Starting a business

[Big A]

Since i have started smoking i have always had the dream of starting up my own business as im sure many of you have. I had some basic questions about just trying to get started up such as tax issues, suppliers ext. If anyone has any experiance with this and could help guide me please send me a PM. Thanks
Andrew

[BlewSmoke.com]

Originally Posted by Big A

Since i have started smoking i have always had the dream of starting up my own business as im sure many of you have. I had some basic questions about just trying to get started up such as tax issues, suppliers ext. If anyone has any experiance with this and could help guide me please send me a PM. Thanks
Andrew

If you're looking to open a cigar lounge... My advice would be to work at one for at least a year. Get to know the business inside and out. Then decide from there.

[Cigary]

Originally Posted by BlewSmoke.com

If you're looking to open a cigar lounge... My advice would be to work at one for at least a year. Get to know the business inside and out. Then decide from there.

For sure on this and I have been around quite a few business owners and the cost of opening this kind of business in the climate we see coming doesn't bode well unless you have hit the lottery and have this kind of disposable income. Some cigar retailors require a certain amount of investment on your part just to carry their name and get good pricing.

[c2000]

I'm no expert about starting a business,,but I would wait at least a year to see what the climate is like.. I would say anything with tobacco would be a no no as it seems like the government is trying its best to tax it out of existence.

Jerry in Minnesota.

[Big A]

Originally Posted by BlewSmoke.com

If you're looking to open a cigar lounge... My advice would be to work at one for at least a year. Get to know the business inside and out. Then decide from there.

Thanks for the advice. But in short no that is not what i plan on doing. Have another idea here. I more or less am looking for info on suppliers and the basic getting started stuff. Such as the taxes and such.

[taltos]

Your best bet is to get in contact with the Small Business Administration and CORE for nuts and bolts information on getting started.

[BlewSmoke.com]

Originally Posted by Big A

Thanks for the advice. But in short no that is not what i plan on doing. Have another idea here. I more or less am looking for info on suppliers and the basic getting started stuff. Such as the taxes and such.

Well hard to say what you're looking for exactly since it's quite a vague statement you've made. I appreciate your ambition. I'm all about making things happen. I guess you'd really have to share you plan in detail and work on each part as you go along.

There are lots of suppliers, each representing their own brand of cigars or multiple brands. All area's have their own reps of whom you'd need to contact to fill out an application for an account. Taxes on cigars must be prepaid..so if you buy 1000 sticks, you'll need to pay that upfront on any inventory, even if you don't have your doors open yet. You have to file forms every month on all wholesale purchases, trades, etc.. even if you don't buy anything that month ( once you get a tobacco license). Many vendors will not even let you open an account until you have a B&M standing... and most contracts exclude any internet sales. Also, most vendors are COD in the beginning until you develop some rapport with them.Of course you can't do any of that till you have business resale license and a tobacco license.

[scottw]

Originally Posted by taltos

Your best bet is to get in contact with the Small Business Administration and CORE for nuts and bolts information on getting started.

I agree, I have worked with the fellas from SCORE and they are quite good!

[mrreindeer]

Originally Posted by scottw

I agree, I have worked with the fellas from SCORE and they are quite good!

Hey Scott....last time I went to SCORES, there weren't no fellas workin' there...

[scottw]

Originally Posted by mrreindeer

Hey Scott....last time I went to SCORES, there weren't no fellas workin' there...

You went after the remodeling of the joint. I like it better now too!

[e-man]

You will need to have a BUSINESS PLAN and a PERFORMA before anyone will take you seriously for lending. That would probably be a good place to start your research. There are plenty of non-profits/government organization that can help you through this phase. You'll find out quickly if your your idea can work on paper, and what you may need to change to make the numbers work

Having a business plan and performa shows that you understand your expenses, have performed market research, have the ability to market your business and demonstrates the ability to weather a worst case scenario. It basically identifies your strengths, weaknesses, attributes, and threats.

