Not to burst your bubble, it 's not my intention, you are young but not experienced, life is really a b*h when you live the dream and don 't have a foot stepped on reality.
I 've owned several businesses and not so good "businesses", for years I 've been a fish hobbyst, fish fascinate me, animals fascinate me reason why I studied Veterinary Medicine, had my first fish tank when I was 5 back then duiring the age of the dinousaurs of fish keeping I gre with the rechnology as it developed and I understand how the technology works and it 's application, one of my dreams when young was owning an aquarium store and I did, reason why it went down the sewer had nothing to do with me, in four years starting with a few fish tanks I became the largest tropical fish whole and retail seller of the city, my purchases and sales were in the thousands weekly, what did I do wrong or where was I wrong that took my business down the drain ?
1.- I was in a very suceptible business, risky if you want to see it, animals die, when you sell them by the hundreds a few deaths don 't mean much and when you are really good your death toll is minimal, the risk is there but you can overcome it so that wasn 't it.
2.- Well, since my business was in Mexico but 95% of the fish are imported they have prices in DOLLARS, not pesos and everything is fine if the peso/dollar rate exchange is stable, but hell, this is Mexico and in Mexico s*t happens and it happens in cycles, every X years the mexican government does something stoopid and all hell breaks loose, finantial hell breaks loose, so that helped.
3.- Finantial trubble means that people are not going to be able to pay their bills and their obligations, CC, mortgages, loans, who needs tropical fish when you don 't make enough money to pay your bills ? tropical fish are not a necessity, they are a luxury, something you have when you 've got spare money to burn. During the 1994 mexican finantial debacle and the subsequent years people lost their homes, their vehicles, me ? I lost my business, I didn 't loose money I had the fore sight to save half of my profit and invested it in other finantial mechanisms, but all I worked for so hard went down the drain and that 's what hurt me the most, not the money, the effort. :'(
After loosing that business I had some spare money burning a hole in my pocket, money I could invest in another enterprise, yeah I 'm greedy and as long as I have my finances in safe keeping any spare is good for another enterprise. Well, Leon is called by it 's people as the capital city of show manufacturing, the city lives, breathes, dies and smells everything related to shoes. So what could I do to bite a chunk out the wealth ?
Tanning ? nope don 't have the money for that, yeah I can purchase the raw material outsource it and turn it into leather or sole, but there 's a problem, the big tanneries give credit to the shoe makers but I simply can 't do that, it 's cash or cash, tanning is out of the question.
Shoe making ? with thousands of factories competing with each other I ain 't got the time nor the will to compete with everybody, out of the question.
Glue ! every pair of shoes needs a dab of glue, multiply a dab of glue for the thousands and it adds up to cans of glue, hundreds of cans of glue. Had a little money, had a friend I could muscle to sell me the glue cheaper so I started to sell glue by the can, not to the big shoe factories but to the everyday guy that makes a few pairs of shoes on a daily basis. It doesn 't die, you can store it for long periods of time, clients pay you in cash, if the price goes up you win if you have stock.
Well, everything went fine and made some good money selling glue by the can until ...... the MF danged chinese shoe came into play >, even with compensatory taxation chinese shoe is cheaper than mexican manufactured shoe, factories closed because they couldn 't compete with the price or factories became importers of chinese shoe, who needs 100 or 1000 employees to run a factory when you can run a warehouse with 10 employees ? oh well, another business that goes sour. :'(
But I 'm not going to stay that way, ok I 'm a vet, vet med is what I do so even though I had other businesses I still have my college degree and practice so I can live out of it if things go sour.
That 's when I came up with the idea of the tackle store, a friend of mine had a tackle store here and he closed it not because the sales weren 't good, he closed it for personal reasons that had nothing to do with how profitable the store was. I thought: there 's a vacum in the tackle store business, he made good money with the store, can 't I do the same ?
The market is here, more people fish than when he had the store, location ? who cares about the location ? if the people know ( and you can advertise ) there 's a TS in town people are going to come no matter where you are. Competition ? I 've got more money to invest than the competition, I 've got more contacts than the competition, I speak English, the competition doesn 't, the competition is two teeny weeny tiny stores one from an accountant that has the store as a hobby and the other one belongs to a guy that sells automotive parts. Knowledge about tackle and feeshin ? I know more than they do. For every question I had an answer that convinced me I had a great opportunity, I could fill the gap easily ...... yeah right :
I invested the money in tackle for the store and 3 years later I decided it was time to pack my bags and leave the tackle business for good.
Imagine what would be of me, my wife and my children if I didn 't have my college degree and if I hadn 't saved part of my profits and invested them in other things like properties, deposits and foreign currencies.
Which is going to be Raul 's next business opportunity ? the cash flow is not good right now but I have a little money to invest ........ food ! people gotta eat ya know.