My first post on Leofinance: Do you think it is a good time to invest now and start my own business?
Hello leofinance, my name is Stelios and I am from Greece and I currently live in Athens. Entrepreneurship has always been an area of interest to me, so I will be very happy to connect with some respectable entrepreneurs here.
As I remember myself in all the jobs I worked in, I observed very carefully the movements of each entrepreneur, such as the advertising campaigns, the expenses incurred by the company and generally everything in terms of its operation in order to create my own profitable business one day.
The business ideas that have crossed through my mind are endless, some with great risk and some with less. From the age of eighteen, I have been working in the field of catering and hospitality, so most of my business ideas are related to this business category. I was always thinking to open a takeaway coffee shop because the expenses would not be high comparing to a cafeteria with a big lounge. I have never done this business movement because after the economic crisis of 2008 a lot of businesses of this kind opened, so I reconsidered my mind and started to look opportunities at the internet.
For many years I have been searching in many areas of internet marketing and ways to set up an internet business. But every time I waste my time learning many information about different kind of internet businesses and in the end I do nothing. The only thing that has kept me going is my blog on Steemit/hive which I consider as a business also.
Last year I rent two small rooms by the sea at my hometown Rethymno in Creta which gathers thousands of tourists every summer season. I spent some money renovating the rooms and I put them on airbnb. The results were very good, in 6 months of operation I succeed paying all the rents to the owner, I paid for the renovation, I paid the taxes that were 15% and I made a small profit which made me very happy because the next year I wouldn't have the expenses of the renovation and I could rent them for a higher price because my reviews were very good and airbnb made me a super host. Unfortunately coronavirus emerged and I lost profits of 3 months. Thankfully at July, August and September both of the rooms are reserved with 20% higher prices than last year. Hopefully If I manage to rent both of them at October and November at airbnb my profits will be about 30% better than last year. At the winter seasons I rent them by month at a very lower price which is almost 1/3 of the price I am renting them at airbnb.
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Now I would like to talk to you about my big dilemma and I will be obliged whoever can and has business knowledge to give me some advices. 1 month before the lockdown I had found a shop rented at Pagrati of Athens in a square full of coffee shops, a supermarket and many shops around. I want to open a restaurant at this shop which will serve 10 to 15 different cooked food everyday and I aim as customers the employees at the shops and the coffee shops around also the customers of the supermarket thinking that my restaurant will have a lot of visibility to the customers of the supermarket and the other shops around.
My idea at the beginning was to sell quality food a little more expensive that my competitors and socialize with the neighborhood and offer them discounts in order to make them think that they get better prices than the other restaurants around which are not many. But then the lockdown came and for 3 months now all of my plans have been frozen. Some days ago I contacted the owner of the shop and offered me a 50% discount of the rent due to the situation of the lockdown and its impacts at the economy. This is very encouraging but some rumors say that the gorvernment will lock us again in our houses at octomber. If that happens and I have opened my restaurant till then I am afraid that I will be destroyed financially because I won't have income until the lockdown finish.
I have read at many business articles that the best time to invest is during the economic crisis and indeed if you think that the rent will be 50% down for 3 years it is a very good opportunity. I will take a loan of 100.000 thousand euros and I will mortgage a building which its value is more than 300.000 euros so here is the moment I am asking about your opinion. What do you think should I open the restaurant now which the economy is uncertain and I will risk a lot of money or should I take the risk to wait and see what will happen with the economy the upcoming months and maybe someone else rent the shop that I want to open as a restaurant. The price is very good and someone else which have an available capital will rent it. What do you think I should do?
I know that in business is very important to take risks, but I am not an experienced businessman so I΄d love to hear your opinion. Thanks for stopping by, see you at my next post!
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Honestly, any man with not much capital that dares to do business in Greece has my respect. Too much taxes. Too much bureaucracy. Too much shit for the little guy. And of course anytime the government needs money, boom, a new tax, ofc for the ones working in the private sector. Personally, I would never open any kind of business in Greece, especially one requiring getting an 100k loan, but still I wish you good luck if you proceed with your endeavour!
