Use inheritance to start small business?

[Deleted]

I'm sorry, but the 'theater' in that link (pictured, described) is not the kind of posh place I'd eat food and take the family. Its the kind of place I'd absolutely plan on finding semen on the floor and a turd in the toilet (the dark, spooky one man toilet with broken tiles and that chronic smell...)

[zibazinski]

Ick

[Shooby]

People want Surround sound and 3D. Will you provide that? What is the cost to show current movies?

[Shooby]

People also expect stadium seating.

[Shooby]

Why would you have to quit your job to do this? What would the hours be? What will you charge?

[Deleted]

Jan 3, 2016 21:14:47 GMT -5 Shooby said:

People want Surround sound and 3D. Will you provide that? What is the cost to show current movies?

The people in the link she posted are using consumer grade equipment... ie. the kind of projector and blue ray you can get for your house.

[Shooby]

Ok so why would i pay for something i already have in my house?

[TheHaitian]

Jan 3, 2016 21:10:14 GMT -5 oped said:

I'm sorry, but the 'theater' in that link (pictured, described) is not the kind of posh place I'd eat food and take the family. Its the kind of place I'd absolutely plan on finding semen on the floor and a turd in the toilet (the dark, spooky one man toilet with broken tiles and that chronic smell...)

OH MY GOD THANK YOU!!!

I was afraid to come of as a snob by posting exactly what you said!

OP I would make sure your community would respond well to such a "theater". I see this doing well in a third world country like Haiti or Parts of Africa or really rural areas America.

Here in MA... What is the saying? It would go as well as a turd in a punch bowl!

[trimommy]

Holy shit, people, this is why this board has become an insular wasteland. No one posts here anymore because reading comprehension is nil, all you people want to do is argue with yourselves, and answer questions that haven't been asked.

You don't know anything about me, my business experience, or my plans for this venture. I have specifically told you nothing about my research and figures because my questions weren't about the actual operation but about the wisdom of investing a windfall in a small business versus continuing employment income. Then I agree with the advice I get, post one link (which is nothing like what I want to do, just an example of how to start a theatre with less than $225K), and you insult me and demand information that has nothing to do with the questions I asked.

Another one bites the dust!

[TheHaitian]

Jan 3, 2016 21:24:30 GMT -5 trimommy said:

but about the wisdom of investing a windfall in a small business versus continuing employment income.

Simple: DON'T DO IT!!!

You were handed an opportunity to secure a good chunk of money for your retirement for your husband and you if you leave the money untouched for the next 30 years!

DON'T MESS WITH IT!

[Opti]

Trimommy, I checked out Indywood's website to get a feel for what films they actually show. Independent films are much cheaper to show than first run or popular films.

And there are no other theatres in our community - none at all, zero competition. And it is a growing community with a lot of young families who are looking for recreation opportunities in town. I have run lots of numbers and have faith that this can work.

If you show independent films like Indywood, your customer demographic is not young families. It is film geeks and most often older people. Not sure where you are located, but Indywood being located in Louisana, also likely claims the floor in costs for a startup theatre. I also notice they obviously did not use even yearly rent in their startup calculations. If like Dark, you end up having to sign a multi-year contract, you want IMO

to keep in mind that you've got to cover $1K x 12 x 3 years, i.e. $36,000 not $1K/mo. (Or $72,000 or above if you are opening in NJ or other places.)

[Deleted]

My critique was of the theater you posted a link to... I'm not sure why I can't critique the theater in the link?  

You say you want something completely different, but the fact is that something completely different will cost a completely different amount. I've been reading the theater people blog posts from the link you posted and they are clear in that they are using consumer grade equipment and are not going DCP digital because it costs 100K easy, ie. will not have access to new run movies. They also are not a restaurant/café with all that requires.

You are the one who suggested that this is an example of why you didn't need more than 50K to start a theater. But the theater you DESCRIBE as wanting to open... is a far, far, far step from the one pictured in your link... it is just not a reasonable example.

