Buy a Business

Re: [spiers] Re: Buy a Business


In a message dated 11/4/03 1:52:47 PM, kismetzz@yahoo.com writes:

Hi John!

I am aware that seller's financing is usually the way to finance

buying a biz but to ask for no money down is quite another thing.

Would you elaborate on that and tell me how that can be done if I

have minimal or no experience in running a biz of any nature.

***My understanding of the original question was the person considering
buying a biz had experience and felt competent. if this is true, someone with
skill and time has something to offer someone who wants out. Also, given tax
implications, few people want to be cashed out anyway. I would not recommend
anyone sell to anyone with no biz experience, I would not recommend anyone with
no
biz experience buy.***


Also, I've been told that we are in essence buying the assets when

we "buy a biz". Is that true?

***Too genereous if the assets include inventory. About the only thing
useful in a small biz is the customer list, and its value depends on the
relationship those customers have with the owner. That relationship will not be
transferred to you.***

What about the existing customer

contacts and owner's reputation? Aren't those valuable too?

***That's about all that is valuable... the tools, computers, employees,
rolling stock, leases, etc are not of much interest to me.***


Do you recommend buying a biz and why?
***If someone wanted to give me on terms advantageous to me a biz that was
related to what I am doing right now with payment in the form of a percentage of
future profits, I would consider it. Aside from that, the best and fastest
way to proceed is to build you own, I think.***

John

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