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    9 Replies Latest reply on Oct 23, 2016 6:26 PM by moderator_lisa

    Need an advice that can change my life

    raftam Scout

      Hi,

      I am seeking a professional advice from any experienced business
      owner.

      I am currently a softwear programmer and have been doing
      this for last 15 years. I create applications and websites. I also do trading
      on the side which brings me a little bit of extra cash.  But now I came across an opportunity that got
      me to scratch my head.

      I have a friend that owns a sporting goods store and he is retiring.
      His store is strategically and geographically located in a good part of town with
      good amount traffic.  He has been doing
      this for last 23 years and made a good living of it too. He mainly sells soccer
      stuff which is growing now these days.
      His mentality (business aspect) is old fashion and the way he ran the business
      is not up to latest technologies and marking/advertising ways. Basically the
      store is open 6 days a week with no means of advertising and only by word of
      mouth.

      Now, he is offering me to buy the business from him and take
      over everything under the same name. I have some knowledge of business, inventory,
      cash flow and income statement and  ….

      And I know I can take this store to next level with new technology and marketing that
      is out there.

      I know that I need to do my homework about the business first
      and find out everything about the store, leasing, overhead and so on. Now my
      question is, should I go for it? This means that I won’t be doing programing
      (as a source of income) any more. But on the other hand I wonder that how long
      should I work for someone else. NOTE, that I am a single person, no wife or children.
      This gives me an advantage to sell my house and live in the back of the store
      for a while.

       

      Any advice would be gratefully appreciated.

       

      Thanks

        • Re: Need an advice that can change my life
          Moderator Rebecca Guide

          Hi raftam!  It sounds like you have a great potential opportunity and I encourage you to put a lot of thought into it.   Have you created a business plan yet?  You'll want a business plan to help you consider all of the elements involved and your ideas on your new business.  If you're not sure how to start on a business plan, we've got a great guide that you will find helpful: Guide: How to develop a business plan

           

          I also might suggest you check in you local chapter of SCORE.  SCORE is an organization made up of business executives and entrepreneurs, They offer free counseling and education on almost any subject that a small business owner may need.  They also provide mentorship and guidance that may be helpful to you in making your decision. 

           

          We've got some great articles, discussions and guides in this forum to help you make your decision.  We also have an amazing community of small business owners who will be glad to give you advice.  Feel free to ask any questions you have!

           

          Cheers,

          -Rebecca

          • Re: Need an advice that can change my life
            LUCKIEST Guide

            Hi raftam and welcome to the Community.

            Moderator Rebecca gave you good advice.

            Have you seen prior Financials or Tax Returns??

            Do you have an Accountant,?? A Lawyer??

            I always suggest a Business Plan. The Business Plan is like a road map to Success.

            SCORE is also a great organization both on line and in person.

             

            Good luck, LUCKIEST

            • Re: Need an advice that can change my life
              thevideoguy Wayfarer

              Hi raftam,

               

              My advice would be to not do anything rash.  Make sure the owner provides detailed financials, and pour over them so you can have a very good estimate of how much the business will make each month.  How much is the lease and when does it expire?  Are there employees who will stick around.

               

              Keep in mind that sporting goods has become a very competitive business with all of the big box sports stores (and also Walmart).  Retailers like Sports Authority and Sport Chalet are being pushed out of what has become a more saturated market.  The potential to make a solid profit on products has reduced significantly since the current owner opened the business 23 years ago.

               

              Don't fall in love with the idea of owning this business, but take a hard look at the financial numbers to make sure it makes sense.  Let the forecasts make the decision for you.

               

              Best wishes,

               

              Video Guy 

                • Re: Need an advice that can change my life
                  raftam Scout

                  Hi Video Guy,

                  I am still thinking about it and not 100% solid on my decision. I know I have to look at all the financial and everything in detail.

                  Sporting goods is very comparative but what intriguing  about this business is the location. It is located in Hispanic  part of town with (actually it is a good and safe area) where they play tons of soccer every weekend.

                  But you are right not to totally fall in love with it yet. Still doing a lot of research.

                  Thanks you for you help

                • Re: Need an advice that can change my life
                  tpern1130 Newbie

                  I say go for it! It's a win-win situation!