Originally Posted by kaykay
Its a husband and wife that have never done this kind of work opening a hardware chain/store. They just seem kinda ditzy on some things and not real professional. Hubby loves them but they kinda need to pull their head out LOL.
We have been debating all day what to do
Okay, here's some other things to consider: Is this couple really serious about starting the business? I read somewhere that anyone who seriously wants to start a business needs at a minimum TWO YEARS of operating capitol to start. That is a big investment, but evidently it's about that long before most companies are turning a respectable enough profit to survive. Does this couple have those kind of resources.
How many other similar business' are there in a 5, 10, and 20 mile radius of where they want to open? Are they big or mom and pops with a loyal clientel. How many similar business' in a 50 mile radius have gone out of business in the last year? Are there any really big chains within a 20 mile radius that can afford to sell at a loss to drive them out of business. And it happens. My best friend's husband owned a thriving dairy in central Lousiana. Had been in business for more than 20 years. Not just a small mom and pop operation, but a respectably sized one that sold to all the stores locally within a 50 mile radius at least. Borden came in and bought a small dairy and set up competition. They systematically lowered their prices until they were selling at a loss, just to run my friend's dairy out of business. And they could do that, because in the scheme of things, that was just a small part of the Borden empire. My friend looked into an anti-trust lawsuit, but was told that he couldn't afford in terms of money or time to pursue it, because this was a national corporation with DEEP pockets. To this day I refuse to buy Borden products.
Are these people who will do the proper research on how to set up the store? Evidently there have been tons of research done on what products to position where, and even what kind of music to play overhead to promote sales. And of course most important is LOCATION. Is there a Home Depot one street over on the main highway, while they are on a secondary street?
If all the above still looks good, would they be willing to give Russ a contract that gives him a small percentage of the annual profits once the business starts making money. Say one percent with a provision for an increasing percent with each year. That doesn't sound like much, but it's a start.
Good luck whatever you guys decide. I've still got that candle lit!! You know, the one by the litter boxes, but still, it's lit in your honor!! LOL