While Browsing Craigs List I Found This....
05-01-2009, 07:14 PM
#11
Senior Member
Join Date: Mar 2009
Location: Aledo, TX
Posts: 672
Hmmmmm......
As the owner of a small business, I have my doubts if they do $190,000 in revenue but $65,000 a year in net profit.
Most small businesses are very lucky and/or well-managed if they net 15% of the gross revenue, especially these days. And especially with that many employees.
Of course, if I owned it, I would probably make less than that, because I would never want to sell any of the fabric!
Maybe I'm just in the wrong business...... :roll:
As the owner of a small business, I have my doubts if they do $190,000 in revenue but $65,000 a year in net profit.
Most small businesses are very lucky and/or well-managed if they net 15% of the gross revenue, especially these days. And especially with that many employees.
Of course, if I owned it, I would probably make less than that, because I would never want to sell any of the fabric!
Maybe I'm just in the wrong business...... :roll:
05-01-2009, 10:55 PM
#12
Senior Member
Join Date: Dec 2006
Location: Bay area CA
Posts: 887
This is a tough one....
While a lot of you might look at 65 grand a year (if it's true) as a nice piece of change, remember this... this is not Shelbine Missouri. This is San Carlos California. A beautiful place where 65 grand a year gets you... nada in the way of living expenses. Then look at the amount of hours you need to work to get that 65 grand. Say 10 til 6 or 7 lets say 6 days a week (close the store on Mondays if you want). That's 54 or so hours a week open, and many more hours planning, inventory, accounting, advertising, setting up classes.. times 52 weeks a year. 2800- 3600 hours a year. $15.50 to 23.00 an hour before taxes. Subtract Social Security, medical insurance, and a ton of other costs of doing business in California and you are now close to minimum wage.
So... think about these things before shelling out a 1/4 million for a going business where you will need to run a line of credit to keep this thing running.
tim in san jose (an engineer by trade, a quilter by passion)
While a lot of you might look at 65 grand a year (if it's true) as a nice piece of change, remember this... this is not Shelbine Missouri. This is San Carlos California. A beautiful place where 65 grand a year gets you... nada in the way of living expenses. Then look at the amount of hours you need to work to get that 65 grand. Say 10 til 6 or 7 lets say 6 days a week (close the store on Mondays if you want). That's 54 or so hours a week open, and many more hours planning, inventory, accounting, advertising, setting up classes.. times 52 weeks a year. 2800- 3600 hours a year. $15.50 to 23.00 an hour before taxes. Subtract Social Security, medical insurance, and a ton of other costs of doing business in California and you are now close to minimum wage.
So... think about these things before shelling out a 1/4 million for a going business where you will need to run a line of credit to keep this thing running.
tim in san jose (an engineer by trade, a quilter by passion)
05-02-2009, 05:19 AM
#13
Senior Member
Join Date: Mar 2007
Location: Pensacola, FL
Posts: 777
Originally Posted by k_jupiter
This is a tough one....
While a lot of you might look at 65 grand a year (if it's true) as a nice piece of change, remember this... this is not Shelbine Missouri. This is San Carlos California. A beautiful place where 65 grand a year gets you... nada in the way of living expenses. Then look at the amount of hours you need to work to get that 65 grand. Say 10 til 6 or 7 lets say 6 days a week (close the store on Mondays if you want). That's 54 or so hours a week open, and many more hours planning, inventory, accounting, advertising, setting up classes.. times 52 weeks a year. 2800- 3600 hours a year. $15.50 to 23.00 an hour before taxes. Subtract Social Security, medical insurance, and a ton of other costs of doing business in California and you are now close to minimum wage.
So... think about these things before shelling out a 1/4 million for a going business where you will need to run a line of credit to keep this thing running.
tim in san jose (an engineer by trade, a quilter by passion)
While a lot of you might look at 65 grand a year (if it's true) as a nice piece of change, remember this... this is not Shelbine Missouri. This is San Carlos California. A beautiful place where 65 grand a year gets you... nada in the way of living expenses. Then look at the amount of hours you need to work to get that 65 grand. Say 10 til 6 or 7 lets say 6 days a week (close the store on Mondays if you want). That's 54 or so hours a week open, and many more hours planning, inventory, accounting, advertising, setting up classes.. times 52 weeks a year. 2800- 3600 hours a year. $15.50 to 23.00 an hour before taxes. Subtract Social Security, medical insurance, and a ton of other costs of doing business in California and you are now close to minimum wage.
So... think about these things before shelling out a 1/4 million for a going business where you will need to run a line of credit to keep this thing running.
tim in san jose (an engineer by trade, a quilter by passion)
So this business operates pretty much like California's government? LOL
Don't worry, Tim. I think we are all only daydreaming about owning a whole shop full of fabric. Details, schmetails.
05-02-2009, 06:14 AM
#14
Member
Join Date: Apr 2009
Posts: 48
Tim--I can say been there, done that though not in California. Small business's biggest satisfaction is in being your own boss. You are under estimating the hours and overestimating the pay per hour for many businesses, no matter how lean a shop they run.
To those that think being able to do nothing but eat, sleep and dream quilting let me tell you that is just as boring as having to go to work all the time. Variety is the spice of life and the grass is greener on the other side of the fence. With retirement I had to rekindle some of my old passions and find some new ones all for the sake of a healthy marriage, body and brain.
