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Hartynspren
Angemeldet seit:
02.01.2023
Beiträge: 178
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My wife and I have been offered an established small business for purchase. Current owner wants to retire and through past conversations knew I was interested. No employees, low overhead and 1500 established customer accounts. He’s been turning down work this year to try to maintain what he has and be semi retired. Six figure income the last several years. Non compete clause is part of the deal. I’m able to take a differed retirement with 25 years of service at my current job. Any advice from anyone with experience in purchasing a small business? We are to meet with an attorney later next week to go over the proposal that’s been written up.
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AniemDariel
Angemeldet seit:
17.02.2023
Beiträge: 86
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Having owned several small businesses, value is in the eye of the beholder. Most aren't worth much more than their monthly sales plus FF&E. Unless it is a pot dispensary or liquor store, Goodwill accounts for very little. Your return on investment should be measured in months and not years.
It is the dream of every small business owner in selling for multiples of their annual income. That is certainly a dream and not reality.
Generally, you can open a new business doing exactly the same thing and save yourself a lot of expense, headaches, and legal exposure.
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YunDevour
Angemeldet seit:
24.07.2023
Beiträge: 50
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Same here. A while back, I looked into purchasing a little cafe in my neighborhood. The idea was to take something that was already running and make it my own. I found that having a solid plan made a big difference.
While doing my research, I ***** on why start a small business. It gave me a lot of insights on what to consider, like understanding the current customer base and evaluating the financials.
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