Governemnt assisatnce to start small businesses??

Jarhead

Gold Member
Jan 11, 2010
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In a debate in another thread, someone said to me that nothing is being done to promote small business, (I assume he meant by the government) He, himself, is in the military but is also a talented haircutter and he said without his GI Bill assistance, he would never be able to start up a barber shop. I agree in his case as he is on in years and doesn’t have the time to dedicate to building toward a business. But most people...say in their 20's dont need Government assistance to start a business.....so as a business planner, I laid this out for a 22 year old with the same aspirations......
someone on the left....please point out the flaw ( I dont think there is any)....


A 22 year old decides he wants to cut hair....but his goal is to own a barbershop within 5 years.......He has the talent and gets a job at a local barber shop making 8 bucks a head....10 heads a day....400 a week. In the meantime, he gets a job at a local convenience store making 8 bucks an hour working form 6-12...... 3 days a week and 8-5 on Sunday....another 200 a week.

So now he is busting his ass making 600 a week.

In the meantime he is building a reputation as an excellent barber...and as a single guy, he is socking away 200 a week.....as the 300 a week (after taxes) is enough to support his lifestyle as he is not going out partying and not taking vacations.....he is focused on ownig his own business....

After 2 years he has 20K saved up....now he can quit the convenience store and start cutting hair in his apartment for friends and acquaintenances....bulding up his reputation and determining if he can really do it on his own....still making the money with the barbershop as well.

He likes what he sees...so he looks for real etstate and rents a 500 sq foot store front for 10 bucks a foot....5000 a year.....415 a month.....2 months deposit (new business needs to give 2 months deposit)...and 1 month rent...about 1300 outlay for the store.....He buys a used barber chair....700 bucks...he buys hair cutting items.....500 bucks.....he signs a deal with a vendor of hair products.....incorporates himself (200 bucks) and gets liability insurance (1000 bucks)....

So before he opoens the door...he has 20K saved up and initial expenses (including first nmonths rent) of less than 4K.

Now he quits his job with the barber...and has 16K savings left over to live on...and he makes his business work.

He gets busy...uses some of his savings for a second chair...pays some 22 year old 8 bucks a head and proifits 6 bucks a head...plus of course, the 14 bucks a head he makes off all those HE cuts....

Yep....at the age of 25 he has his own business.

AND NO WHERE DID GOVERNMENT HAVE TO DO A DAM THING!
 
In a debate in another thread, someone said to me that nothing is being done to promote small business, (I assume he meant by the government) He, himself, is in the military but is also a talented haircutter and he said without his GI Bill assistance, he would never be able to start up a barber shop. I agree in his case as he is on in years and doesn’t have the time to dedicate to building toward a business. But most people...say in their 20's dont need Government assistance to start a business.....so as a business planner, I laid this out for a 22 year old with the same aspirations......
someone on the left....please point out the flaw ( I dont think there is any)....


A 22 year old decides he wants to cut hair....but his goal is to own a barbershop within 5 years.......He has the talent and gets a job at a local barber shop making 8 bucks a head....10 heads a day....400 a week. In the meantime, he gets a job at a local convenience store making 8 bucks an hour working form 6-12...... 3 days a week and 8-5 on Sunday....another 200 a week.

So now he is busting his ass making 600 a week.

In the meantime he is building a reputation as an excellent barber...and as a single guy, he is socking away 200 a week.....as the 300 a week (after taxes) is enough to support his lifestyle as he is not going out partying and not taking vacations.....he is focused on ownig his own business....

After 2 years he has 20K saved up....now he can quit the convenience store and start cutting hair in his apartment for friends and acquaintenances....bulding up his reputation and determining if he can really do it on his own....still making the money with the barbershop as well.

He likes what he sees...so he looks for real etstate and rents a 500 sq foot store front for 10 bucks a foot....5000 a year.....415 a month.....2 months deposit (new business needs to give 2 months deposit)...and 1 month rent...about 1300 outlay for the store.....He buys a used barber chair....700 bucks...he buys hair cutting items.....500 bucks.....he signs a deal with a vendor of hair products.....incorporates himself (200 bucks) and gets liability insurance (1000 bucks)....

So before he opoens the door...he has 20K saved up and initial expenses (including first nmonths rent) of less than 4K.

Now he quits his job with the barber...and has 16K savings left over to live on...and he makes his business work.

He gets busy...uses some of his savings for a second chair...pays some 22 year old 8 bucks a head and proifits 6 bucks a head...plus of course, the 14 bucks a head he makes off all those HE cuts....

Yep....at the age of 25 he has his own business.

AND NO WHERE DID GOVERNMENT HAVE TO DO A DAM THING!

For one I personally don't consider 10 haircuts a day and a few hours behind a counter at a 7/11 "busting ass"

And what guy is dumb enough to pay $14 for a haircut?
 
