Curious about Investing
Krossingtheline0414
Tucson, AZ
Long story short, I have access to a decent amount of capital (20k) and I desire to invest it in the adult entertainment, marijuana, or bar industry. I'm a business major and know the risks and the rewards so I don't really need a lecture from armchair lawyers or "veterans of the industry" with old or outdated views or ideas.
Twenty thousand is a drop in a bucket to begin but paired with another investor or two with decent amounts of assets or capital can greatly move things along. How many of you fit this description, and are willing to just talk about the possibility of a future partnership in such an endeavor? For the sake of simplicity, let's keep it on the subject of adult entertainment due to the nature of the website we are on. There is a market opportunity to start a new Adult Cabaret in AZ and I wish to weigh my options on pursuing it.
Smartass or unproductive comments will be ignored.
Twenty thousand is a drop in a bucket to begin but paired with another investor or two with decent amounts of assets or capital can greatly move things along. How many of you fit this description, and are willing to just talk about the possibility of a future partnership in such an endeavor? For the sake of simplicity, let's keep it on the subject of adult entertainment due to the nature of the website we are on. There is a market opportunity to start a new Adult Cabaret in AZ and I wish to weigh my options on pursuing it.
Smartass or unproductive comments will be ignored.
79 comments
Now onto the rental leases.... sometimes there are clauses saying what businesses can be run and also covenances or by laws. Make sure you read fine print or get a lawyer to advise u.
I know u might call me an arm chair guy. But trust me these are the places where most businesses go wrong. They don't think of the paper work BS. They don't think of these costs. But you need these all taken care of before you drop a dime into the actual part of making $$$.
So just a friendly heads up.
Also what % of return you looking to make or how long of an investment... short term or long term?
If you don't have years of experience running an adult cabaret,you'll need to hire a GM with that experience.
People come here to find other likeminded people who like to cum in their pants and get hand jobs by trannys. We have one 15 year old that constantly asks for dating advice. So please keep your expectations in perspective.
Sadly 20k doesn't do that much these days.
If you decide to go into business with someone, make damn sure you can trust them completely.
Also, agree whether the owners are involved to make money, or have a party spot. The latter is fine, but make sure you understand this going in.
I could be wrong, but I think he'll need more than 20k to invest in a VC fund. And if a local business owner is willing to let him buy into the estalishment for only 20k, I would be very leery about that; it could be some kind of a scam. Granted his lawyers could offer some protection, but still.
Organized Crime- That won't be wise on their part. I'm a combat veteran that will also supplement my security team with other combat veterans instead of autistic giants with no actual experience in those situations. The criminals will be lucky to leave alive..... If at all.
I never said 20 is all I have, I just said 20 is all I'm willing to invest currently so I'm just getting ideas. I probably make more than everyone here in a year with one deployment.
I've beaten many odds before and should I desire to pursue this, it will be no different. I can find a partner, I was just looking for ideas as well as hoping there would be someone here that might be interested. I might have to use my other account which contains 50k to add to my 20k to have more negotiating power then.
Also.... 20k is plenty to exploit a legal loophole in marijuana law to have a larger payout. I was hoping to get into a field that's a little more on the "legal" side of things though. Twenty-thousand is plenty, you just have to know where to apply it. Those who have never had to make do and excel with less would not understand that. Thank you for all the suggestions, everyone.
1. Most small businesses keep their taxes low by managing their cash. I had relatives who owned a hardware store. Their accountant told them to pull the same amount of cash out of register every day and put it in their pocket. How do you value a business when the accounting is suspect ?
2. If a business owner knows about some threat to their business, whether legal or competitive, their first reaction might be to sell the business before that threat is publicly known.
However, if you ever want to get a loan from a bank in the future, if your comapany's financial iare always showing "breaking even" nobody will be beating down your door to lend you money.
Put your money into something you can actually run yourself. Apply your time, energy, talent, and money together.
SJG
I'll be ok. I worked in the marijuana industry for three years and know most master growers in the state on a first name basis. I'm even going to go hang out with one to discuss a business opportunity later today. If you aren't already or have been in the industry, you will have only scams and con artists pitch to you. It's a very tight knit community and everybody knows everyone, and everyone knows who scam artists and who the legit ones are.
If you were even as remotely intelligent as you think you are, you'd understand that small growers are what is pulling in money currently. I used to transport cash and product to and from grows and the bank and 500k-1 mil a week says you pretty much don't know what you're talking about. You are old and one of those dinosaurs that are clinging onto the last vestiges of security you think you have. Soon it will be our time, it already is a new economy. It isn't my fault that you don't adapt to it. I've seen it as well have managed many people that in your age group or older, most of you are completely useless because you are stuck in the notion that your way is best because it worked years ago and it actually is quite laughable.
Now kindly go back into your corner of nihilism and self loathing and let the adults talk, gramps.
I've been fine tuning my strategies around hands off investments where you collect singles and doubles, and I quit shooting for the hone runs. Odds are you scratch out a bunch of singles and doubles and it will get you further than trying to hit the ball out of the park, simply due to playing the odds correctly. Nobody I've met hands over an excellent investment opportunity that you can find on your own, so good luck on your search and try not to let the business run you into the ground!
