How do you build a business?

[GoodSteward]

I went to Sears today because my dryer has been having trouble. I am going to attempt to fix it, but figured I would see if anything was on clearance in case I had to go that route. While there I learned that the owner(I used to work there over 14 years ago) had partnered with someone in the building complex he owns (small store front in a good part of town) to run a Radio shack and computer store. Well, they started a wireless internet business that took off, and he had to relocate. Now the store front is not being used, but has $30k worth of brand new fixtures and has more than that in inventory. It's pretty much ready to go.

I have always wanted to own my own computer/electronic business. I actually started a home based business, and that caught the attention of someone working where I am now. They gave me a job, so I left the home business and just worked for a salary instead doing corporate IT. The owner of Sears told me he owner financed $150k with the previous guy, and that guy basically stuck him with it and moved on with his internet business. He told me he would take $25k(cash, no more financing) for the inventory and fixtures, and take $650 a month in rent. This building should be renting for 3 times that. He knows me and would like to see it be successful (helps his Sears look better).

Anyway, I don't have anybody I know that I could trust to help me run this while I tried to build up the business. I wouldn't quit my job to do it as my current job is my main source of income and I don't have that much in savings to hold me over. I don't care to finance the 25k, but I am not sure how I could make it all work.

If only I knew someone that could work for me. Anybody have any insight from when they started a business?

[rennigade]

and take $650 a month in rent. This building should be renting for 3 times that.

If that were the case they wouldnt be coming to you asking for 3x less than what they could be getting. Thats not how it works.

They have $30k of brand new fixtures that they're trying to unload on someone else. Distance yourself from that disaster.

[bjl584]

You could look for an investor that would front the $25k in exchange for a repayment or a percentage of sales over some predetermined time frame. A fairly common business transaction

[disneysteve]

Now the store front is not being used, but has $30k worth of brand new fixtures and has more than that in inventory.

Why would he abandon $30,000 worth of fixtures plus another $30,000 or more in inventory? Something is fishy here.

[GoodSteward]

If that were the case they wouldnt be coming to you asking for 3x less than what they could be getting. Thats not how it works.

They have $30k of brand new fixtures that they're trying to unload on someone else. Distance yourself from that disaster.

There is 30k of fictures, and around 15-20k of inventory. He said if he ends up cleaning out the store, he will get more for rent. He has plenty of money, and this is his brothers old business. He would like to see it stay in town and would rather see the business going instead of make more on rent.

[GoodSteward]

Why would he abandon $30,000 worth of fixtures plus another $30,000 or more in inventory? Something is fishy here.

He said he has $150k tied into this, but he is burned out. He is trying to clear some of his money back and keep the business going(just under someone else). He considered trying to restart the whole thing himself again, but his wife said no more. He is in his late 50s, and in his words "money comes and money goes." He has made a lot of money owning different businesses, but his big money maker has always been Sears. He talked to me to start with about just having me try to sell the inventory for cost on ebay, but he would rather just have someone give him something up front to wash his hands and let the business continue under someone else.

I know the guy, and he isn't trying to take advantage of anybody. He just wants this behind him the easiest way possible. The guy who partnered with him sold some of the pricier inventory items, which is why he is left with much less than his investment. The 150k was owner financed, so the owner Got stuck with the leftovers and I assume only got a little of his 150k back.

[PeggyHefferon]

If you don't have someone to run it for you, I'm not sure how you can get it to work. I'm assuming your current employment is a day job. You are not going to move all of that merchandise opening nights and weekends.

[GoodSteward]

If you don't have someone to run it for you, I'm not sure how you can get it to work. I'm assuming your current employment is a day job. You are not going to move all of that merchandise opening nights and weekends.

That's right. That is why I need someone else to run it. I did think of someone, but I don't think they are interested. Oh well, life goes on.

[disneysteve]

Interesting opportunity but if all of the pieces don't fit for you, which is sounds like they don't, then probably best to pass.

[PeggyHefferon]

That's right. That is why I need someone else to run it. I did think of someone, but I don't think they are interested. Oh well, life goes on.

Well if the opportunity is a good as you believe it is, you certainly owe it to yourself to ask them.

[scfr]

Although this might not be the right time, could you come up with a plan to start saving & preparing so that you could pursue something like this in the future?

[GoodSteward]

Although this might not be the right time, could you come up with a plan to start saving & preparing so that you could pursue something like this in the future?

It is something I would like to do, but right now I have other obligations I'm working on that are more important. Also, with me being in ministry it will be hard for me to commit to a business, so everything would have to line up right to make that work.

I did ask that guy, and he is concerned about how it would work long term. This area needs a reliable shop, but I dunno.

[TexasHusker]

Good business opportunities can present in odd ways. "All the pieces" NEVER FIT. You have to work with the pieces you have and MAKE THEM FIT. That's why so few people ever go into business. They are waiting for it to show up on their door step with no hassles, and all worries and risks covered. Doesn't work that way.

I would pursue it. The "finding someone to run it with you" is tricky, because you need for them to be reliable and treat the business as your own. But I hire people all the time to run my businesses and it's worked out well.

However, it is worth the effort and investment IMO. Do some networking and I bet you can find the right person.

PM me if you would like to visit further.

[~bs]

That's right. That is why I need someone else to run it. I did think of someone, but I don't think they are interested. Oh well, life goes on.

I have my own part time business. I think in general, the actual conducting of the business is easier than the back end paperwork stuff (running it, in your words). However, unless your business is extremely profitable from the start, it's unlikely that you will be able to afford to pay someone and still turn a profit.

This means that at the initiation of the business, you should have a general understanding from a legal and accounting perspective. You should understand at the least how to run a check register, what tax types are due and when, any specific peculiar situations specific to your state, have a solid business plan in place, among many other things. If you are paying someone else to do all these things for you, you will lose money on the venture. The professionals you hire should be doing the higher level functions like filing legal documents or your business tax return, not writing checks and filing monthly sales tax returns for you. The amount of work you put into before starting the business, and in the back end of the business can be more than the actual direct business activity itself. But without doing this work, it will likely fail or get you into a lot of trouble for not having the proper licenses, certifications, taxes, etc.