Would you, do own a small business?

[moonlight]

As I look toward the years we face of paying down large debt I'm starting to think of alternative revenue sources. I love working, but I'm not in a place to make six figures with my background. Opening a small business might be my only way of making the extra income to Really pay down debt quickly.
Anyone had the same thoughts? Anyone doing it? Know of medical families that run a side business and it actually makes a decent profit?

[diggitydot]

I've considered it for the tax benefits alone, but that's the extent of it.

[SoonerTexan]

In theory I do, but I don't do anything with it anymore.

I'd wait until you are in your final job location, because setting it up is a PITA

[Vanquisher]

Yes. The medical practice. It is hard, 24/7 work. You have just as big a risk of losing money as making it, if not more. Depends on the business, but it's a lot of hard work.

[moonlight]

Yes. The medical practice. It is hard, 24/7 work. You have just as big a risk of losing money as making it, if not more. Depends on the business, but it's a lot of hard work.

I thought about you when I posted. That just isn't for me. I think I would go postal in the first week! lol

I was thinking of my own separate small business separate from what DH does. ST is right, I need to be in a location where we have a set work contract for a few years and a lump of money to get started. I'm also thinking I would only keep the business going for a few years until we could pay down student debt and then sell the business or shut it down. Its not something I would want to do forever. I said I would never be a business owner and here I am strongly considering it. I wish MissM was still around to give me some tough love advice.

[Vanquisher]

I don't know of any businesses that are that lucrative for just a couple of years. The capital required to get a business going and growing takes time to pay back. What kind of business are you thinking of? A franchise?

[Pollyanna]

What kind of business are you thinking? Most small businesses lose money as they are getting started. I'm not sure how well things would go if you're planning the shut down before you've opened the doors.
As my folks said, "it takes balls to meet payroll". Starting a business is no joke but can be very rewarding if you're up for the challenge.

[spotty_dog]

DH is an LLC, but I don't think that's what you mean. I've thought about opening a yarn store. You need a serious capital outlay and terrific business plan, and still most businesses like this that aren't turn-key will be running in the red for several years. According to the IRS rules you can only write off up to the amount of your gross income, and you have to make a profit within I think 3 years or you have to classify your business as a hobby and stop deducting anything.

On the yarn store owners' message board I visit sometimes, I see ladies who still aren't drawing a salary for themselves after 5, 10 years. What small income they have after paying their expenses, goes straight into growing the business. It's a labor of love and none of them would say they'd be doing it if they didn't really, really love it. Most of them detest the bookkeeping end of things, which is where my strength would be. However, most of them have the interpersonal skills to build a network of loyal customers and to interact with people offering knitting assistance and classes. I don't have that.

But maybe a franchise would be different.

[moonlight]

Yes, I'm strongly looking at franchises. A couple places that I've used and loved was a drop off child care center. I paid by the hour and it was open 10a-9pm. I loved that place. I would need a good number of employees for coverage. A business with fewer employees that I thought of was the 4D ultrasound franchise that I've gone to. From what I saw it was a front desk person and a tech working. I could work the day time hours and then hire a PT desk person for evenings and weekends. Again, both are franchise. I guess it does sound bad, but I don't want to own a small business anymore than 10 years. Is that bad? This also depends on where we end up staying put for a few years. Where I'm at now has 1-2 sono places already. I would look to start the child care place because nothing like that is offered here.

ETA Not looking to sell yarn for fun, but kudos those that do!

[HouseofWool]

Running a small business takes a lot of money and passion. If you are doing it as a quick profit, I think you will be very disappointed, particularly the type of businesses you are looking at. Both have fairly high overhead because of insurance issues, plus you will need to actually hire a doc if you have sonogram place. Running a business is NOT a profit venture, at least not in the short term.

[Vanquisher]

Both of those businesses are going to be a huge cash outlay. The sonogram machine alone will be 6 figures. The US tech to run the sono will be $20/hour. You will have to have a store front - thousands each month for a lease, business liability, payroll, accounting, workers comp, benefits, health department, state agencies, advertising, taxes, and much, much more. If it's not at least a 15-20 year plan, I don't think it's worth it.

[Pollyanna]

Seriously, you'd probably make more money working at a 9 to 5 job than opening a business. I wouldn't open a business with the intent to pay down debt. You need serious cash flow and no debt before you go down that road IMO. Sorry, not to be a downer.

[SoonerTexan]

Agreed. You'll spend your life trying to make them profitable and putting out fires.

Have you considered child care? You could bring home ~1000 month by watching another child and it wouldn't take you away from your own

[moonlight]

Both of those businesses are going to be a huge cash outlay. The sonogram machine alone will be 6 figures. The US tech to run the sono will be $20/hour. You will have to have a store front - thousands each month for a lease, business liability, payroll, accounting, workers comp, benefits, health department, state agencies, advertising, taxes, and much, much more. If it's not at least a 15-20 year plan, I don't think it's worth it.

I was thinking about that expensive US machine. I was wondering if I could rent it like gym owners often rent the workout machines. That way we'd have tech support and if it breaks I can just call them to fix it. Anyone know?

US techs only make $20?/hr I thought it was much more, no? Most of the stuff you listed HQ seems to help me set up. They can even refer me a medical director if DH isn't able to do it. I have an accountant that I use for my personal taxes, but his main business is doing payroll and accounting for businesses. IDK if he would take me on, but I don't think he would turn me away. I'll need to contact him to get info on his fees.

What kind of benefits do you give a part time desk person or part time tech person? Vacation, sick time and what else?

I can also say I don't have a 20 year plan. I'm 36 and don't want to be at it in 20 years. I really do love these places I've frequented as customer. That's the only reason I'm looking into it. I especially have lots of add on services I want to do for the child care business! I just don't have the desire to work full time into my mid 50's.

Thank you SO much for helping me think this through. Keep it coming!

[Vanquisher]

Nope, they make a lot more $30 - $40 an hour. Just looked it up. I was spit-balling. I also think that finding good part-time sonographers is going to be difficult. I'm not trying to be discouraging. I really do think that any business venture needs to be a long-term plan. The medical director is going to be serious cash, plus the malpractice. I'd plan on 150 - 200K cash outlay at the startup, and then, an operating budget of at least 20K per month, every month.