The flaw is the government would have shut him down for cutting hair in his apartment.
 
In a debate in another thread, someone said to me that nothing is being done to promote small business, (I assume he meant by the government) He, himself, is in the military but is also a talented haircutter and he said without his GI Bill assistance, he would never be able to start up a barber shop. I agree in his case as he is on in years and doesn’t have the time to dedicate to building toward a business. But most people...say in their 20's dont need Government assistance to start a business.....so as a business planner, I laid this out for a 22 year old with the same aspirations......
someone on the left....please point out the flaw ( I dont think there is any)....


A 22 year old decides he wants to cut hair....but his goal is to own a barbershop within 5 years.......He has the talent and gets a job at a local barber shop making 8 bucks a head....10 heads a day....400 a week. In the meantime, he gets a job at a local convenience store making 8 bucks an hour working form 6-12...... 3 days a week and 8-5 on Sunday....another 200 a week.

So now he is busting his ass making 600 a week.

In the meantime he is building a reputation as an excellent barber...and as a single guy, he is socking away 200 a week.....as the 300 a week (after taxes) is enough to support his lifestyle as he is not going out partying and not taking vacations.....he is focused on ownig his own business....

After 2 years he has 20K saved up....now he can quit the convenience store and start cutting hair in his apartment for friends and acquaintenances....bulding up his reputation and determining if he can really do it on his own....still making the money with the barbershop as well.

He likes what he sees...so he looks for real etstate and rents a 500 sq foot store front for 10 bucks a foot....5000 a year.....415 a month.....2 months deposit (new business needs to give 2 months deposit)...and 1 month rent...about 1300 outlay for the store.....He buys a used barber chair....700 bucks...he buys hair cutting items.....500 bucks.....he signs a deal with a vendor of hair products.....incorporates himself (200 bucks) and gets liability insurance (1000 bucks)....

So before he opoens the door...he has 20K saved up and initial expenses (including first nmonths rent) of less than 4K.

Now he quits his job with the barber...and has 16K savings left over to live on...and he makes his business work.

He gets busy...uses some of his savings for a second chair...pays some 22 year old 8 bucks a head and proifits 6 bucks a head...plus of course, the 14 bucks a head he makes off all those HE cuts....

Yep....at the age of 25 he has his own business.

AND NO WHERE DID GOVERNMENT HAVE TO DO A DAM THING!

For one I personally don't consider 10 haircuts a day and a few hours behind a counter at a 7/11 "busting ass"

And what guy is dumb enough to pay $14 for a haircut?

It is busting his ass becuase he is working 60+ hours a week....one day off a week.
Although I worked 80 a week and no days off for a few years....but not all are sick like I am (was)...now I am a lazy business owner who lets his people do the work for him as I sut on this board and vent.
So change the numbers to 12 a haircut...where I am the local barber I use is 16 a haircut plus I tip him another 6.
 
The flaw is the government would have shut him down for cutting hair in his apartment.

No they wouldnt. He is not charging any of his friends...He is doing it to get his reputation going...and to see how much activity he can generate before he makes any type of finanical commitment.
 
Don't be silly, GA has been supporting small business for decades. Mostly drug dealers and liquor stores.
 
In a debate in another thread, someone said to me that nothing is being done to promote small business, (I assume he meant by the government) He, himself, is in the military but is also a talented haircutter and he said without his GI Bill assistance, he would never be able to start up a barber shop. I agree in his case as he is on in years and doesn’t have the time to dedicate to building toward a business. But most people...say in their 20's dont need Government assistance to start a business.....so as a business planner, I laid this out for a 22 year old with the same aspirations......
someone on the left....please point out the flaw ( I dont think there is any)....


A 22 year old decides he wants to cut hair....but his goal is to own a barbershop within 5 years.......He has the talent and gets a job at a local barber shop making 8 bucks a head....10 heads a day....400 a week. In the meantime, he gets a job at a local convenience store making 8 bucks an hour working form 6-12...... 3 days a week and 8-5 on Sunday....another 200 a week.

So now he is busting his ass making 600 a week.

In the meantime he is building a reputation as an excellent barber...and as a single guy, he is socking away 200 a week.....as the 300 a week (after taxes) is enough to support his lifestyle as he is not going out partying and not taking vacations.....he is focused on ownig his own business....

After 2 years he has 20K saved up....now he can quit the convenience store and start cutting hair in his apartment for friends and acquaintenances....bulding up his reputation and determining if he can really do it on his own....still making the money with the barbershop as well.

He likes what he sees...so he looks for real etstate and rents a 500 sq foot store front for 10 bucks a foot....5000 a year.....415 a month.....2 months deposit (new business needs to give 2 months deposit)...and 1 month rent...about 1300 outlay for the store.....He buys a used barber chair....700 bucks...he buys hair cutting items.....500 bucks.....he signs a deal with a vendor of hair products.....incorporates himself (200 bucks) and gets liability insurance (1000 bucks)....

