Should I sell my boat to start a business?
07-28-2010, 07:17 PM
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Should I sell my boat to start a business?
Such a tough decision. I don't really want to sell it but I do have a lot of money tied up in it. Or, should I go to the bank with the title and borrow against it?... hrm....
07-29-2010, 12:15 PM
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Best way to start a business is with someone elses money. I'm on my 7th, 8th, and 9th businesses (built from scratch and sold the others, crashed one of them back in the 80's before I learned more).
If you're doing the physical work in the business, go raise seed money with a financial partner equity share of less that 50%. Create a contract where you get to choose if you buy them out at a set term for a percentage of (x) many years net profit (calculated as a split of past net profit performance and future projected net profit performance). The contract should say specifically how future projected net profit performance will be calculated should you choose to exercise your term option.
Spend the money with a good attorney that YOU hired to create those contract(s).
If the business is viable, and if you have what it takes to be successful working for yourself, you'll be able to find the seed money - at least for start up and initial working capital.
Its always nice if you can go back to the same source for growth capital later without giving up any more equity, just as a business finance note.
Start up money is only the beginning. Successful businesses often have growth capital needs beyond their net profit capability to fund that growth.
If you can't find the seed money from elsewhere, I'd think long and hard. If other successful people don't see your start up as a worthwhile enough venture to invest in, maybe they're right and you could take pause to consider their experienced opinion...
I wouldn't sell any assets to start a business. Successful businessmen are capatalists, and selling assets you really want to keep is going backwards.
Just my opinion. Take it for what it's worth. I'm sure there are successful self made men on this board who would disagree with me, but I'd guess the majority would agree with my perspective.
Perhaps the only reason I'd sell my boat if I was into another start up would be because I'd never have time to use it anymore. But I wouldn't do it to raise start up capital.
Like I said, just my opinion. Best of luck with whichever direction you choose.
If you're doing the physical work in the business, go raise seed money with a financial partner equity share of less that 50%. Create a contract where you get to choose if you buy them out at a set term for a percentage of (x) many years net profit (calculated as a split of past net profit performance and future projected net profit performance). The contract should say specifically how future projected net profit performance will be calculated should you choose to exercise your term option.
Spend the money with a good attorney that YOU hired to create those contract(s).
If the business is viable, and if you have what it takes to be successful working for yourself, you'll be able to find the seed money - at least for start up and initial working capital.
Its always nice if you can go back to the same source for growth capital later without giving up any more equity, just as a business finance note.
Start up money is only the beginning. Successful businesses often have growth capital needs beyond their net profit capability to fund that growth.
If you can't find the seed money from elsewhere, I'd think long and hard. If other successful people don't see your start up as a worthwhile enough venture to invest in, maybe they're right and you could take pause to consider their experienced opinion...
I wouldn't sell any assets to start a business. Successful businessmen are capatalists, and selling assets you really want to keep is going backwards.
Just my opinion. Take it for what it's worth. I'm sure there are successful self made men on this board who would disagree with me, but I'd guess the majority would agree with my perspective.
Perhaps the only reason I'd sell my boat if I was into another start up would be because I'd never have time to use it anymore. But I wouldn't do it to raise start up capital.
Like I said, just my opinion. Best of luck with whichever direction you choose.
09-17-2010, 05:39 PM
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My opinion about a business
I would not sell the boat unless you got a decent amount for it and you were pretty sure that you could buy another one soon enough with the money from the business. Also, I would be sure that you are going to be happy selling the boat and spending time in the business. You should enjoy starting a business or it will not last because it is going to be a lot of work.
09-17-2010, 06:47 PM
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Best way to start a business is with someone elses money. I'm on my 7th, 8th, and 9th businesses (built from scratch and sold the others, crashed one of them back in the 80's before I learned more).
If you're doing the physical work in the business, go raise seed money with a financial partner equity share of less that 50%. Create a contract where you get to choose if you buy them out at a set term for a percentage of (x) many years net profit (calculated as a split of past net profit performance and future projected net profit performance). The contract should say specifically how future projected net profit performance will be calculated should you choose to exercise your term option.
Spend the money with a good attorney that YOU hired to create those contract(s).
If the business is viable, and if you have what it takes to be successful working for yourself, you'll be able to find the seed money - at least for start up and initial working capital.
Its always nice if you can go back to the same source for growth capital later without giving up any more equity, just as a business finance note.
Start up money is only the beginning. Successful businesses often have growth capital needs beyond their net profit capability to fund that growth.
If you can't find the seed money from elsewhere, I'd think long and hard. If other successful people don't see your start up as a worthwhile enough venture to invest in, maybe they're right and you could take pause to consider their experienced opinion...
I wouldn't sell any assets to start a business. Successful businessmen are capatalists, and selling assets you really want to keep is going backwards.
