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Running Brewer
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Location: Santa Poco
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 Posted: 05/16/06 - 13:52 Post subject: Starting a small business
so let's say I was interested in buying a small business. I have almost no experience in the field I want to buy into, but it isn't technical. How would you go about doing the background research, what is normally required finance? must I put down my own money or can I float the whole number with loans. I am guessing that the purchase price is around $600k.
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wanttorun100
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Posted: 05/16/06 - 13:54 Post subject: Re: Starting a small business
| Running Brewer wrote: | | so let's say I was interested in buying a small business. I have almost no experience in the field I want to buy into, but it isn't technical. How would you go about doing the background research, what is normally required finance? must I put down my own money or can I float the whole number with loans. I am guessing that the purchase price is around $600k. |
sounds like a huge risk to me
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airehead
Oompa Loofah
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Posted: 05/16/06 - 13:55 Post subject:
I would google for the demographics of the business you're interested in and make sure they are demographics that you are willing to work with.
(Example: I don't want to deal with snooty rich people in a wine shop, ever)
Also, if you have a specific business in mind, go watch it, see the customer traffic. Is it busy? Is it easy to get to? Is it seasonal? Go view it at different times of the day, week and month.
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j1miller
Puppy Love!
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Posted: 05/16/06 - 13:57 Post subject:
Is it in the United States? If so, you normally can get a SBA loan for up to 85% of the loan amount. The rest can be your own money or gift money, or seller financed.
This is called the SBA 7a program. If you want to finance real estate as part of the transaction, you can use the SBA 504 program and do a 50% 35% 15% split on the real estate financing, with the 10% being owner equity.
(It would normally be 50,40,10.... but since you have no experience in the field and it is a start-up, they require an extra 5% down).
You can call me if you want and I can help you with the details..... I do small business financing for a living.
Good luck.
Jen
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wanttorun100
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Posted: 05/16/06 - 13:57 Post subject:
| airehead wrote: | I would google for the demographics of the business you're interested in and make sure they are demographics that you are willing to work with.
(Example: I don't want to deal with recreational joggers or recumbent bikers, ever)
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airehead
Oompa Loofah
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Posted: 05/16/06 - 13:58 Post subject:
| wanttorun100 wrote: | | airehead wrote: | I would google for the demographics of the business you're interested in and make sure they are demographics that you are willing to work with.
(Example: I don't want to deal with pharlene or others like her, ever)
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j1miller
Puppy Love!
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Posted: 05/16/06 - 14:00 Post subject:
Check with the US Cencus Bureau to find out about demographics in a particular area to see if it is economically feasible.
Also, you can use RMA (Risk Management Association) statistacs to come up with projections that fit the size business for your demogreaphic area.
 Oh, I feel happy now....
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Running Brewer
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Posted: 05/16/06 - 14:02 Post subject:
| j1miller wrote: | Is it in the United States? If so, you normally can get a SBA loan for up to 85% of the loan amount. The rest can be your own money or gift money, or seller financed.
This is called the SBA 7a program. If you want to finance real estate as part of the transaction, you can use the SBA 504 program and do a 50% 35% 15% split on the real estate financing, with the 10% being owner equity.
(It would normally be 50,40,10.... but since you have no experience in the field and it is a start-up, they require an extra 5% down).
You can call me if you want and I can help you with the details..... I do small business financing for a living.
Good luck.
Jen |
Call? as in with a phone? 
it isn't a startup business, it is established, but I would be new to this field. However, it would not be in the US, it would be in Mexico.
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wanttorun100
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Posts: 4946
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Posted: 05/16/06 - 14:04 Post subject:
| j1miller wrote: | Check with the US Cencus Bureau to find out about demographics in a particular area to see if it is economically feasible.
Also, you can use RMA (Risk Management Association) statistacs to come up with projections that fit the size business for your demogreaphic area.
Oh, I feel happy now.... |
I'd check for census data myself
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JACKED UP
PRESIDENT
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Joined: 06 Jun 2003
Posts: 21238
Location: www.johnnydu.com
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Posted: 05/16/06 - 14:05 Post subject:
| wanttorun100 wrote: | | airehead wrote: | I would google for the demographics of the business you're interested in and make sure they are demographics that you are willing to work with.
(Example: I don't want to deal with recreational joggers or recumbent bikers, ever)
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Too late for me!
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j1miller
Puppy Love!
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Joined: 07 Jul 2002
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Posted: 05/16/06 - 14:06 Post subject:
| Running Brewer wrote: | | j1miller wrote: | Is it in the United States? If so, you normally can get a SBA loan for up to 85% of the loan amount. The rest can be your own money or gift money, or seller financed.
This is called the SBA 7a program. If you want to finance real estate as part of the transaction, you can use the SBA 504 program and do a 50% 35% 15% split on the real estate financing, with the 10% being owner equity.
(It would normally be 50,40,10.... but since you have no experience in the field and it is a start-up, they require an extra 5% down).
You can call me if you want and I can help you with the details..... I do small business financing for a living.
Good luck.
Jen |
Call? as in with a phone?
it isn't a startup business, it is established, but I would be new to this field. However, it would not be in the US, it would be in Mexico. |
OH, The SBA is out then.... I can still help with a Business Plan.
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wanttorun100
Member
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Posts: 4946
Location: Just to the right of Atilla the Hun!
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Posted: 05/16/06 - 14:10 Post subject:
| JACKED UP wrote: | | wanttorun100 wrote: | | airehead wrote: | I would google for the demographics of the business you're interested in and make sure they are demographics that you are willing to work with.
(Example: I don't want to deal with recreational joggers or recumbent bikers, ever)
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Too late for me! |
was it over when the Germans bombmbed Pearl Harbor?
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