Early Retirement Extreme Forums

tradfgh wrote: ↑

Mon May 08, 2017 3:58 pm

I don't want an occupation.

I want a reliable small business that makes me "rent + beer + healthcare + IRA + gas money", with less than $250,000 initial upfront investment cost, without having to work more than 40 hours a week.

What have you found?

Buy a collection of relatively expensive one-time or short-term use rental items such as mini-excavator, inflatable party slide, two-man auger, and set of 100 matching folding chairs. Pay a lawyer to draw up rental contract forms that will lessen any potential liability. Hire a kid to open storage lockers for clients when you are out of town.

Storage units may be lucrative and you'd be sitting around an office most of the time doing nothing, you could just play video games and get high all day and only have to work when someone comes by and rings the front desk bell. I guess you'd have tax season and a few other mundane tasks too but I can't imagine it demands incredible amounts of activity.

Adding to the vision and technology dimensions, to make things more interesting, you could consider setting up a portable storage unit business. With this setup you get portable storage units (converted shipping containers that are still legal for use in ground transport). You then research the most lucrative locations for storage units, and get a cheap location to work out of then move in and charge monopolistic rates. If competition comes along you can move if there's more opportunity elsewhere. Just an idea, entails more risk though.

Going through the phone book (per RJ) or researching the topic online will provide tons of ideas for businesses. Ultimately , I know from experience, it's usually pretty rare for someone to competently run a small business when they first start. There's simply a learning curve that only experience will allow you to move along and expect to not make as much money (possibly negative money) at first due to unforeseen events. You have an advantage with ERE in that your cost footprint is low enough that you can sort of fail your way to success without blowing up. Many people have such high personal expenses that they can't get above break even before the business fails. Also people often underestimate how much a business with poor returns can be improved with marketing and/or sales skills. For example if you're a septic tank guy it may be that just showing on time, providing written (not verbal) quotes, being nice, looking sharp etc. could get you more business. My experience tells me that if you can find good marketing, which generates more business than it costs, than it's an excellent investment and I wouldn't skimp on paying for good marketing/sales.

KevinW wrote: ↑

Wed May 10, 2017 3:59 pm

...
Finally, as others have mentioned, $530k is larger than many forum members' savings goals. So one option is to just declare yourself ERE-retired now.

It's precisely twice the amount of money I'd need for a 3% WR retirement right this minute!
But the issue is apparently not one of FI money, but one of social pressure.

I'm actually rather confused about the terms of the job. Why not find a job, ANY job that you will get some modicrum of satisfaction from and then claim that jobs pays all your bills with no hassles at all?

Yoga teacher. Work as little as you want, keep in shape, be social and have an excuse.

> coin laundry
works if you are just sitting on some real estate in the city waiting for it to appreciate.

> vending machines
everyone thinks of vending machines. Maybe OP could find a niche but probably not.

> automated car wash
Again, seems more like a real estate play.

> rental houses
> vacation rentals (airbnb)
> small apartment complex
Rent-seeking is tried and true.

> flipping cars
Would work if you can provide some edge like sourcing low-cost, high value cars, using your own labor to raise the value of the car, or some other similar arbitrage.

My primary suggestion for OP is to not rush into anything.. Maybe OP can consider a "real life education" of taking various jobs ta is interested in with the security of knowing ta can quit any time ta wants. Ta might find something interesting or notice a market or efficiency gap.

Coin Laundry and Dry Cleaning seem to be the two "highest cap rate" businesses you see regularly on sites like biz buy sell.
The two businesses often go together, because the coin laundry needs attendance "baby sitting".
Dry cleaners are not known to use safe chemicals, and people are starting to talk about a new kind of clothes dryer (ultra sonic vibration) shake the moisture out...

Coin Laundry would be cool, but I think I am going to try avoid retail, for my first business.

Oh found out, tons of people are doing septic pumping with class C licenses, might get into this business over the next month or two.

One problem i am running into locally is storage.

The plant is open from 6 am - 6 am Monday through Friday.

Liquid Storage Containers running in the 6000-10000 gallon range would allow a company to answer more than 1 call on Saturday + Sunday, which I think would be invaluable for securing customers.

I have a strong suspicion that I would not be allowed to have 10,000 gallons storage container for bio-hazardous waste on my property.

Toska2 wrote: ↑

Thu May 11, 2017 11:44 am

Yoga teacher. Work as little as you want, keep in shape, be social and have an excuse.

I like it but I am not flexible at all... also is that industry stable?

Certainly, the idea is good. Maybe a personal trainer or martial arts instructor might work... but I know from experience how volatile those positions are. I would be surprised if Yoga was too much better.

SErickson wrote: ↑

Mon May 22, 2017 1:03 pm

Toska2 wrote: ↑

Thu May 11, 2017 11:44 am

Yoga teacher. Work as little as you want, keep in shape, be social and have an excuse.

I like it but I am not flexible at all... also is that industry stable?

Certainly, the idea is good. Maybe a personal trainer or martial arts instructor might work... but I know from experience how volatile those positions are. I would be surprised if Yoga was too much better.

My impression is that most personal training certifications are a joke. If you look fit, and can do at least a few things most people can't (i.e. 1 leg pistol squats, muscle ups) you could probably develope a client base.

But would you really have anything to offer them? Some of the people with those certifications you mention can help people, others can't.

Can you get a commercial driver's license for the septic business when you have a DUI on your record?

I think I'd personally move to phoenix, where property is cheap and taxes are low, and buy an 8-16 plex and move in, then slowly upgrade the tenant base as folks move out, looking for low-trouble older people or working married couples. If you've got FIRE skills you could survive a few months of vacancy in numerous units, so the risk would be a lot lower than buying a few individual properties.