(Closed) Considering buying a business… good idea or bad?

posted 7 years ago in Career
Post # 3
Member
299 posts
Helper bee
  • Wedding: April 2011

Along with a banker you should probably also talk to a lawyer and a realtor (business broker) I have no experience with this but my father is an attorney and in the past has done business transactions.  Sorry I couldn’t help more.

Post # 4
Member
4824 posts
Honey bee

That is a very very very broad question with next to nothing in information.  Its risky owning your own business. That part is pretty much guaranteed.

Unfortunately, if you have to ask these basic questions here, you have a lot of research to do.  Yes, there are grants and for different reasons.  Do your research, figure out what type of business you want and then research more.  

Owning your own business is not easy. At the minimum you may not make a lot, at the most you have to figure out taxes, insurances, regulations, etc all depending on the type of business.

Post # 4
Member
2104 posts
Buzzing bee
  • Wedding: April 2011

What KIND of business are you considering buying?  I think that you need to really research your area and make sure there’s a market for your business.  I also truly believe that unless you are passionate about the service/product your business provides, it isn’t a good idea to get into it.

Post # 5
Member
299 posts
Helper bee
  • Wedding: April 2011

Also what kind of business is it?  I would love to have my own business but my interests change daily.

Post # 6
Member
2090 posts
Buzzing bee
  • Wedding: August 2010

My mom owns her own business, but its small and specialized so not sure how much I can help.

What kind of business is it? Are you buying a “turn-key” business, or just the name and a portion of assets? The collateral assets may impact your loan (not sure about this). You should definitely look at what their balance sheets look like and what the business segment for that business looks in your area (i.e., if it’s a pizza shop – are there already 10 pizza shops within 2 miles all selling the same pizza product?)

I wouldn’t buy a business unless I didn’t NEED any income at the start, as so many businesses won’t make any/much profit at the start.

Post # 8
Member
4824 posts
Honey bee

@canthugallcats: Assuming its up for sale. Take a business book out to learn to value a small business. Its a combination of the time value of future monies (usually 10 years), plus considering the cost of inventory and good will. Know what you can afford and where you can get the money from before making an offer.

Write a good business plan. You will need one to get a loan or grant. Be sure to involve a lawyer in the buying of the business.  Writing a proper business plan will force you to think about current and future opportunities as well as threats, marketing etc… Its a good guideline to help you research as well.

These are some very basic places to start.

Post # 9
Member
2867 posts
Sugar bee
  • Wedding: September 2010

Why would you want to buy it if it’s not your dream job? Do you plan on being there for the next 10 years? If so it might be worth it to make the profit off your own work. Also are there things you can see that would need improvement and would create more profits? Have you seen a decline in business or a rise in expenses in the time you’ve been there?

Post # 10
Member
2398 posts
Buzzing bee
  • Wedding: April 2010

I mean, its not my “dream job” but I do like it.

That bit pretty well answers your question.

I also think it would be problematic to purchase a business with no guaranteed product line.  What if, once s/he no longer owns the company, your inventor decides to pack up and move to Mexico?

Post # 12
Member
2867 posts
Sugar bee
  • Wedding: September 2010

@canthugallcats: Just know that you’ll have less flexiblity if you’re the owner and the employee – however you mentioned that you’re there by yourself most of the year so your schedule may not change much.

Of course if you’re the owner you don’t have to worry about someone buying it and changing everything.

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