[milee]

Jan 3, 2016 21:24:30 GMT -5 trimommy said:

You don't know anything about me, my business experience, or my plans for this venture. I have specifically told you nothing about my research and figures because my questions weren't about the actual operation but about the wisdom of investing a windfall in a small business versus continuing employment income.

The wisdom of investing a windfall in a small business is mostly based on knowing about you, your business experience and your plans for this venture. That's why if you'll look back to my first post, those were the types of questions I was asking you.

For some people this would be a really dumb idea and for others it might make sense, but without knowing more about your experience and plans, nobody can give a good answer. On the face of it, reading just what you've described including the links, it seems like a very, very bad plan. But maybe your background or something you know would change that.

Why don't you just ignore the stuff you can't use and get the most out of what you can use? Post more about your background and plans and we can probably give reasonable input.

[justme]

Well you can't really get upset when you post an example of something and then people post their opinions of it.

Really, if it's nothing like what you want then you should of at least said that. Not just go nuh uh I can do it for cheaper and not have people call out who you think will pay money to watch a movie with freaking trashbags over the windows. Seriously, my friends that had a theater set up in their apartment in college that was better.

Why don't you partner with someone and test it out. Meaning there's local communities around me that have theater nights. Some are free, others charge. One garden here has a movie night once a month and charges $5. They use an inflatable screen and definitely not a 200k projector.

But frankly I still think to do what you want would at least be all your inheritance. Have you looked at other independent theaters in communities close to the same size as yours? The one that's in my city is no where close to a small investment. But they're a true indie theater only playing indie films (so not aimed at families) and is a city that supports two film festivals with three universities that have a lot of art and film students.

[Sharon]

We have a local theater that shows 2nd run shows and serves food.  They took an old theater and removed every other row of seats and put up a long table between the rows.  Children are not allowed after 5pm since alcohol is served at that time. 

They also have a certain time where movies are shown for children on the autism spectrum.  The lights are left up or only slightly dimmed.  The sound is turned down some so it is not as loud.

They are doing quite well.

[Opti]

Jan 3, 2016 21:24:30 GMT -5 trimommy said:

Holy shit, people, this is why this board has become an insular wasteland. No one posts here anymore because reading comprehension is nil, all you people want to do is argue with yourselves, and answer questions that haven't been asked.

You don't know anything about me, my business experience, or my plans for this venture. I have specifically told you nothing about my research and figures because my questions weren't about the actual operation but about the wisdom of investing a windfall in a small business versus continuing employment income. Then I agree with the advice I get, post one link (which is nothing like what I want to do, just an example of how to start a theatre with less than $225K), and you insult me and demand information that has nothing to do with the questions I asked.

Another one bites the dust!

Sorry Trimommy, but your planned business probably makes little sense to most of us, given what you have shared. I love film, and it really doesn't make sense to me.

I think Indywood works because they are pulling from a college demographic and located in a big city.

We opened our doors to the public about two weeks after moving into our building on Elysian Fields in downtown New Orleans.

I have no idea where you are, but I have been to quite a few theatres in NJ that show independent films.  Many people who go to films now want the experience which often includes nice surroundings. I'll be honest I was not envisioning a throw the doors open cost as low as what you posted, but I also thought of something that reminded me more of a theatre versus a film showing at my local library.

I'm curious. What films would you show your target demographic? What would the café serve them?

[gooddecisions]

Sorry you aren't getting the answers you're looking for. It was really painful to read the ask dark or don't ask dark debate, lol. But you're 33 and have very little saved for retirement. You've been on this board for 5 years, which means you probably came from the old MSN YM board. What's been taking you so long to start investing? I know you said it's not been a priority, but come on- you've stuck around for this long and should really know better. You've just been given a huge opportunity to catch up and you want to blow it.

