Aces High Bulletin Board
General Forums => The O' Club => Topic started by: Rash on July 02, 2011, 02:40:56 PM
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So i'm starting a new snow cone making business. I save my money and bought a $20 ice shaver and grandma bought the raw materials. Sugar, syrup, flavors, cups and ice. Then, I realize I need help marketing and production of snow cones. So I get my brother and two step brothers to help. Who should get the most money?
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It's serious bucks too, we made $9 the first day. Also, if one of the partners drops the ice shaver, who pays for the damage? Someone said something about insurance?
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Might want to check out the woman from McCandless, PA who smashed windows from a Target store. They wouldn't return her two ice cream machines... :old:
She could give you some pointers.
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im curious, how old are you? i can give you the bare basics
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48
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Nephews in a business fight. He's 8 (he's the one who saved his money), then 9, 12, and 13 years old.
Rash
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:lol :lol :lol
This thread wins.
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I haven't told them about lawyers and tax yet. Or if grandma passes.
Rash
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better yet, get popcicles. 30 to a $3 bag and you can sell them for 50 cents. that's how I made my money in highschool. I would bring 10 to 12 everyday and sell them in the cafeteria in about 5 minutes before school starts.
semp
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How did you get them to school frozen? It's 103f here today?
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at 7 am?
semp
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good point, it's only about 85 at 7am.
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good point, it's only about 85 at 7am.
cooler...
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Sell the machine to an investor for $30 with a promissory to rent the machine back for $1 monthly, minimum 24 months. Take the $10 profit and hire a good attorney to license and LL C in your state with the Secretary of State. Exchange 10% shares with the two brothers to perform the marketing which leaves you 80% ownership and them with 10% ownerships. Be sure to show a good marketing plan with street corner locations, times of operations, grandmother cookie donations as rations in kind in lieu of work. Once your up $100 sell the remaining 80% to your two step brothers for the original $20 plus the 150% growth for a total of $90 but remember to bind them to the remaining promissory. That's a good 450% profit for your investment and your brothers can thank you for the business by providing free icy drinks as long as they own the business!
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just tell them you need a bail out. :noid :bolt:
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JeK, Great info. Think I can talk them into this, except grandma. It's just funny watching 4 partners deciding who gets what.
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Well, the initial investors usually get first dibs on cash, which they have the option of taking or pouring back into the company. Any income must then of course go to cover operating expenses including salaries and materials to stay in business tomorrow. If you have any non-shareholder employees, their salary must be paid for as a contractual obligation. After taking care of continuing business, any excess income (not profit, income) may be split between investing in future capabilities and paying down debt. Anything left over may be distributed to employees in the form of a cash bonus or an interest in the company as second-tier investors (typically non-voting I think), and they can either sell their shares for cash or put their value back into the company.
In short, the obligations are:
1. Initial investors and debt repayment.
2. Contractual obligations such as salaries, equipment or property leases, etc.
3. Continuing operations such as raw materials.
4. Capital investments for future operations, or paying down debt.
Saving up money to buy a new ice shaver for when the current one dies, can either fall under #3 or #4, depending on where you want your tax writeoff. Oh yea, they did track income and expenses for their tax returns, right?
In any case, bonuses as cash or shares in the company, or distributing excess available cash, comes last and must be approved by the initial investor(s) and company owner.