I've worked for the same person for 8 years and in May of 2009, we opened a Take out/Delivery restaurant specializing in wings, gyros, wraps, etc. Now, I have been acting as the owner since day one, i.e.. menu planning, food costs, hiring/firing, ordering, advertising, working 50+ hours a week, etc, and now, the real owner is looking to sell the business. I am a full time single father of one who rents an apartment, owns a shoddy, yet trust worthy vehicle, and on my salary, I make ends meet. I'm tired of working as the owner and getting paid as the employee. I am looking for ways to purchase the business as he is looking to sell it 'Turn-key', so everything will stay, including the clientele we have built in the year and few months of being open. The business is very profitable, but right now, under his ownership, is not turning a profit for him due to other business ventures he is paying on. Where can I turn for help, federally or locally, to make this happen? Any help will be GREATLY appreciated.
The best method is to start by reviewing the business' balance sheet, income statement and cash flow statement from the accountant. This information will help you answer the first big question: 'what is this business worth?' By projecting the cash flows the business will be producing, taking into account the past performance, and also integrating your strategy, you'll be able to calculate an actual value for the business. Secondly, you'll have to think about how to fund the deal. Are you self-funded, is the owner open to holding the note or will you pursue a loan? Obviously, this is a brief overview of the process but I can get you more details in you're interested in pursuing this method and the benefits it provides in both establishing a fair value and in negotiations. Good luck!
Edward Shelton
Managing Partner
The Suits Consulting Group, LLC
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WingManDonnie,
I would suggest that you go an speak with someone at a local SCORE office or Small Business Development Center (SBDC). Business.gov has a page for Small Business Assistance & Training.
SBA has some resources on Buying a Business, which includes some point you want to make sure you do. I think something that is very important is doing more research on the business. You can never do enough, especially when you are investing a lot of time and money.
In terms of financing, take a look at our Ultimate Guide to Financing. Depending on how much money you need there may be different options available to you. A good place to start would be contacting a bank.
I would also be in contact with the current owner. Express your interest and see how it goes from there.
Good Luck,
JimD
TheSuits | Performer | 8/30/2010 - 4:51 am
JimD | Former Moderator | 8/19/2010 - 7:16 am
JimD | Former Moderator | 8/19/2010 - 4:57 am
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