Money help: So I am wanting to buy a business the business has two locations. - Help.com

Since the business has been running profitably, you have a better chance of being able to get a loan from the bank. They will consider your personal assets which can be used as collateral if they do not consider the business enough collateral, though, so be willing to sign over your car or whatever else you have if you own it outright. Also, if you try big name banks and do not get a loan, try a smaller more locally owned bank or credit union.

Always take a detailed business plan with you when talking to a loan officer. There are tons of books and classes available to help you figure out how to write your business plan, and you already seem to have a good deal of information that you will be needing. What the bank is going to want to know is how much money the business has made, how much it will make, and how you’re going to make sure it makes that kind of a profit. They want to know that you’re being realistic about the overhead costs of running a business. The only things that strikes me as something they may want to know that you haven’t actually mentioned is what experience you personally have that will make you capable of running this business. If you’re not really experienced but your friend is willing to act as your mentor or even create a contract to be your consultant, that could help things.

Running a business is hard work. You may have to discontinue or cut back on your schooling in order to keep up with the demands of being your own and other peoples’ boss. Many business owners have to work seven days a week just to keep the show running. Make sure that you look carefully at the life your friend has been leading as a business owner and that you’re ready to take on the necessary obligations.

What kind of business is it? You mentioned two locations, but are they offices or retail?

And are the locations kiosks, leased spaces in a mall or shopping center, or other?

Okay. So you’re going to be a service oriented business in a leased space (which is ALWAYS fun. Malls kind of suck as far as leases and space maintenance can go.)

I think that before you try to takeover the business, try basically apprenticing the current owner for a few weeks. See if you can keep up with him and learn everything you possibly can about the equipment, employee training, liability issues (service oriented business REALLY have to watch out for liability issues), and hiring and firing because places like that often have a somewhat high employee turnover.

If you like it, by all means go get the funding. Teeth whitening is very popular and people like to be able to get it done affordably and without making an appointment with a dentist. Your marketing background should help you with the promotions which will really generate a lot of business. I think you should be able to do just fine.

I think that’s pretty much an “owner will carry” contract. I would definitely consider it if I was selling a business because you don’t have to deal with a middleman. However, each of you NEEDS to have a lawyer just to make sure that all contracts are in order and that the business tranfers smoothly once you’ve paid off your debt to him. Even if this guy is your best friend in the world, all it takes is a tiny misunderstanding or something not written out for one of you to end up with a huge loss.