Author Topic: Running/owning a small business  (Read 2620 times)

Ambrose

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Re: Running/owning a small busines
« Reply #30 on: May 29, 2018, 10:56:19 PM »
I see quite a popular and what I thought was a successful business in north Louth has had to pull the plug after 25 years trading. Anyone know the story here?

Eddie Haughey isnít available to bail him out anymore, but itís a strange one alright. The place was packed out 6 nights a week, serving greasy over priced food to tourists and those who donít know any better, but in Dannyís defence they kept coming back.
The banks finally pulled the plug this week, but he still managed to pull a few strokes before it all came down around him. A horrible little man who finally got his just desserts.
The stench outside the place was over powering at times, it is just down river from a sewage plant.
All we need now is fat Jimmy Cumiskey auctioning everything off to put the icing on that particular cake.

JimStynes

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Re: Running/owning a small business
« Reply #31 on: May 30, 2018, 12:49:19 PM »
Jesus some people are hard to please. I have nothing but good things to say about the restaurant. Wouldnít have been a regular customer but u have been about 20 odd times over the years and it was always lovely food. Expensive enough grub all the same and it was always packed so it must be some debts external to the restaurant have messed things up.

The Halloween and Christmas decorations and displays were excellent.

Hound

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Re: Running/owning a small business
« Reply #32 on: May 30, 2018, 02:33:27 PM »
TabClear you are of course correct in saying that the accounts will not reflect the true turnover which is where i could be in trouble trying to borrow money. Of course i could borrow a bit less maybe £65k and try and put £15k of my own money in which will help.
Did you look at P2P/crowd lending?

Heard good reports about Linked Finance, but that's only in the south I believe, and max loan term is 3 years.  But there's probably multiple UK providers offering similar

macdanger2

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Re: Running/owning a small business
« Reply #33 on: May 30, 2018, 04:14:32 PM »
TabClear you are of course correct in saying that the accounts will not reflect the true turnover which is where i could be in trouble trying to borrow money. Of course i could borrow a bit less maybe £65k and try and put £15k of my own money in which will help.

Fair play for taking the risk, hope it works out well for you

Edit: once you get opened up, throw up the name here for some free advertising, I'm sure the gaaboard community would do a bit to support you
« Last Edit: May 30, 2018, 04:16:35 PM by macdanger2 »

illdecide

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Re: Running/owning a small business
« Reply #34 on: May 31, 2018, 01:52:54 PM »
OMG...got the accounts today for the last two years and he should be jailed FFS. I'm rocked here and it's put a real dampener on things as i just had a business plan done this morning and what is needed against whats currently being lifted is a major major concern...
I can swim a little but i can't fly an inch

TabClear

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Re: Running/owning a small business
« Reply #35 on: May 31, 2018, 02:13:40 PM »
OMG...got the accounts today for the last two years and he should be jailed FFS. I'm rocked here and it's put a real dampener on things as i just had a business plan done this morning and what is needed against whats currently being lifted is a major major concern...

Do you mean in terms of whats reflected in the accounts against what you know is the reality? If its a case that the business doesnt make as much as you thought when you agreed the price then your only option is to renegotiate or walk away.

However if its the "official versus actual" dilemma and he understands that you need to raise finance and understands how much cash you will actually generate you could think about doing a staged buyout with an option agreement. i.e. He wants £100k for his shares but because of the accounts you can only raise £70k. However you know (and he knows)  that you will have at least another £30k coming in over the first 2 years so you pay him £70k now for 70% with an option to buy  another 15% in 1 year for £15k and 15% in 2 years. If your business plan is correct you should generate the cash to pay him rather than a larger loan. (Albeit it may mean you have to pay him quicker than you would a bank i.e. 2 years rather than 5 say). Ideally you would want the option exercise to be at your discretion but he would be unlikely to go for that. If you had a investor who was willing to back you they might do a similar deal for the £30k (silent partner secured against the shares) depending on the return you offered.

There are tax efficient ways it could be structured from his side (vendor loan notes etc) that might appeal to him but this could get complex pretty quickly so you would need to take proper advice from a legal and tax perspective so it might not be worth the hassle.