More kudo's

I had another meeting with another SCORE counselor last Friday. He looked over my business plan (almost done), my spread sheets, and said everything looks good.

Mr. Penn is very familiar with the food industry. He has several investments of his own and is involved in counseling several others. He even has a couple clients with vegan fare so he is familiar with that as well. He made a couple of suggestions, fixed a typo (would have caught that in one of my future reviews anyway) and basically said everything looks good.

Now I just have to finish up the paperwork, cross the i's and dot the t's, and look for an investor. I think I'll be ready to launch in a few weeks.

More smoke

I've been thinking more about my earlier consideration of starting this on the super cheap. I now think it's a bad idea. I'm going partly on gut feeling, and partly on past experience.

After reviewing all my numbers & research, including advice from what I've read, to do this right is the only way to do it. I've come up with a scenario of starting with $5,000, but even that makes things very tight and puts way too much pressure on all involved. Also, from what I've read, it's easier to find $100k of investment than it is to find $5k. Investors just aren't interested. The best scenario calls for $40 startup. I guess we'll see what the investors have to say.

Well, better anyway

Ok, I was a little off on the $300-$400 estimate, but I got it under $700. Not bad! I did it by planning to sell only packaged salads for 1 show, borrowing 2 coolers and emptying mine to use, using my food stamp money to buy the food (this will have to be returned to me after the second show so I can eat), using only the 1 table that I already have, and a few other nips & tucks here & there. Most of it is government fees. Now it's only $700 more than I have.

The plan includes how to manage the second show, presumably the next day or two. The first show should generate a gross in excess of $600. Purchasing a 1 year permit to sell packaged food for $250, the cost of setting up the second show should be around $500. Subsequent shows will be less and the income will be the same. Within six shows (2 weeks) of operating this way we will be able to purchase the rest of the equipment and $500 permit to go into full swing. This assumes a net of $400/show with neither of us taking a wage until later.

This is getting so close I can taste it!!

I've been thinking...

A dangerous prospect I know. People around me have been asking why there's smoke coming out of my ears.

By modifying the original startup plan a bit, ok, heavily, I may be able to start this thing for 3-4 hundred bucks. 2 things may make this possible. I mentioned earlier that the health permit is $500, but that's for a full year, unlimited locations and prepping food on sight. They actually have 4 different options. The cheapest is for 1 show running up to 3 days & selling only packaged food - around $65. We could sell just packaged salads, in deli containers, for 1 show, no site prepared food and make several hundred just doing that. That would be seed money to go a little bigger, then a little bigger. I need to call the health department and clarify a couple things regarding that, run some numbers and talk with Pamela about it.

This could work!

I got it!

I went to the BOA office yesterday to get t temporary permit to sell my bowls on Harbor St. (tourist area) and at farmers' markets. Pamela was kind enough to let me use her address on the permit since I don't have one. The very helpful lady said I should get a permanent one and just change the "what you are selling" part later when I start the food booth. So I did. Step one complete. I have the first permit. Just two more to go.

Speaking of permits, I also went to check on the health department permit yesterday. A little bad news there. It's $500. Ouch!! Oh well, it'll come.

One more piece of side news. Pamela suggested I keep a blog of what it's like to live on the street. So I started a blog about that and the personal side of starting this business. Check it out!

Well, so much for that idea

As planned, I went to visit 3 government offices for permits. As could be expected with government offices, 2 weren't there. They moved. With one, even the entire building was abandoned. Go figure. I'll try again later in the week. At least the seller's permit is free.

Better late than never

Well, I made it. I'm finally in SD. My first night was spent on a residential side street in Ocean Beach. It was quite comfortable actually. The picture to the right is of OB. Living on the street, "homeless", isn't so bad when you're in a nice place like SD and you have a truck to stay in. Sure, it's a little cramped inside, and you have to move 3 boxes to get what you shouldn't have put on the bottom, but I really prefer to spend most of my time outside anyway. And this is a nice place to spend time outside. Right now I'm laying in bed, parked outside a McDonald's taking advantage of their free WIFI. And no, there's not a chance in hell I'd be eating anything here.With my extreme sensitivity to MSG I'd be dead by tomorrow if I ate here. But they have free WIFI and clean washrooms.

I ended up leaving Jacumba about 24hrs. later than expected, waiting for money. He's a decent guy, and generally quite reliable, but this time was about 3 months to pay me. Made things a little tight for a while.

So, I won't be doing much work on the business over the weekend. Other than working on the business plan. Doing a business plan right takes many hours. I want to get it right. Early next week I'll be visiting government offices to check out permits, etc.

More LOA stuff. The money I was waiting for yesterday wasn't much. Enough to get me to town and keep me mobile for a few days. What was I expecting to do after that? I don't know. It doesn't matter, it'll show up when I need it. When I arrived yesterday I met with a friend, Lorelei. I was taking care of her place in Jacumba since I lived across the street. She said she wanted to give me some money for doing that, even though I had told her previously it wasn't necessary. She ended up giving me more than I was expecting. Nice surprise.

