jamscal
Stainless
- Joined
- Sep 8, 2004
- Location
- Louisville, KY
If you buy one of these 2-3 million in revenue companies you shouldn't have to worry about hiring if it's a 'fully functioning' business. In fact, your new management team will be the ones worried about hiring, no? (lol).
There are a wide variety of ways to do business and certainly people want to sell for a variety of reasons.
I'm about to have to have 10 employees (from 8) and feel like business is the Wild West at this level....and I have stable customers and am always on the hunt. But I have no management team (I do have a good accountant) and no illusions that things have to continue at this pace.
Do some reading or youtubing on buying a business through a broker. There are some pitfalls and even after you get through the NDA the numbers are always a little too rosy.
Some say to never do it...just be out there constantly looking and make deals on your own. I found another business I wanted to buy with good numbers (Through a broker.) My accountant said it was ok, which was suprising, but it was the same story, the owner was everything, and I'd have to clone myself to make it work.
I know another problem recently is the brokers know that SBA money is relatively easy to get for people with good credit. Some even get the business pre-approved for a set amount...much more than the business is worth coincidently. So the owner will be willing to take back a certain amount of financing to sweeten the pot, but that is over and above what they really needed anyway, so if you fail it's really nothing to them, as that SBA money has already cleared.)
I agree with metal-ica's post above. You seem smart and asking the right questions. But you also say you're an engineer, which sometimes means too 'by the book' and rigid in thought
. I've seen it.
What type business do you currently own?
There are a wide variety of ways to do business and certainly people want to sell for a variety of reasons.
I'm about to have to have 10 employees (from 8) and feel like business is the Wild West at this level....and I have stable customers and am always on the hunt. But I have no management team (I do have a good accountant) and no illusions that things have to continue at this pace.
Do some reading or youtubing on buying a business through a broker. There are some pitfalls and even after you get through the NDA the numbers are always a little too rosy.
Some say to never do it...just be out there constantly looking and make deals on your own. I found another business I wanted to buy with good numbers (Through a broker.) My accountant said it was ok, which was suprising, but it was the same story, the owner was everything, and I'd have to clone myself to make it work.
I know another problem recently is the brokers know that SBA money is relatively easy to get for people with good credit. Some even get the business pre-approved for a set amount...much more than the business is worth coincidently. So the owner will be willing to take back a certain amount of financing to sweeten the pot, but that is over and above what they really needed anyway, so if you fail it's really nothing to them, as that SBA money has already cleared.)
I agree with metal-ica's post above. You seem smart and asking the right questions. But you also say you're an engineer, which sometimes means too 'by the book' and rigid in thought

What type business do you currently own?