A good rule of thumb is that you should already have at least 40% of the capital that you require before anyone will take you seriously. They want you to take some risk too, so that you have a vested interest in making this thing work. They know that you are serious if you're willing to risk putting your family on the street. Also, having 40% makes it MUCH easier to turn a profit, as all of your revenues won't be going to interest payments. Otherwise, you may work your ass off to pay off all of your investors and never make any real income for your effort. You may need to start smaller than you originally thought.

Judging by your question, you haven't taken any business classes. I would strongly recommend taking some at a community college so you can grasp the magnitude of your idea. You probably have some free resources through your state and/or county, as well as the SBA. Your government has a vested interest in seeing you succeed. If you make money, you will be paying them taxes.

[mmpjim]

Originally Posted by Big A

Since i have started smoking i have always had the dream of starting up my own business as im sure many of you have. I had some basic questions about just trying to get started up such as tax issues, suppliers ext. If anyone has any experiance with this and could help guide me please send me a PM. Thanks
Andrew

Good advice from all around...You might also try your local Chamber of Commerce..great resource. Also, check with your local Junior College. See if they sponsor a free (well taxpayer paid) service for small businesses. This is the american dream...but be prepared to sacrifice , work harder than everybody else, have plenty of working capital and set measurable goals, 'cause without goals you won't know were you are trying to go!

[Big A]

Originally Posted by e-man

You will need to have a BUSINESS PLAN and a PERFORMA before anyone will take you seriously for lending. That would probably be a good place to start your research. There are plenty of non-profits/government organization that can help you through this phase. You'll find out quickly if your your idea can work on paper, and what you may need to change to make the numbers work

Having a business plan and performa shows that you understand your expenses, have performed market research, have the ability to market your business and demonstrates the ability to weather a worst case scenario. It basically identifies your strengths, weaknesses, attributes, and threats.

A good rule of thumb is that you should already have at least 40% of the capital that you require before anyone will take you seriously. They want you to take some risk too, so that you have a vested interest in making this thing work. They know that you are serious if you're willing to risk putting your family on the street. Also, having 40% makes it MUCH easier to turn a profit, as all of your revenues won't be going to interest payments. Otherwise, you may work your ass off to pay off all of your investors and never make any real income for your effort. You may need to start smaller than you originally thought.

Judging by your question, you haven't taken any business classes. I would strongly recommend taking some at a community college so you can grasp the magnitude of your idea. You probably have some free resources through your state and/or county, as well as the SBA. Your government has a vested interest in seeing you succeed. If you make money, you will be paying them taxes.

I am almost done with my Associates degree and I have taken many business classes. I already have a business plan and such. I’m not looking for any loan or any money from anyone. Also my girlfriend works for one of those non-profit businesses but she has just started there and they aren’t one to help people get started just inform more or less.

My idea requires little money to start. I have already got the forms for a business i just wanted some more info on the cigar part of it such as taxes, how to get set up with suppliers ect. That is why i asked for people to pm so I could ask my basic questions and get out.

Sorry for being so vague but for now that is just how it is going to be. I am not looking to do this to get rich right way if at all. i still plan to get a career and just do this on the side. Thanks for the help everyone and thanks for the PMs I will get back to you shortly with some questions.

[Big A]

Originally Posted by BlewSmoke.com

Well hard to say what you're looking for exactly since it's quite a vague statement you've made. I appreciate your ambition. I'm all about making things happen. I guess you'd really have to share you plan in detail and work on each part as you go along.

There are lots of suppliers, each representing their own brand of cigars or multiple brands. All area's have their own reps of whom you'd need to contact to fill out an application for an account. Taxes on cigars must be prepaid..so if you buy 1000 sticks, you'll need to pay that upfront on any inventory, even if you don't have your doors open yet. You have to file forms every month on all wholesale purchases, trades, etc.. even if you don't buy anything that month ( once you get a tobacco license). Many vendors will not even let you open an account until you have a B&M standing... and most contracts exclude any internet sales. Also, most vendors are COD in the beginning until you develop some rapport with them.Of course you can't do any of that till you have business resale license and a tobacco license.

Thanks you, this is more of what i was looking for. How does the prepaid tax on cigars work? is it per stick, box, based off what you pay for them ect? Just do some looking on line for the suppliers and reps in my area? I only plan to be dealing with 1-3 different brands as that is all i will need for now.