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
Tuesday, November 4, 2003
Buy a Business
Buy a Business
Re: Buy a Business
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.
Also, I've been told that we are in essence buying the assets when
we "buy a biz". Is that true? What about the existing customer
contacts and owner's reputation? Aren't those valuable too?
Do you recommend buying a biz and why?
Thanks, Leigh.
--- In spiers@yahoogroups.com, wileyccc@a... wrote:
>
> In a message dated 11/3/03 10:02:48 AM, wileyccc@a... writes:
>
> <<1. My husband and I are thinking about buying a wholesale biz
importing
> homeware. How can you tell if the biz is financially viable?
>
> ***Well, meet their most important custoemrs, check out the
balance sheet and
> income statement, tax returns last 3 years, test the
receivables... and then
> put nothing down and write up an agreement where you pay for the
biz out of
> the profits (after your salary, etc)... essentially the deal that
makes sense
> for the buyer the seller would be hard pressed to agree to.***
>
> 2. The biz we are looking at has inventory of floor sample and a
showroom.
> Are those necessary? Where you do store your samples?
>
> ***Samples are best positioned in the showroom of an independent
sales
> representative. A shwroom of your own is a big expense, a
showroom of a rep costs
> you nothing except commissions if and when there are sales.
>
> 3. Many of the businesses are up for sale because the present
owners are old
> and could not keep up, I think these businesses need some new
blood and a
> more
> modern way of managing, how fast and frequent would you recommend
introducing
> changes? What is the most important change?
>
> ***Well change at precisely the rate that customers require, which
in gift
> and housewares is a new line to consider every six months... as
far as any
> internal changes, do as you will. Does this biz have no
inventory... more infor
> may be helpful.***
>
> John
Computer Product Innovations
Re: [spiers] Computer Product Innovations
Sorry about that, I have recognized eight problems, I have one solution
for each problem. So, I have eight ideas all together. I want to go
directlly to the purchasing agents and ask if they have any of these
products, if not do they think these are great ideas and would they purchase
the products if they were manufactured.
Well, if all eight solutions would sell to the same custoemrs, then it sounds
like you have a "product line." Good start!
It sounds as though the product is more industrial in nature if you are planning
to go to purchasing agents... in any event do you know the "buying process" for
the industry you are eyeing. In the book I graph out gift&housewares iindustry,
can you yet do the same for yours?
Once you can, you can extrapolate where you should begin in your approach... to
whom should you ask if "these are a good idea and if they exist" acting as
intially, the customer you truly are.
Each step builds on the other, so make sure you are approaching the right
people.
Now, as a practical matter, by going directly to any purchasiing agent
immediately and pitching your product, you will likely get an immediate (and
final) yes or no. This can be useful if you need one, but to my mind, there is
no solution that cannot be improved upon, so the more circumspect approach is
the more fruitful.
john
Monday, November 3, 2003
Sales Commission
Re: [spiers] Sales Commission
Rowena,
The research phase where you dive into the trade journals, etc, ought to give
you that info...if not, I always fouond it useful, as a student, since I was
a student, to call around as a student and ask people who should know, so I
might have the info for a study I am doing. Now as a "teacher" people are
still willing to share... but ask around, and see what kind of concensus you
arive
at...
john
In a message dated 11/3/03 2:10:25 PM, rowena@irieusa.com writes:
John,
Wondered if you could assist me, I'm thinking about hiring an outside
sales representative to sell my natural and organic products and pay
them commission only.
What advice can you give me and how can I find out what is the going
rate of commissions in the food and beverage industry.
Thanks
Rowena Mills
Computer Product Innovations
Re: [spiers] Computer Product Innovations
Sorry about that, I have recognized eight problems, I have one solution
for each problem. So, I have eight ideas all together. I want to go
directlly to the purchasing agents and ask if they have any of these
products, if not do they think these are great ideas and would they purchase
the products if they were manufactured.
>From: wileyccc@aol.com
>Reply-To: spiers@yahoogroups.com
>To: spiers@yahoogroups.com
>Subject: Re: [spiers] Computer Product Innovations
>Date: Mon, 3 Nov 2003 12:51:32 EST
>
>
>In a message dated 11/3/03 8:02:20 AM, willieb1152@hotmail.com writes:
>
><
>innovative idea for solving computer related trouble shooting problems. My
>problem is do you go to the stores and try to buy all 8 products or do you
>go and buy one at a time.
>
>***Are all 8 needed at one time to solve the problem, or are these 8
>solutions to eight different problems?***
>
>I am not going to try and patent anything. The
>other problem I have is people keep telling me go get your idea patented. I
>understand your thought on patents so it would be totally useless to listen
>to them.
>
>***There is no solution that can't be improved upon; to patent something
>just
>means you own a snapshot of what shoudl be a long movie of changing
>scenes.***
>
>Now it time to go out there and find out just how good and feasible
>my ideas are. Time to get busy. If they work excellent, if not, the way I
>have been brainstorming, I will think of somthing else.
>
>***Right on, plus if no one really wants to buy these ideas, then you do
>not
>have a garage full of them to dispose of ooutside of the market. You can
>move
>on to what people say WILL sell.
>
>John
Sales Commission
John,
Wondered if you could assist me, I'm thinking about hiring an outside
sales representative to sell my natural and organic products and pay
them commission only.
What advice can you give me and how can I find out what is the going
rate of commissions in the food and beverage industry.
Thanks
Rowena Mills
Buy a Business
Re: [spiers] Buy a Business
In a message dated 11/3/03 10:02:48 AM, wileyccc@aol.com writes:
<<1. My husband and I are thinking about buying a wholesale biz importing
homeware. How can you tell if the biz is financially viable?
