Dare to Dream? Dare to Scheme |
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Small Business
Mike Davies, a former Lieutenant in the U.S. Coast Guard, decided he wanted more control over his own destiny. So he decided to open up his own sandwich shop.
"I like to see the fruits of my own labors," said the 40-year-old resident of Astoria, Oregon, who, in eight years became the owner of seven local businesses and is now the president of the local Chamber of Commerce.
Davies started his entrepreneurial career when he was still in the military. He and his wife had saved up some money over the years and he was a big fan of Subway sandwiches, the Connecticut-based restaurant chain known for its aggressive expansion strategy. There are nearly 30 store openings per week. Making an application to become a Subway franchisee was easy.
"There's an 800 number on all the napkins," he said. "The number is the same if you've got a complaint or to buy a store."
Davies bought some of the restaurant equipment with his savings and then secured a bank loan with the equipment as collateral. Opening a medium-sized Subway store costs about $150,000 before the first sandwich is sold, he said. And after that, the company takes a healthy chunk out of the gross earnings.
Davies had considered, but eventually rejected, the idea of bypassing the corporation entirely and opening a homegrown business like Mike's Sandwiches. "I feel like its worth it for the use of the name and the consistency and the national recognition," he said.
Apparently it worked. He now employs managers to keep track of the day-to-day operations, allowing him more time to contemplate future projects.
His advice for would-be small businessmen: "Be very careful to do your research. Line your ducks up very carefully. Look for a business that you're going to enjoy. Don't do it just for the money. You're going to put a lot of your time and energy into it."
ThirdAge Insider Jeff Fleming comments: there is no such thing as easy money. Certainly there is a price for everything, including controlling your own destiny. More risk...more reward. But, what if the business was not a success? Did he plan for this contingency? Here are some sites that make sure your new business venture is well thought out.
- Start at the Small Business Administration for everything you need to know about operating your own business.
- Kiplinger's offers a variety of resources and tools for mapping out your small business strategies.
- Quicken offers links to online information about various franchises.
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