Just my opinion. Take it for what it's worth. I'm sure there are successful self made men on this board who would disagree with me, but I'd guess the majority would agree with my perspective.
Perhaps the only reason I'd sell my boat if I was into another start up would be because I'd never have time to use it anymore. But I wouldn't do it to raise start up capital.
Like I said, just my opinion. Best of luck with whichever direction you choose.
If you're doing the physical work in the business, go raise seed money with a financial partner equity share of less that 50%. Create a contract where you get to choose if you buy them out at a set term for a percentage of (x) many years net profit (calculated as a split of past net profit performance and future projected net profit performance). The contract should say specifically how future projected net profit performance will be calculated should you choose to exercise your term option.
Spend the money with a good attorney that YOU hired to create those contract(s).
If the business is viable, and if you have what it takes to be successful working for yourself, you'll be able to find the seed money - at least for start up and initial working capital.
Its always nice if you can go back to the same source for growth capital later without giving up any more equity, just as a business finance note.
Start up money is only the beginning. Successful businesses often have growth capital needs beyond their net profit capability to fund that growth.
If you can't find the seed money from elsewhere, I'd think long and hard. If other successful people don't see your start up as a worthwhile enough venture to invest in, maybe they're right and you could take pause to consider their experienced opinion...
I wouldn't sell any assets to start a business. Successful businessmen are capatalists, and selling assets you really want to keep is going backwards.
Just my opinion. Take it for what it's worth. I'm sure there are successful self made men on this board who would disagree with me, but I'd guess the majority would agree with my perspective.
Perhaps the only reason I'd sell my boat if I was into another start up would be because I'd never have time to use it anymore. But I wouldn't do it to raise start up capital.
Like I said, just my opinion. Best of luck with whichever direction you choose.
That's the mentality that IMHO caused the real estate catastrophy!
09-17-2010, 07:07 PM
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If the boat is paid for ... Pretend you don't have it!! You will need it to retain your sanity once you are married to you own buisness!!!! Get a loan on your credit only if you have too.. 
09-17-2010, 07:11 PM
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Not even close.
The real estate BS was caused by (among other things):
1. Buyers not being smart enough to understand what happens when an ARM re-sets.
2. Buyers not looking at or understanding real estate market history.
3. Buyers believing in the false equity they had in current homes before buying bigger homes.
4. Buyers trying to 'keep up with the Joneses' and buying bigger homes on obviously stupid ARM deals.
My business philosophy above is allowing me to do just fine buying rental homes right now at great prices.
I apologize if you see me as an opportunist in these interesting real estate market times. Personally, I see it as being entreprenurial.
The real estate BS was caused by (among other things):
1. Buyers not being smart enough to understand what happens when an ARM re-sets.
2. Buyers not looking at or understanding real estate market history.
3. Buyers believing in the false equity they had in current homes before buying bigger homes.
4. Buyers trying to 'keep up with the Joneses' and buying bigger homes on obviously stupid ARM deals.
My business philosophy above is allowing me to do just fine buying rental homes right now at great prices.
I apologize if you see me as an opportunist in these interesting real estate market times. Personally, I see it as being entreprenurial.
09-17-2010, 11:39 PM
#8
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Having been a self employed business owner for some 30+ years I will say that it has been an interesting ride. It has it's up's, and the down's as well. Good times you can pull lots of cash out, bad times you just can't feed it back in fast enough.
The one thing I will say is that if you are looking for a steady weekly pay check ....... Don't quit your day job!
The one thing I will say is that if you are looking for a steady weekly pay check ....... Don't quit your day job!
09-19-2010, 06:55 PM
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If you have to sell it - sell it.
The priority is starting a business. (thats a period there..)
Business = Income.
Boat = expense+ liability
Wait till the top can pay for the bottom - then jump back in.
Uncle Dave
09-19-2010, 07:29 PM
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Uncle Dave is right. He has a habit of saying things I agree with 
Starting the business is the priority. I was merely suggesting not to sell the boat and use venture capital instead.
Seems my opinion got this thread off topic a bit. I apologize to ryan450r, I didn't realize I was capable of stirring folks up like that
As for false equity, I was referring to those people in CA, NV, etc who really believed their homes were gaining 20%+ equity per year.
There's never a good or bad time to start a business. Only a good or bad type of business to start.
But hell, what would I know?
Starting the business is the priority. I was merely suggesting not to sell the boat and use venture capital instead.
Seems my opinion got this thread off topic a bit. I apologize to ryan450r, I didn't realize I was capable of stirring folks up like that
As for false equity, I was referring to those people in CA, NV, etc who really believed their homes were gaining 20%+ equity per year.
There's never a good or bad time to start a business. Only a good or bad type of business to start.
But hell, what would I know?
