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    2 Replies Latest reply on Jul 14, 2010 12:08 PM by blueinchains

    Is it a good idea to start a business in the midst of...

    blue_inchains Newbie
      ...adversity? Here's my story. I was a successful person up in Indiana, but my controlling husband threatened me to quit my job and move away with him to a place where now we are in poverty. He just announced to me that he is filing for divorce, which will leave me with nothing except my wonderful kids. I have always been excellent with my finances, but my husband has destroyed my credit, took me from a successful career, and put me in a place of hopelessness. But I have a burning drive to succeed and accomplish my lifelong dream of owning my own Bed & Breakfast. None of the adversity in my life has in any way dimmed my goal or passion. I will succeed, but I need help.
      I can cook, host, and pretty much run a successful business, but I am not very well versed in bussiness operations, such as financials and other business terms. I am currently taking courses and workshops with the SBA to become knowledgable about these matters. I have put in a request for a wonderful place that I took a look at online for the paperwork on the place, but am not quite sure how to proceed from here. I am not apprehensive in any way in moving forward on this deal...except for the financial side. I have only a fraction of what I need to put a downpayment and in capital and what not, but with my credit and little experience running a business, wonder what I need to do to convince a loan officer to grant me a small business loan. If anyone has any advice on how to raise money, and/or apply successfully for a loan, I would be grateful! The realtor for the property has expressed that the owners are retiring and only ran the place as a hobby, and that there is much potential for growth. He also expressed that the owners are willing to provide generous financing for serious buyers.
      I am putting in full time hours doing research and gathering information from everywhere to not only complete my business plan, but to make myself as knowledgable as I can to make this venture successful.

      Also, if there is anyone else that has broken through adversity to become successful business owners, I'd love to hear your story here. I really need a little inspiration as my family is completely unsupportive. I have noone but myself and my three boys, and I HAVE to do this for them. I cannot fail.
        • Re: Is it a good idea to start a business in the midst of...
          Tracker

          blue_inchains:

           


          Sorry to hear about your current situation. I have a couple of thoughts that hopefully can help you.

           


          Regarding financing, I recommend you seek out a community member here that goes by the nickname "phanio". He is well versed in what it takes to secure funding and sources for those funds.

           


          Good for you for taking classes in areas where you have some weaknesses. You will have to decide whether you can afford to continue to educate yourself or if you will need to outsource some of your venture to other professionals.

           


          Are the current owners selling through a realtor or a business broker? Are they selling it as a property or a business with property? If they are selling through a business broker, you may want to get your own broker to represent you through the process of reviewing the books and determining a fair offering price for the B&B.

           


          If the current sellers are willing to do a seller carry back (where they act as the bank), you will need to watch the terms. While a seller carry back is great if you can't qualify for a loan, you will need to see if you can afford any balloon payments they want and see what their terms are if you are late / miss a payment. In most cases, they will be able to take the business back over and you are out.

           


          When you say your family doesn't support you, whom in your family are you referring to? Your children? You parents / siblings? While you have to do what is right for you and your kids, can you take over the business and run it successfully without a support system? Running a business can have its challenges, but it can become more difficult if you are fighting with the very people you need for support because they don't believe in the business. Something to consider.

           


          Best of luck.

           


          I hope this helps.

           


          Doug Dolan

           

          Small Biz Break (http://smallbizbreak.com)

           

          The Solopreneur's Guide (http://thesologuide.com)
            • Re: Is it a good idea to start a business in the midst of...
              blueinchains Newbie
              I will try and contact phanio. Thank you.

              One of my thoughts was to purchase the place, and hire a manager to run the day to day operations, someone who is good in the areas that I am weak in.

              The current owners are selling the property through a realtor, and selling it as a business with property.

              I appreciate the information on the carry back, I had not known about this. Do you think it would be a good idea to ask about this, if they are willing to go this route, or will that put up a red flag that I can't afford the place?

              When I say I have no support, I mean everyone in my family except my children. I am aware of the difficulties of making huge life decisions without the support of my family, as they have never supported anything I've done, and ridicule every success I've achieved. I feel that it is time to stop letting them hold me back and do, like you said, what is best for me and my children. I can't wait forever for their approval or support. I have "friends" that passively support me but when it comes down to it, it's all me, and my children. I am not fighting with them, I just cannot count on them for support in any sense of the word. Even if I were to be wildly successful, they would find fault in my success or me, so I can't make decisions about my life based on them anymore. You are right and I thank you for giving me something else to consider, and I am well aware of the odds that are stacked against me, but I have to do this.

              I appreciate so much that you offered a reply and it has been extremely helpful. Thank you so much! =-)