A Business Proposition???

All is well on the financial front, however a teacher friend came to me with a business proposition that I have mulling over for the best couple of days. I think it is an excellent idea but the downside is I will lose a big chunk of my E fund.

So my friend would like for me to partner with her and open an early childcare/daycare center. My initial investment would be $10,000 for 35% ownership. We would also have to split the title of program director and work at the center 2-3 days a week from 3pm-6pm. The business plan seems solid, location is already zoned, and she is thinking about opening sometime around junish.

My concern is putting down $10,000 for only 35% ownership. Does that not seem right to you? If I am putting down $10,000 I want at least 40% ownership. Perhaps we could negotiate something like me investing $7000 for 30% ownership.

My second concern is my money being tied up for over six months with no return. The industry average for a day care center to reach profitability is 12 months (if we are lucky 7 months), however, in Philadelphia there is a waiting list at most day care centers.

This is a big risk...but this risk can change my life. From the projected income/expense it looks like I could bring in about $14000 gross my first year and then more and more the second and third year. There is the opportunity by year five for the business to grow to 2 more new center and etc. By then it should be all about the passive income!

Any advice or ideas??

until next time, think prosperous thoughts

YBP

How Rich People Think

I saw this on MoneyMonk's website and thought I should post this.

According to Keith Cameron Smith author of the book The Top 10 Distinctions between the Millionaires and the Middle Class "Rich People think long term, middle class think short term"

This is how the four classes of people think:

The Very Poor- think day to day

The Poor- think week to week

The Middle Class think month to month

The Rich think- year to year

The very rich- think decade to decade

How do you think?

I actually think from year to year. I have all my plans organized in my journal for the next 2 years. I just have to figure out how to start thinking in decades.

Until next time, think prosperous thoughts

YBP