One of the things I was planning on doing here to raise some money to live on was sell what few bowls I have left at farmers' markets or flea markets or something. I told Lorelei what I had in mind and she said she didn't know I did that kind of thing and wanted to see them. She's going to buy a couple next week. So, I guess money is coming in as I need it, just as I expected.

Movin' on up - or down (town).

Several considerations here. 1) I'm finding it almost impossible to do what needs to be done for this business from way out here. 2) There's no work here and I need at least a little income while I'm putting this together. And 3) I'm tired of being alone all the time. Sure, I've got a couple of friends here, and I'm at least an acquaintance of most of the people who live here. But there's something missing. I need people more my age. Preferably female :). It will be nice to be able to see Pamela and my other friend Klara at least a little more than once a month.

So the decision has been made, the wheels are in motion, my bags are almost backed and my truck is converted. I'm moving to San Diego.

I've made arrangements to put my trailer into storage here at the resort. Half of my stuff, stuff I won't need for a while, will be in the trailer. I've built a bed for the back of my truck, ran 12V power to the back for an inverter to run the computer and loaded everything I need to live for the next couple of months into a couple plastic cargo boxes. I also have most of my tools. All except the welder - it's kind of big. So I can do some handyman work here and there to make a few bucks to live on. My rent & living expenses will be reduced from ~$375/mo. to $55/mo. plus driving around gas. I don't have a stove, but I tend to eat mostly raw food anyway. I'll be able to run a small crock pot on the inverter to cook rice as long as I run the truck once in a while. I also have several wooden bowls that I made a while back that I should be able to sell at a farmers' market. That will net me several hundred dollars.

Oh, more LOA manifesting stuff: I went to the resort "dump" where there's a section of scrap lumber. I needed some lumber and plywood to build a bed. There was plenty of lumber there, but I also found a light tubular steel frame. Still good paint, no rust. Almost exactly the size I need for the bed. A trellis in a former life. 8" wider and 2" higher than I was originally planning, but otherwise perfect. Just had to cut 3" off one end and attach 2 pieces together with hinges and it slipped right in. Far less work, lighter and easier access to stuff under the bed. Perfect!

Also while I was at the dump, there was an old propane BBQ in really good shape, except for the propane part. Now, it is my firm opinion that it doesn't matter how good of a cook you are, it's not possible to make a decent meal on a propane BBQ. You need charcoal. This unit only needs a little TLC on the wood trim/tables and a coat of paint on the metal and it'll be a perfect charcoal BBQ. Exactly what I need for the business.

Are things falling together or what?!?

What I'll be doing is called "stealth camping". That's camping in a van, truck or car that looks like a normal vehicle so nobody knows you're camping. You're just parked. A van is the most comfortable, but all I have is a short box pickup with a cap, similar to the one in the picture. You use what you have.

I've done similar to this before when I was younger. Twice I lived in a truck camper for a few months each. I enjoyed it. But that was in the northern Canadian wilderness. There are hidden places to park galore. Here I'll be in a city, which will be a little more difficult not to mention not as nice (never did like cities much).

The plan is to move tomorrow, September 1st. That is, if the guy that has owed me money for the last 3 months pays me that last $80 tomorrow. I really have no doubt he will.

Doing this will allow me to not only cut down my expenses until things are rolling, but it will put me in the city where I need to be to make arrangements for the business.

I'm feeling a little apprehensive about this. But still, it feels good. I have total confidence that it'll work out. The logic is sound, and the emotions are still good.

Doing it right - and Heaven

Yesterday I had a meeting with a free business counselor at SCORE. A branch of the Small Business Administration that offers volunteer business counselors to small businesses. Mr. Haas was formerly a financial adviser, primarily for restaurants (Did I mention LOA?). After advising me that 90% of restaurant start ups fail, he proceeded to ask what I needed help in. He mentioned I'm going to need a business plan, so I pulled out the business plan outline that I already had. He said I would need startup cost, running cost and income projections, so I pulled out those sheets as well. Almost everything he asked for or suggested I need I pulled out a printout for. His face said "impressed". I was happy. Apparently I was doing pretty much everything right, he just gave me a couple pointers.

90% fail? I just brushed it off when he said this. It was his duty to give this warning. Why am I not worried? Well, for one, this isn't a restaurant. At least not in the traditional sense. Multiple trend sources I have found say that the demand for "street food", (food trucks, booths, carts) is very much on the rise. As is organic, vegetarian and vegan food. Many other trends on the rise point directly to what I'm doing with this business. I'm not worried.

Secondly, I have LOA knowledge on my side. And I can see it working over and over for the last several weeks. Everything is falling into place. I'm not worried. Not in the slightest.

Oh, and remember a couple of blog posts ago I mentioned the problem of finding things on government web sites? And I wasn't worried because the information would come when needed? Well, right at the end of the meeting we were discussing licensing, etc. and Mr. Haas pulled out a sheet of paper with several government addresses on it. He circled a few and said "for this permit you need to go here, and for this permit you need to go here...." (Did I mention LOA?).

