Advice for a 20 year old....

[fobanginvtek]

Hey guys new to YE. I am looking to invest into a small business maybe? I am currently a full time student (in my 2-3 year) working towards my bachelors in BA (emphasis on International Business). For now im looking for maybe a small time business to start up, and looking to make some good money for my age. Right now I have about $5k set aside for that to go into my business. Anyone have any bright ideas? I live in Huntington Beach, CA (Orange County). Thinking of purchasing vending machines and placing them business to business. Requires not much work really except a fill up once a week....Let me know what you think!

[Colourfulla]

Yeah ive been thinking of making a vending machine buisness as well, i think its a good choice.

[fobanginvtek]

Yeah If I can make $400-500 a week off that for now, that would be great. But this is just a start, im also thinking of ideas beyond this....I mean I don't want to be a vendor for 20 years or anything, but just a start

[myfayt]

I actually just sold my vending machine business. I had 21 machines and they are more trouble then they are worth. First of all you will get a NO at 20 locations before you get 1 placed, can take months to place them. Between Feb. and June here was my profit.

Feb -$203.50
Mar -$208.02
Apr -$156.41
May -$144.21
June -$171.87

I never did make a profit, I only had 5 placed on locations but between the gas to get there and your products going bad, you lose more then you gain. I advise to not go into it, I lost $400 on mine total.

[my_misyel]

Vending Machine business is a good idea unless your targeting busy places with huge crowd on the area like office buildings, school or streets with local stores.

[Rodest]

I suppose it's a good idea. But as myfayt said through his experience it didn't seem worth it.

You could always target schools, always people wanting to buy snacks. I guess it would be quite hard...as the school would want some profit. But yeah, investigate, if it seems good do it!

[ZingerIntl]

Look at this.

Here is a vending business that makes $34,000/year net profit. It has $175,000 in assets. The owner is willing to carry a note. SO put a $1000 deposit to get a 24 hour ownership note on the business. Take that note to an asset based lender and get a loan against the machines upto 70% of appraised value. Take the $120,000 pay the owner $50,000 and he will carry the final $24,000.

Your debts will require $800/month on the assets LOC and $509/month P&I to the seller. This equals $1300/month. The biz makes nearly $3,000/month.

Then ask... how do I make an extra $1300/month to cover the new expenses?
Well, $1300 is 15% of the total avg monthly income. Increase the price of goods buy a dime or quarter each and you will have successfully parlayed your $5000 into $3000/month cash flowing biz. Hire a broke college friend to stock the machines. Pay him $1000/month. Sit back, do nothing, collect $2000. Cha Ching.

Vending route pop snack candy easy: Business for sale in scottsdale, Arizona on BizBuySell.com

[Gaulkin]

Look at this.

Here is a vending business that makes $34,000/year net profit. It has $175,000 in assets. The owner is willing to carry a note. SO put a $1000 deposit to get a 24 hour ownership note on the business. Take that note to an asset based lender and get a loan against the machines upto 70% of appraised value. Take the $120,000 pay the owner $50,000 and he will carry the final $24,000.

Your debts will require $800/month on the assets LOC and $509/month P&I to the seller. This equals $1300/month. The biz makes nearly $3,000/month.

Then ask... how do I make an extra $1300/month to cover the new expenses?
Well, $1300 is 15% of the total avg monthly income. Increase the price of goods buy a dime or quarter each and you will have successfully parlayed your $5000 into $3000/month cash flowing biz. Hire a broke college friend to stock the machines. Pay him $1000/month. Sit back, do nothing, collect $2000. Cha Ching.

Vending route pop snack candy easy: Business for sale in scottsdale, Arizona on BizBuySell.com

In a perfect world............................................. ...

[ZingerIntl]

In a perfect world............................................. ...

I am going to guess that you do not live in a perfect world???

How do wealthy people manage to get everything done that they do?
HMMMM... they do what I just told you, along with other things that the average person just never bothers to learn, try, fail, learn more, try again.

Well since you live in a world where getting asset loans and employees are too much of a fantasy, I wish you the best. Its gonna be tough going.

[fobanginvtek]

Hmm..but a plan like this requires a higher budget doesn't it? I only have about $5k right now to invest into something.

[fobanginvtek]

Oh ok, now I am reading the link ( didn't see ). thanks!

[fobanginvtek]

The thing is that business is based in Arizona, I'm up in CA. Having someone doing all the refills and collecting money by phone and email and all isn't a good idea I don't think...

[Gaulkin]

I am going to guess that you do not live in a perfect world???

How do wealthy people manage to get everything done that they do?
HMMMM... they do what I just told you, along with other things that the average person just never bothers to learn, try, fail, learn more, try again.

Well since you live in a world where getting asset loans and employees are too much of a fantasy, I wish you the best. Its gonna be tough going.

Thanks for showing your true colors, see the problem with most people on this forum is that there not professional at all. One sight of a challenge and its into the attack and defend mode they go. Learn to defend with facts, not emotions.

[Rodest]

I don't think "in a perfect world" was a challenge...? Zinger knows his stuff, he simply explained to the guy that needed help...if he is wrong then I am sure like a businessman somewhere will go over it with foban.

[myfayt]

Thanks for showing your true colors, see the problem with most people on this forum is that there not professional at all. One sight of a challenge and its into the attack and defend mode they go. Learn to defend with facts, not emotions.

Agreed, they feel they are smarter than anyone else, and if we tell them they are wrong, they go crazy and attack you. What I post on this forum is either from my own experience or what I've learned in business classes. Therefor I post facts and not made up tales.