Not a real deep article but it makes some good points. I thought it might promt some advice from others here to share some advice.
Starting a Business in a Downturn
It might go against your instincts, but starting a business in a soft economy has advantages. MyBizHomepage founder Peter Justen explains
http://www.businessweek.com/smallbiz/content/oct2008/sb2008106_319606.htm
Clean burning natural gas is the energy independence future of America.
Replies
The old axiom "Find a need and fill it" is true in any economy. The trick is finding something that people need (and will pay for) even if money is tight.
I'm semi-retired, but still need an income and I'm looking at a couple of things.
1. Working with REO's to clean out, secure, and maintain their foreclosures while they sit vacant. I'm talking with one broker who will be handling 50 houses to start and expects many more over the next year, or so.
2. Consulting and/or teaching DIY'ers. A couple of years ago, they would have just hired me (or someone)to do their project. Now, they still want to do it, but want to try to DIY. I'm thinking that an hourly rate to walk them thru their project, show them what to do and how to do it, advise them on what tools to buy (or rent), and backstop them if (when) they get in trouble might be something that they'll buy.
Consulting and/or teaching DIY'ers.Great Idea, low start up cost, low liability, you could have a lot of interest with folks short on cash these days. Rust never sleeps, you know.Maybe concentrate on areas w older, starter homes and younger homeowners.
No retirement communities, ha!
I've already gotten some interest, but haven't really pushed it yet. Between the project I'm working on right now, and the time I'm spending looking into working on foreclosed houses, DIY consulting is on the back burner.If none of it works out, I'll just figure out something else. - lol
An idea I have is targeting the baby boomers. Many want to stay in their houses as long as possible and they typically have money to spend.
I'm curious as to what ways you would see to market specifically to boomers.
We have a regional boomers magazine, but that would be too wide of a geographic base.
Any thoughts?
Bowz
that would be too wide of a geographic base
the expression is "demographic""...craftsmanship is first & foremost an expression of the human spirit." - P. Korn
bakersfieldremodel.com
No, the magazine covers about a dozen counties. That is too large of a geographic base for me to travel, so I wouldn't want to put an ad in there.
The demographic of boomers is nearly perfect, which is why I was hoping he had some ideas to tap it. I have an ad in a church bulletin where the parish has a significant presence of 45 to 65 year olds, but have gotten nothing from it. That's why I asked what any other ideas may be.
Bowz
You need to target what boomers want and need. They are typically beyond the stage of trying to impressing their friends with money spent on eye candy. Accessibility and maintenance free are 2 they love. They are tired of replacing stuff every 10 years, be it carpet, vinyl flooring, exterior trim. They also love an investment that adds value and saves money.
Also many are downsizing, selling their homes and taking the money to improve the kids house with inlaw suites.
Dave
2 stories on trash outs in the local paper this am. guy started recently after giving up on Real Estate sales. His own home now in foreclosure. Slow pay, no pay.
http://www.oregonlive.com/business/index.ssf/2009/02/boom_times_for_trashouts_in_or.html
Then the story below it is a trashed out home that was not actually in foreclosure. (according to the owner)
I looked into it about a year and a half ago. That was the national companies. After looking at the contract I decided it was too much in favor of the bank/proprty securing outfit. And then there is the whole making money on people who have lost everything. Just not something I would be good with.
Take lots of pictures.
Local guy is probably better than the national companies
This is still in the looking stage and we have a ways to go before we start doing it - if we ever do. There are a lot of unanswered questions right now and we're getting the answers before we move forward.One advantage of having 30-odd years of experience in managing businesses is that I've been thru dozens of reviews of new business areas and what has to be done to get there. I have a pretty good idea of what we'll need to see before moving ahead - and I'm perfectly willing to drop the whole thing and walk away if necessary. - lolYeah, I'm not thrilled with making money on someone else's misfortune, but I can justify it since I had nothing to do with them getting there.The slow pay aspect may well be a deal breaker. We're projecting costs of ~$1200 - $1500 per house to get them ready which could involve a possible exposure of ~$60,000 - $75,000 for all 50 houses. No way will we "loan" anybody that much money with no idea of how long it may take for them to sell.
Edited 3/1/2009 5:18 pm by Dave45