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I was thinking exactly like you some years ago. But lately the Economy had been improved significantly until the scamdemic came. Now I have second thoughts and that's why I wrote this post today in order to hear the opinion of some respectable entrepreneurs of leofinance. thanks for your answer :)
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I really am not the person for financial advise, but I am very pessimistic for Greece because there is much more than they are telling us... So getting such a high loan could be very risky - especially in our Country (at the moment)
Also, you know how the Greeks behave with competitors, so .. keep that in mind too.
Whatever your decision is - good luck! I believe that we can achieve whatever we set our mind to.......
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I am pessimistic too but concerning the islands and places that work with tourists. At the neighbor where I am, most of the people work at companies, shops, banks etc. I want to get such a high loan in order to have liquidity if things don't turn out as I am expecting. I will spend half of them at the creation of the business and the other half I will save them for the difficult days.
I have already thought about the competitors who are not so many around, at the category of the restaurant I want to open.
I am not sure yet what I am going to do. But I will keep the last sentence of your comment because I believe it 100%
Thanks for replying every opinion is important!! :)
Best of luck to you man! It’s a challenging environment to be in for opening businesses especially ones that require people to come into your place.
If you do open your restaurant, in October if there is another lock down for the China flu would you be able to offer takeout or delivery? That way you can stay in business still.
Great job at buying and renovating that property near the water. The pictures look beautiful! I’ve never been to Greece but it’s such a beautiful country I would love to someday.
Of course I can deliver takeout but in this economic crisis people prefer to cook at home because it is way more cheaper. Restaurants and coffee shops opened at 1st of June in Greece but most of them are empty.
You are absolutely right that it is very challenging but I think the higher the risk, the more money you will earn or lose.
You should come at Greece one day, We offer high quality of hospitality in combination with beatiful natural sceneries.
Thanks for your comment.
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Yes absolutely there is great reward potential if you take a risk. Some risks pay off very well while others don’t. I would think of comparing them and seeing what you are comfortable with. We all have to take risks in life!
I will definitely plan on visiting Greece, we lived in Italy for 2 months in college and it was one of the best experiences of our lives! Greece is just a short trip from there so it’s definitely something we will be doing. Just have no idea when lol
Good luck to you, I wish you that you succeed!
Thank you very much @creativemary I wish I am going to succeed too :D
I am not sure if I will go on with this business idea but if not I will do something else this year!!
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I admire your enthusiasm!
It might be a great time to start a business, it could also be the worst time to do so. I may start one too (and I don’t think of myself as an entrepreneur, I don’t even know much about business. I just want to make the most of a bad situation to avoid desperately wasting away in my room).
I’m personally really careful about going into any debt and do everything very low cost and never risk absolutely everything.
Flexibility and the ability to read the situation are gonna be really important for people like us. Make sure you are prepared for potential failures and then put your heart into it! At least that’s what I’m doing
I am thinking of doing the same thing. I will also do everything in low cost and be flexible during these difficult days. I have not in my life to lose but it is part of the game. If i take the decision to start a business I will work a lot in order to change the failure into a win case. thanks for your comment and good luck at whatever you are going to do!!
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My view is that what we are doing on Hive can be considered a business. This is an entryway into the virtual economy which is only growing. We know that gaming is an enormous industry, one that very few can make a living from. That is changing.
While it is tough to "make a living" at this point, that could change over the next few years as the entire space expands and grows.
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I agree with you. I also write it at my post. I consider my blog as a form of a business.
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Very tough call, sometimes you have to just follow your heart, but know the risks and be content with the risks beforehand.
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My heart says not to do it now and to buy hive power instead. I have done a huge research and I know all the risks. Thats why I have not done anything yet. What i am thinking is that always I am thinking about the risks and I dont do anything. This time I have to make a big decision and follow it till the end. Thanks for your comment!!
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Welcome to Leo 🦁
It’s always tough to say whether or not to take a leap like this in business without knowing everything and all the variables of your life/the business situation.
Personally, I’m taking more risks during this crisis and looking for opportunities that I can’t justify passing up. If I find something that is a 50% discount I would definitely consider buying it — but only if I knew that I could hold out for 1+ year(s) before selling it in case the crisis goes on longer than we all expect.
