Forums: Discussions for entrepreneurs and small business.

I have the opertunity of a lifetime in front of and I`m looking for any and all help I can get. 

About a week ago the owner of the Wholesale Company I work for pulled me aside and told me he was going to sell his company this coming summer. My first thoughts were that I need to start looking for a new job. To a total shook to me he told me that he only wanted to sell the to one person and that one person is me. He showed me the books and explained how everything would work. Any business man could tell that this is a win win deal. Not to mention it something I love doing. An estblished business for 25 years, it wouldn`t be like starting a new company, where there is a risk of it not working out. Its just running everything like it is now and making money.

Now here comes the hook. I have to buy him out for $500,000.00. I`m a college student and I just don`t have half a million dollars just sitting around and I`m unable to get a loan from a bank. The only other option I can see is to get an Investor to invest into the business.

So please if you have any ideas on where and how to find someone or any advist at all please let me know.

So I am assuming that he wants the 500K up front? Why can`t you get a loan from a bank? why not talk with your parents? perhaps they might want to help you. Tell them that they can come work with you and you can repay them back as you go.
See, fortunes like these don`t come by very often. I would advise you to walk into a bank and ask them what you need, and what the process is.

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Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net

Does he own the property? If so, you could by the business, but you will need to put the property up for collateral.

SO you are in the enviable position of possibly owning an established business, with a 25 year record of profitability, right?

You mentioned you are in college.  Well I have a few avenues you may want to explore that requires work on your part. 

Does you college have a SIFE - www.sife.org  Students in Free Enterprise program and if so are you a member, if not you may want to (a) join, (b) talk with the program mentor/director and or president.  They usually know about unusual sources of funding, especially for student entrepreneurs. 

Check with you local business development coorporation/SBA type of entity.  Or even the SBA www.sba.gov

Your state may have a low interest loan program or check our www.firstgov.gov

You are a smart person.  But do your home work.  Get the facts and figures, these should cost you nothing.  If the business is for sale then the business records are public. Check building, sanitation and safety records for the past three years.  Get accounting records, tax records, any business records and do your home work.  Acquire a mentor, preferably someone who has not vested interest in the business, but want to see you succeed, ie one of the business professors at your college.

You want to do educate yourself, so you can educate whoever is willing to finance you.  Investors are there, they just want to know that they will get their money back as well as a little extra.  My suggestions may not be relevant to your situation, but they should give you some idea where to start.

Oh, one more thing, look into applying for a grant.  Again your college business department is a good place to start. Or even  a partnership with the current owner, you buying out their % over a fixed period of time.

If the business owner is serious about wanting to sell the business only to you, then the owner will give you a reasonable amount of time to acquire the necessary funding, after all you did not go looking, they owner came asking.

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Gail, Better Health Now Exposure+Visitors=Customers Passive Income