Put that money in a brokerage account and catch up on your Roth. If you start this business, you will be out the money, adding a huge expense, adding to your debt, adding nothing to your retirement and contributing nothing financial to the household. You'd be better off keeping your 6 figures, quitting your job and getting a low paid, part-time gig at an art house or coffee shop. Maybe the business owner would listen to your ideas on expansion and you can fulfill some of your dreams without the risk. Good luck with whatever you decide and sorry about your loss. 

[Deleted]

Indywood works (?) if you read the blog because someone bought them a building and they have had 2 kickstarters this year, oh and a garage sale ...

[Shooby]

I see about 16 people in that theater. What type of weekly or monthly revenue do you think that would generate?

[Deleted]

Jan 3, 2016 21:59:36 GMT -5 Sharon said:

We have a local theater that shows 2nd run shows and serves food.  They took an old theater and removed every other row of seats and put up a long table between the rows.  Children are not allowed after 5pm since alcohol is served at that time. 

They also have a certain time where movies are shown for children on the autism spectrum.  The lights are left up or only slightly dimmed.  The sound is turned down some so it is not as loud.

They are doing quite well.

Ours does ok too. I'm not sure they are making tons of money, but they do ok. But like I said, they also have a relationship with the university in town. In fact they have a LOT of community support (its a very old theater in a town where that is very important). They also are all converted to DCP digital (I'm thinking this is when they became affiliated with the university?)

I just asked the projectionist what they pay licensing for 2nd run films, just curious and he says fee second run is usually around 350 plus 40% of ticket sales.

ETA. in addition to dcp digital they also still can do 35 mm analog, which is important to some of the older run movies they also show.

[OldCoyote]

Trimommy,  If you are really thinking about your own business,  let me point out something,  you most likely have heard these before but they need to be said.

1. It takes money,  you can expect to it to cost at least twice as much and take three times longer than you thought.

If you need to pull permits with the city, you can go out of business before you even open your business,  if it is something different than they are used to.

Location, location, location it means everything,  if it is not a great  location, do not do it.  Poor management in a great location will survive,  the best management in a poor location, will not.

If you are starting this from scratch,  have any competition, your skills in the business, marketing have to be better than those that you are competing with.

Remember , your hard work and determination, is no better than the person before you. you need to have better ideas.

I have had business successes, I have had business failures,  You learn more from the failures!!  

[justme]

Whoa, 40%? That's a ton.

[Opti]

Jan 3, 2016 22:10:52 GMT -5 OldCoyote said:

Trimommy,  If you are really thinking about your own business,  let me point out something,  you most likely have heard these before but they need to be said.

1. It takes money,  you can expect to it to cost at least twice as much and take three times longer than you thought.

If you need to pull permits with the city, you can go out of business before you even open your business,  if it is something different than they are used to.

Location, location, location it means everything,  if it is not a great  location, do not do it.  Poor management in a great location will survive,  the best management in a poor location, will not.

If you are starting this from scratch,  have any competition, your skills in the business, marketing have to be better than those that you are competing with.

Remember , your hard work and determination, is no better than the person before you. you need to have better ideas.

I have had business successes, I have had business failures,  You learn more from the failures!!  

The bolded and things like it, really hurt Dark. His was a business that had a definite profitable season, and he was unable to start in a timely fashion due to factors outside his control.

[OldCoyote]

I am working with a customer right now,  that the permit process in going on for nine months.

It has nothing to do with us,  it is over some petty problem with the present tenant.

I wonder how many businesses fail because of the permitting process.

When we get to the point that we need to provide Coefficient friction reports for the coating on the concrete, of flame propagation reports for the carpet.

It becomes difficult. 

[giramomma]

Jan 3, 2016 21:24:30 GMT -5 trimommy said:

Holy shit, people, this is why this board has become an insular wasteland. No one posts here anymore because reading comprehension is nil, all you people want to do is argue with yourselves, and answer questions that haven't been asked.

