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    4 Replies Latest reply on May 25, 2010 5:13 PM by Barky Dog

    Buying an established cold stone, Looking for finacial help

    mericksonjr Newbie
      I am looking at purchasing a Cold Stone Franchise that is already established in my area. I have but one problem and that is that I only have about 60K of equity in my home and 70K in my 401K at my current employement. I would rather not touch either but if necessary I am more willing to use the equity in my home for money then I am the 401K. And I can only access the 401K if I quit and then I will take the tax hits for taking it out early. I was hopeing that someone could help me get this started. I am already looking at the information that SCORE is providing and there are no local chapters in my area. The closest is 200 miles away. I know there is a way to use little or none of your personal money to get started but I am unsure what to do to accomplish this. HELP PLEASE! Any information or ideas would be appreciated. Just for information I am Veteran. and am Married. I know there are some special programs out there. I would prefer not to borrow from family or friends as I value those relationships.
        • Re: Buying an established cold stone, Looking for finacial help


          My recommendation is for you to seek out a community member here that goes by the nickname "phanio". His business is Business Money Today. He provides excellent information on how to break down your financial needs into appropriate categories to increase your chances for finding the funds you need instead of going after one larger loan / investment.

          I am a small business consultant with experience in the food industry. If you need any help with the steps to starting your business, I have two sites that can help, The Solopreneur's Guide and Small Biz Break. The addresses for both are below.

          And feel free to contact me if you would like to discuss any issues over the phone. My contact info is located on both sites.

          I hope this helps.

          Doug Dolan

          The Solopreneur's Guide (

          Small Biz Break (
          • Re: Buying an established cold stone, Looking for finacial help
            Bridge Navigator
            Most small businesses start with self funding, then friends and family and then lending institutions.

            Most lenders want to see you have some "skin in the game." Their view is, if you are unwillining to risk your money, why should they risk theirs.

            SBA backed loans would be an option. You are required to pledge your house as collateral.

            You could also consider seller financing.

            There are ways to use your 401 K without paying any taxes or penalities.

            You should get in touch with a reputable business broker who does these things for a living and could walk you through the process.

            As a side note, Cold Stone's have a high failure rate. Why is this oe for sale?

            Best of luck,

            1 of 1 people found this helpful
            • Re: Buying an established cold stone, Looking for finacial help
              mericksonjr Newbie
              Thanks for all the help, This particular Cold Stone has done very well. The reason it is for sale is the owners purchased it a few years back with the intentions of it being a family run business. The cold stone franchise is designed to be run by the owner. These owners kids have decided that they are moving on to college and other interest and no longer want to work the store. And the owners dont want to be in the store all the time. I am a Veteran and am willing to put my own money into the business but would like to get as much help as possible. The seller may be willing to finance some of the loan and currently has an SBA loan that may be assumable. Does anyone know if this can be done. Thanks for the answer.