Business is about taking risk, but it’s also about managing risk. So we need to continue to look for ways to hedge our risks and stay informed. Keep us posted on what you decide to do and how all of your businesses (hive blogging, Airbnb, etc.) are performing! I’d love to learn more about Greece and local business too :)
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Our thoughts are completely identical. I know that businesses always have a big risk and that I have to manage it in different ways. Our difference is that from what I understand, you take risks while I almost never take the next step. But this time I'm determined.
I will continue posting about my thoughts and actions here on leo finance.
thanks for your comment.
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Hi @zkalemiss, I think you made a very good start with this post in the leofinance platform.
I'm not an expert in giving you advice, but I'll tell you my thoughts.
I would never risk taking out such a large loan to build a common business that has to face stiff competition and an unreliable government with many taxes blows to small businesses. I know many people who were ruined because they took out such a big loan. At this period of crisis, the catering business is working hard, but everyone has turned there, which is increasing the risk. If I took such a risk, I would only take it for an innovation and very promising business.
Good luck with your choice, I know that whatever you study before you approve, so luck will be on your side.
Welcome to leofinance community!
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I agree that is a common business but I have self-confidence that I can manage most of the risks and I can stand out from the competitors. I agree about the unreliable government which is an issue that I can't control.
I think during the crisis only the catering business is still working.
Thanks for your comment and for the warm welcome :)
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What stands out to me is borrowing 100k. Is there no possibility of finding investors? Once you borrow, you will immediately have an anchor pulling down on your revenue. And, if revenues do not cover your costs, you will have to pay out of pocket.
If you borrow 100k, it would be preferable that you have your own 100k to cover the loan if things do not work.
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I don't know anyone that could invest in my business. The only choices I have is to take a loan or to sell something from my real estate properties which is an option that I don't even think because we are in the middle of an economic crisis and I will sell it for way less money than its real value.
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ειναι πολυ δυσκολακι, εκτος του οτι εχεις την καθε μαλακια απο το κρατος φοροι κτλ οπως εγραψε κ ο trumpman + τον καθε ανταγωνιστη π δν ξερεις τι ειναι ικανος να κανει π λεει κ η κατερινα, απο την δικη μ εμπειρια απο γνωστους π εχουν καφετεριες εστιατορια πρεπει να μπεις κ στην λογικη οτι θα αρχισεις να κανεις μαλακιουλες παρανομες ειτε λογιστικα ειτε με αποθεμα κτλ γτ αλλιως δν βγαινει αν το πας 100% νομιμα. Παραλληλα ομως πρεπει να ξερεις κ κανε στις οικονομικες αρχες για παν ενδεχομενο.
Αν εισαι δλδ τελειως 100% μονος κ σε περιοχη π μαζευει κοσμο κ εχει καλο ανταγωνισμο πρεπει να κατσεις να το μελετησεις παρα πολυ καλα πρωτου κανεις κατι κ να μν εχεις τοσο το αισιοδοξο mindset αλλα να σκεφτεις κ διαφορα σεναρια του να γινει μαλακια τι θα κανεις
Φίλε όλα στη ζωή είναι δύσκολα και αν δεν κοπιάσεις δεν θα γευτείς τους καρπούς της επιτυχίας. Αν αποφασίσω να κάνω τη δική μου επιχείρηση στη Ελλάδα δεν θα ήθελα με τίποτα να κλέψω το κράτος η να εκμεταλλευτώ τους υπαλλήλους μου. Υπάρχουν επιχειρήσεις που λειτουργούν 100% νόμιμα και παρόλα αυτά τα καταφέρνουν μια χαρά. Αντί να κάνεις μαλακιούλες μπορείς να σκεφτείς άλλους τρόπους να ανεβάσεις τα έσοδα της επιχείρηση σου.
Εννοείται ότι σκέφτομαι όλα τα κακά σενάρια και για αυτό δεν έχω κάνει ακόμα τίποτα. Φαντάσου όμως στη ζωή μας στηριζόμασταν μονο στα κακά σενάρια και δεν τολμούσαμε να κάνουμε το κάτι παραπάνω. Που θα είμασταν σήμερα?
Σε ευχαριστώ για το σχόλιο σου. Δυστυχώς στα περισσότερα έχεις δίκιο αλλά αν δεν τολμήσουμε δεν πρόκειται ποτε να αλλάξουμε!!!