Hello,
Both my wife and I have just graduated from a four year University with
Agriculture degrees. My family has owned and operated a flower nursery for
over 20 years. Now my mother wants to retire. I would really love to take
over the nursery but would have to buy it from her. The property was bought
through a hard money loan and has to be paid off by 2015. We would like to
take over in 2015 what would be the best option? or what do we have to do
from here till then to be ready to apply for a loan to pay off her mortgage
and give her some money as well? I am currently working as an Assistant
Superintendent at a Country Club and as nice as it has been, I do not want to
be here my whole life. Thank you.
I really appreciate all the advice given to us on this website. My mother has
expressed her desire to retire, and i had my wife work with her this last
season. She really liked it and we are continuing with our plan to purchase
the nursery by 2014. We just recently purchased a house, and are going to
work on our credit from here till then and hope we can run some numbers in
order to qualify for the loan. I have been reading a bit about the
application process, and keep reading about a business plan and would like to
know which is the best resource to get information regarding a business plan
and how to prepare it?
Isaac Rosales
Grounds Superintendent
Eldorado Country Club
Indian Wells Ca
kmurray | Community Moderator |
1/8/2013 - 4:56 pm
Show Replied Text…
I really appreciate all the advice given to us on this website. My mother has expressed her desire to retire, and i had my wife work with her this last season. She really liked it and we are continuing with our plan to purchase the nursery by 2014. We just recently purchased a house, and are going to work on our credit from here till then and hope we can run some numbers in order to qualify for the loan. I have been reading a bit about the application process, and keep reading about a business plan and would like to know which is the best resource to get information regarding a business plan and how to prepare it?
All the advice you have received is excellent. You don't mention what your
wife is currently doing. It may be very helpful for her to work for your
mother if that is a possibility. That will provide much needed experience in
the business that will go a long way when you are ready to apply for a
purchase loan.
Great advice, and I will add that it would be beneficial for you to educate
yourself on the current floral market. That industry has changed
significantly with the invent of online sales and mass commercialization of
floral arrangements. I do think however, that we are reverting back to mom
and pop for many many products and this is a wonderful fulfilling niche to
fill, especially since it is a family business. Nonetheless, a little leg
work into the current standing could give you some ways to improve the
business as a whole which would indicate your profit, thus ability to pay
back the loan by 2015. Good luck!
kmurray | Community Moderator |
9/28/2012 - 8:49 am
Hi, You can also try getting in touch with a local Small Business Development Center or SCORE, two of SBA's resource partners. They're located across the country andprovide free business counseling and answers. Visit SBA Direct to find your local SBA resource partners by entering your zip code. Good luck!
The question about the best option is too open ended to have one answer.
There are a significant number of factors that will affect your ability to
obtain financing.
- The cash flow from the business and its ability to repay the debt. This is
known as capacity.
- Your personal credit history as well as your experience in the industry.
This is the character.
- The estimated value of the underlying real estate and the going concern.
This is the collateral.
- How much of your own capital are you bringing to the table. This is the
capital.
One way to finance the business acquisition would be with a bank loan. Since
we know what the lenders are going to be looking at {remember you borrow from
a bank not the SBA}, and the transaction is not going to happen for a couple
of years..... It is time to start working on those items.
- Get familiar with the financials of the company and run some numbers to see
how profitable it really is and how much debt it can support.
- Get a free credit report and do some credit repair and make sure your
repayments are flawless for the next couple of years.
dream | Window Shopper | 1/8/2013 - 12:14 pm
expressed her desire to retire, and i had my wife work with her this last
season. She really liked it and we are continuing with our plan to purchase
the nursery by 2014. We just recently purchased a house, and are going to
work on our credit from here till then and hope we can run some numbers in
order to qualify for the loan. I have been reading a bit about the
application process, and keep reading about a business plan and would like to
know which is the best resource to get information regarding a business plan
and how to prepare it?
kmurray | Community Moderator | 1/8/2013 - 4:56 pm
BizResearcher | Window Shopper | 10/2/2012 - 12:25 pm
wife is currently doing. It may be very helpful for her to work for your
mother if that is a possibility. That will provide much needed experience in
the business that will go a long way when you are ready to apply for a
purchase loan.
SolaceLaw | Window Shopper | 9/29/2012 - 7:08 pm
yourself on the current floral market. That industry has changed
significantly with the invent of online sales and mass commercialization of
floral arrangements. I do think however, that we are reverting back to mom
and pop for many many products and this is a wonderful fulfilling niche to
fill, especially since it is a family business. Nonetheless, a little leg
work into the current standing could give you some ways to improve the
business as a whole which would indicate your profit, thus ability to pay
back the loan by 2015. Good luck!
kmurray | Community Moderator | 9/28/2012 - 8:49 am
loanuniverse | Window Shopper | 9/26/2012 - 6:47 pm
There are a significant number of factors that will affect your ability to
obtain financing.
- The cash flow from the business and its ability to repay the debt. This is
known as capacity.
- Your personal credit history as well as your experience in the industry.
This is the character.
- The estimated value of the underlying real estate and the going concern.
This is the collateral.
- How much of your own capital are you bringing to the table. This is the
capital.
One way to finance the business acquisition would be with a bank loan. Since
we know what the lenders are going to be looking at {remember you borrow from
a bank not the SBA}, and the transaction is not going to happen for a couple
of years..... It is time to start working on those items.
- Get familiar with the financials of the company and run some numbers to see
how profitable it really is and how much debt it can support.
- Get a free credit report and do some credit repair and make sure your
repayments are flawless for the next couple of years.
Good luck, and happy reading
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