There is a myriad of examples of people breaking or bending the rules without breaking the law to become successful. Most of them are on wall street currently. If you don't think outside the box in terms of generating wealth then you will forever remain as you are, no greater than you began. You also will become a depreciating asset in your field because technology and the economy is forever changing and you're the only one who thinks your ideas will save you 100% of the time.
Roger that. Thank you so much for the advice. I've put my time in for hard work so sweat equity doesn't deter me from anything for the opportunity of revenue that generates constantly.
Can growers put money in the banks now? I know at one time they couldn't because of FEDERAL LAWS. IE: weed is illegal on the federal level and since banks are federal backed money couldn't be deposited. It first had to be laundered.... again some federal issues there as well.
Again I am just asking because I know that was a huge issue when weed got legalized medically and rec use. But things could have changed.
Also since I assume you are running the security for the transporting of the money. You know some of the problems that did arise with cartel doing crash and grabs at "safe" houses for the said money.
But like I said... these are stories I heard about this years ago (3-5 years)... things could have changed.
Now back on the "Adult" industry.... I like your confidence. But again... strip clubs and bars are another animal. You are saying you want to buy a smaller club. 1. Why is it for sale? 2. Why is it smaller? Is it because of location? Is it because it can't make money or enough money? Those are just some questions about location, location, location. Which is a huge thing for clubs.
Plus like I stated in my first post. Your 20-50K could be all tied up into insurances, permits, etc. Because if you sell booze and depending on the "Dram shop" laws.... you could be looking at $5000 - $15000 a year just in liquor liability insurance. Then most liquor vendors are on a COD system... ie: no cash no booze/beer delivered. These vendors don't work on credit. So you need that capital available before you open your door.
Now you are talking about partners and loans.... well most banks to get a loan for a bar you need to either have 60% food revenue or you need about 50% down payment to get a loan. So again.... for a 300K club you will need 150K initial investment as a down payment for the business.... then look at the stuff I mentioned about insurances, permits, booze delivery, etc.
I am not saying don't do it just giving you a heads up on start up. These are things people don't consider. What I am getting at is after you get the loan... you better have
50K in back account to pay for stuff even before you make 1 dime.
Also Listen to what older people are talking about. What is the one thing about history... if you don't learn from it you are doomed to repeat it. You say you are military so you should know that. If you did something and it didn't go right... do you do it again??? No you learn and adapt and make a new plan and move forward. So again... listen to what everyone says and don't dismiss it as stupid.
For us old guys, we've got a life's savings at risk and not enough time to build it back up.
"I'm a dancer...."
I stopped giving credibility to your rant right there upon reading that. When you have a degree and life experience, you might have a pedestal to stand on in the conversation. As in terms of being a phony, ouch, but I can validate every one of my claims. Nice ass, by the way.
You talk about your life experience. What was it in that experience that told you it's appropriate to ask for help and advice, then arrogantly criticize and demean every person who offers advice ?
Over the years, I've experienced people like that in business. We call them former employees.
Did that attitude work well for you in the military ?
1. Strip clubs make a lot more money when they serve alcohol. (Captain Obvious). I do a lot of business in Seattle, WA and Portland, OR, and the the revenue generated in OR (where they serve alcohol in clubs) far exceeds Seattle where alcohol cannot be served. The high door fees and VIP rooms in Seattle are an attempt to make up for revenue they can't generate from alcohol sales.
2. $20,000 isn't a whole lot to invest AND get a good percentage of ownership if you have partners. If a club is for sale at $400,000, it's probable that it's annual gross sales are between $100,000 and $200,000. If you're paying more than 2x annual gross sales for a club that size, you're overpaying, especially if the club has any outstanding liabilities for Furniture, Fixtures, and Equipment (FFE).
3. As a corollary to #2, let's say the sales are $200k and the business price is a legit $400k. A bank may lend to you for 10 years with a minimum 20% down and a credit score above 740. More than likely, though, a bank would not lend to you since you don't have industry experience (most require at least 2 years). You would then be stuck borrowing on the secondary market. Let's say you can get $400k for 7 years at 5% interest per year. Your monthly payment would be $5,630, or $67,560 per year. The well-run clubs I've reviewed typically net around 30% after all their overhead is paid; that's $60,000, in this case. Now you need to deduct your new debt payments and you end up with a $7,500 loss during your first year in operation. You will have some interest expense (approximately $18,000 in the first 12 months) to add back to cash flow, but if the business has no existing FFE debt, there's probably no depreciation to take and your cash flow winds up around $10k. Imagine how much work you have to put in to get that $10k.
I have to run...will add more analysis later if you'd like.
Being a fobbit doesn't mean you served in any meaningful capacity in the theatres you've mentioned. I'm willing to bet that nice ass of yours was passed around at the barracks more than once. If you weren't infantry or never left the wire, do us all that actually did something with their time in a favor and shut the fuck up :)
My boots have more time in the field and battle rattle than you probably did. Also going from service member to stripper isn't really brag worthy. Be gone, POG.
