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  #1 (permalink)  
Old 01-01-06, 02:17 PM
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MDZ MDZ is offline
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Business Building

Business Building

This thread is going to be dedicated to answering questions and to providing ideas/support/advice for people starting or growing businesses. Our first topic of discussion is going to be a recycling business that Spencer is working on building. As a few of you know, I have been in this business myself for a few years. Spencer and I had been talking via email, but felt that we should use the huge resource of the FIO to help us both out. I am going to ask Spencer to give us a run down of his business, and then we will let the discussion begin.

Good Luck With Everything!
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Old 01-01-06, 06:39 PM
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Thanks Mark. I have a few more business plans later on that I can't wait to discuss, but we'll have to take these one step at a time.

Ever since i started researching on GLobal Warming, helping the environment kind of stuck along in my head. So the question was, how could I help the environment and still earn a little for my work and dedication put forth in the effort?

It later came to me. Pop Bottles and cans refunds. School was the prime target to recieve pop bottless, esp. lunch time. During the days after I became to realize I could earn small profits while helping the environment and earth, I started to expand my idea and throw out rough ideas on a notepad at night. Day in and day out would I think of an easier, more responsible, yet more logical idea to earn small profits and have others working for me. (RichDad principal in hand. )

I then started on my own, collecting between 5-10 bottles a day at school and storing them in my locker until the day was over, then i would tkae them home. I figured starting on my own would help spread the word, people would realize what i was doing, and hopefully if someone came across a bottle, they would give it to me. In a sense, I had a few others working for me, and I was earning all of their profits. They were simply putting small sums on money in my pockets.

Of course only 10 bottles equals $1 in refunds, but a dollar a day, or $0.75 a day for 180 days can ring up quickly. So after about a week of working for myself, I started to pile up the bottles on my garage floor. It grew and grew every day, but somehow I had to find a way to bring in a larger supply.

RING! RING! How about hiring a full-time employee and paying him half of the profits, keeping the other half to myself? There was hardly any work to be done by whoever i hired, just go around grabbing empty bottles and throwing them in my locker when I was there. A simple $0.05 each bottle/can. They didnt' have to hassle with taking them home, I would do that. Bring bottles to my locker and get paid. Of course if someone was smart, they would do the same thing I was and earn the total $0.10 each, but i really wasn't there all for the extra change. I truely wanted to help the environment and recycle. Still people in my grade think I was all for the money, but that's not the truth.

On top of hiring an emplyee who was simply bringing in 10 bottles/cans per day +, how about if they recruited another employee and earned 1/4 of their profits? It's much like a VERY SMALL chain referal idea, but with only 3 people working total. (I drew up a small picture using pain that I attatched to this post. "Ferrito" is the last name of a guy in my grade that i think would be willing to join on).

**(I realize 1/4 of $0.10 is a very small amount, but I would pay my employees in intervals of $5 or so. )

So, Kale is my first employee. I already paid him once, and it was $4. There are about 4 other boys in my grade that make extra trips to my locker to throw in their bottles which is very nice. That way I can keep the solid $0.10 from my own connections rather than paying kale $0.05 of each bottle. As of now, it's working nicely. I go back to school this coming tuesday which is the first day back since christmas break. I guess I will jsut have to see what all happens down the line.

Later plans included getting a seperate locker for Kale's bottles, and even sitting where i could view the trash cans in the lunch room incase someone was going to throw out their bottle I could stop them and ask if I could have it.

I guess what I am trying to do here is get as many refundable bottles and cans without it being too noticeable. I still have my own school life that I need to live and i dont' want to dedicate all my time to running around begging for pop bottles. I would say I am on a good track first off and I am enjoying it. I returned my first supply after about 2 weeks and made $19. But since I paid kale $14, I totalled at $15 profits. ($19-4= $15.)

Time will tell where this ends up, but remember to look at this attatchment just to help clarify a few things. I have a plan to take this idea to the community and help out residents, but I will be sure to inform you all next time i post.

Thanks again Mark.

Open to all,
Attached Files
File Type: txt chain recycle.txt (203 Bytes, 4 views)
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Old 01-02-06, 04:39 PM
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Mark, very intriguing!
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Old 01-02-06, 07:52 PM
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Spence, thank you for the into to your business. This gets everyone on the same page.

