The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: NearlyThere on February 13, 2014, 06:47:23 AM
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Bit of a strange but funny one here based on MMM's teaching of wastefulness reduction.
I love barista style coffee and I love eating my lunch out, but deserve a Major Facepunch for doing so. It's not mustachian and not frugal. So last january when two business associates approached me to open a BBQ restaurant, I jumped at it, as I have previous experience in marketing them (and investment £££).
My investment for 51% (I'm still amazed I negotiated that) ownership was £20,000 which wouldn't have been the end of the world if the business fails. But still large enough a sum, that the guys couldn't raise themselves.
Last month I received my list of purchases for the year totalling just over £2,400. As I don't pay to eat in my own stores, this has given me a 12% return on my silent investment. None to shabby. We also haven't taken any drawings from our profits as we are now in the midst of opening our 3rd venture.
My daily involvement includes writing something witty for our Facebook page/twitter and we have a weekly accounts meeting. Realistically my return will be somewhere in the 110%-150% of my initial investment per annum come the end of this year.
The moral of this is diversification of investments reap many other rewards when you look outside the traditional pensions and tax shelters.
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Last month I received my list of purchases for the year totalling just over £2,400.
Not quite sure I'm understanding this sentence. Are you saying you ate there for a total of 2400 gbp for the year? Were you eating there several times per week? Did they keep a separate running tab of the food you ate?
Either way, that sounds like a neat venture, I like it. Just was a bit confused on that bit. :)
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Are you saying you ate there for a total of 2400 gbp for the year? Were you eating there several times per week? Did they keep a separate running tab of the food you ate?
That's the way I read it.
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My brain shut off after I read BBQ.
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My brain shut off after I read BBQ.
BBQ?
<Blood routing from brain to stomach>
<BRAIN OFF>
<STOMACH ENGAGED>
..gurgle..
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Its actually roast meats, but for you guys, BBQ sounded closer to home.
Yeah I have a card I swipe and keep a running tally of all my expenditure (or not as the case is). I held business meetings, staff lunches for my other business, ate there with friends and had my daily coffee fix.
The shops have a great reputation and will hopefully provide my hands-off retirement income
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That sounds like a cool venture. I know you're probably just looking to share but there were two things I noticed I thought I would mention.
First is I would recommend you eat at your restaurants from time to time. IMO a lot of restaurants the food declines, the service declines, etc. I know a lot of restaurants I have stopped going to because the food isn't consistent. One thing I remember from marketing is that it usually costs more to get new customers than keep existing ones. I think it's important for owners to eat their own food from time to time to make sure the product is still good. Pretend you're Gordon Ramsey visiting the restaurant to see what improvements can be made.
Second, if you haven't already done so I would talk to an accountant and/or tax attorney. It looks like you're in the UK so I have no idea how business taxes work there other than VAT but in the US simple changes in ownership structure, bookkeeping, etc. can save a lot in taxes.
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Last month I received my list of purchases for the year totalling just over £2,400. As I don't pay to eat in my own stores, this has given me a 12% return on my silent investment. None to shabby.
My daily involvement includes writing something witty for our Facebook page/twitter and we have a weekly accounts meeting.
It sounds as if you're saying "Will work for food."
I know I do.