For several years, I have wanted to purchase an established convienent mart a mile from my house. I started working up there at age 12 and did a variety of jobs. The owner is ready to sell, but I have not the first clue in gathering information where to start to see if its something I can even do. I have always watched the saying 'it takes money to make money' and well I don't have all that. I graduated college and have climbed out of the hole slowly which means I don't have much more than probably 20k in equity to explore the option. I don't know where to look to see if I can even think I can do this. Its a great business and the only mini mart within about 10 mles plus. Its a great place where community comes to chat and greet others. Can anyone help with the beginning stages of where to look to make a dream come true?
ChristineL | Former Moderator |
4/21/2010 - 12:51 pm
Thanks phanio for your suggestions!
Try using the Loans and Grants tool to see loans you may be eligible for. You can also learn more about other financing options in our blog.
Given your situation, I say you have three choices:
1) Ask the current owner to carry the note. If you can come up with a very small down payment - take the remainder and amortize that amount over 25 years - to set a monthly payment. Then, write a loan agreement for a five year loan (balloon payment in five). If the current owner believes in the business and you - shoud be no problem.
2) SBA guaranteed loans. Write a business plan. Find a local or regional bank that offers SBA loans - and submit a package to them.
3) Find a local investor who will front the money for part ownership in the business.
Best of luck.
ChristineL | Former Moderator | 4/21/2010 - 12:51 pm
phanio | Contributor | 4/21/2010 - 6:48 am
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