set up a business in a recession?? hell yea!!

reillypadraig

hey guys, i have an idea for a business but i think im pure mad even thinking about doing it but sure what the hell ill see what you all think.

there was a car dealership in my town up untill two years ago......now he done all the business when it came to buying and selling cars in the town as he was the only dealer for a town with a population of 5,000 in the town and 3,000 urban. so he was doing well until the downturn. but now his premesis lies vacant.

so i was thinking of setting up a car dealership there myself, for example audi or bmw. and setting up an advanced pitstop or tractamotors at the back as there is nothing like that even close to the town for repairs and odd servicing ........also the front of this premises is two storey and all glass so i had an idea of using that showroom space and making it into a disco bar...bar downstairs and disco upstairs.....in kind of a wrights venue feel......the only other disco bar in town is crap and people are sick of going to it.

now i know thats 3 businesses in one but im trying to make the most revenue i can out of this place just because it can because its situated in the middle of the town and it can do alot with the right frame of mind person behind it




now......am i in the right frame of mind or am i just plain mad????

and yes i do know the risks involved and the fact that i will need licences for all these businesses.

but this place is prime for the taking.

i just need a little advice on how i would go about setting it up and who i should talk to???

Hootanany

Thats the attitude go for it.:D

reillypadraig

Hootanany wrote: »

Thats the attitude go for it.:D

i think i just mite.......if i get the funds. sure why not?? were not going to come out of a recession just thinking about it. do something about it. and if there is a demand for something in my area why not provide that need.....keep it local eh??

stepbar

I'm thinking you're talking about the town of Kells and the old McKeon Motors site.

I don't know who you are or what money you've got behind you, but I'm telling you now, straight up; there is NO marque that will want to share a premises with a Pub. So it's either the pub or the dealership.

Even if they did, you will require a lot of money - if its the same building I'm thinking, it could cost 250k+ to even fit the place out. Plus you would need a liquor licence - another 50 - 100k. No bank will give you any money unless you've a credible business track record.

I'm sorry but I wouldn't be getting your hopes up.

reillypadraig

stepbar wrote: »

I'm thinking you're talking about the town of Kells and the old McKeon Motors site.

I don't know who you are or what money you've got behind you, but I'm telling you now, straight up; there is NO marque that will want to share a premises with a Pub. So it's either the pub or the dealership.

Even if they did, you will require a lot of money - if its the same building I'm thinking, it could cost 250k+ to even fit the place out. Plus you would need a liquor licence - another 50 - 100k. No bank will give you any money unless you've a credible business track record.

I'm sorry but I wouldn't be getting your hopes up.

no need to apologise, yea its the old McKeon motors. and your right it is a mad idea but sure im just trying to think of ways to make money.......but even the dealer ship on its own would make money.....its just a damn shame to see it empty. but as bad as things are and as banks are all i can do is try. if they say no they say no but i am going to try

stepbar

There's no point talking to the bank unless you talk to the receiver first - http://www.insolvencyjournal.ie/home_more_details/10-12-10/Appointment_of_Receiver_Michael_McKeon_Motors_Limited.aspx

And the showroom is up for sale - http://www.irishtimes.com/newspaper/commercialproperty/2011/0223/1224290604110.html - That article was published back in Feb 2011..... and the premises is still for offer. The bottom line is that the banks / creditors need to be paid; I doubt any of them would be interested in someone renting the premises.

So you're going to have to buy the premises. And unless you are willing to stump up c25 - 30% of the purchase price first and have the capacity to fund monthly repayments from the start, forget it. It would be a wasted journey to the bank.

patwicklow

Thats the worst of this country every one has great ideas for things like op said
that would create jobs ect, but no lee way with the banks what so ever they just have no interest in giving any one a go at it.

stepbar

patwicklow wrote: »

Thats the worst of this country every one has great ideas for things like op said
that would create jobs ect, but no lee way with the banks what so ever they just have no interest in giving any one a go at it.

Wasn't that the problem of the Celtic Tiger? Everyone was "having a go". "Having a go" is not good enough anymore. Why should a bank support someone who has no track record or no money to put in to the proposal? Might as well p1ss money down the drain, and hell they've done enough of that in the past 10 years.

If you want my honest opinion; another pub in Kells is a bad idea. Another car dealership is a bad idea. Both businesses in industries in decline. As for a Advance Pitstop etc. if the Advance Pitstop's of the world haven't moved in by now, you can be fairly sure that there isn't a market.

The Apprentice

On a different note advanced pittstop are not the be all and end all..

