Thinking about a new business venture...

[Riofan]

The one and only "HUMIDOR" Sergio!   I am going to talk to the owner on Saturday about all this, and if the finanicals are feasible, I have the wife's blessing.
  Definetly means we need to herf more if I buy this joint.  Would be a great job.  9 hours a day in a cigar lounge of my own, and getting paid for it!
Scott  

Great news Scott!
The "9 hours a day" will likely turn into more  
Good luck and keep us posted.

[sergione]

I liked that place Scott, it sure was a mans lounge, playboys on the coffee table, chairs outside to watch the girls going to their yoga class next door......you cant get a better location than that[party4]

 

Habba Habba

[Poriggity]

I liked that place Scott, it sure was a mans lounge, playboys on the coffee table, chairs outside to watch the girls going to their yoga class next door......you cant get a better location than that[party4]

 

Habba Habba

You're right Serg!  The owner and myself do that on a regular basis.. We are always outside on nice days watching the yoga girls walk by   That shop is DEFINETLY man friendly!  We'll see... I haven't brought it up to the wife again yet.  I just got her to agree to go to vegas for the herf in July... so I gotta take it slow [cigar][cigar][police]

[BaileyCAO]

I remember when you posted this last year.. I think that it would be an awesome oppurtunity for you. Only advice which is pretty much what everyone else has said. Think about it from every angle and if it looks good do it.

[NorcalMark]

Sweet!

I love what I do, and I know you will like it as well. You have some things to consider as well.

I wouldn't want to do anything else, but it's tough at times. If you have any questions please call me and we can chat.

Mark @ Tower Cigars

916 443 8466

 

 

 

[Pendaboot]

You gotta love what you do in this life. If you do, that is the formula for success and long life.

On the other hand, we live in a world where society is up in arms against smoking anything. This new schipp tax proposal is only one of the myriad ways that will soon be coming down the pike to make smoking difficult and discourage people from smoking anything, especially cigars.

But in difficulty hides opportunity. You should be able to leverage the dearth of rational future opportunity to get a better price. This guy wants out. You should be able to get a totally leveraged buy out going, which would look like you get his inventory at a discount to what he paid, just to free him of his obligations, to suppliers mostly.

That's the hard part. What are his payables? Big question. He no doubt still owes money for the inventory on the shelves. I have never been in the cigar business, so maybe it carries a lot of cash transactions, but in any other kind of retail I have looked at, the inventory is paid for after the sale, and you get terms or factor the difference. Payables are the heart of the financial outlook for the company.

In the end, considering the future being so bleak and all, or at least you (and your bank will also) gotta couch things this way - the regulatory and tax outlook makes the future bleak. While you have a personal reason to take a leap of faith that things will never go THAT crazy, he will have a very hard time finding another buyer in this climate. You will have trouble getting this transaction banked as well, I presume.

Soooooooo, you should be able to stitch present ownership to a deal which essentially gets you the shop for free, or almost free after paying for inventory, IMHO. In any event, what they call "good will" is worthless, considering you are the governor's or the president's signature away from being out of business. We came 14 votes away from Schipp.

All things considered, I envy you the opportunity. I once had a chance to buy a pawn shop, and it is one of the few things I regret in life that I did not pull the trigger on that deal. Doing something you like, with people you get along with (plus dealing with the public, well, so it's not ALL good) and paying the bills, with a chance to thrive and do great if things come your way, you gotta seize the moment.

A little musical number to listen to while you ponder this deal:
http://www.youtube.com/watch?v=6_RicayN7X8

[Zaphod]

I think you have to go for it unless the price is just totally unreasonable.  I would love to own a shop, and maybe one day will.  You have a great opportunity here.

[Back Yard Smokes]

So what happen?

Did you buy the place?

 I just bought a bar about 8 months ago. 

http://www.myspace.com/mugshotsbroadripple

I have been trying to sell cigars in the place but I am only selling one cigar a day.

The cool thing is when I am smoking one of mine in there someone else will buy one. So my smoking helps my sales.

 

[Poriggity]

I attempted, but after much talking with the wife, it just wasn't something that was feasable.  The new owners of the shop took over today, and they seem like really cool people, although they don't know much about cigars, which kinda bums me out...
Scott  

[sergione]

sucks it didnt work out Scott, but we will still hang there one day