So before he opoens the door...he has 20K saved up and initial expenses (including first nmonths rent) of less than 4K.

Now he quits his job with the barber...and has 16K savings left over to live on...and he makes his business work.

He gets busy...uses some of his savings for a second chair...pays some 22 year old 8 bucks a head and proifits 6 bucks a head...plus of course, the 14 bucks a head he makes off all those HE cuts....

Yep....at the age of 25 he has his own business.

AND NO WHERE DID GOVERNMENT HAVE TO DO A DAM THING!

For one I personally don't consider 10 haircuts a day and a few hours behind a counter at a 7/11 "busting ass"

And what guy is dumb enough to pay $14 for a haircut?

It is busting his ass becuase he is working 60+ hours a week....one day off a week.
Although I worked 80 a week and no days off for a few years....but not all are sick like I am (was)...now I am a lazy business owner who lets his people do the work for him as I sut on this board and vent.
So change the numbers to 12 a haircut...where I am the local barber I use is 16 a haircut plus I tip him another 6.

The average haircut takes what 20 minutes? 10 a day and that's only 3 hours and 20 minutes of work. Sitting around the shop waiting for customer to walk in is not busting ass.
 
For one I personally don't consider 10 haircuts a day and a few hours behind a counter at a 7/11 "busting ass"

And what guy is dumb enough to pay $14 for a haircut?

It is busting his ass becuase he is working 60+ hours a week....one day off a week.
Although I worked 80 a week and no days off for a few years....but not all are sick like I am (was)...now I am a lazy business owner who lets his people do the work for him as I sut on this board and vent.
So change the numbers to 12 a haircut...where I am the local barber I use is 16 a haircut plus I tip him another 6.

The average haircut takes what 20 minutes? 10 a day and that's only 3 hours and 20 minutes of work. Sitting around the shop waiting for customer to walk in is not busting ass.
OK...take out busitng his ass....

I really dont care.

The crux of my point is really what I wanted comments on......but it seems all I am getting are sarcastic remarks.

No biggie...thought it would be a good debate seeing as many on the left expect government to help them move forward.

Me? Thank God government wasnt there to help me move forward...I would proabably still be waiting for them.
 
It is busting his ass becuase he is working 60+ hours a week....one day off a week.
Although I worked 80 a week and no days off for a few years....but not all are sick like I am (was)...now I am a lazy business owner who lets his people do the work for him as I sut on this board and vent.
So change the numbers to 12 a haircut...where I am the local barber I use is 16 a haircut plus I tip him another 6.

The average haircut takes what 20 minutes? 10 a day and that's only 3 hours and 20 minutes of work. Sitting around the shop waiting for customer to walk in is not busting ass.
OK...take out busitng his ass....

I really dont care.

The crux of my point is really what I wanted comments on......but it seems all I am getting are sarcastic remarks.

No biggie...thought it would be a good debate seeing as many on the left expect government to help them move forward.

Me? Thank God government wasnt there to help me move forward...I would proabably still be waiting for them.

A lot of people have started a business without any help from the government. I happen to be one of them.

I'm of the mind that people who will be good businessmen will open a business no matter what obstacles the government throws in their way and many will do it with no government assistance at all.
 
The average haircut takes what 20 minutes? 10 a day and that's only 3 hours and 20 minutes of work. Sitting around the shop waiting for customer to walk in is not busting ass.
OK...take out busitng his ass....

I really dont care.

The crux of my point is really what I wanted comments on......but it seems all I am getting are sarcastic remarks.

No biggie...thought it would be a good debate seeing as many on the left expect government to help them move forward.

Me? Thank God government wasnt there to help me move forward...I would proabably still be waiting for them.

A lot of people have started a business without any help from the government. I happen to be one of them.

I'm of the mind that people who will be good businessmen will open a business no matter what obstacles the government throws in their way and many will do it with no government assistance at all.

As I did....

But only a foolish business owner, on the heels of a recession, would consider expanding when therew are so many uncertanties out there such as cap and trade talks, healthcare costs, etc....
 
Sounds pretty unrealistic to me.

1.) Assumes that the first barber shop would have 10 heads a day every single day for him to cut.

2.) Assuming making $600 a week and he would be able to sock away $300 a week. Even if he doesn't party there's stuff such as:

Food. Apartment. Electric or Water possibly. Car insurance. Gas. Health insurance (or if he doesn't, he'll lose it a great deal of his money when he gets sick). And then there's clothing. And then there's stuff such as phone, cable, internet. Unless of course he plans on having a business in the future without a phone.

3.) You assume after 2 years he'll have 20k saved up.

