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Existing Business.....Need Help, Welcome Alicia1 of 1 people found this helpful
You are a certified chef in San Diego. Can you share a little more.
What do you mean by "currently in the process of taking over a deli"??
You will be getting equipment. WHO OWNS the building?? How long is the lease??
How much funding do you need?? And for How Long??
Do you have an accountant?? A Lawyer??
Did you or this investor have a Business or Marketing Plan??
I am originally from Dallas, Tx. I received my degree Associates in Culinary Arts and my Bachelors in Culinary Management from The Art Institute and I hold a degree in Finance.
What I mean by currently in process I am steps away from signing the paperwork, but have not signed them because of my investor backing out. The building in currently in a shopping center and it is currently owned by a leasing company(I am at work don't have this information with me). The owner that I am getting the place from has a five year lease, but I will get my own lease once everything is turned over to me.
The price includes all the equipment from the kitchen, dining room, paintings, deli cases, soda cases etc. I need about $170,000. $150,000 will go to the owner and $20,000 I will use for start up. I have an attorney who has been very involved and I do have a business plan.
Let me give you a little history on the business the father owned the business until he got ill (cancer) about three years ago and he turned the business over to his son. When the father was running the business his gross was about $500,000 plus but when the son took over he has loss about $250,000 plus because the son doesn't have the passion to run the business. I met the son because he a vendor for the company I work for and I was looking to just come help him out and this was when he told me he was selling the business.
I can truly see this business making money beside it being a deli it makes it own bread fresh daily and there are so many potential clients that need fresh bread because my husband and I have been marketing the idea to potential clients and they are very interested in having a bakery to delivery fresh bread. Let me know if you need more information.
Thanks for listening
Themilans,1 of 1 people found this helpful
Send me an e-mail. I may be able to help you out.
Have you considered setting up a Business Note? A Business note is a Promissory note to sell you the business along with the terms you and the seller set. You need to be able to give around 20% and pay the remainder of the money owed in monthly installments over a period of less than 5 years. The Seller can sell this Business note either immediately (similtaneous buy) or later, depending on when he/she needs the money. It is a good tool to use to offset capital gains taxes for the Seller and it is a good way for you to conserve your capital. If you would like to discuss this further, get in contact with me. I'd be happy to talk to you and the Seller.
There are a lot of important things to cover when buying a business (and how to determine if its the type of deal where it will attract an investor or financial partner to help you buy the business). It all starts with knowing more about the deal itself. I've written a whole book on that subject but it is not practical to put all of that info here to help you. But I will list here some high points that you should look at first:1 of 1 people found this helpful
- If they say they are selling for health reasons - be sure that is the real reason. You want to be aware if it is really a situation where the seller "needs" sell to because he sees the business not doing as well in the future as it has in the past. The real reason for selling is very important to determine early on as best you can.
- What is the revenue and net income of the business for the past 3 to 5 years? Check their financials for the last 3 years and see how sales and profits are trending. Are they going up, flat or declining?
- What do they forecast for the next 3 to 5 years?
- How strong is the balance sheet ... i.e. are there assets with value and is the business carrying debt?
- Do they have appraisals to prove the value they are putting on the assets? Can any debt on the books be assumed?
- Will the owner carry back any financing?
- Have they established an asking price? Do you know what they are basing their asking price on? Is that a fair and acceptable price?
- Can the financials be realistically re-cast to roll more to the bottom line; to more clearly show investors or funding sources the businesses ability to pay them back?
The above is just some of what needs to be determined, evaluated and analyzed and put into your business plan to present to investor prospects to show them the viability of the business and that it is a good investment opportunity. In my experience finding investors for deals of this probable size come through the Principals personal and business connections and prospecting and networking to find small investors that can be found close geographically to the deal.
I hope the above helps you or gives you some further direction on this. Feel free to look at my profile, visit my website if you wish, and to contact me if you'd like to discuss other specific questions you may have and I'll help you with what feedback I can give you.
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I am currently in the process of taking over a deli/bagel shop that has been in business for over 20 years. The current owner is selling the business due to illness. I am getting a good deal for the business which includes all the furniture, paintings, kitchen equipment, deli cases and soda cases. This is my problem I had an investor who interested in investing into the business but bailed out at the last minute. I need help finding an investor who will be interested in investing into a deli business.