Exploring the Mobile-Home Park Business: Capitol Requirements
Posted:4 November, 2008 by adminHere are some lists of questions that you must ask before you consider opening a mobile home park:
Capital Requirements
1. Have you made a careful estimate of the money you will need?
2. How much will you invest in land? .
3. What will your buildings cost? .
4. How much will you invest in equipment and fixtures?
5. Have you thought of insurance liability, fire, theft? .
6. How much will you need for at least six months’ operating expenses (rent, salaries, supplies, gas, light)? .
7. Have you enough money to cover your personal living ex- penses until the business begins to pay? .
8. Have you a reserve for emergencies?
9. How long do you estimate it will be before the business makes a profit? .
Financial Resources
1. How much of your savings will be needed in the business immediately?
2. How much do you have in the form of assets that, if necessary, you could sell or borrow on to get more money?
3. Is your credit such that you can borrow money from a bank or other financial institution?
Personal Finances
1 . How much money do you make at the present time?
2. What would be your estimated income as the owner of a business?
3. Are you willing to get along for a while on lower earnings?
4. Are you willing to risk uncertain earnings for the next year or two?
Economic Status of the Community
1. Is the business trend in the community you’re thinking of up, down, or stationary?
2. Is the community industrial, agricultural, or residential?
3. Are the major businesses and industries old and established, or are they new and expanding?
4. Is the business diversified, or is it a one-industry town?
5. Is the population of the community growing, decreasing, or staying about the same?
6. Are transportation facilities, professional services, banks, schools, and so on adequate?
7. Are the civic associations aggressive?
8. Have any mobile-home parks failed in the community? Why?
9. Have you checked to see how much business activity there is and how it would affect your business?
10. Are your competitors well established?
11. Are their parks obsolete by modern standards?
12. Does the community welcome mobile-home parks or is it against them?
General Considerations
1. What do the local businessmen think of your chances of success?
2. Have you talked to your banker? What does he think of your setup?
3. Would he lend you money if you needed it?
4. Have you talked to representative citizens to get their opinions?
5. Have you figured out how many employees you will need and how much you will pay them?
6. Will you be able to get along with part-time help?
7. Do you know what the usual wage scale is in the community in which you intend to set up business?
8. Do you have a bookkeeping system worked out?
9. Have you decided on what brochures and letterheads you will need?
10. Have you determined your business policies in regard to rental per space, advertising, business hours, and the like?
11. Have you inquired about the cost of adequate insurance to cover damage from storms and floods, damage suits, public liability claims, and loss from burglary?
12. Have you checked with your local, town, city, or state authorities in regard to licensing requirements?
13. Have you checked with the local health authorities to be certain that your business will meet with the requirements of the community?
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