Business owners/Sarge??

[blackSS01]

Ding ding ding, Its a liquor store in between 2 colleges Can't lose....but no answer from the bank yet

[pajeff02]

Ding ding ding, Its a liquor store in between 2 colleges Can't lose....but no answer from the bank yet

So... what did I win for my correct guess (Post #32)?

[Smkn_TA]

In some places Wal-Mart sells liquor. I've bought a 1/5 of Capin' in one. Cant' remember the town tho

My wal-mart sells johnny walker, makers mark, UV vodka, smirnoff vodka, several captain morgan varieties, everclear(151). Sambuca. And it's in the same aisle as their energy drinks!


As for your liquor store. VARIETY!! If you end up buying it, I can tell you a some liquors, you NEED to get. Oh, and get kegs, lots of kegs to rent.

[Sarge]

I have some questions from some of the people here own businesses. While on vacation I ran across a business thats for sale that I could run and could make a lot of money off of it. Here is some info without giving up too much info:

Turn key operation, everything comes with it to run it.
Price is $350,000.00 to own it.
Building alone was appraised this year at $345,000.00
Equipment plus full stock equals approx $75,000.00
Building comes with 2 apartments so I would have my living taken care of since its a 7 hour move.
Business GROSSES $800,000.00 + a year minus renting the apartments.
Business was established in 1950's
Owners will stay on 2 weeks for training and are retiring in the area for further help.
Owner didn't disclose NET earnings but said it was 6 figures
Owner gave me the bank he banks through, he now fully owns the operation.
Business has a strong hold on the area for what it does.



So thats a good chunk of info, my credit isn't that great but I have credit and only about $3000 in debt. If I had to, I would sell my Camaro/everything I could for help if needed. I'm thinking that regardless I should be able to get the loan off of the information the bank has. They should know what it makes every year. He has banked with them his whole life, would be my first time with the bank. What do all you owners think? Never did this before but would have no problems running it It sounds too good to be true but I have other info that I don't want to disclose.

Get a business broker...due diligence is key....you are not the one to exercise due diligence as you are the buyer. You must have a uninterested third party....he also will exercise due diligence on you to insure you are right for the business. He will charge you 5%-10% of the purchase price and they are invaluable.

[blackSS01]

Get a business broker...due diligence is key....you are not the one to exercise due diligence as you are the buyer. You must have a uninterested third party....he also will exercise due diligence on you to insure you are right for the business. He will charge you 5%-10% of the purchase price and they are invaluable.

Will you be my investor Sarge???

[erikzola]

As a multi unit business owner let me throw out a few things to think about:

Right now no bank is going to loan money to anyone without a 20% commitment from the buyer. If one does then that's great. Similar to a housing loan they want buyer involvement. What can hurt you even more is that as far as the bank is concerned you have no 'experience' operating this new venture. The business may have been around a long time and make X dollars in sales but that doesn't give the bank the 'warm and fuzzies' that you can run the business the same way as the seller. No offense intended here it's just the fact.

Secondly, try to get some idea of your expenses:

Monthly loan payment
Property taxes
Property insurance
Workers Comp insurance
Electric
Gas/Oil/Propane (heating)
Telephone
What is weekly/biweekly payroll
payroll taxes
payroll processing fees
professional fees: accounting/legal
will your suppliers require deposits being the new owner


this is just a partial list. Ask the seller to show you real costs/invoices etc so you can really get what the monthly 'nut' is going to cost.

My family owns a large liquor store in South Jersey that does very well. Lots of work and monitoring of all the cash but they do well.

Do all your homework on this and get copies of sellers tax returns for the last 5 years. That will tell alot too. All the docs should be reviewed by an accountant and lawyer. You can do a deal like this without a broker, why pay a broker fee? Even with solid returns a large cash business can cause the seller to have misleading returns too, why declare all that cash....

Lastly, go to the town hall. Check with them about any leans on the property, make sure all taxes are paid up.

Good luck. That's all I can come up with now.
Erik