stefan
Cave Dweller 
Member since January 2005
Posts: 14,113
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Post by stefan on Jan 18, 2007 13:49:06 GMT -5
Well The Place I work for made a HUGE announcment- THey are selling the Business- But they want to offer it to the employees first- I'm the only one who showed any interest in it but I don't know if I can tackle the responsibilities of owning a company (you know what they say- the man who owns his own business has a fool for a boss!) So I put it out to the Cosmic Void! This is a small catalog company that specializes in small Exotic Pets (sugar gliders, hedgehogs, degus, chinchillas ect.). What do you all think?
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blarneystone
spending too much on rocks
Rocks in my head
Member since March 2010
Posts: 307
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Post by blarneystone on Jan 18, 2007 14:16:22 GMT -5
Hmmm... Both my mother and uncle owned small businesses... can be very rewarding but it's a 24x7 job. Is it a well established business?
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earthdog
Cave Dweller
Don't eat yellow snow
Member since June 2006
Posts: 2,731
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Post by earthdog on Jan 18, 2007 14:18:50 GMT -5
Go for it, if ya can swing the deal. Then you could also sell rock stuff.... Send me a catalog from the place, would ya?
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rollingstone
starting to spend too much on rocks
Member since July 2009
Posts: 236
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Post by rollingstone on Jan 18, 2007 15:34:56 GMT -5
My suspicious side would make me wonder, "If it's a good business, why are they selling it?" Can be many perfectly good reasons for that of course, but if you are seriously thinking about it, make sure you give the financial statements a thorough going over to be sure that the business is sound, and has good prospects for the future. If it doesn't look good, don't take it on with the hopes of turning it around, you can be sure the owners will have already tried that.
-Don
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Post by sandsman1 on Jan 18, 2007 15:38:27 GMT -5
yea hell if ya dont try you will never know just use the banks money so if it dosent work out they can have the place and you can walk away clean and make sure you incorparate and become an employe this way you can get benifits like workers comp and social security and what not -- cause as owner you get none of that make the wife owner
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Post by Cher on Jan 18, 2007 19:55:48 GMT -5
Whatever you decide to do, I wish you good luck. Having been there, I'd never do it again, it's a pain in the $$ but that doesn't mean yours would go that way. I'm with Don, give it a damn good going over before you dive in. You can get "company health ins" by having as few as 2 employees. That would be you and your wife so you have that covered. Be sure to check into the new laws on whether or not you have to offer insurance to employees. I'm not sure but I saw on the news they either have made changes to the laws already or are planning on it.
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Post by cpdad on Jan 18, 2007 20:41:08 GMT -5
stefan..thats a big decision...yep a 24/7 job..i dont own a business..but i see the headaches daily...this has nothing to do with the financial part but.
do ya trust the people to run things while you are away?
are ya willing to cut a vacation short..and get back there?
do ya leave the family on vacation?..or pack them up ..and bring them back with ya?
are ya willing to miss a graduation? ..or close relatives marriage ceromony?..because of a big problem.
just a few thoughts...kev.
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Post by Bikerrandy on Jan 18, 2007 23:03:04 GMT -5
I was a company owner, I don't talk about it much but I closed the doors and walked away from the business after losing over $200,000 of my personal cash. I'm not high and dry by any means but it was a real eye opener to say the least. First thing you have to figure out, what is your monthly break-even point? (how much will it take to get by after paying shop rent, electricity, phones, employees, feed for the animals......). cpdad brought up a good one, trusting employees. One of my managers wrote two receipts for every job that we did, our copy was always less than the job actually cost the customer. He got away with over $10,000 before we figured out what was going on. How much do you trust your customers? No matter how honest you are, someone will try to sue you. We went to court at least once a month. Do you love animals? You probably won't after you make them a commitment. Are you good at keeping books? If not, you'll need to hire a bookkeeper. The books have to be straight!! Just a few things to think about. I work for someone now. I can walk away from my job any time that I want!
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Post by Toad on Jan 18, 2007 23:26:10 GMT -5
I couldn't do it. Not enough discipline - that's why I can't stop buying rocks. Think long and hard, it might be a good fit for you.
I want a hedgehog.
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spacegold
has rocks in the head
Member since September 2006
Posts: 732
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Post by spacegold on Jan 19, 2007 1:51:23 GMT -5
Stefan, most of the thoughts that have been mentioned here are quite worthwhile. If you love the animals and know how to keep them properly, you may not burn out on them. Many pet store owners don't. But many do. And there are a jillion different aspects of a business. A small business has many of the same problems to solve as a billion dollar multinational firm, just on a smaller scale. For the first year or so, as you learn the "business" aspects of being an owner, 24/7 is no lie. There will be no such thing as vacations, maybe for several years.
