Talk me out of this

**MotherB** · 03-26-2010 12:33 PM

A business I have long loved and been a customer of has come on the market. The owner is having medical issues and needs to move on. Business has very low overhead, part-time staff of 2, very recognizable name, in-tact and consistent clientele, and huge potential for growth and expansion. It is modestly profitable in its current state, but with growth and expansion could be very comfortably profitable. Inventory is valued around 170k and asking price is 250k. It does not come with the space so that would be an additional cost.

Here's why I want you to talk me out of it:
1) I am only 28.
2) I have a family and a mortgage and my partner and I rely on both incomes.
3) I've never owned a business before (although my father, 2 uncles, and 2 aunts all own their own businesses, so I've learned quite a bit from them).
4) It could either be a huge, huge success or a colossal failure and I lose everything.

And go....

**marktc** · 03-26-2010 01:22 PM

Your language suggests that you have already convinced yourself that you don't want the business. You have asked yourself the question "what's the worst that could happen?" and come up with a pretty heavy answer.

My suggestion is to ask one of your relatives to help you evaluate the opportunity. They can't make the decision for you but they could offer some advice that would help you decide. If they have business experience they should be your first port of call.

If you've never owned a business before perhaps you should start with something low cost to see if you like it without risking your livelihood. If it's an inventory based business you could try starting a drop shipping business in the same market instead of forking out $170k for stock.

Every business has "potential". You need to decide how real that potential is and how much work it would take to make it happen.

**mcfarldr1** · 03-26-2010 02:14 PM

What if you set up the business as a LLC? Then you won't be for more than you can handle I guess is what I'm trying to say.

**ZingerIntl** · 03-29-2010 01:47 PM

I have an entire paragraph of solid advice but motherb will never read it... damn newbees. Ever wonder why 99% of the world never succeeds? There you go. Step one complete, take a 3-5 year break from your dreams.

**ZingerIntl** · 03-29-2010 01:47 PM

Originally Posted by mcfarldr1

What if you set up the business as a LLC? Then you won't be for more than you can handle I guess is what I'm trying to say.

This makes ZERO sense. please make sure your advise is clear concise and correct.

**TomSR** · 05-14-2010 01:54 PM

It sounds to me like it is fear not business credibility that is leading your thoughts.

What you need to do is work out the chances of success and if those odds are acceptable then go for it at full speed and not look back. If the business is good and you back yourself to run it right then why not take the chance? Are you happy with your current state of affairs? Would you rather have your own business?

P.s. What does "I'm only 28" mean? Would you rather wait until you were 40, 50 or even 60? They are just numbers.

**Manny4life** · 05-14-2010 04:29 PM

Originally Posted by ZingerIntl

This makes ZERO sense. please make sure your advise is clear concise and correct.

You can either give it the advice or not, leave it up motherb to decide to read or not

**jet72** · 05-19-2010 02:29 AM

Don't zero in on this business. Look around. You may find more "tempting," solid businesses that are affordable and manageable.

However, regardless of the size if you think you can "handle" it - go for it.

But it doesn't mean you will run it alone...Even presidents hire advisers to run a country.

**questeds** · 08-23-2010 08:15 AM

Sorry to add to an old post - did you go for the business in the end?

My situation is very similar to yours, as I rely on my income to pay a mortgage etc. and I think people like us will always struggle with the risk factor. It is ok to risk when you have nothing to lose!

My advice would be the same I am taking myself - look for a way to enter without giving up your day job. I understand this is not always possible, but can you make it so. Also, be careful with the emotional attachment you have to the business. This may make you see things through rose tinted glasses. My wife loves the idea of owning a doggy day care, because she loves our pooch so much - but that doesn't mean it will be a success.

Your age is not an issue unless you make it one - one of the beauties of being your own boss!!!!

Good Luck!