4.) For a guy who's always working 24/7 and never takes vacations, very interesting that he has all these friends and people he knows who are willing to have him cut their hair.

5.) This 500 sq foot store at $10 a foot is based on what? Real estate varies from place to place. Especially since it's very likely the place he's moving to already has established barber shops in the area.

6.) You're very likely undervaluing how much it would cost for him to run the actual shop.

7.) Assuming enough people are going to pay $14 for a haircut. Especially from some rookie. In your case or the new guy's case. Especially in this economy.

This is the problem with these kind of examples, there are so many different assumptions being made and I'm sure there's plenty more I missed. Such as expenses for a little thing called a girlfriend or boyfriend.

All you did OP was take the idealistic result in every single situation. There are no real obstacles. There are no real problems. Everything just falls into line magically for our John Doe or Jane Done in this situation. Except you want to know the problem with that situation? Life doesn't actually work like that.
 
Pubs are blocking 10 Dem jobs bills (some their kind all the way) right now, and several trade bills, for no good reason.And we wouldn't have to wait 5 years...
Most of the Pub businessmen I've met who needed no help from the gov't, turn out to have gotten it from Daddy...
 
OK...take out busitng his ass....

I really dont care.

The crux of my point is really what I wanted comments on......but it seems all I am getting are sarcastic remarks.

No biggie...thought it would be a good debate seeing as many on the left expect government to help them move forward.

Me? Thank God government wasnt there to help me move forward...I would proabably still be waiting for them.

A lot of people have started a business without any help from the government. I happen to be one of them.

I'm of the mind that people who will be good businessmen will open a business no matter what obstacles the government throws in their way and many will do it with no government assistance at all.

As I did....

But only a foolish business owner, on the heels of a recession, would consider expanding when therew are so many uncertanties out there such as cap and trade talks, healthcare costs, etc....

It all depends. We've been growing despite the recession and we may consider expanding if all continues as it is.

But I certainly can understand the trepidation of small business and quite frankly don't blame them at all.
 
Sounds pretty unrealistic to me.

1.) Assumes that the first barber shop would have 10 heads a day every single day for him to cut.

Normal number.....that is less than 2 cutomers an hour

2.) Assuming making $600 a week and he would be able to sock away $300 a week. Even if he doesn't party there's stuff such as:

Food. Apartment. Electric or Water possibly. Car insurance. Gas. Health insurance (or if he doesn't, he'll lose it a great deal of his money when he gets sick). And then there's clothing. And then there's stuff such as phone, cable, internet. Unless of course he plans on having a business in the future without a phone.

I said save 200 a week....leaving him 300 a week after taxes for the above mentioned expenses

3.) You assume after 2 years he'll have 20k saved up.

yes...200 a week is 10,400 a year.....so after 2 years that is 20,800 saved.

4.) For a guy who's always working 24/7 and never takes vacations, very interesting that he has all these friends and people he knows who are willing to have him cut their hair.

Silly thing to say. He is working long days has saturday all day free...and I worked long days for a few years and kept all my firends.....silly diversion on your part...very silly5.)

This 500 sq foot store at $10 a foot is based on what? Real estate varies from place to place. Especially since it's very likely the place he's moving to already has established barber shops in the area.

10 a foot for retail space in many suburban areas is a fair rent. Yes, there are likely shops already...but there will always be competition....not sure why you brought that up. Government assisatnce or not, there will always be compettition


6.) You're very likely undervaluing how much it would cost for him to run the actual shop.

No sir. I am not. The cost to run the shop...his operating costs...were not laid out at all.....there will be operating costs....thus he must have customers....my analysius was about STARTING a business....not how to succeed at it.

7.) Assuming enough people are going to pay $14 for a haircut. Especially from some rookie. In your case or the new guy's case. Especially in this economy.

Thus why the proper planning....the freebie haircuts to get a reputation...to see the kind of activity one would get...but again....this was about starting a business without government assistance......success would be necessary with or witrhout government assiatcne......thius has nothing to do with acheiving success....it has to do with "starting a business"

This is the problem with these kind of examples, there are so many different assumptions being made and I'm sure there's plenty more I missed. Such as expenses for a little thing called a girlfriend or boyfriend.

All you did OP was take the idealistic result in every single situation. There are no real obstacles. There are no real problems. Everything just falls into line magically for our John Doe or Jane Done in this situation. Except you want to know the problem with that situation? Life doesn't actually work like that.

No sir....what you did was try to find ways why someone would not be successful.

Sure...success is always an issue.

The discussion had to do with whether or not government assistance was required.

But I will say this....you ripped it apart....you approached it with a nbegative attitude.....you were not looking to find the virtues in starting a business....you were looking to find how it will fail.

Therfore...I think YOU may have deeper issues.
 

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