The idea that this guy was in the town and has since shut up shop is your questioned answered.. A business that makes money doesnt "shut up shop" normally.. Unless the guy is dying, moving country or just plain sick of making a living for himself this business isnt turning the gold coins you think it is.
Nightclub ?? Pub ?? I dont know the town of kells but seriuosly man i think your off the beaten track with these type of business's.

reillypadraig

The Apprentice wrote: »

On a different note advanced pittstop are not the be all and end all..

The idea that this guy was in the town and has since shut up shop is your questioned answered.. A business that makes money doesnt "shut up shop" normally.. Unless the guy is dying, moving country or just plain sick of making a living for himself this business isnt turning the gold coins you think it is.
Nightclub ?? Pub ?? I dont know the town of kells but seriuosly man i think your off the beaten track with these type of business's.

Ok bin that idea. But I will persevere.... So what type of business should I set up? People will always need some form of personal transport......so I do have a few ideas on this...
But what type of business in a GOOD idea then???

GoneShootin

reillypadraig wrote: »

The Apprentice wrote: »

On a different note advanced pittstop are not the be all and end all..

The idea that this guy was in the town and has since shut up shop is your questioned answered.. A business that makes money doesnt "shut up shop" normally.. Unless the guy is dying, moving country or just plain sick of making a living for himself this business isnt turning the gold coins you think it is.
Nightclub ?? Pub ?? I dont know the town of kells but seriuosly man i think your off the beaten track with these type of business's.

Ok bin that idea. But I will persevere.... So what type of business should I set up? People will always need some form of personal transport......so I do have a few ideas on this...
But what type of business in a GOOD idea then???

One that you personally are passionate about. One that is proven to be a success as operated by competitors. One that provides something in demand at a price that matches that demand.

Brothel in kells I'd say?

The Apprentice

I like your attitude but your market research on everything must be looked at 10 times before it can be a viable business in the long term.
And it must not be your scrutiny it must be your peers, freiends, banks, enemies.. The business plan is a must..
MUST include Pest Analysis and Swot Analysis

Pest: Political Economical, Sociological Tecnhnoligical
Swot: Strenghts weaknesses opportunitys and threats

If you had of run the numbers on the above 2 business ideas with the swot pest you would have found a Ecnomicial with the downturn, Vat increase etc Politicaly you would have found that the government are increasing carbon tax fuel" and also vrt etc etc.. Without these analysis done you wouldnt have seen them potentially.. U need to have these .. no ifs buts or maybes..

Lets knuckle down i like your attitude, You probably will not invent something that is first to market .. ie Something brand spanking new that no one has but everyone finds a use for.. For example, velcro or post it notes.

You will have to think outside the box on everything, ie.. Everyone has problems and the solution to that problem is your business idea. Re evalute everything that can be adapted or improved and you have a winner. The majority of business,s are these. New and improved better items that previously existed.
Yes your on the correct track with transport.. Car .. Pest .. none runner with the industry in taters , carbon fuel etc etc
Car - Taxi .. same, non disposable income etc etc

I cant really give you ideas but i can honestly say i get at least 1 new ideas a week that could be decent runners but the fact i dont have the resources to follow up on these until im done with the batchelors.
You need to literally follow up on these... Do the research, the bplan, pest and swot and if it doesnt stand the test.. go again.. and again and again.. Despite the above comment yes you need to have a passion for what your researching doing, sometimes you dont need the experience because the passion of being an entrepreneur will drive you futher than you think..

For example, mr richard branson with virgin airlines. He just saw a business model that was outdated, flawed and could be usefull with improvement.. Tweaked it and did NOT have any experience and is now fility rich.

Another example, UPS .. cant remember his name i was reading a book last week on entrepreneurship and he was in a similar scenario, saw an area which he could improve on.. nearly went tits up in 2-3 yrs but still found his feet, had experience but didnt stop him making those early mistakes either :P

Your best idea generation is thinking about the problems you have .. others have. Start reading the sunday business post, there are sections that give me ideas, and also the sunday indo .. New and improved startup business's are also another souce of ideas for me .. some good some bad.

reillypadraig

The Apprentice wrote: »

I like your attitude but your market research on everything must be looked at 10 times before it can be a viable business in the long term.
And it must not be your scrutiny it must be your peers, freiends, banks, enemies.. The business plan is a must..
MUST include Pest Analysis and Swot Analysis

Pest: Political Economical, Sociological Tecnhnoligical
Swot: Strenghts weaknesses opportunitys and threats

If you had of run the numbers on the above 2 business ideas with the swot pest you would have found a Ecnomicial with the downturn, Vat increase etc Politicaly you would have found that the government are increasing carbon tax fuel" and also vrt etc etc.. Without these analysis done you wouldnt have seen them potentially.. U need to have these .. no ifs buts or maybes..

Lets knuckle down i like your attitude, You probably will not invent something that is first to market .. ie Something brand spanking new that no one has but everyone finds a use for.. For example, velcro or post it notes.

