BIKEPGH MESSAGE BOARD ARCHIVE

Having run a business, not successfully, I have a lot of questions about whether the new guy knows how to do that. What experience has he had, what's the business plan, etc.?

Wow. He's asking for a lot of $$$. Not sure a GoFundMe with be that successful for that much money.

For clarification: I've never been to Kraynicks (but I've heard about it) and have no connection to the bike shop or transfer. I was also surprised by the $$$ target.  I'm assuming a renovation or something is included in these funds? I agree, a solid business proposal would probably get him more money (or even an investor or two).

It might seem heartless but I actually hope that this go fund me is unsuccessful. At the same time I hope a future owner is successful, but via their own business skills and hard work. Beyond being just a business, I would rather have a proven/viable bike shop (and it's owner) encouraged to provide charitable community services. It would be better to give money to a known charity or to support existing bike shops by being a regular customer. Asking for investors is reasonable. Asking for free money without offering a business plan... that's not something I support.

Honestly, I hope it works, or something like it does. Ideally Rocky Cristobal would get together with someone with business experience, ideally experience running a retail shop (unless Mr. Cristobal already has that experience), and would create a good business plan. With that, and the considerable assets of Kraynick's, it should be possible to get some bank financing, raising the rest of the money from the community, who would be given some guarantee of participation in the ongoing business, perhaps as part of a co-op or something like that. I would definitely support that. Kraynick's is an important Pittsburgh institution, and it would be sad to lose it.

The 420k number seems high, to say the least. The real estate is assessed at $88,400. Even assuming that the assessment is low, and the real estate is really worth 150k given the area's gentrification, can the other assets (both tangible and intangible) really be worth $270k? And assuming that a bank or investor loaned 420k to buy the real estate and assets, can the place even generate enough revenue to pay the interest on a 420k loan? Unfortunately some businesses can't survive unless there is zero debt; I'd be very surprised if this isn't one of them. Best of luck to all of them; hopefully the place will endure in some form.

Almost 3 years ago (Dec.2013) the Superior Motors kickstarter raised $310,225. The tagline of an October 2015 article says:  Despite some setbacks, the chef says "things couldn't really be going any better."  http://www.pittsburghmagazine.com/Best-of-the-Burgh-Blogs/The-412/October-2015/Kevin-Sousa-Explains-Why-His-New-Restaurant-Isnt-Open-Yet/ Going on three years, there is no Superior Motors. I think people are learning about what supporting a Kickstarter-type project means in terms of accountability. Is the $420k (a funny number) a buyout for Mr. Kraynick? or an investment in NextGen Kraynick? I wish Kraynick well, but I'm not sure why anybody would send this proposal, as it's documented, any of their money.      

IMO some enterprising youngster should have made a deal with Gerry to systematically start ebaying out the contents of that pile years ago, possibly with profits going toward a fund to take over. If someone sold every piece there for <$5 you would have $400k in no time. As it sits, even if Gerry simply sells the property at market value, it's going to cost someone tens of thousands of dollars to clear the place out for scrap. Not to mention the parts trove sitting there unused is saddening.

Good post gazette article about kraynicks   http://www.post-gazette.com/business/pittsburgh-company-news/2016/11/06/Kraynick-s-a-unique-bike-shop-in-Garfield-to-change-hands-but-not-attitude-pittsburgh/stories/201610270246

Radio story: Garfield Bike Shop Owner Says He's Ready To Retire And Pass On The Tools http://wesa.fm/post/garfield-bike-shop-owner-says-hes-ready-retire-and-pass-tools Rocky Cristobal is using a gofundme to raise $420,000 to buy the building and the bike parts and tools. Update: "They’ve raised about $11,300 since October, and if they don’t reach the goal, Cristobal says he might try to finance the building."