stayed up half the night reading posts at this site last night. I just happened to stop by the “other†site last night and noticed you had a recent post. Having read most of your stuff at the other site years ago, I thought I’d check out the link in your signature line wondering if I’d actually see one of your business websites. So here I am.

First I would like to say I hope you are well.

And second I would like to say thank-you. It’s rare to find someone with your net worth willing to share so much of what you have learned. And hey, CONGRATULATION$ on the sale of your business.

It seems like from what I've read, you were fed up with people talking and not doing. So I thought I’d introduce myself by briefly telling my background of doing.

After reading all of RK’s books about five years ago, I quit my job and bought a service franchise. It’s paid the bills and I’m still in business but it’s not nearly what I was looking for in a business. I pretty much bought myself a job like they say. But I have learned a lot about business and what NOT to do. RK was wrong about franchises. It’s been my experience that the franchise I bought has very little value. I won’t mention their name but it’s a major one. I bought one of their spinoff divisions and it’s pretty much been a joke. WHERE ARE THEY? I feel for some of the people who get involved knowing what I know now. I spent less than $75k to get involved which is surely nothing to laugh at but I know others who have spent hundreds and hundreds of thousands…yikes!

I’m a franchisee so if anyone has any franchise questions please feel free to ask.

I spent a few thousand dollars and a lot of time last year looking at a business I nearly got into. Ever heard of sprayed foam insulation? If you're going to be in a service business it may be one of the better places to be. But, it took me writing a business plan and spending time and money to come to the conclusion that it's not what I'm looking for.

I’ve also flipped a bunch of junkers in the last six years. I stopped looking last year because I got tired of losing to people who were paying too much. I live in North Carolina and junkers here are cheap and the margins are low. Between the competition and not enough revenue, I simply wasn’t willing to put in the time anymore. I’m looking very hard at a way to get back into the game again this year. But with a twist. I have some keepers but I prefer flipping.

I believe you could say I’ve been in the slow lane. I’ve got some ideas I’d like to put into action this year that will hopefully qualify for what you all here call, THE FAST LANE. One real estate and one Internet idea. Unfortunately I’m lacking in the Internet experience but the idea itself seems pretty good. We are in a world of people who want everything right freakin now. And I’m hoping to capitalize on that.

Still looking for my first million and Very glad to be here!
 

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MJ DeMarco

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Welcome sir and good luck in that first million!
 

randallg99

Bronze Contributor
Aug 9, 2007
1,390
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NJ
I’m a franchisee so if anyone has any franchise questions please feel free to ask.

Hey Energy.

I am looking to expand my business portfolio and have been weighing some different alternatives. Can you share what franchise you bought and the pros/cons of it?

Thanks,
Randall
 
OP
OP
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PurEnergy

New Contributor
Jan 4, 2008
177
15
27
Hi Randall,

I'll offset the spelling of the franchises to throw off anyone searching for a post like this. I'm not sure what our agreement says but I try not to discuss much on the Internet as I'm still under contract.

I own an AeroColours franchise which is owned by Mieneke. We do a lot of onsite painting of car parts for car dealerships. If you're looking for something that's hands on, then you might be interested. Otherwise forget it.

I've spoken with many Mieneke shop owners and not many of them seem too pleased with thier purchase. I really couldn't tell you much more than that. Although I do know a guy locally who opened his own private label shop. He tells me he was a Vice President of Mieneke back in the day. He is an attorney by trade but owns the auto repair shop and he owns an airplane paint and bodyshop. He's always trying to sell me the auto repair shop. It's right down the street from where I live but no thanks. He tells me they used to try to provide more value to the franchisee than the franchisee was paying to the franchise. He says that's no longer the case.

As for my business, if you live in Florida or California it might be something to consider. We run our business out of vans, of which I have two. Guess who runs one of them. Of approximately 70 or so franchises the best places to operate are California and Florida. We've got franchises in both states that do about a million a year with about a 30% gross margin. These guys are running 8 to 10 vans at all times five to six days a week. And guess who we have to sell our service to...the used car manager. The slickest dude on the lot.

If you'd ever even consider a service business I would recommend looking into sprayed foam insulation depending on your location. It's very technical so you would probably look for an experienced technician to partner with. A LOT of money flows through those businesses and they have gross margins in the 40% range. One rig and two guys can do
1M a year. The cost to insulate a house with sprayed foam is about 4X normal insulation. It's about a $125k start-up. The timing might not be the best right now but the people who buy the product are not easily influenced by the economy.

So what does your portfolio of businesses look like?
 

Yankees338

Bronze Contributor
Jul 24, 2007
1,829
136
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NJ/MD
Welcome! Thanks for the intro and the information you provided. Look forward to having you here!
 

randallg99

Bronze Contributor
Aug 9, 2007
1,390
179
92
NJ
thanks for your input, Energy.

First, to answer your question, I am primarily a biz owner of 2 retail home furnishings stores and I also am a private equity partner in others. I also have a real estate business with 20 units and partnership in several commercial properties and I manage 4 peoples' retirement portfolios.

My philosophy has been KISS and this is more important than ever since I am looking for another business for myself. I need to find a product and/or service that caters to a growing demographic and is recession proof. Choices are slim, but a couple of ideas-tax preparation and services catering specifically to seniors who require assistance.

Another parameter that any new business needs to meet is that it must be profitable without my personally managing it. Again, this is a criteria that is not easy to find.

Franchising is a no-brainer for those who have the dedication and some smarts, but the fees can outweigh the profits and the conservative proformas I create shows only minimal returns on investment. Franchising also takes some spirit away from being the entrepreneur since many decisions are already made... which in itself also has its pros and cons... I have posed the franchise question here before and got good responses.


by the way, is this pittsburgh/jacksonville game crazy or what??? what a comeback!
 

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