new rest. business - what is my current equity? (catering)

New Q joint guy · Joined: 20 Aug 2010 Posts: 12

The first meeting went really well. We reviewed my compensation package*, opening budget, and proposed equity structure / financing plan. I was relieved to find out we are all in agreement on it.

* One thing not mentioned previously is the nugget that's allowing my wife and I to proceed - as Pitmaster / G.M. I will be paid a fair salary, one that will keep my family housed, clothed, well fed, etc. It's basically the same salary that I'm making at my present job. So other than the fact that I'm a less than majority shareholder, it's a no-lose proposition. We have almost no risk going into this thing. There is an additional incentive plan that is tied to growth and operational goals, not profits - the incentive plan pays 50% cash, 50% equity.

The biggest impact is the extra money we put in the bank from catering - we will obviously lose that income. I anticipate it will be replaced with income from the restaurant and all the other revenue sources that will come up without the baggage of a full time job. For example, right off the bat, I know catering revenue will increase 75% due to the weekday and smaller (<100 ppl) catering jobs I currently have to turn away.

Thanks for your feedback guys... We have not jumped yet but this may be an interesting story to follow... Will be looking at properties next week and no, we don't have an opening date set. March-ish 2011 seems reasonable.
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Part time BBQ Caterer considering opening a joint of my own...
Here's my story...
http://www.thesmokering.com/forum/viewtopic.php?t=43055

Jeff Hughes · Posted: Sep 29 2010 Post subject:

BBQMAN · Posted: Sep 29 2010 Post subject:

In addition to Jeff's question above (wouldn't any incentive plan be tied into profits?)

I'm wondering about this:

BBQMAN · Posted: Sep 29 2010 Post subject:

daddywoofdawg · Posted: Sep 29 2010 Post subject:

A full time job is only 8 hrs!a raunt is two full time jobs,with 8 hrs of thinking about it for free!LOL
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Good BBQ is all smoke and beers!
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az mike · BBQ Fan Joined: 13 Nov 2008 Posts: 382 Location: seaz

I sold a going biz to a major retail store manager. He thought that free enterprise would net him far more money. Fast forward.... wife now gone, economy rough, bad attitude etc. Be careful what you wish for!! These times are not forgiving to experiments that involve your ability to provide for you and yours.