Author Topic: Running/owning a small business  (Read 1078 times)

illdecide

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Running/owning a small business
« on: March 30, 2018, 04:50:57 PM »
Folks i know a few of you work for yourselves and maybe a few own a small business so i'm looking for some advice on it if you can.

Basically i have the opportunity to buy a small business which is surprisingly a lot less than i expected it to be going for but it does need a bit of investement for a renavation and a little shake up, what i want to know is it easy to get a business loan from a bank and what are the rates for paying back business loans. Also i have a guy who is willing to to put money upfront as a silent partner for obviously a share but i'm not so sure (risk free i suppose). I was all up for this with no hesitation but now that it's a reality i'm shiting myself TBH...I have loads of questions but maybe better to answer some of yours if you have any...
I can swim a little but i can't fly an inch

The Iceman

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Re: Running/owning a small business
« Reply #1 on: March 30, 2018, 04:56:17 PM »
There are lots of local agencies that assist with this and I would definitely go to them first. Where do you live I might know who to point you to?

There's a lot of funding and grants available - you may not need to go to the bank for a lot of money.  I would at least figure out what is available before going to the bank.

In terms of the "silent partner" its very hard to determine how much of a share anyone gets and what your work and effort are worth versus cash.... I'd think long and hard about that part before accepting it....
I will always keep myself mentally alert, physically strong and morally straight

illdecide

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Re: Running/owning a small business
« Reply #2 on: March 30, 2018, 05:02:26 PM »
Lurgan...In fairness he's not caring, he has plenty and it's more of an interest to him but he just offered to help. I know what you're saying...why should i put all the hard work and effort into it for someone to sit back and get some of the rewards for no effort...My thoughts too
I can swim a little but i can't fly an inch

Smokin Joe

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Re: Running/owning a small business
« Reply #3 on: March 30, 2018, 05:45:40 PM »
Lurgan...In fairness he's not caring, he has plenty and it's more of an interest to him but he just offered to help. I know what you're saying...why should i put all the hard work and effort into it for someone to sit back and get some of the rewards for no effort...My thoughts too

...because his capital will allow the business to grow and then the pie will be bigger.  So your smaller percentage of the bigger pie may be more £ than owning 100% of the smaller pie.
So it really comes down to whether you need his capital, or you think that the capital will grow the business.

Dougal Maguire

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Re: Running/owning a small business
« Reply #4 on: March 30, 2018, 07:08:22 PM »
You'll need a business plan if you're looking a business loan or applying for any grants
Careful now

Dire Ear

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Re: Running/owning a small business
« Reply #5 on: March 30, 2018, 10:08:06 PM »
You'll need a business plan if you're looking a business loan or applying for any grants
Agree totally with this,  and donít rush into it, and some mightnít like this but donít trust many people

illdecide

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Re: Running/owning a small business
« Reply #6 on: March 30, 2018, 10:43:29 PM »
It is an existing established business where the owner is just getting on (and not in great health) and he just hasn't the energy for it anymore...
I can swim a little but i can't fly an inch

Milltown Row2

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Re: Running/owning a small business
« Reply #7 on: March 30, 2018, 11:21:34 PM »
Was going to get into a business a while back (Christ, 5 years ago) did the whole business plan and was able to get a backer interested, as i was never able to get full amount..ended up I just worked out that for me Iíd have had wage but no real ownership and yes, while Iíd have close to half a business to sell on for retirement purposes I wasnít ready to do all the hard work for someone else!

But itís a nagging feeling, although Iíve a great job now and love my job it was something that I did very well in and would have improved it..

If you believe in it do it!
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Dougal Maguire

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Re: Running/owning a small business
« Reply #8 on: March 30, 2018, 11:32:25 PM »
Find a job that you like and you'll never work a day in your life
Careful now

Milltown Row2

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Re: Running/owning a small business
« Reply #9 on: March 30, 2018, 11:35:43 PM »
Find a job that you like and you'll never work a day in your life

That too!
Anything I post is not the view of the County Board!! Nobody died in the making of this post ;-)

Don Johnson

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Re: Running/owning a small business
« Reply #10 on: April 02, 2018, 09:05:36 AM »
I look forward to trying your ice cream.

el_cuervo_fc

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Re: Running/owning a small business
« Reply #11 on: April 02, 2018, 09:18:07 AM »
Lurgan...In fairness he's not caring, he has plenty and it's more of an interest to him but he just offered to help. I know what you're saying...why should i put all the hard work and effort into it for someone to sit back and get some of the rewards for no effort...My thoughts too

It would depend on the percentage of the business your silent partner would be looking to take.  If it was a 50/50 or something close to that youíd be safer with a loan. It would be paid off in a few years and all the rewards would be your own.

 There are plenty of grants available if you look in the right places for renovations etc.

passedit

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Re: Running/owning a small business
« Reply #12 on: April 02, 2018, 03:09:07 PM »
I'd be exploring the silent partner route before speaking to the banks. It shouldn't be beyond your wit to work out a buy out arrangement with him now which will give him a good return on his capital provided you are successful. The banks will want their return no matter what and it won't just be the interest on whatever loan you manage to agree with them. You won't be able to shop around for everyday banking facilities or overdraft cover and all banks will charge extortionate rates for these once they have their hooks in. It would appear that he also has a bit of business savvy (or at least the ability to turn a pound) which can be a very useful resource for a bit of mentoring or even just for a second opinion.

Your biggest investment is going to be your time, whatever the opening hours of business are you can add half again for your involvement. Have you got the time and energy for that? All businesses are a risk no matter what past performance is, what's your fall back position if it doesn't work? How long can you work without a regular pay packet?

If you have an answer for these questions I say go for it. And do as much as you can without the banks. Mark Twain was right about them.
Don't Panic

Mikhail Prokhorov

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Re: Running/owning a small business
« Reply #13 on: April 02, 2018, 06:59:08 PM »
worth waiting until you have the capital to go it alone, no banks, no silent non working partners, you can get money slow or you can get it fast, we all know what happens when people get money fast