auditor0007
Gold Member
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.
Well, he might be able to find a 500 square foot storefront for $10 per square foot in the ghetto.