business expansion

hi..this may sound silly, but id value anyones opinion nonetheless...

what if i get involved with someone who owns 10 stores in the new england area. lets say i am going to be working in one of them as a hot dog vendor or whatever we call ourselves...what if i approached him with the idea that would be "hey, since im working out well here so far, what if we set up a hot dog vendor at each of your 10 locations all around the state or region. the owner will either get rent money from each place or he will get a % of the profits etc...lets say he says "good idea"!!

ok heres my question. would i be able to hire people to run each cart at each location? meaning would it be worth THEIR WHILE to "work for me" as a hog dog seller in one of these locations? most of us do this because we want to work for ourselves, and we want to make all of the money ourselves...im thinking that if each one of these locations averaged say $300 a day, so lets take one of them and if i split the profits with him/her for that location 50/50, he or she would make $150 a day working say from 10-4. that would be about 900 a week working 6 days a week. i guess that would work out to be about $25 an hour which isnt bad, but wouldnt that person just feel they could eventually do it themselves and make double the money? i guess id be paying for the insurance and assuming the risk of being "the boss" etc, but i wonder if this sounds feasable? thanx for any input.

Is this a hypothetical question?

Like if a train leaves from Chicago at 10 am...?

My abacus is broken. Maybe I will understand this, after I read it a few more times.

I'm a noobie hot dog vendor and I love it. My advice is based on my limited experience.

The biggest challenge I am finding in this business is the logistics end. The part where you get your supplies, cart, and all your gear out and up and ready to go. Loving on customers is the easy part. The hard part is getting everything from point a to point b and doing it legally , clean , and efficiently. It's tough and time consuming just to get to the point of being ready to sell.

At this stage in my business, I cannot imagine having to duplicate it or be responsible for duplicating 10 other places every day. It's a great idea on paper but it doesn't sound like fun. Fun to me sounds like $500/day of a simple cart seeing happy faces every day. Baby steps.

Arnie

Ok. Assuming EVERYTHING else was in proper order.


ok heres my question. would i be able to hire people to run each cart at each location?

I do not think the "splitting the profit" philosophy would go over well, with a new business. You assume an average of $300 a day. I do not know how you got there. However, there is no way to guarantee $300 per day, from the jump. What if, the first week, you sold only $50 worth of business? You will find yourself with plenty of turnover, as far as employees. I do not know what the employment guidelines are, for your state. You have to guarantee at least minimum wage, here, and not many would be motivated for that deal.

meaning would it be worth THEIR WHILE to "work for me"?

That is entirely up to THOSE people, as individuals.


but wouldnt that person just feel they could eventually do it themselves and make double the money?

Sure. That is how you got here, no?



Paper is magical. Eveything on it, looks so good.

quote:

Paper is magical.

Yes it is! It drives the dream.



Arnie

When it is green with numbers on it, and legal tender.

Hard work and experience drives the dreams.

There are no magical answers to generic business questions, without walkin' a few miles in your own shoes.

thanx arnie for your thoughts...i realize the hardest part might be exactly as u say, coordinating all of the purchases of food, supplies etc each day for each location...it does sound like a royal pain...but im also thinking of the profits id get from having a stake in all 10 places...

cc

it is hypothetical in one sense in that it isnt even close to happening as of yet. and maybe will never happen. but i am close to being in a place with a guy who has multiple stores, and the idea just floated in my head a few days ago as in "what if i would be in all 10 places, or not me obviously, but id be the coordinator of all places etc"...

how did i come up with $300 a day? ive talked to a few other vendors in my area and they are all making from $200-500 a day so i just came up with a rough average. might be lower, hope it is higher, but thats what the average seems to be once the business gets established. i could be in a very high traffic area and the store has people in it all day and even into the night...so i think it is somewhat realistic.

i guess my main point was (ok take out the abacus) wondering if i do ever try to achieve this goal, would i be able to find people who would be willing for work for me for X amount an hour (much more than minimum wage as id want a GOOD worker who has incentive to make good money) plus a share of the profits, or maybe just split the profits 50/50...i havent thought this out totally so far..i guess if it IS profitable as i say above, or even more, than there would be plenty of money to go around but if a site bombs, then it might not work out...food for thought at least for me...not looking for magical answers, just peoples opinions..

any other opinions? thanx...

Well, you sound like a reasonable and generous man.

The willingness factor is based on many things. Finding the "right" person to work, can be a challenge. Many times, the hardest working people do have goals and dreams of someday creating their own business. They cut their teeth working for someone else, and then decide they can and want to do it for themselves.