Thank you for the meaningful and well thought out post. With your permission, I would like to message you privately and pick your brain some more.
It is a shame that you are such a weak man that you side with someone who got what they deserved when they opened their mouth to insult someone else. I really don't think you know how the service works since you have such a high opinion of it but I can assure you far worse things are said when people are needlessly provoked. If you are so faint hearted, then I am glad you have nothing to offer me as you have nothing I could possibly want then. I will simply pursue other avenues, preferably someone with your knowledge who actually served and isn't easily offended by such bantz.
As fun as this has all been everyone, I got what I needed. I have one more lead than I did when I started and that in itself is a victory. Au Revoir.
@Bj99
Stay classy. ;)
Your cuckold fetish is showing.
I can only speak for myself, but I really appreciate the advice that you dispensed. If you have any additional advice or tips about how to effectively invest (or break into the strip club game), I'm sure I and others would love to hear it. Thanks
@twentyfive...I saw several helpful posts and then he started attacking. I hoped he'd settle down but his temper is clearly out of control. I can't imagine anyone wanting to partner with someone so unhinged.
You can sometimes buy "mom and pop" places for a lower cost and then double it in a few years and sell it off. Again it all depends on which market or where you business is. But lets say he buys the business for $400,000.... and in 5 years can sell it for $750,000.... that is a nice return on investment. Plus if he is pulling in $10K a year off of it with out doing too much work. Again that is if it is self sufficient and he doesn't need to dump any more money back into it. That is a nice little return for 5 years or less. Again it isn't "retirement type money"... but a good start to move that profit into a more safe, long term investment.
But I agree with what wildbourbon stated..... that the X 2 business valuation. Like he stated that it is only bringing in annually $200,000 at most. Then depending on what you get for lending option, insurances (building, liability, liquor, etc), permit/licensing costs (state, federal, town, district), then payrolls and TAXES..... your $200,000 is done pretty damn quick.
I could see where a small strip club could be an enjoyable hobby for some. It's not always about the money.
. Prices range from $10,000 ( Pataya Thailand ) to over $5,000,000 ( Prague ). Multiples of revenue are all over the place. Just interesting to see the wide variety.
Or you could start a tactical firearms training company. Arizona has lots of gun owners, you can get cheap insurance through the NRA just by getting certified as an NRA instructor, existing shooting ranges can host classes for a reasonable fee. That's a business you can swing with a 20k investment, if your have business acumen and combat experience.
ROTFLMFAO. what are you? like 12?
@Bj99
You are a boot. Plain and simple. No amount of insults you fling at me after the fact will change that. You downgraded from service member to stripper which tells me, you are most likely a two year wash out that couldn't hack the military and were probably discharged as a "failure to adapt" or you received a Big Chicken Dinner. Also the descent from honorably serving your nation to taking your clothes off for money also reveals that my previous assertion of you being a barracks rat is most likely correct. Nothing you did in the service was really meaningful unless you were infantry (like myself) or any MOS that actually left the wire while in the sandbox. You were basically a civilian that wore our uniform, no more, no less and you probably sucked ass at that also. So unless you have some hard evidence to counter what I just said, again, shut your useless POG ass up and get back to shaking that ass for fives. If you want to back up what you say, then message me with the name of your platoon sgt, company first Sgt, dates of deployment, and most importantly of all..... what unit were you with. Until then, you're a boot POG or a LARPer who never joined.
Me not wanting to indulge in your childish back and forth banter is me running now? Misinterpreting my desire to do other things doesn't change that you're a weak cuck of a man. White knighting gets you nowhere, my friend. You appear to be smart in your field, I will give you that but you lack a spine. I hope you grow a pair one day. Maybe one day you will be lucky enough to be a quarter of the man myself and my brothers I served alongside are. If you think I "run with my tail between my legs", I do so more for your benefit than mine. I killed my first man at 19 in a shithole desert, you were probably in a club somewhere or in a classroom. You and I are night and day and you are probably the LAST person who should accuse me of cowardice.
What you said in a nutshell:
"Club owners should base their business decisions on their dancer' s moods."
My response:
HAHAHAAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!!!!!!
The response of every club owner you bring that drivel to:
HAHAHAHAHAHAHAAHAHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!
Good day, all.
We were all duped replying to a poster who barely had a review under his belt.
By the time I was 19, I was on my way to TS DUC contracting in a way you couldn't even imagine. Guys like you ate 7.62 for breakfast because the real men were too righteous to eat in the morning. You just got lucky you were on the tail end of real combat. Why don't you tell me about your last Friday 966/93?
If you were any older, I'd mistake you for SGT C004, who stalled, never being deployed, because he couldn't limp along with a cane after his talk. Bitch never left a desk and you wobble just like he did. You called out BJ99 for her creds...why don't you give yours in a PM to me? I'll have you checked in short order; let me post your big swinging d1(4 so everybody here can marvel at your illustrious career.