so the guy i have been doing powder coating for called me last night, he wants to sell his company to spend more time with his family and focus more on his full time job and wants me to buy it from him. it will come with everything he has, guns, media, air compressor, blasting cabinet, oven (small but big enough for wheels, intakes, headers, valve covers, motorcycle frames, etc), all advertising he has, as well as a good reputation. he wants to sell it for what his profit was last year when he did no advertising and only worked at it a few hours a week, if that. he said he will still be willing to help me with things until i am comfortable with everything, he will still send me work, get me supplies, and do everything he can to make sure i can handle it. he told me i can pay in full or make payments, $3500 is all he wants from me. he hasnt offered it to anybody else and said he wont until i tell him if i want it or not.

right now it is just a garage operation but has very good potential to become a big business if someone would put in some time and effort. my only problem right now is i dont have anywhere to set everything up since i live in an apartment. i have been thinking about buying a house when my lease is up but if i buy this business i would almost have to buy a house. its a greeat opportinity if everything works out but has potential to screw up my finances big time if it doesnt.

what do you guys think, should i go for it or leave it alone?

 

Well it sounds like good investment, a great opp. But how well is he known, are you guaranteed to get a good amount of work, to get your investmant back.. Is it really somthing you want to do.. If I had 3500 bucks laying around I would prob spring for it.. Hell if worse came to worse you could off the supplies, tools...

 

he is very well known locally not only for powder coating but for charity racing events too, which would be one of the things that come with the business.

 

Sounds kinda too good to be true. If you are able to recrop your investmant in one year then its a win win. Most business take 4-6 years to show much of a profit.

 

tell him you'll do it if you can run it out his garage for 18 months. If he says NO WAY, tell him $4500. He'll bite. IMO, if you want to own and run a business you need to have the attitude that your life is the business. Business ALWAYS comes first! ALWAYS! Even when you are at a baseball game with your kids, where a shirt that advertises your business, put a bumper sticker on the ******* stall wall...ALWAYS business. With that said, if you do it, plan your venture for doing business right of the gates. SO factor in you need that thing operational ASAP. Good luck, running a business is fun and rewarding, but certainly hard freaking work.

 

i'll ship you some stuff to get rollin!! i say do it. even if you start small it just gives you something more to strive for

 

its sounding better and better the more i think about it. im going to my gf's parents for dinner, im going to talk to her dad about owning a business since he has owned a carwash, cici's, a pack and parcel place and some other place i think, and her uncle owns like 12 cici's so i will be able to get some advice somewhere

 

not sure.
his business is base at home so his over head is low.
no rent, utilitys are combined with the house, and the fact all he is asking is $3500.00.

3500.00 / 12 = 291 a month in profit if i understand you right.
i own my own business, you cannot blow it off, it is very demanding, customers get pissed to easy, wife will feel like she is coming in second at times, and most of all
if it is to be a success it is all up to you.
16 to 20 hour days, months with no pay, and you have to keep up the chairty events as well that come out of your pocket, all while your trying to increase business from paid advertising because word of mouth wont cut it.

it's true that if any one has any thing good to say about your business, they wont say anything at all until they are asked who they think is good at this.
but if they have any thing bad to say they will tell any boby that will listen.

the two statements that bug me is.
1. right now it is just a garage operation but has very good potential to become a big business if someone would put in some time and effort.

and 2. he wants to sell his company to spend more time with his family and focus more on his full time job.

just how much time and effort has he put in to make his family feel left out and focus on his full time job?

this is just another way of saying that his business is a drain on his family and home income from his full time job, he is tired of working his *** off for nothing.
if was really doing any good, he would ask you for 35000.00 and not 3500.00.
money trees are not free are cheap.

you have not said any thing around him about saving for a home have you?

 

If you honestly cant go into this with the frame of mind that you may not succeed and/or if you have any doubt that you couldn't keep other financial priorities first if your business wouldn't be successful then you may want to hold off.
There are more cost associated with the purchase to make it a legal business.

What is the plan if it would not work out as expected?

3500.00 may be chump-change to some of us and ALOT$ to others. I cant suggest an option for you; only you know your financial status and how this investment could effect you both on a positive and negative scale.

Now, if you would have said:
Id say GO FOR IT!


Goodluck,
Derek

 

Yeah, I would guess he figured out that trying to run his own show would cost him 16 to 20 hour days and I BET his wife was the first one to say no fuggin way (ofcourse not right out, but in a wife kind of way). LOL