Michael Stizza
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- Joined
- Mar 12, 2016
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Greetings gentlefolks,
Two months ago, I ventured into my first business by way of an acquisition. Since taking over, I have generated 23k in Net Income. As of this writing, it is sitting in a 'war chest' ready for strategic usage.
Industry: Food / Restaurant
Product Offerings: Frozen Yogurt, Smoothies, Beverages
Debt on the Business
Initial Investment (debt to "myself"): $19,693.00
Owner Finance: $59,140.03 @ 6.00% Interest 60 Month Term
Other Loans: $9,847.90 @ 14.64% Interest 36 Month Term
Strictly speaking, my business is not my livelihood. I am an engineer by day at Cisco Systems and make a very comfortable Salary. This allows me to keep all earnings within my company and potentially reinvest.
At this time, I am trying to maximize returns. I am weighing various options and would greatly appreciate the input of experienced businessmen and women.
Options I have considered:
1.) Debt Management
Mitigate exposures and pay down existing debt as much as possible. Keeping cash on hand for working capital, petty cash, and savings for the slower winter months.
2.) Reinvest into another revenue generating opportunity. I've considered stocks and real estate, but I am extremely cautious in both of these arenas.
3.) Continue to reinforce my current financial positions, float the debt for the term of the loan, and remain as stable as possible for the first year of doing business.
In any scenario, I believe wiping out the high-interest portion of debt should be priority. But, again, I would love to hear the thoughts of the masses.
Just to clear, I am NOT asking for someone to write a monetary plan for me. I am constantly evaluating the best venue, especially as I am brand new to business. Having opinions on my particular situation is just one more tool on my belt.
Two months ago, I ventured into my first business by way of an acquisition. Since taking over, I have generated 23k in Net Income. As of this writing, it is sitting in a 'war chest' ready for strategic usage.
Industry: Food / Restaurant
Product Offerings: Frozen Yogurt, Smoothies, Beverages
Debt on the Business
Initial Investment (debt to "myself"): $19,693.00
Owner Finance: $59,140.03 @ 6.00% Interest 60 Month Term
Other Loans: $9,847.90 @ 14.64% Interest 36 Month Term
Strictly speaking, my business is not my livelihood. I am an engineer by day at Cisco Systems and make a very comfortable Salary. This allows me to keep all earnings within my company and potentially reinvest.
At this time, I am trying to maximize returns. I am weighing various options and would greatly appreciate the input of experienced businessmen and women.
Options I have considered:
1.) Debt Management
Mitigate exposures and pay down existing debt as much as possible. Keeping cash on hand for working capital, petty cash, and savings for the slower winter months.
2.) Reinvest into another revenue generating opportunity. I've considered stocks and real estate, but I am extremely cautious in both of these arenas.
3.) Continue to reinforce my current financial positions, float the debt for the term of the loan, and remain as stable as possible for the first year of doing business.
In any scenario, I believe wiping out the high-interest portion of debt should be priority. But, again, I would love to hear the thoughts of the masses.
Just to clear, I am NOT asking for someone to write a monetary plan for me. I am constantly evaluating the best venue, especially as I am brand new to business. Having opinions on my particular situation is just one more tool on my belt.
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