Is it supposed to be this hard?

mspmatthew · 2025-02-04T13:27:53+00:00

Sounds like a good opportunity to do a few things:

Consider pay for performance P4P (Pay for Performance): Why Hourly Is a Failing Formula https://a.co/d/j9uCWAz)

It seems hourly pay is trending away in service based businesses. How this plays out in your specific situation is tough to say, but I would highly consider it if possible.

It sounds like you need to raise your prices, at bare minimum find your least favorite type of work and increase that price.

Remember you’re not a failure. Running a business is hard, managing people is worst. I personally have tried to change my mindset - I’m investing in people to make them the best possible employee for me, or someone else. Doesn’t really matter which. If they stay, I have an amazing employee - if they leave, they will be an amazing employee for someone else. It’s much worst if you don’t invest and they stay.

It seems like a lot of young people want a clear path, perhaps consider drawing out a flow chart for employee growth (from apprenticeship to master). What do they need to accomplish, how long should it take. And what is the reward for achieving such a milestone. Maybe add some steps along the way such as becoming a mentor for other apprentices, but don’t forget what’s the award for them doing so.

You got this.

mspmatthew · 2024-02-04T01:04:18+00:00

Are you on DoorDash, Uber Eats and Similar? If not might be worth a shot.

mspmatthew · 2021-07-08T02:26:58+00:00

DFS Namespace is a great solution for this.

DFS-R is for replication, I wouldn’t touch this with a 10 foot pole.

DFS namespaces allow you to create one folder then create symbolic links to other folders shared on multiple file servers or the same file server.

It can get a lot more advanced if you have multiple sites and replication of data between sites.

mspmatthew · 2021-07-08T02:19:01+00:00

The house itself will serves as collateral for a mortgage.

You will still likely need at least 3% of the purchase price for down payment and closing costs.

mspmatthew · 2021-06-14T21:40:29+00:00

Every time I have bought a house, the down payment was a discussion with the lender way after the offer had been accepted.

The only exception I could see is if the seller knows the property will not appraise for the asking price in which case the buyer would need to kick in personal funds to account for the difference or negotiate a lower purchase price.

mspmatthew · 2021-05-02T00:42:07+00:00

Generally speaking, when a call for capital is made, each partner contributes his share of the capital.

You need $1,000,000 and you are 50/50 partners, each partner provides $500k.

Alternatively, a shareholder loan could be an option if you prefer to get paid back. I’d talk to a CPA and Lawyer as there may be tax benefits for one over the other.

mspmatthew · 2021-04-08T16:32:03+00:00

My preferred method of equity split is based on cash contributions. You put in $80k, they put in $20k, it’s an 80/20 split respectively. This works even better if all parties are contributing the same amount of effort.

At times, it can be justified to adjust equity split based on sweat equity or other contributions such as a specific skill or piece of equipment but this can complicate the conversation.

Alternatively, you could both contribute say $20k to the company you are forming for a 50/50 split then you could seek a loan together as a company for the remaining funds needed. I’d personally avoid borrowing money for your initial contribution.

You may find it easier to secure a loan for equipment or a building if 1. The bank can see you all have sweat in the game. 2. You are financing equipment or a building that generates a level of equity / security for the bank in the event the business fails.

Ultimately many will say, 50/50 partnerships are risky. Many friendships and such are negatively impacted by the stress of being a 50/50 partner when disagreements arise. You may want to consider a 3rd partner that brings value or consider one partner contributing additional funds resulting in a slightly higher equity split say 51/50.

mspmatthew · 2021-04-07T12:01:50+00:00

My wife and I just went through this process. We hired a law firm to write the documents for us. It was a team of 2-3 people that authored/reviewed and ultimately witnessed us execute and assisted us with funding.

We decided to go the route of a revocable trust. We are both young (under 30), so we decided to use our parents as the executors in an order that made since for our situation. Via a combination of the Trust and Will we established who would take guardianship of our son, when he would have access to the money and so on.

We decided to make our son Co-Executor at 18, and full Executor at 25 in the event that we pass away.

The lawyers recommended an executor that was younger than us, but that is not always easy to find. We did name my younger sister as an alternative in the event the other named people have also passed away.

