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View Full Version : Thinking of buying a family owned business.....?



inovermyhead
06-16-2006, 02:02 PM
Hi :)

I'm 38 yrs. old and have been managing a small town family owned Auto Glass Install shop for 12 years. There are 2 employee's, myself and my uncle. I was recently approached by my 71 yr. old uncle to see if I would wan't to buy the business, he's tired.
It has been established and running fine for 28 yrs......in the past 4-5 years my uncle has gotten lazy and hasn't been putting 100% in the business (no advertising...etc.) so the profits have dropped some but there is potential for much more business. I'm going to sit down with them and their accountant and go through the books and see exactly what's going on but I was told by my uncle today that:

The business is doing around $135,000 per year now...Down from $200,000, 4-5 years ago. It take's around $65,000 to keep the shop going. There is also a second building that will rent for $400 a month that is currently storage for my uncle. I would need a part time person for 15-20 hours a week. The salary I would like to get from the shop is $50,000 per year and still grow the business.

From the above numbers, is this a good risk on an established business?

I know 90% of what goes on here and the customers always ask for me when they come here because I'm a good people person, it's just the business end that I'm not 100% sure about. Also, my aunt and uncle said they will help me as long as I need them......?!?

Kirk
06-16-2006, 05:12 PM
I couldn't comment from a professional, or experienced stand point, but what you've reported sounds good! I'd go for it, if I were in your shoes.

jeff2
07-25-2006, 07:48 AM
It does sound like a good opportunity. You should sign up right away for some accounting and finance courses at your local community college, though. This is basic information that you shouldn't have to rely on other people for. After a couple of those, continue with the other business courses, such as marketing, management, operations, business statistics. Unless you are out in the sticks, you could probably grow that business to several times its current size.

hillaryNC
01-20-2014, 08:56 PM
Do it! You will never get an opportunity like this again in your life! If you have ideas, and know that you could make the business better, why not? At least the business stays in the family that way and you avoid the start up costs and hardships of starting your own business. You know you have good employees that you can depend on, so it seems to be an awesome opportunity and way that you can make your own profit and be your own boss!

swagger
02-02-2014, 12:37 PM
I'd go for it if I were you, with hard work you could increase your profits as well.

oregano
02-11-2014, 03:10 AM
This sounds like a good opportunity for you to have your own business and grow it in the direction you see best over the next few years. You already know most aspects of running the place - and as another poster said, you could take some accounting and business courses to increase your knowledge and confidence in those areas where you don't have so much experience. If your aunt and uncle are still able to help out for at least a while, you shouldn't have too much to worry about in terms of the business and numbers side of things.

What you haven't mentioned is how much you would have to pay for the business, and on what terms. Hopefully since it's family you can do a deal where you pay in installments, unless you can take out a bank loan on reasonable terms. It sounds like you need to find an accountant who can give you some advice on the value of the business what what an appropriate price would be, then figure out how you would finance the purchase. Make sure you're in agreement with your aunt and uncle every step of the way, since they will still play a part in the business (and they're family too!), and it could be the best decision you ever made!