You don't know anything about me, my business experience, or my plans for this venture. I have specifically told you nothing about my research and figures because my questions weren't about the actual operation but about the wisdom of investing a windfall in a small business versus continuing employment income. Then I agree with the advice I get, post one link (which is nothing like what I want to do, just an example of how to start a theatre with less than $225K), and you insult me and demand information that has nothing to do with the questions I asked.

Another one bites the dust!

How much are you investing in a business at this point, though?

The only way I would consider the money you put into a start-up business an investment is if you are looking to purchase the building that your business will be located in.

Sure, you'll have assets, but won't they be depreciating? To me, that's like when people talk about their cars being investments. You won't have a positive cash flow in the beginning, right?

You've anticipated that it could take you a few years to draw a (meaningful) salary. During that same time, you could be half way to doubling your inheritance and you'd be working a whole lot less.

You also have not provided us with a budget, or specifics on what exactly will be cut. Without information on how your household budget will change and information on whether or not all the stakeholders in your family (your husband, your kids) like the results, we cannot suggest whether it is better for you to keep working or not. If it's a matter of staycations for a year or two and no more eating out, that's one thing. If there's a chance that you'll be underfunded in retirement 5 years down the road, that's quite another.

[gooddecisions]

Coincidentally or not, my sister was 32 when she gave up her cushy w-2 office job for her dream to move to the beach and start her own business. She was single but had sole-custody of her 10 year old son. She used the real estate boom to fund her dream. She sold her condo for a nice $50K profit and rented a house at the beach. Within a year she was broke and downward spiraling. She continued to downward spiral, until she finally ended up homeless on the streets, which is where she's been living for a long time. She hasn't seen her son in many years. It's a really sad story.

There are definitely unimaginable outcomes of following your dream. Almost all my friends went through a period of restlessness right around 32- like this it? this is what I have to do for the next 30 years? It's very normal to go through those emotions.

[Shooby]

Jan 4, 2016 7:34:04 GMT -5 gooddecisions said:

Coincidentally or not, my sister was 32 when she gave up her cushy w-2 office job for her dream to move to the beach and start her own business. She was single but had sole-custody of her 10 year old son. She used the real estate boom to fund her dream. She sold her condo for a nice $50K profit and rented a house at the beach. Within a year she was broke and downward spiraling. She continued to downward spiral, until she finally ended up homeless on the streets, which is where she's been living for a long time. She hasn't seen her son in many years. It's a really sad story.

There are definitely unimaginable outcomes of following your dream. Almost all my friends went through a period of restlessness right around 32- like this it? this is what I have to do for the next 30 years? It's very normal to go through those emotions.

That is a sad story!  

[gooddecisions]

Also, I disagree that you should ignore the emotional aspect of this decision. Sure, your family may say and totally think they will be supportive through this huge change, but if it fails horribly and you lose a lot of money- it's going to take a toll on everyone, especially you.

I thought my sister was making a mistake, but I could see that she was determined to do it. I told her that I support her if it makes her happy and that she would always have a room at my house (supportive right). The problem was I was talking to a normal person who still had a lot of drive. She did come back, but the economy tanked and she couldn't find another "real" job. She was on the verge of losing her mind and did. I couldn't risk living with a violent schizophrenic, so as guilty as I felt and still feel about it, the room at my house was no longer an option. This decision totally ruined her life.

[zibazinski]

I still think you should start looking for another job. Even taking a pay cut to be a happier person is better than throwing your inheritance down the toilet. Can you handle being a landlord?

[Shooby]

  There was a run of "Primerica" here years ago.  And, i know people who quit very good jobs in order to do this.  One lady was the director of medical records at the hospital with a very good position.   I saw her a few years later when she rang me out as a cashier at Walmart.  
  So, you have to temper your plans with the possible downsides as well when assessing risk.  Starting a business may be a good idea, or not.  None of us can really say.  We don't know your situation.