Do you know where and how to buy healthy livestock at the right price?
What do you know about the store lease?
Do you know an attorney to turn to when you need, and you probably will?
Do you have ideas about how to grow the business?
How many employees are involved and what is your relation to them? Will they want a piece of the action? Are you prepared to deal with the inevitable employee relations problems?
Are you prepared to recognize the need for standardizing procedures and making the undelying policy decisions?
Are you a risk taker?
Do you look forward to being the boss and shouldering the mantle of responsibility that goes with it?
If the answers to questions like these are primarily affirmative, then I would encourage you to give it a go, with your homework done and your eyes wide open. But be sure that you will have learned a whole lot that you never knew before, in the next year or so.
I have owned my own business and have participated in a mangled employee buyout when an owner died in another business venture, so I know a little about wherof I speak. It can work, but the new owner must make it work. It wont do it by itself. You must think as you have never thought before. As a management consultant for many years, I saw both successes and failures. The successes came to those who spent their waking hours thinking of how to improve their businesses or deal with some problem that needed solving. And they loved doing so.
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Post by xenaswolf on Jan 19, 2007 9:27:07 GMT -5
Well if you think you can do it and will like doing it, give it a try. If not, don't. I wish you luck, let us know what you decide. And before they go totally bye bye, send me some more of those litte jars LOL  |
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Post by krazydiamond on Jan 19, 2007 10:16:05 GMT -5
i'm with toad, i want a hedgehog.
whatever you decide, Stefan, i wish you luck. there are some wise words here on both sides of this pointy stick.
KD
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Post by akansan on Jan 19, 2007 11:01:16 GMT -5
Stefan, it really comes down to how well you know the business currently and want the business. If it's already a well-established company with a substantial customer base and good business connections, it should be a "fairly" smooth transition. Especially if you already know most about the business. Yes, take a look at the financials. Make sure the business is as strong on paper (and in the bank) that it appears to the workers. I've come close to doing this myself - but the deal was not as sweet as it appeared upon closer examination. I want a flying squirrel/sugar glider. |
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stefan
Cave Dweller
Member since January 2005
Posts: 14,113
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Post by stefan on Jan 19, 2007 13:00:38 GMT -5
Thank you all! OK here is the skinny on it- We do not currently sell animals (not do I have plans to!) The General manager is retiring and his son (the owner) already has his own business and does not want to run 2 of them- I still need to go over the books- but it is a profitable business (mainly because the workers *me* do soo much with so little!) It is a difficult thing- especially since I will be going it alone- the wife will not come to work here (nor would I ask her to). I'm not willing to put up any of my "personal finances" to fund this venture so it may be a dead issue before we even get started- I will keep you all posted on what is happening!
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Post by rockds on Jan 19, 2007 13:47:50 GMT -5
Stefan,
A couple of things you need to do is:
1) - Find a lawyer (one you can trust is a bonus)
2) - Find an accountant - see note above
3) - You must have abusiness plan (these can take a while but there are books to help you prepare one)
4) - You can start an LLC (limited liablity company) or something similar that will not cost you a personal dime. You can get the money from the banks IF 1-3 are in good order.
I'm part owner in one business and an owner of another and yes its hard work but if your the type of person that can handle it, it is fantastic!
robert
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stefan
Cave Dweller
Member since January 2005
Posts: 14,113
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Post by stefan on Jan 22, 2007 11:35:49 GMT -5
Robert- Thanks for the advise- Now I looked in the phone book for "trustworthy lawyers and it said to see snowballs in hell???" LMAO- Well we got a few books outta the library- and started reading- we are also signed up for some business classes at the local community college (because of my wifes job- we get 1 free class every semester!!!). Still working on the accountant- and the business plan is coming along very well!
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Post by Cher on Jan 22, 2007 12:48:51 GMT -5
Hey Stefan, be sure to check your area for possible no interest loans or free $$. Some areas actually have amounts they give to keep a business going or start a new business.
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spacegold
has rocks in the head
Member since September 2006
Posts: 732
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Post by spacegold on Jan 22, 2007 14:45:23 GMT -5
Being in the catalog business is probably a lot easier than in pet business and a different type of operation entirely. It has its own challenges, and if you enjoy them you will probably be quite successful.
Double affirmative on the business plan. Focus on manpower, materials, money, markets, and facilities. Address growth. This is your roadmap. You can and will change it periodically as you become more familiar with the business problems. Whenever you consider deviating from the plan, consider changing it. Review it at least once a year, on some anniversery, and thoughtfully make any changes that are appropriate. In this way it will slowly evolve as it stays current. Good luck to you.
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