***Well, meet their most important custoemrs, check out the balance sheet and
income statement, tax returns last 3 years, test the receivables... and then
put nothing down and write up an agreement where you pay for the biz out of
the profits (after your salary, etc)... essentially the deal that makes sense
for the buyer the seller would be hard pressed to agree to.***
2. The biz we are looking at has inventory of floor sample and a showroom.
Are those necessary? Where you do store your samples?
***Samples are best positioned in the showroom of an independent sales
representative. A shwroom of your own is a big expense, a showroom of a rep
costs
you nothing except commissions if and when there are sales.
3. Many of the businesses are up for sale because the present owners are old
and could not keep up, I think these businesses need some new blood and a
more
modern way of managing, how fast and frequent would you recommend introducing
changes? What is the most important change?
***Well change at precisely the rate that customers require, which in gift
and housewares is a new line to consider every six months... as far as any
internal changes, do as you will. Does this biz have no inventory... more infor
may be helpful.***
John
Computer Product Innovations
Re: [spiers] Computer Product Innovations
In a message dated 11/3/03 8:02:20 AM, willieb1152@hotmail.com writes:
<
problem is do you go to the stores and try to buy all 8 products or do you
go and buy one at a time.
***Are all 8 needed at one time to solve the problem, or are these 8
solutions to eight different problems?***
I am not going to try and patent anything. The
other problem I have is people keep telling me go get your idea patented. I
understand your thought on patents so it would be totally useless to listen
to them.
***There is no solution that can't be improved upon; to patent something just
means you own a snapshot of what shoudl be a long movie of changing scenes.***
Now it time to go out there and find out just how good and feasible
my ideas are. Time to get busy. If they work excellent, if not, the way I
have been brainstorming, I will think of somthing else.
***Right on, plus if no one really wants to buy these ideas, then you do not
have a garage full of them to dispose of ooutside of the market. You can move
on to what people say WILL sell.
John
Buy a Business
Good Morning John!
I am still classified as a pending member in the Yahoo group. I know I can
send emails and receive emails but there are other functions I cannot access as
a non-member. Just want to know if I'm missing anything. Anyways, here are
some questions:
1. My husband and I are thinking about buying a wholesale biz importing
homeware. How can you tell if the biz is financially viable?
2. The biz we are looking at has inventory of floor sample and a showroom.
Are those necessary? Where you do store your samples?
3. Many of the businesses are up for sale because the present owners are old
and could not keep up, I think these businesses need some new blood and a more
modern way of managing, how fast and frequent would you recommend introducing
changes? What is the most important change?
Alright, I hope you can reply at your earliest convenience. Please take care!
Warmly, Leigh
Sunday, November 2, 2003
How to import from overseas - customs etc.
Re: [spiers] How to import from overseas - customs etc.
Hi John,
> <
> locally and not at the best place in the world but because the digital
> camera model changes every 9 months we have to have hands on control,
> as these adapters require thousands of a millimeter specifications.
>
> ***Whoa... who am I to argue with your customers? If your customers are
> buying from you they must think you are the best place in teh world. My on;ly
> reaction would be "can you export, since people seem to think you are the best
> place?"***
We do get requests from people to become distributors in other countries,
Germany, Japan, England fairly often but right now it costs us between
$10.95 and $13.00 to make one adapter........which we retail for $27.95 for
a single adapter or $23.50 if you buy a pair, and so offering them at a
wholesale price would mean a lot more work for not much return. We might
make $5.00 a piece................ so we would have to work on volume. But
you have got me thinking.............. :) Maybe I am not thinking big
enough.
See we have a very simple situation, in that it is just myself, my partner,
and a person who ships for us. No advertising costs, we are talked about on
the 2 largest forums on the web for digital cameras so it is by word of
mouth. We then ship all over the world.
I am not sure if wholesaling would be more work than it is worth. I did
have a fellow from Germany who wanted to be the sole distributor for his
country......and he explained that it wouldn't take business away from our
web-site as most people in Germany don't use credit cards just wire
transfers. So that would be my concern, that I would be losing
international customers to my international distributors.............also
how would I have control over how the product is represented. This guy
actually posted a mock "LensMate" (our DBA) site up on a German forum, in
German this past year to test market if he could sell our
adapters.......without asking us. He was very nice though and did take it
down once we asked him to.
In the past several years 3 of the largest camera accessory companies, have
come up with their own copies of our machined adapter at a lower quality,
and lower prices.........so we are just able to keep ahead of the swell by
out designing the latest model of camera with an adapter that say, color
matches the camera body, fits the aesthetics of camera better than the
generic adapter, etc. and of course we can get a product designed,
prototyped, and ready to sell in 4 weeks.........the big companies take more
like 3-6 months. Then we find the appropriate filters to make it easy for
someone to shop in one place.
Thank you for your suggestions on how to approach buying from overseas
distributors, I will follow through with your advice and let you know how it
goes.
best regards Susan
Computer Product Innovations
Solving problems in the computer field. I have come up with some very good
innovative idea for solving computer related trouble shooting problems. My
problem is do you go to the stores and try to buy all 8 products or do you
go and buy one at a time. I am not going to try and patent anything. The
other problem I have is people keep telling me go get your idea patented. I
understand your thought on patents so it would be totally useless to listen
to them. Now it time to go out there and find out just how good and feasible
my ideas are. Time to get busy. If they work excellent, if not, the way I
have been brainstorming, I will think of somthing else.
Willie Barre