2000-4000 BTC loan - Hookah Lounge

[dank]

Hello, my name is Dank and as many of you may know, I have a multitude of business ideas I would like to begin implementing but lack the capital to get started.  I'd like to open a hookah lounge in my city, it's a very profitable and sound investment, here's why:

My city has over five colleges, leaving a huge, young customer base.  There are currently no hookah bars operating in my city, the only one that existed has temporarily stopped serving hookah to focus on the restaurant side of business.  I know for fact students would appreciate having a hookah lounge to smoke at, giving me total control over the market in a town of over 50,000 college students.  A hookah bar manager in a neighboring city (with competing lounges) makes $9000 in profit each month.  My hookah lounge will have a unique, multi-themed atmosphere, from eastern to psychedelic, to appeal to all audiences and offer a change from the ordinary, singular themed hookah bars.

What else will be great about my hookah lounge?  We'll accept Bitcoin, for one.  We'll be providing the highest quality shisha for extremely affordable prices.  We will provide live music on the weekends and operate late into the night.  We will also host promotion nights, for different colleges, to raise awareness.

Hookah lounge progress:

✓ Spreadsheet estimating profit
✓ Spreadsheet covering budget/expenses (WIP)
✓ Designed logo
✓ Designed promotional flyers
✓ Found suitable location for lease

Scheduled tasks:

✓ Discuss business model with attorney
✓ Discover all regulations, permits and licenses involved
✓ Further formulate a more-detailed business plan
✓ Register business with state
✓ Obtain loan from investor or bank (preferably Bitcoin investor)

The numbers:

The facility I'm looking at has a maximum capacity of 300-400 people, giving us maximum room for growth.  I'm sampling different methods to charge customers, my first idea is to charge $5/guest plus $5/hookah/refill.  These prices are very low for the industry, while they are also very promising from a business standpoint.

Assuming we can attract 96 customers/day, 16-12 people an hour for a two hour session, throughout a 6-8 hour period, we could earn $600/day on weekdays and $1800/day on weekends.  The total profit, with these measurements, minus cost for rent, supplies and employees, would amount to $13,630/month.  This leaves us ample room for other expenses and plenty of room to grow into a larger business.  If we could attract an additional four customers/hour, the figures would increase to $700/day or $19,300/month profit.

In addition to hookah services, additional income would be made off smoking accessory sales and food/beverages.  Tobacco pipes could be resold for 200% profit, adding anywhere from $1000-2000/month in profit.  Bottled water would resell for 600% it's price, at $1/bottle, adding a few hundred over the week.  I haven't been able to look into completely, yet, but snack items and possibly small meals will further provide additional revenue to our business.

I can provide the spreadsheet including this information, if you're interested in investing.

Loan terms:

I have no problem providing identification as requested.  I'm interested in any loan between 2000 BTC and 4000 BTC for a term of 1-2 years.  To adjust for price influxations between USD inflation and BTC, we would recalculate the payments, every month, relative to the initial start up cost.  For example, you lend me 4000 BTC @ $11/coin, $44,000 and I plan on repaying it over two years with 2% interest/month.  Our monthly payment would equal $1870, or 167 BTC, including interest.  If Bitcoin should rise to $20/coin within that period and USD loses 10% purchasing power, I would recalculate the loan to $48,400 giving us a payment of 101 BTC.  This protects me from BTC price variations and you from USD devaluation.

Basically, I will adjust for USD inflation.  We can go into more detail in a contract, optionally, the goal with these terms are to prevent either party losing out because USD hits the fan.

In addition to the interest payments, I would be willing to pay 5% of each months final profit, for three years.  If we make $10,000/month in profit for three years, you'll earn a total of $18,000 (in BTC, of course) on top of the principle and interest.

Thank you for your time, I'd be happy to take any questions you may have regarding my hookah business.

[1715101233]

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[1715101233]

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[coinrolls2]

I'm sorry but without a real business plan, and including all of the expenses surrounding running a small business (taxes, accounting, insurance, and a business license just to name a few.) I doubt anyone will loan you that kind of money.

CR

[dank]

I'd be willing to generate such a thing, no problem.  I'd like to gauge interest from investors with a basic plan, first.

[BitcoinINV]

Love to see real world Idea's on here. Hope it goes really well for you dank, I could flip a coin or two your way.

[dank]

Thank you.

[dank]

Let me add, I'm willing to work on the generous side when it comes to interest.

