Purchasing an existing business, good or bad idea?

Clutchfans knows their economics.

 

I didn't see this. Actually, I consider this somewhat good. imo, the safest way to succeed in the restaurant business is to own the property.

however, that might make it impossible for you. He might not lease the space to anyone who doesn't pay his Good Will premium...and whatever bull$s he expects for the equipment.

He sounds like he is fishing for a fool right now. Just wait him out. Sounds like he wants to retire, and guys like this expect to be able to sell their business. But, it really is worth nothing. You have to look at it that way, and negotiate up from there, not down from his Good Will premium.

that said: if you are really serious...sounds like he won't negotiate with you in good faith, giving he's lying about there is no financiall...there are...the IRS documents. Sounds like you will have to get a lawyer friend to negotiate for you. Or maybe just start by getting a realtor and seeing what the realtor can get the guy to negotiate for the price of the land.

I say...just wait hiim out.

that's what I'm doing.

 

How do you run a business without any financial statements?

 

You don't. The IRS comes and siezes all your assetes ands throws you in prison for a ridiculous amount of time.

 

Deckard,

The restaurant business can be brutal. I knew somebody that was making decent money working for a chain, but had the urge to do his own thing. He lasted perhaps a year and lost a good chunk of money in the process.

 

My friend lost $200,000 out of his own pocket, not counting what he paid for "goodwill" in getting the place. He had a grand time fixing it up, improving a deck outside and adding an small outdoor stage for music. He replaced the chairs and tables inside, getting nicer ones. I could go on. The BBQ was excellent, but he didn't do enough research before he bought it. Westlake Hills has very tough restrictions on signage. The restaurant was way back away from the main drag, and the sign was little larger than a mailbox. Basically, you had to know the place was there.

Definitely a brutal business. Anyone thinking about it should take a deep breath, do some research, ponder what it will entail, do some more research, take some more deep breaths, and then make sure they have deep pockets. My friend did, and he still ended up walking away from the place. And he looked into the financials. I'm afraid he saw what he wanted to see and let his imagination take over. It was a hard lesson. He's back to doing what he knows how to do... IPOs and stocks. Not as much fun, maybe, and more stressful, but not as time consuming and he can afford to take the vacations a business like that doesn't allow.

 

IPOs and stocks maybe more stressful?
If I was in the restaurant business that your friend was in and was losing better than $200k ...................my stress level would be rather extreme.

 

Isn't the tax burden on Texas business about to increase by something like 30% ?

 

If you're looking for business advice from a sports BBS, i don't recommend you get in business at all.

 

I went to a Franchising seminar today and we talked about this. Usually the owners sell the business when it is about to go downward or the costs of keeping it open arent what he expected. Also, think about who he offered it to before looking to sell it to the public. He may have offered to sell it to family, friends, or even an employee. Then ask yourself why wouldnt they buy it?? Im not saying that for sure but those were just some of the things they said to think about.

 

Space Ghost delivers!

haha

 

I disagree with this.

I have found the business advice on this board to be as qualified as any that I read on business specific boards.

When my company was growing fast ( INC 500 rankings) there were often topics on here that helped. When I was preparing to sell my company it seemed that there were great topics that were about not only the decision of selling the company, but about where to live and even input into the choice of mortgage or not.

In fact I tend to trust it more because no one is trying to pitch me something.