Stick With the Program
It looked like this entrepreneur's business opportunity was a bust, but it turned out it was just the seller who didn't meet his expectations.
Big opportunities sometimes come in small packages. For Mike
Kasbohm, his came in the form of a 74-inch-by-26-inch photo booth.
Kasbohm, 41, is president of STI Entertainment, distributor of the Kodak
StickerPrint Entertainment Kiosk. This interactive photo kiosk
offers 36 different backgrounds and produces 16 sticker photographs
at a time. Kasbohm personally operates more than 30 kiosks in
Minneapolis and surrounding areas. His opportunity came two and a
half years ago, but it was one that required more work than
expected.
In 2000, Kasbohm invested in the Kodak StickerPrint business
opportunity for the first time. He paid $36,000 for six machines,
only to realize that the marketing company that had sold him the
kiosks had exaggerated its estimates of the returns. He received
false information and zero support, and the seller promptly went
out of business. "It was a business opportunity that gives
business opportunities a bad name," Kasbohm says.
Forced to learn all the details on his own, it was only through
perseverance that Kasbohm was able to save his initial
investment...and gain a thorough enough understanding of the
business in the process that he was able to take over as the
distributor of the opportunity.
Content Continues Below
With his new role, Kasbohm has finally been able to turn the
business around. He provides phone support, puts together a monthly
newsletter, has created a Web site and offers a virtual brochure
that helps other kiosk owners find the right locations. "I
spend a lot of time turning around operators who got involved the
same way I did, teaching them what I learned," he says.
The fully equipped kiosk ranges from $2,995 to $3,699, and,
according to Kasbohm, can be paid off in six months if you place it
in the right location. Kiosks can be set up anywhere--from malls
and movie theaters to indoor recreational centers and fairgrounds.
"How fast you bring in revenue depends on the locations you
choose," Kasbohm says.
He suggests new investors start the business slowly and find the
locations first. Likewise, he does his best to bring in only the
people who are ready. "I've turned away a lot of people
who wanted to hear the blue-sky story," he says. "I want
to make sure I'm setting up somebody for success and not just
taking his money and running."