Established Mail Box, Pack & Ship Business
Steiny subscriber Posts: 1
edited July 2009 in Business Planning
I have an opportunity to purchase a small business. This is a franchise, the equipment and inventory at an established location (3 years) are all included. There are many personal apprehensions. I am retired (downsized) and want to build something for myself. I`ll be working the business 100%. The first challange is no previous small business or retail experience. I don`t even know how the business makes its money. The P&L appears to be profitable. Any advice is much appreciated.
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services to the board of directors. The contract had a clause that
required the contract be paid in full should the mine fail. He then printed up a very glowing prospectus on the company and how much it could produce. After which, he sold stock in the mining company.
Guess what, not only did the mine never turn a penny of profit, it failed. But, the man who set the company up made a fortune because of the way his contract was worded.
Another company sold worthless mining certificates to unsuspecting foreigners who knew nothing about mining. People bought these worthless mine certificates because they fell for a great sales pitch - "We are within feet of the main ore body. And, once we hit the mother load, owners will see a triple return on their investments." There was only one problem. The certificates granted no rights of ownership. So, what were people getting for their money? A certificate that read in very small print "Congratulations. you have given XYZ Mining Company money."
Moral of the story, find an business attorney and have him review everything.nevadascul7/21/2009 10:58 AM
You`ll want to know the details of the franchise agreement as well as the terms on transfer of ownership (the franchisor may have to approve you and there may be a "transfer fee involved")
If you decide to proceed, before you make an offer - decide what you want to acquire and how you will structure the ownership.
As previously stated, the advice of professionals is invaluable.