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    4 Replies Latest reply on Aug 17, 2009 7:34 AM by LUCKIEST

    Need advice on euying exicting business

    tmoodyjr Wayfarer
      I'M looking into buying a manufacturing company but i need some advice on funding . Were in the process of writing a business plan or can we use the business were looking into business plan if they have one? Our credit is not good at all and we don't own a home neither, need some advice what to do
        • Re: Need advice on euying exicting business
          DomainDiva Ranger
          First you need to find out WHY the owner is selling the business. Do you have any experience in running this type of business? If not, chances for financing are going to be slim, Banks want to lend money to people who know how to make money, and if you know nothing about the business and are depending on the current employees to carry the load then you need to rethink this.

          When reading your post, why did it come to mind that maybe these business owners are trying to sell you a bill of goods?
          1 of 1 people found this helpful
          • Re: Need advice on euying exicting business
            MoveForward Scout

            Find LUCKIEST on this site, he is with SCORE and
            can help you with a business plan information.

            BUT first you really need to re-read DomainDiva

            comments. She was telling you about the

            funding.

             

            Picture a customer coming in to the office of your

            manufacturing company. They want to place an

            order for 30 of whatever you sell. Before you

            make this you want a percentage down, they tell

            you they do not have it. So you decide to ask

            them for colaterial in place of a deposit, but the

            customer said he has none. So you decide to

            check with others he has once paid bills too hoping

            his word is good enough so you can begin making

            the order, only to find out his credit is bad.

            Do you want to take a risk on this customer?

            Do you feel confident in this customer following

            through on his promise? Is this customer a

            risk?

             

            That is how the banks view you even with a

            business plan. Within your business plan you are

            going to have to mention no collaterial, bad

            credit, etc. any good plan you have will only

            look like a risk.

             

            However, you may want to re-think this and

            approach this in a different way. Since this

            owner is selling due to age,
            ask him to agree to sell this to you on a
            owner finacing deal. You make monthly
            payments with interest giving him 5% over
            his asking price for so many years.
            Since he feels the company is profitable
            and knows it will bring in the money he
            should feel comfortable with this without
            feeling you are a risk. It is a win/win
            situation.

            Very Best to your vision.
            1 of 1 people found this helpful
            • Re: Need advice on euying exicting business
              LUCKIEST Guide
              Buying an existing business, Welcome Tommy

              If I was going to buy an existing business I would do three things first

              One, Develop a Business Plan
              Two, Contact a Lawyer. The lawyer is on your side
              Three, Also contact SCORE. SCORE is FREE and can also help you.

              Good luck, LUCKIEST
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              1 of 1 people found this helpful