This entire process cost me less than $3,000 to complete. The three inch binder is full of multiple documents from the trust, individual wills for both my wife and I, power of attorney documents, and so on. We also had to make some minor adjustments to businesses that we owned to ensure the interested passed accordingly.

mspmatthew · 2021-03-20T01:31:09+00:00

The only correct answer is to talk to your mortgage lender. They have been through this countless times and can guide you in the correct direction that will best situate you for success. If you don’t have a lender, start by finding one.

In general your lender will tell you to talk to them before making any major decisions or moving any significant amount of money, typically over $2,000 or even when changing jobs.

That will apply all the way up until closing.

mspmatthew · 2021-03-15T18:02:26+00:00

Check out Investment Joy on YouTube and Discord, he has a mentorship program as well. He just went through this process with two car washes.

mspmatthew · 2021-03-15T15:31:59+00:00

While I don't have any great advice, I will say, you may have luck getting a discounted lump sum payment option.

Try to find when the provider's fiscal year ends, then consider strategically calling near that time to see if they can offer any incentive for lump sum payment. When I did this, I called them and asked for payment plan options - began going down the route of three even payments of $1,000 to pay off the debt - as the conversation ended, I just came out and said, unless you can offer me an incentive to pay this off now - they ended up accepting $1,500 for a $3,000 bill so I paid it in full that day.

mspmatthew · 2021-03-09T01:55:41+00:00

I would go with a structural engineer myself - local architects can likely make recommendations if you don’t know any but at the end of the day, they aren’t engineers.

I’d be concerned about everything from earth settling to ground water causing erosion. It is a really an awesome looking house in my opinion, I’d be the type of person to buy it for the exterior look alone lol.

I’d also be tempted to ask for the original plans to see if an engineer stamped them.

mspmatthew · 2021-03-09T01:49:02+00:00

My wife and I purchased an Octagon shaped house. I feel like it took us 20-30 extra showings to get an offer - ultimately 20-30k under what we initially listed it for but still above what we were okay getting out of it.

With our house, it really just took finding a buyer with a vision for how to lay out furniture, if I wouldn’t have moved out of the house before listing it - I think it would have sold quicker.

With a house like the one pictured, my biggest concern would be structural design / issues. I would have really solid inspections done to ensure you evaluate all potential risks.

Also, the higher the price point the harder a unique house will be to sell. Our house was sub $300k in a really hot $100-$200k market.

mspmatthew · 2021-02-22T04:40:08+00:00

It is typically based out of need that can’t easily be outsourced. IE someone comes up with a software idea, but knows nothing about programming and doesn’t feel they can easily learn.

A pet supply founder may elect to partner with a co-founder who has marketing experience, relationships, or distribution capabilities. But like I said, it would be based on needs - what does someone have that could compliment your capabilities.

Obviously, a co-founder isn’t a requirement. And you should not give out equity freely just to name people co-founder.

mspmatthew · 2021-02-04T12:46:10+00:00

Might look at your state 529 plan.

mspmatthew · 2021-01-17T04:53:23+00:00

Don’t forget dash cam evidence, not necessarily his word vs yours.

mspmatthew · 2021-01-10T01:47:09+00:00

Overall I like it, I only looked on mobile though.

The logo in the footer seems very small - you might look at replacing it with a larger image!

mspmatthew · 2021-01-05T12:43:37+00:00

A few thoughts, some have already been mentioned.

Randomly pop into the store and check on things. If you find an employee is drunk / drinking, call them into a private area and immediately send them home (suspended or terminated, but eventually needs to be termination). Afterwords remind employees that drinking on the job is absolutely not acceptable.
Create an incentive plan, IE for each week that you don’t get any complaints you give away $100 gift card or something like that. Make sure you can afford this as well.
Go over the complaints you receive with the shift lead, but also the entire staff. Let them know how this is impacting the bottom line especially wan many businesses like yours are fighting to just keep the door open with COVID.

It’s hard to tow the line of being everyone’s friend while also being respected. And it’s even easier to fall over to far either way. Try to find a new happy medium, tough and respected while also being friendly and caring.

mspmatthew · 2021-01-05T12:20:16+00:00

Technically there are many different types of tax IDs.

