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Help! Someone offered me a business

by burtf1951, Creator

  • Created: November 12, 2009, 2:15 pm
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13 comments

I just finished meeting with a guy I know who has just built a Tire store, It's a small 3-bay new building that will sell tires - oil changes - brakes. He has all the tire, oil change and brake equipment. The store is fully functional with office and computer. He is willing to order startup inventory, tires, oil etc. 

 

He basically want to hand me the keys to the business and I would pay him a percentage of the profits at months end. I informed him that I wasn't financially able to invest anything into the business. He is willing to cover all startup cost and labor until I can get the business up and going.

 

He used the word 'lease' which makes me a little uneasy. Now I know this guy and he's straight up, he's just got a lot of irons in the fire. He told me he didn't have time to manage the business, he said 'I'm in the renting and leasing business'.

 

Not knowing anything about all the in's and out's of running a business, accounting and such, I'm a little apprehensive of what I'd be getting into. He told me to think about it and if I was interested that we would go over the particulars and he's hand me the keys.

 

Any comments - suggestions?

 

Thanks,

Charles

 

P.S. Right now I'm unemployed, so it's more than the nothing I'm holding now! 

 

 

Tags: Discuss Popular Topics, Starting & Registering a Business
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BizResearcher | Window Shopper | 11/13/2009 - 12:23 pm

First, do you have experience installing tires, wheel balancing, oil changes, and the other skills needed to operate such a business? If you don't, then you will need to hire people to do it for you, as well as hiring office help, and that can increase your costs substantially. You might want to make an appointment at a small business development center (located at colleges and universities) or with a SCORE counselor (located at SBA offices). They can help you make an informed decision. You also need detailed financial information from the business owner so you can see exactly how much you will need to earn each month to cover expenses and have enough to pay him and to pay yourself.

ChristineL | Former Moderator | 11/13/2009 - 3:50 pm

Thank you BizResearcher for piping in! burt1951, Meeting with a SCORE counselor is definitely helpful. I would also suggest consulting a legal or tax professional. SBA provides a short guide to buying a business that may help you in sorting out your situation. Does anyone have experience in this area? Feel free to add.

BusinessBrocker | Performer | 12/7/2009 - 2:37 am

This is the best offer I have ever think of, what are you waiting for but make sure whether you will be getting profit share or salary for running this business because if you are getting salary then you are no partner. I will suggest you to go for it but make proper paper work for it.
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abhi | Contributor | 12/17/2009 - 6:28 am

First of all Congratulation, As you got good business opportunity. Well, I think you should have little bit of knowledge about the business you are going to start. So i think you may join some established business related for a few months and Just see How they manage all the things and How the work is perform.   Well, i think this will help to get more success :-) 

LocationIsland | Creator | 12/16/2009 - 3:41 pm

Charles, The fact that he brought up a lease actually confirms he's probably being 'straight up' with you. You see, although it sounds as if it could be a great opportunity for both of you, it always makes sense to reduce your agreements to writing (i.e., a Lease and/or an operating agreement). That way, there are no misunderstandings in the future and your friendship will remain intact. If money is tight, try reaching out to your local Bar Association to see if there are any attorneys willing to work on your agreements 'pro bono'. The carrot on the stick for them would be the possibility of having you as a client in the future. Good luck to you!
Professional Web Site: http://www.locationisland.com

MerchantMan | Creator | 12/17/2009 - 1:45 pm

Sounds like an early Christmas present to me! I would first thank him for the offer and then get the offer in writing. This maybe the most important point of the deal because it sounds so good. Then have you attorney review the contract. I am sure each of you have an idea of how it will work and agreement upfront is only fair. Best wishes
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LeadTrans | Window Shopper | 12/19/2009 - 1:31 am

It appears that he is asking you to manage or running the store for him. You will be paying him a monthly fee for leasing the building and probably HEALTHY percentage of the profits. If you are unemployed, this could be a good oppportunity for you, however, I would definity seek legal advice BEFORE, signing any contracts. Real legal advice, not just the advice of a good friend. Feel free to contact me at Chyrell.English@leadtransllc.com. Message Edited by NicoleD on 12-19-2009 02:36 PM

StuartR | Former Moderator | 3/22/2010 - 1:06 am

Messages removed because irrelevant content.
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ChristineL | Former Moderator | 3/22/2010 - 1:06 am

Thanks for coming back and letting us know, burtf1951! Please feel free to continue participating in our forums and check out our blogs!

burtf1951 | Creator | 3/22/2010 - 1:06 am

Gosh, thanks for all the comments. I passed on the business and took a job offer with Woodforest bank. The compensation is pretty good with excellent benefits. I just couldn't justify the gamble and went with the sure thing.   Thanks again for all the responses...