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Steve Colvin - Brighton, CO (Denver suburb)


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Hi everyone, I have been researching and reading till my eyes are blurry for the last several weeks, and have bought a few heads and am just about ready to get started.

Still in the process of setting up the DBA, getting tax stickers, making business cards, etc.

This will be a family business, with various support from the wife, kids, in-laws, etc. My business plan is to build up the bulk candy route to several hundred heads (buying routes when found at the right price). My kids can take over the bulk candy routes at some point, letting me spend more time on building an honor snack route and/or a full line pop/snack business.

I'm using some pretty conservative figures in my business plan, such as:

  •  $7.00 head/month for bulk
  •  $40.00/month and .61/vend for honor snack trays
  • $150/month and .65/vend for pop/snack machines.
Since I am capital-poor (aren't we all!), I will continue working full time until the business can support my income by itself. The wife will not be quitting her job, no matter what this business does. I'll consider quitting my job when gross sales exceed $100,000/year (without any employees). My goal is north of $200,000/year gross and selling working/viable routes in 12 years (when I turn 60).

I'll hire employees when it makes sense, but otherwise will service all routes myself (with kids occasionally, etc.) Gross sales have to at least double an employee's wages to keep from eating into net profits...so 2 employees at $30,000 each(plus a 1.37 factor for benefits and taxes) would need at least $75,000+ additional gross sales to justify their wages, IMHO.

I have owned an auto repair shop in one of past careers, so have a pretty good idea of cost of goods sold, overhead expenses, taxes (advantages and disadvantages), variable and fixed costs, gross and net profit margins, financial statements, etc. I'm working on my MBA now at Edinburg busines school, (finance major with management accounting as a minor) hope to have that finished next year. Funny, school loans can be some of the easiest and cheapest loans for capital expansion!  :dude:

That said, I have earned at least a year's worth of education just reading this site and other's blogs and forums, and I wish to thank all of you for spending so much of your valuable time sharing your experiences. I hope that as I gain experience, that I am able to contribute in the same manner.

Regards,

Steve

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welcome steve, good to have you here.

sounds like you are off to a good start.  the best thing you said is about how much you have been reading these boards and learning. there is a wealth of knowledge available out there if people will take the time to look for it.

try getting this info from your competition in your town, not gonna happen. that is why these boards are great.

best of luck to you

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