Well, I don't know a damn thing about business, so I have no advice, but I can definitely see the appeal. I love the idea of rennovating a piece of crap into something really cool (how satisfying!), and I also love the idea of owning my own business (which means I better start to learn a damn thing about business. Which I am trying to do.)
There are some pros to the situation, for sure, but I can see how the lack of paperwork provided is troublesome. Sometimes the biggest risks turn out to be awesome...then again, sometimes they turn out regretful. You'll just have to follow your instincts and your smarts on this one.
At any rate, it sounds like you have some pretty cool goals in place right now. How exciting! Good luck! Whatever you do, I'm sure it will be great.
i'll take a ham on ryeslipkidAugust 21 2006, 17:54:49 UTC
i guess you'll have to assess whether the killer deal on rent is worth the money you are forking over because that seems to be the only real financials you are going to get. i would certainly be cautious going forward on this deal but it could be a labor of love that actually pays off.
in the end, if you can afford the risk to do something you might love - go for it.
They have got to provide you with their financials and they've got to tell you what you're paying for. I'm guessing that their books are such a mess that they can't generate a basic p&l or balance sheet. What's the equipment worth? What are they're annual sales and costs?
Tens of thousands of dollars for a decrepit business that pays around minimum wage doesn't sound like a winning scenario, but their must be a reason that the broker took them on. Don't be afraid to make a really low offer. Hey! Maybe you'd like to buy a bookstore!
Ha! I'd definitely prefer buying a bookstore to a decrepit restaurant, but I think there's less of a chance the rest of my family (parents, etc) might some day live off the profits from the business in the former scenario. Or, hmm, maybe I hadn't realized what a booming business the written word is . . .
So, it turns out that the broker was just checking us out or something and was waiting to be sure we were serious before hauling out the books. He wants us to make an offer and put down earnest money to see financial records, which I can understand, but it makes it hard to make a reasonable offer which they would even entertain. Whatever. I was prepared to offer less than half the asking price for just the equipment and the lease but more and more it sounds like these people will be a pain in the ass to deal with. The landlord shed some unfavorable light on the whole situation that makes it more likely we'll walk away at this point. Blah. Still, I'm going to hate it if some really cool little place springs up there in a few
oh poop! i'm not sure about putting down earnest money to see the financials. it could be standard but it sounds weird to me. you might be surprised how little someone who's desperate would accept for their business. maybe you should make a ridiculously low offer and and see what happens?
i don't know if it's harder to make money off books or food. restaurants are thought of as one of the most risky business ventures and therefore difficult to finance through regular channels. this would be a great business for one or two people who could do it all and had some $$ to plow into inventory and promotions.
good luck! i'm excited for you just to be thinking about this direction and i love to talk *shop* so feel free to get in touch. also, i have awesome business advisors who might be of some assistance to you.
Wow, you're really looking to sell, huh? I would love to talk about that with you, too.
For a second there I got all excited about the prospect, and then I remembered that I haven't actively followed the zine world in several years. When I lived in Chicago I loved going to Quimby's but since then I've really fallen off. How much of an investment do you think the store would require for inventory, anyway?
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There are some pros to the situation, for sure, but I can see how the lack of paperwork provided is troublesome. Sometimes the biggest risks turn out to be awesome...then again, sometimes they turn out regretful. You'll just have to follow your instincts and your smarts on this one.
At any rate, it sounds like you have some pretty cool goals in place right now. How exciting! Good luck! Whatever you do, I'm sure it will be great.
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in the end, if you can afford the risk to do something you might love - go for it.
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Tens of thousands of dollars for a decrepit business that pays around minimum wage doesn't sound like a winning scenario, but their must be a reason that the broker took them on. Don't be afraid to make a really low offer. Hey! Maybe you'd like to buy a bookstore!
Reply
So, it turns out that the broker was just checking us out or something and was waiting to be sure we were serious before hauling out the books. He wants us to make an offer and put down earnest money to see financial records, which I can understand, but it makes it hard to make a reasonable offer which they would even entertain. Whatever. I was prepared to offer less than half the asking price for just the equipment and the lease but more and more it sounds like these people will be a pain in the ass to deal with. The landlord shed some unfavorable light on the whole situation that makes it more likely we'll walk away at this point. Blah. Still, I'm going to hate it if some really cool little place springs up there in a few
Reply
i don't know if it's harder to make money off books or food. restaurants are thought of as one of the most risky business ventures and therefore difficult to finance through regular channels. this would be a great business for one or two people who could do it all and had some $$ to plow into inventory and promotions.
good luck! i'm excited for you just to be thinking about this direction and i love to talk *shop* so feel free to get in touch. also, i have awesome business advisors who might be of some assistance to you.
Reply
For a second there I got all excited about the prospect, and then I remembered that I haven't actively followed the zine world in several years. When I lived in Chicago I loved going to Quimby's but since then I've really fallen off. How much of an investment do you think the store would require for inventory, anyway?
Reply
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