I closed on a new house a month ago and two days later, I closed on a new business. Needless to say it’s been a crazy month. My blog has been on the back burner while I get everything sorted out. I just want to pop in and update everyone on where I’m at on everything.
I decided to downgrade to a smaller, more updated house. It just made more sense to have the extra money to reinvest on other business ventures. The time I’ll also save on upkeep, is very much needed right now.
The exciting stuff!
I have been working on purchasing a Marble Slab Creamery since about July with my girlfriend and finally took over a couple weeks ago. I got an amazing deal on it and expect to make my investment back in less than two years. It’s a little more time consuming than the gym, but the return will be well worth it. One step closer to early retirement!
I didn’t plan on buying another business so soon but I kind of fell into this deal while looking for rental properties to purchase. Being open to new things and not being afraid to take risks are very important, if you ever want to succeed at anything.
I started typing this up almost a year ago and never had an opportunity to finish. Life came at me pretty fast with the move and getting situated with the new store. After that I just kind of fell out of the habit of getting on here.
So where am I at now? Well I’m not rich and famous, but things are moving along.
- The gym
- Fully paid off
- Started selling supplements
- Slowly gaining more members
- Sales up by 23%
- The Marble Slab
- Will pay for itself in a year
- Sales up about 10%
I’ve had several people ask me how I paid for the Marble Slab, well the answer may surprise you and will probably be against everything you have been told. I paid for half of it with savings and using my car as collateral. The other half, I took a loan out on my 401k.
I know that your financial adviser would be completely against this idea, but hey, that’s how they make their money. The fact is, that a 401k plan might net you a 10% return on your money (if you’re lucky). Last year my 401k plan barely made 3%. The Marble Slab on the other hand, almost a 50% return on my investment. After it’s paid off in a year I’ll be bringing in that same 50% and then some year after year. You’d have to be the luckiest investor in the world to realize those returns with the stock market.
I’m not saying you shouldn’t invest in a 401k plan or save for your retirement, but there is definitely a fine line there. When you retire your cash flow becomes zero and you start drawing off your savings to live. There isn’t new money coming in, other than small amounts of interest. As a business owner your cash flow doesn’t stop AND you have your 401k. All too often, I see people working well into retirement age because they don’t know if they have enough money saved to leave or can’t afford the healthcare. Don’t put yourself in that position. Diversify!
As for the future, my eyes are wide open. I have been doing a lot of reading and educating myself on different aspects of owning and running businesses. I frequent Entrepreneur.com and also spend time reading startup and other small business blogs. I have a lot of ideas in mind and hopefully will be announcing something new in the coming months. Much more to come, stay tuned!
Does this selfie, make my gym look fat?