Now for just a side note, sort of. If you'll remember the second line in my mantra was "I want love". I've been seeing a young lady occasionally for the last few months as friends. Pamela. Yes young - she's at lest 2 months younger than me ;). I saw her again late yesterday since I was in town. We went to the zoo to see an acrobat show. Now keep in mind it's been almost two years since I've seen anyone, date wise. I even rarely see anyone at all other than in passing where I live.

Anyway, while walking through the zoo, she held my arm. I was in heaven!!! I soooo much miss the loving touch of a woman's hand. Turns out she just wants to be friends, but that's ok. I can use a friend like that any time!

Utilizing LOA is more than just positive thinking. Much, much more. As one teacher put it, you don't get so much what you're thinking about, as what you're feeling about. How you are feeling, how strong your emotion is, is the amount of power you have in attracting what you want. This strong, glorious feeling I have when I am with a close friend, and when I see how things are continually falling into place for this business and the rest of my life, is not only attracting the love that I desire, but also everything else that I have been asking for.

Gawd life is great!!

The "sort of side note" part? Pamela also loves to cook and looks like she will be helping me with the business. (Did I mention LOA?)

It's a numbers game

You can't start a business without at least some planning. And you can't attract investors without a business plan. Business plans need several things, one of which is a profit and loss statement. In order to generate a profit and loss statement you need to do thorough startup & running cost analysis' and income projections. So that's what I've been working on for a while.

I've been doing extensive research into what is going to be needed to start, what will be needed on an ongoing basis, and predicting income, using a combination of what I've read and what I've observed. The startup cost is a little more than expected, but can bee whittled down if needed. But the running numbers - income projections minus running cost - look fantastic! I haven't dotted all the "i's" yet, but I think I've crossed all the "t's". So there's a little more tweaking to go yet. But what i have won't change much.

Startup Costs: $25-$30,000
This includes loan payments and an "executive" salary of $1,200 for 3 months. As well as all equipment, supplies (cups, plates, etc.), food, kitchen rent and a helper for 3 months.

Most businesses consider a startup cost amount to include 6-24 months running without income, depending on the type of business and other factors. Sometimes 36 months. I'm only including 3 months because in this type of business I should be making at least some profit right out of the gate.

Running Costs: $11,208.77/mo.
This is based on doing 3 markets/week and 180 customers/show or 1215 customers/mo. Based on what I've observed and what I've read, I feel this is a conservative estimate. It includes all food, plates, help, insurance, loan payments, everything.

Income: $26,946/mo.
This is based on the same assumptions as above and using normal food booth prices.

Bottom line: $6,842.09/mo.
Not bad for doing only three 4 hour shows/week. Of course there is at least that much time or more spent in the kitchen and show setup & break down as well as administrative time, but still, not bad.

Are things coming together or what!!

Dinner for 12... or 20

My next research project was to get potential customer feedback on some things that I'm planning on serving at my booth. A focus group if you will. While I was in town last Sunday attending the farmers' market, I went to my usual grocery store, the OB Peoples Organic Food Store. I needed groceries anyway, but this time I picked up enough to feed 12. I picked up 3 packages of 4 Tofurkey sausages, some whole wheat hot dog buns and what I thought should be enough vegetables to feed 12. I've never "cooked" for a group before. That type of planning was always my wife's department. Sure, I did much if not most of the cooking when we had guests, but she did all the planning. I just did what I was told :-).

The plan was to invite several people and take reservations for up to 12. I was going to charge $12/plate to cover costs and make a couple extra bucks. When I got back to the resort, with both my indoor and outdoor friges stuffed full, I told the resort owner what I was doing. I wanted to make sure there were no waves. She told me I couldn't charge because I didn't yet have a license. Oh well. So much for good planning. I had the dinner party anyway, I just didn't charge anybody.

The new plan was to invite people until we got 12 yeses. As it turned out, the 12 yeses came, as well as 12 of the people that didn't say yes. We had about 24 people. Needless to say not everybody got a whole hotdog.

I held the dinner at my friend Ardath's place, since she has a nicer yard than I do.

I asked everybody at the dinner to evaluate all of the dishes presented. I printed out a "score card" sheet for everyone to fill out, rating each dish from 1 to 9. It was a smashing success. Everyone encouraged me to Go For It!

Now, about that shopping and making dinner for 12 thing. Used up all the sausages, but it looks like I'll be eating leftovers for about two weeks!

One more thing. I'm still on pretty good terms with my Eileen. I still call her my wife. We chat on Skype at least a couple times a week. I was telling her what I was doing and asked her for a name suggestion. She asked if the menu was all raw and I said mostly raw with some cooked. So she said "Nearly Naked". Meaning mostly raw with some cooked. Of course, her knowing that I'm a nudist doing this in a textile world could have something to do with her suggestion. Anyway, now you know you can credit Eileen for the great name.