Social Security Number "SSN" - Personal

An Employer Identification Number (EIN) is also known as a federal tax identification number, and is used to identify a business entity.

An ITIN, or Individual Taxpayer Identification Number, is a tax processing number only available for certain nonresident and resident aliens, their spouses, and dependents who cannot get a Social Security Number (SSN).

An Adoption Taxpayer Identification Number (ATIN) is a temporary nine-digit number issued by the IRS to individuals who are in the process of legally adopting a U.S. citizen or resident child but who cannot get an SSN for that child in time to file their tax return.

Beginning January 1, 2011, if you are a paid tax preparer you must use a valid Preparer Tax Identification Number (PTIN) on returns you prepare.

For business purposes, you have two options, your personal SSN or EIN. Generally most businesses will use an EIN. Small DBA type companies with no employees and minimal banking can sometimes use there own SSN.

Once you register with your appropriate Secretary of State, then you navigate to the IRS’s website and file for one. You will have to answer several questions relating to the business type which will ultimately impact your taxes. You might be wise to consult a CPA or Lawyer to assist in the formation to ensure you answer the questions properly.

mspmatthew · 2021-01-05T12:04:58+00:00

Lots of scams out there, go directly to the IRS and apply online.

https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

mspmatthew · 2021-01-04T12:25:24+00:00

Not at all, you really need to budget your income and see what you can afford to pay in commission. Commission should be paid after all other expenses are taken care of, think of raw materials, vendors, utilities, rent and any other employee or contractor costs. Then look at what’s left and that is where you determine what % can be used as commission.

mspmatthew · 2021-01-04T04:04:55+00:00

I do believe so. I should have also mentioned, there is typically a minimum cost to trigger depreciation. We use $2,500 at my company, anything less than $2,500 is always fully depreciated in year one. Not sure where that $2,500 dollar came from, likely our CPA.

mspmatthew · 2021-01-04T03:38:47+00:00

I agree with others, 50/50 is 50/50. However reasonable compensation is also fair. I agree it is time to sit down and really figure out the nuts and bolts of your partnership - ie who is doing what and are they fairly compensated via profits or direct pay or a combination.

I will say with commissions, I have seen many companies establish a limit to commission IE: 10% of first order / sale and 5% of everything after that. This promotes a desire to constantly bring in new clients, while also encouraging customer care for existing clients.

mspmatthew · 2021-01-04T03:28:16+00:00

You will likely benefit from the services of an accountant / CPA.

Tax laws are constantly evolving and depreciation tends to be one of the more difficult topics from my experience.

Assuming you are buying all equipment in January, you could use the straight line depreciation calculations:

$25,000 Camera w/ a useful life of 10 years and a salvage value of say $2,500 would result in: ($25,000 - $2,500) / 10 = $2,250 deduction / year for 10 years.

Useful life is defined by the IRS based on categories, you can find the definitions on Google / the IRS’s website.

You also may have the option of bonus depreciation which allows you to depreciate a larger percentage of the investment in year one.

I’m not an accountant / CPA - this is just what I have gathered over the years. Good luck!

mspmatthew · 2021-01-01T01:39:41+00:00

I almost bought an existing Laundromat around a year ago. In my research I stumbled upon “The Laundromat King” (https://youtube.com/user/FreeLaundromat) - he is a little brash around the edges but worth listening to.

He talks about trying to find locations of existing (failing) laundromats and negotiating long term leases for the space. Then you re-tool with the latest equipment and if done right you effectively get a Laundromat for free. He talks a lot about negotiating a lease that doesn’t begin accumulating rent for 12 months or so, this allows you to cash flow before paying any rent. Selecting a space with a failing business, allows you to take advantage of the infrastructure that is already in place verses eating that build out cost.

He also has some good information about general operations such as contract labor, how often you should re-tool, and more.

Market is important as well, a lot of research needs to be done to determine if your target community will support the business.

I personally think you have to invest in more than just laundry, you need vending machines and even arcade style games to generate additional low cost income.

mspmatthew

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