To those that think being able to do nothing but eat, sleep and dream quilting let me tell you that is just as boring as having to go to work all the time. Variety is the spice of life and the grass is greener on the other side of the fence. With retirement I had to rekindle some of my old passions and find some new ones all for the sake of a healthy marriage, body and brain.
05-02-2009, 08:16 AM
#15
Senior Member
Join Date: Mar 2009
Location: Aledo, TX
Posts: 672
One other thing to consider, it looks like they did some long arm quilting there. I wonder how much of that income was made by the person who was doing it?
We repair musical instruments here at our store, and both hubby and I are repair technicians. This extra income allowed us to finance our store, literally providing the cash needed to expand the business. But we sure didn't take much dough home in the meantime, and it was a LOT of work.
Service income is basically trading time for money, always. To get a real clear picture of how profitable this store is, you would have to get a financial breakdown of how much was service income and how much was sales.
I know, I know, but just think of being able to have, at your disposal on any given day, a STORE FULL of fabric to choose from. It would be dreamy for me!
And I have to admit that I have thought of opening my own quilt shop on many occasions. :D
We repair musical instruments here at our store, and both hubby and I are repair technicians. This extra income allowed us to finance our store, literally providing the cash needed to expand the business. But we sure didn't take much dough home in the meantime, and it was a LOT of work.
Service income is basically trading time for money, always. To get a real clear picture of how profitable this store is, you would have to get a financial breakdown of how much was service income and how much was sales.
I know, I know, but just think of being able to have, at your disposal on any given day, a STORE FULL of fabric to choose from. It would be dreamy for me!
And I have to admit that I have thought of opening my own quilt shop on many occasions. :D
05-02-2009, 09:22 AM
#16
Power Poster
Join Date: Mar 2009
Location: Athens Ga
Posts: 11,420
The worst thing about owning a business is being tied down!
We owned a country store in the heart of the Uwharrie National Forest for 26 years. We were open from 6:00 am until 9:00pm unless it was hunting season and then it was 5:00 am to 10:pm, 364 days a year, (closed Christmas Day). We had a little part time help sometimes and our children helped. All learned how to run register at an early age. I did all the running with the children, (7) when they were in school. We missed out on a lot of things because of the hours. When you own a business, you have to be there if you want to be successful at it. The store was good to us, all 7 went on to college, but very hard work. I kept all my quilting supplies in the store and quilted there. Had my floor frame set up there. The lighting was great and I do miss that when I get ready to quilt now. :lol: :lol:
We sold out 2 years ago and never looked back. We miss the people, but nothing else. You do not get rich owning a small business.
Every day when we drive by it, I say thank you Lord I don't have to go there today.
If I owned a quilt shop, I would go bankrupt soon! :lol: :lol:
Ninnie
We owned a country store in the heart of the Uwharrie National Forest for 26 years. We were open from 6:00 am until 9:00pm unless it was hunting season and then it was 5:00 am to 10:pm, 364 days a year, (closed Christmas Day). We had a little part time help sometimes and our children helped. All learned how to run register at an early age. I did all the running with the children, (7) when they were in school. We missed out on a lot of things because of the hours. When you own a business, you have to be there if you want to be successful at it. The store was good to us, all 7 went on to college, but very hard work. I kept all my quilting supplies in the store and quilted there. Had my floor frame set up there. The lighting was great and I do miss that when I get ready to quilt now. :lol: :lol:
We sold out 2 years ago and never looked back. We miss the people, but nothing else. You do not get rich owning a small business.
Every day when we drive by it, I say thank you Lord I don't have to go there today.
If I owned a quilt shop, I would go bankrupt soon! :lol: :lol:
Ninnie
05-02-2009, 08:41 PM
#18
Senior Member
Join Date: Mar 2009
Location: Aledo, TX
Posts: 672
Originally Posted by quiltncrazy
ok, got a message that this whatever, had expired, and title would disappear in a minute....SOOOO...being the curious cat i am, what in the world did you all see at craigslist????? :roll:
05-02-2009, 10:43 PM
#19
Junior Member
Join Date: Feb 2009
Location: Guymon, OK
Posts: 113
We didn't have a quilt store but had a Cable repair and spooling business for 25 years and it managed to feed 3 families and keep them in insurance.
I was so glad to see hubby sell it last year!!!!!!!!!! I was the book keeper for 20 of those years and belive me taxes and lic. uncle sam etc. can drive you insane!!!!!!!!!! Hubby is under contract to run the place for the new owners for the next 3 years --making more money than he ever paid himself, and gets 3 weeks vacation a year (before maybe 2 weeks but always on call). This is so much nicer.
Quilt store I'd never make it I'd want to play instead of sell. :D :D :D
I was so glad to see hubby sell it last year!!!!!!!!!! I was the book keeper for 20 of those years and belive me taxes and lic. uncle sam etc. can drive you insane!!!!!!!!!! Hubby is under contract to run the place for the new owners for the next 3 years --making more money than he ever paid himself, and gets 3 weeks vacation a year (before maybe 2 weeks but always on call). This is so much nicer.
Quilt store I'd never make it I'd want to play instead of sell. :D :D :D
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