[danieldaniel]

Sorry for being stupid, but hookah == hooker?

[dank]

Not quite, this is a hookah, used to smoke flavored tobacco:

[DeathAndTaxes]

Just a friendly suggestion.  I would recommend this weekend starting to come up with better numbers.    Use the thread to answer questions but you really need to flesh in your details.

Even something as simple as an excel spreadsheet can allow you to start to get a handle on your real costs.

For example you have $8/hr for labor.  As an employer you are required to pay the employer half of FICA (~7.65%) plus Workman's Comp Insurance is required in most states and costs extra.  You (or at the very least your investors) likely want some payroll system to handle tax deductions, remissions, and issue net paychecks to avoid that liabilty/penalty.  So that is just one of your budget items.Generally speaking for most employers labor costs about 200% to 300% of actual wages.  Even with no benefits, sickdays, nothing 150% of actual wages is a good starting point.

[dank]

I plan on using the weekend to go over the details myself, I just got the idea today and wanted the hunt for investors to begin.

I will be talking to my attorney next week about the subject, as well.

Thank you, I greatly appreciate your input.

[Viceroy]

Dank,


Check this site out:  http://web.sba.gov/busplantemplate/BizPlanStart.cfm

It took me a month to write my 30+ page business plan and I've spent months since then refining it.  Starting a business is hard and not for most people, but if you are the entrepreneurial type this template should help you figure out what your business will look like.

In fact, given your business is 'legal' you should probably spent some time and find an SBA mentor to help you.  There is really no reason for you to seek funds here as you should be able to get a loan at any bank if your numbers are solid.

[dank]

I have taken business classes in high school and my dad has taught me a good amount about it, as a child.  I was thinking of taking some classes/counseling for this specific model, I'll consider an SBA mentor.  I think it shouldn't be a problem, I hope to be running within a month though.

I would go through a bank as back up, but I wanted to give the Bitcoin community a chance, first, since I don't like banks.

Thanks for the feedback.

[dank]

Got that right.

[Rarity]

Hello, my idea for Dank Glass has evolved thanks to a friend.

You're welcome, but killing people with tobacco is just as wrong as selling them illegal drug paraphernalia. 

[dank]

You're not the friend, sorry.  I'm not killing anybody with tobacco, they choose to do it themselves and it only kills you if you believe that it will.

[grue]

You're not the friend, sorry.  I'm not killing anybody with tobacco, they choose to do it themselves and it only kills you if you believe that it will.

so i guess those warnings on the cigarette packs were wrong all along?

[Rarity]

Addiction is a disease, not a choice.  Learn some science about the dangers of tobacco.  I feel very bad for your employees who may be subjecting themselves to a dangerous workplace out of economic necessity. 

[dank]

You're not the friend, sorry.  I'm not killing anybody with tobacco, they choose to do it themselves and it only kills you if you believe that it will.

so i guess those warnings on the cigarette packs were wrong all along?

A lot of people smoke when they're stressed.  A lot of people associate negative thinking with cigarettes.  Negative thinking is what causes sickness, it's created in your mind.  You can smoke cigarettes and as long as you don't let you're problems consume your life, you'll be fine.  Life is what you believe after all.

[coinrolls2]

You're not the friend, sorry.  I'm not killing anybody with tobacco, they choose to do it themselves and it only kills you if you believe that it will.

so i guess those warnings on the cigarette packs were wrong all along?

A lot of people smoke when they're stressed.  A lot of people associate negative thinking with cigarettes.  Negative thinking is what causes sickness, it's created in your mind.  You can smoke cigarettes and as long as you don't let you're problems consume your life, you'll be fine.  Life is what you believe after all.

Based solely on this statement, I believe you must be quite young or quite naive or more likely both. If you aren't mature enough to know that smoking kills plain and simple, you're probably not mature enough to deal with the daily grind of running a small business.

CR

[Phinnaeus Gage]

Have you considered what decor you're planning on going with. A welcoming ambiance would most diffidently increase you potential income, coupled with a proper name--Dank's Hookah Lounge (not bar).



Note how welcoming this place is simply by incorporating barn wood in its decor. I'm located in Sandwich, Illinois, and I don't know where you're located, but if you're close, I'll being willing to supply you barn wood at cost plus.

"Smoke at Dank's, Dank's is fun, come right now, don't walk - run!"

~Bruno~