There will be hard working people who are comfortable in life, who would NEVER want to own and operate a business of their own. Too much of a headache. Because they are comfortable in life, they could afford to leave, if they want to go smell the roses.

There will be people who seem SO eager at first, and have "issues" about showing up for work. That is tough. Especially without a last minute back-up plan. If you hire someone who has emergencies, that certain location is not in service for the day. Unless you find someone who knows (a "qualified" by your standards) someone who can and will fill in, on certain days, with little warning.

Or, you can find someone who thinks that the job sounds like a DREAM. You know the rest.


If it ever did come to play, I would take any serious potential employees out with you (for a day) so they can see what the job entails, and you can see if they seem right for the job. Then, you have a chance to "feel" if this person is right for the job, and if the job is right for them.


You would plan for the locations to operate from 10am-4pm? Hot dogs, right?

YOU will be completely responsible for each and every aspect of this. Money, food quality, service etc.

Can you find 10 people YOU can truly rely on maintaining your standards?
Maintaining your equipment?
Not ripping you off?
Putting in the time they are supposed to?
Going that extra mile?

Are you going to pay them daily?
There are of course many legal things to consider also. Taxes, insurance, workers comp etc.

For someone just starting out I think you might find it a bit too much to handle.

AMEN, Spud Brother!!

The honesty facor!!!

Ten people you NEED to not only count on daily, but trust with your standards, business, and money, on a daily basis.

I don't have 10 relatives I can trust!

Arnie

In this economy, I'd think you'd be able to find someone to do this for you for $8 an hour.

you be right about $8 an hour but number 1, i would never pay anyone "slave wages", and number 2, id want someone to be invested in this endeavor and one good way to get people invested is to PAY THEM WELL...hey im not really a businessman per se, but thats how i view it...

IMHO, The risks exceed the rewards!
1. Finding good HONEST people with a personality, work ethic and desire to maintain a cart to high operational standards.
2. You would need stone cold, lead pipe lock controls on every aspect of the business to prevent getting ripped off. That means Computerized Inventory Control systems, shrinkage control, cash control, product delivery, etc.
3. This type of business does not lend itslf to operating in this fashion.
4. See #1 !

You would be better off poking a sharp stick in your eye and living off disability!

You honestly seem like a truly generous man.

Paying well, does not guarantee anything. I have clients, with bartenders (who make FANTASTIC wages and tips)run scams ALL the time. I caught a bartender using a friend as a plant, to steal money. Bartender serves a drink to a customer, takes his money, does not ring the register, gets "distracted" with another order. Makes change with friends money. No register transaction of drink purchase. A nickel & dime scam, for a bartender that could easily make a legit. $300 or more on a busy night. Some people are SICK and greedy. You would think butter melted in this guys mouth, he was so warm, friendly. He seemed like a hard worker. Until I did a liquor audit, and knew something was wrong he seemed like a gem of an employee.

I would buy the carts, and RENT them out to prospective sub contractors.. Rent including a secured location. This avoids all the taxes, workman's comp, liability, etc. Let them deal with the legal end of everything, thus keeping you out of hot water when something goes wrong. Just create a decent contract and info packet explaining what they'd have to deal with. Your only worry then would be if they return the cart at the end of the day, and getting paid that weeks rental/site fee. (You could even mandate in the contract that they have to buy supplies from you, but then enforcing it is another matter).

Just a thought....

thanx cc for the compliment...i am generous in many ways, but ill be honest here, the reason i came up with this idea is TO MAKE MONEY FOR MYSELF! while i am trying to figure out if this is a viable plan for me eventually, im hoping to be able to pay my workers well also...so it would be a win/win for all...

the logistics do sound difficult but ill keep mulling it over...thanx..

If you can't do it yourself.............DON'T BOTHER. The only one you can trust and most of all rely on is, YOU!! And no one will do it as well as you,care as much as you, be reliable as you. That is what is great about this job. Everyday i only have to depend on me. And that i love.

well for now, i will concentrate on getting my FIRST operation going...i actually have what i consider 2 great spots so for now, i need to decide if i should just say no to one of them and open at the one i feel is best, or possibly work one myself while my wife works the other...or maybe yet, work with my wife at one of them and hire just ONE person (not 10) to run the other one and work out the finances with him/her...

i know most will say just concentrate on the one location, but i feel as if i dont want to give up a great spot, which translates into alot of cha-ching...we shall see...

i think it is good that business expands day-by-day from that we got good services in less prices.




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