My husband and I have an oportunity to purchase an Art & Frame shop in the upscale area of Scottsdale, AZ. The seller has owned the business for 5 years, he hates what he does (selling art and framing) he has tried to grow the business but says (he is Korean) he has a very hard time communicating with customers and that has been a roadblock for him.
He has run this business solo (no help at all - again, lack of communication) and he just wants outwhich is reflected in his decreasing sales since he placed it for sales due to his closing early and on weekends He originally placed the shop up for sale with a business broker back in Nov. of 07 at $125,000 reduced it to $75,000 then to 40,000 and it's now at $20,000 which is very attractive to us considering the artwork, stock and equipment which is worth a minimum $130,000. It's a very desirable location, (millionaires are plentyful) only one other frame store in the area. The shop is 1780 sq ft and beautifully done inside.
I have not only an art background, but I was a Loan Consultant fo 16 yrs so I have vast experience in Sales and Marketing. I have some strong ideas to grow the business as quickly as possible such as, aquiring commercial accounts (i.e, interior designers and planners, Law offices, Architecture firms, Project Managers, Hotels & Resturants which all around the shop are tourist resort hotels - also, dealing directly with businesses who require art, framing and unique framing solutions. The artwork displayed also includes limited editions and I would like to add original artwork by up and coming artists in all mediums as Scottsdale is definitely an Arena for that type of purchase. I would also like to have open houses at least once a month to showcase those artist.
Now my dilemma? We have the funds to buy but need a loan or line of about $30,000 to 50,000 to operate until I have my plan in full swing to grow the business in the right direction which I feel would take 6 months to 2 years.
We have placed our home up for sale ato reduce personal expenses and are looking to rent something closer to the shop. At this point the business would be the priority.
I look forward to hearing advice as I have to have an answer for the broker by Wednesday if we are moving forward with this purchase.
We have very, very good credit - have always paid on time. I am hoping with my knowledge to grow this business, the upscale area that it's in and the potential it has to offer that the risk would be lower than usual.
Thank you in advance
He has run this business solo (no help at all - again, lack of communication) and he just wants outwhich is reflected in his decreasing sales since he placed it for sales due to his closing early and on weekends He originally placed the shop up for sale with a business broker back in Nov. of 07 at $125,000 reduced it to $75,000 then to 40,000 and it's now at $20,000 which is very attractive to us considering the artwork, stock and equipment which is worth a minimum $130,000. It's a very desirable location, (millionaires are plentyful) only one other frame store in the area. The shop is 1780 sq ft and beautifully done inside.
I have not only an art background, but I was a Loan Consultant fo 16 yrs so I have vast experience in Sales and Marketing. I have some strong ideas to grow the business as quickly as possible such as, aquiring commercial accounts (i.e, interior designers and planners, Law offices, Architecture firms, Project Managers, Hotels & Resturants which all around the shop are tourist resort hotels - also, dealing directly with businesses who require art, framing and unique framing solutions. The artwork displayed also includes limited editions and I would like to add original artwork by up and coming artists in all mediums as Scottsdale is definitely an Arena for that type of purchase. I would also like to have open houses at least once a month to showcase those artist.
Now my dilemma? We have the funds to buy but need a loan or line of about $30,000 to 50,000 to operate until I have my plan in full swing to grow the business in the right direction which I feel would take 6 months to 2 years.
We have placed our home up for sale ato reduce personal expenses and are looking to rent something closer to the shop. At this point the business would be the priority.
I look forward to hearing advice as I have to have an answer for the broker by Wednesday if we are moving forward with this purchase.
We have very, very good credit - have always paid on time. I am hoping with my knowledge to grow this business, the upscale area that it's in and the potential it has to offer that the risk would be lower than usual.
Thank you in advance
