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    3 Replies Latest reply on Mar 8, 2010 3:40 PM by TheSoloGuide

    Potential to start an amazing business concept, but.....

    ScottLee2010 Newbie
      I have bad credit, from poor decisions I've made in my 20's and even 30's.

      I am a licensed cosmetologist and Massage therapist, I have stepped into an opportunity where I'm basically in the right place at the right time.
      The inside structure of a Salon & Spa I have the opportunity to purchase is valued at approx $80,000.00. The previous owner ripped the property owner for the money and he has prolonged the business for the welfare of it's employees. He's offered me the salon for $15,000.00 down to purchase the company, with a 5 year contract for the lease of $3,000/month. With dramatic changes within the establishment, sales are currently estimated to be around $10,000-$11,000.00/monthly. An additional loan is needed to make the necessary changes to bring my vision and concepts to life along with a name change to the salon. My plan is very specific to its new name and its mission. Sharing anymore information I feel I will jepordize my concept.

      I do not desire investors as most seem very greedy and can not see my vision of giving to the community and the preservation of my mission.

      My obstacle is the system we have intergrated that screws us all in the end. Credit reporting agencies.

      What are my optons?
      Who can I contact that actually cares about someone else more than themselves and my credit score?
      Who can see my vision and take a chance on a rewarding adventure?
      Grants for funding has to be matched, is there a way around this if the owner allows me a lease to own contract?

      Thank you so much for your time!

       

        • Re: Potential to start an amazing business concept, but.....
          LUCKIEST Guide
          Potential to start a business

          Who are you?? Go to Members page and share some info.

          Have you developed a business plan??
          <!--Session data-->
            • Re: Potential to start an amazing business concept, but.....
              ScottLee2010 Newbie
              Thank you for your reply, if I share my name and or my contact information, you can google me, and know exactly who I am, and you may be wise enough to make a connection to my vision from my professional website that has been established in the area now for a year and a half. My concept is connected to my image and what I currently offer to the public.

              Could you be kind enough to answer my questions without knowing who I am?

              My business plan, is being created, I'm educating myself as I've never created one before.
              How do I protect my vision and business plan from being stolen from me once shared with lenders for a loan, if I could qualify?

              I see my question has been viewed 47 times, yet only one reply, does this mean there are money hungry investors seeking to steal ideas from this forum?

              With sincere gratitude!
            • Re: Potential to start an amazing business concept, but.....
              Tracker

              ScottLee2010:

               


              Congratulations on your potential opportunity.

               


              I understand that you choose not to share certain information, so I will do my best to provide ideas and insights with the information you did share.

               


              Although you haven't received a number of response, this doesn't mean that only money hungry investors are hoping to poach ideas. There are a number of people reading other posts hoping to find answers to their business needs.

               


              If I understand what you are saying, the current owner of the salon owes back rent to the landlord. If this is the case, you need to make sure however you structure the purchase, that the liability in no way transfers to you.

               


              Make sure you take the time to review the books and do a thorough interview with the current owner to determine the full extent of the owner's financial troubles and how that translated to harming the business - whether through a loss of business due to lowering of customer service and quality standards to problems with vendors.

               


              If sales are between $10k - $11k/mo, are there high profit margins to cover a $3k/mo lease? And is the $3k/mo lease negotiable with the landlord or is the current salon owner padding this to make a little extra money?

               


              What are your options? I recommend you contact a community member here that goes by the nickname "phanio". He can provide you with excellent advice regarding finances.

               


              Who cares more about someone else than themselves and their money? Without a solid plan to indicate how you can turn an investor's money into a specified amount of more money within a well-defined period of time, you will be hard pressed to find anyone who cares. Giving to a charity is a different cause than loaning money for a business.

               


              I recommend that you define in your post exactly how much you do need. It sounds like $80k + ??? for improvements. What is the net total?

               


              You can require that people sign a non-disclosure, non-compete prior to sharing your idea with them, but you will limit those willing to look at your plan as an investor or provide help. You don't need to share your entire business plan with a potential investor. They may be OK with seeing only your Executive Summary and your financial calculations and projects. The best way you can protect yourself from people poaching your idea is through barriers to entry - whether it's a skill set you have that others can't match, to patents, etc...

               


              I hope this helps for a start.

               


              Doug Dolan

               

              The Solopreneur's Guide

               

              http://thesologuide.com/