You will have to think outside the box on everything, ie.. Everyone has problems and the solution to that problem is your business idea. Re evalute everything that can be adapted or improved and you have a winner. The majority of business,s are these. New and improved better items that previously existed.
Yes your on the correct track with transport.. Car .. Pest .. none runner with the industry in taters , carbon fuel etc etc
Car - Taxi .. same, non disposable income etc etc

I cant really give you ideas but i can honestly say i get at least 1 new ideas a week that could be decent runners but the fact i dont have the resources to follow up on these until im done with the batchelors.
You need to literally follow up on these... Do the research, the bplan, pest and swot and if it doesnt stand the test.. go again.. and again and again.. Despite the above comment yes you need to have a passion for what your researching doing, sometimes you dont need the experience because the passion of being an entrepreneur will drive you futher than you think..

For example, mr richard branson with virgin airlines. He just saw a business model that was outdated, flawed and could be usefull with improvement.. Tweaked it and did NOT have any experience and is now fility rich.

Another example, UPS .. cant remember his name i was reading a book last week on entrepreneurship and he was in a similar scenario, saw an area which he could improve on.. nearly went tits up in 2-3 yrs but still found his feet, had experience but didnt stop him making those early mistakes either :P

Your best idea generation is thinking about the problems you have .. others have. Start reading the sunday business post, there are sections that give me ideas, and also the sunday indo .. New and improved startup business's are also another souce of ideas for me .. some good some bad.

Thats much appreciated man. How vital would you say a basic business course is?? I just wont rest until I have something. I seem to have some sort of fire in my ass to start a business. Had a small shop before and I loved the feeling but that was my trial and error business so im going to do what you said and plan it out to the max. The shop was rushed.
I was planning on going back to collage but dont realy have the cash as.im still renting but was looking for courses in what. Im thinking about. There is a course I DIT ( automotive management and technology) but how do I go back and still make ends meet?

The Apprentice

ya i hear ya buddy.. im virtually in the same boat but im getting through it still all the same.. You kind of answered your own question, it was a trial by error, sometimes those errors can be the decisived moment that you close your business, because of inexperience. Cashflow or something else :P

The business course will undoubtedely help you NOT make this first mistakes, which i think is the key to getting it right first go.. Although this doesnt make you bulletproof either :P

I think you could possibly do a distance learning, lit have a business course running for the last 2 years, degree that you can do on tuesday fri sat and its Nationally recognised. Perhaps somehting like this might suit..

I would suggest going to enterprise boards but as you havent got that far yet, keep it in mind for future reference.
Depending on your location you could be met with beuracratic bull**** or you could hit the bigtime with regards a decent mentor.. its hit or miss depspite what people think. It is undoubtedely the place to go with your final bplan even if you just want a "unbiased" review from some different people..

Enterprise start also is going on around the country, similar thing but large scale investments are possible, angel investors are also possible and possibly a hub, office space etc is also on the table.. Google that but again location dependant..

if u go back to college now, you ge the back to education allowance if your over 23.. 190 beans a week, :S

It aint much but hey.. be prepared to work for 1yr without a paycheck.. thats the world of starting your own business unfortunately..

If your unemployed etc you will get grants to keep your payments while testing the business waters, keep this in mind. Lot of hoops but at least its a safetey net of some sort.

Im not to sure on the automotive thingy.. i dont even know what a car is to be honest. :P

The Irish Riddler

Are these not two of the very hardest hit businesses by the recession?

Why did the previous dealer go out of business and how will you overcome that?

Seanergy

reillypadraig wrote: »

Ok bin that idea. But I will persevere.... So what type of business should I set up?
But what type of business in a GOOD idea then???

Kells could do with a good website! bring the book home and all that! gets some nice fonts like celtic garamond the 2nd jazz it up! Realisitically you aint gonna make alot of money but youd be popular which would bring you good fortune!

bogwalrus

reillypadraig wrote: »

Ok bin that idea. But I will persevere.... So what type of business should I set up? People will always need some form of personal transport......so I do have a few ideas on this...
But what type of business in a GOOD idea then???

Open up one of my shops:D www.thegrapeescape.ie

DubTony

The Irish Riddler wrote: »

Are these not two of the very hardest hit businesses by the recession?

Why did the previous dealer go out of business and how will you overcome that?

McKeon went out of business because he couldn't repay his debts. He was in the building business and the car business with 2 showrooms in Kells looking at each other.
The fact is that Kells was badly hit by the collapse in the construction sector. Farming and building was all that was going on out there. Didn't your man in SuperValu get into trouble after expanding? Seems to me it was one of those towns that relied too heavily on a particular sector. Somehow I don't imagine it has improved much.