I want to say again that I feel that there is always something to learn from actually doing something. Right now I am re-reading (I do this alot, lol) Rich Dad's "Who Took My Money?" In the book, he is saying over and over that it is more important to learn than to make money. Money will follow if you get a good foundation. I look forward to the update.

I think that your biggest hurdle will be convincing the community that you are going to be responsible and want to help them, rather than take money and run. If you can get this set up, it will just lead to bigger and better things.

Here is another idea for you. At my high school, they had special can recycling containers. Do you have anything like that? If not, I bet a local bottleing company would be willing to give you some, or sell them cheap. And if that works, what stops you from setting them up at stores or whatever. Give part of the profits to the "Spencer Child Center" or whatever and people will love you.

Another question that you might know the answer to, where does the deposit money for unreturned bottles go? I would be willing to bet at least 1/5 of the bottles don't get returned. When someone buys, you pay the deposit, so where is that money, and how do we tap into it?
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Old 01-02-06, 09:54 PM
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Quote:
Originally Posted by MDZ
Spence, thank you for the into to your business. This gets everyone on the same page.

I want to say again that I feel that there is always something to learn from actually doing something. Right now I am re-reading (I do this alot, lol) Rich Dad's "Who Took My Money?" In the book, he is saying over and over that it is more important to learn than to make money. Money will follow if you get a good foundation. I look forward to the update.

I think that your biggest hurdle will be convincing the community that you are going to be responsible and want to help them, rather than take money and run. If you can get this set up, it will just lead to bigger and better things.

Here is another idea for you. At my high school, they had special can recycling containers. Do you have anything like that? If not, I bet a local bottleing company would be willing to give you some, or sell them cheap. And if that works, what stops you from setting them up at stores or whatever. Give part of the profits to the "Spencer Child Center" or whatever and people will love you.

Another question that you might know the answer to, where does the deposit money for unreturned bottles go? I would be willing to bet at least 1/5 of the bottles don't get returned. When someone buys, you pay the deposit, so where is that money, and how do we tap into it?


My advice, no offense at all though, is stop reading rich dad poor dad books. The only person who makes money off those is the guy selling them! It's common sense and commn financial knowledge wrapped into a nice looking paperback with a catchy title. The man acts like he's invented this garbage, it's been around forever! I live in what was ranked as the 3rd richest county in 03' and 04' (05' not out yet) in the United States, Johnson County Kansas (right outside Kansas City), and I don't know a soul who even thinks these books are worth reading!
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Old 01-03-06, 05:31 PM
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Quote:
Originally Posted by FirstConsul
Wall St and the academies aren't doing a great job either. "Diversify Diversify Diversify" "Efficient market theory" "Random Walk theory" betas and BS like that. Kiyosaki is just giving something to others that they want--- and consequently getting paid for it.
EDIT:Robert makes things like that interesting. I bet not that many people in business school really have the passion. If you taught a guy finance in a brochure type method, most people would not accept the concepts.
Of course, Wall St wouldn't mind more ignorance. Or that $24 billion bonus would be substantially smaller
Random walk and EMT are pretty much the same thing. I am in Business school, and I DO have the passion. The man goes on about how your house is not an asset, IT IS! I've read through his spew and if the guy had ever taken a accounting class in his life or ever read a companys balance sheet, he'd see it's an asset. If you insistuted his whacked out defenition of an asset in any porfessional setting, a classroom or Wall St. he'd get laughed out of there. Your house is an asset, before anyone tries to argue it's not I'd like them to have completed AC201 the standard accounting class required to be taken by all business majors. Only after that class and a few others, or much heavy reading in accouting and finance, will you really see how off the mark this rich dad poor dad guy is.
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Old 01-03-06, 05:57 PM
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MDZ MDZ is offline
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AGGHH, We are not getting of on the right foot for this thread! I agree 100% with you guys being able to both express your opinions, but that is why we all have the ability to start threads. I really want to keep this one talking about building businesses, and avoid it turning into the RK pro/con argument that is a very passionate issue for many people. If either one of you want to start the thead, by all means do so, I will join in and share another opinion, but lets keep this one heading in the right direction.

Thanks Guys,

Mark
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Old 01-04-06, 07:35 PM
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spencer this is a good idea. Though I'm just wondering, have you talked to a school official about this? maybe some dark character in your school can find some hole into this and made you liable. Probbably, you should start your own non-profit organization and make this one of your projects.
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