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What do you think of this business?

Discussion in 'Members' Lounge' started by Dustin_m, Jul 12, 2006.

  1. Dustin_m

    Dustin_m Active Member

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    Businesses for Sale at BusinessBroker.net
    My mom is thinking about getting this, just seein what you think about the place. its in Nor Cal, so i can't get up there to check it out, but she said its in a nice place. sounds like it could be worked into a money maker.

    anyone know any other sites that list businesses for sale liek this one?
     
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  2. pissedoffsol

    pissedoffsol RETIRED

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    35k for an established business is a steal. threre's probably 35k in freezers and equpiment in there. just make sure that's all included.
     
  3. Dustin_m

    Dustin_m Active Member

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    yea i have been online looking at the cost of the equipment, and there is definately a lot of money in all the equipment. She contacted them today and they haven't got back to her yet, so i'm not 100% that all of the equipment is included, but in the ad it lists the equipment in there as a selling point, so i'm assuming its included. Also, it says the reason for selling is health, so i'm sure its someone getting out of that business so they have no use for the equipment.
     
  4. jeffie7

    jeffie7 Wrong Whole! VIP

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    If it's going for 35K it can't be doing all that well. If it's pulling in 150K a year but is only being sold for 35K.. put two and two together....

    Even if it has a lot of fridges and such keep in mind they dont have a long life. 5-7 years is doing pretty good for a fridge. in fact just yesterday we replaced yet another one of our units. (3rd one this year) they range from 1500-3500 EACH. that's not counting the 200-700 we put into trying to fix the old ones.

    anywho. like I said for the asking price something isnt right.
     
  5. Dustin_m

    Dustin_m Active Member

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    131k is the gross income for the business, not what the owner is making. and yea i know the appliances go out sooner or later, but thats part of having a business i guess.
     
  6. jeffie7

    jeffie7 Wrong Whole! VIP

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    I know, thats more reason to why they're selling it for 35K doesnt seem like its turning that big of a profit.

    Any business that is doing (ok) should bring in more then that.
     
  7. Dustin_m

    Dustin_m Active Member

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    yea, but theres always the possibility that its not turning a profit because of the ownership, not necessarily because the area is not good or whatever
     
  8. totalburnout

    totalburnout Well-Known Member VIP

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    It sounds good as far location is concerned if its right off of I-80. You can't beat that.

    If your mom has the money to risk, it should be a really good investigent. $35k to get your foot in the door for an established business is nothing and well worth the risk. She could surely resell the business for that much or more should something happen.

    I'm not saying she's going to be a millionaire or its going to turn a huge profit, but at that price it can't be a bad investment.

    You have to also think if its been a family owned store and they're leaving the business because of health issues, then the previous owners are probably old or have gone through hard times and this might account for the low profit. When you're worried about staying in and out of the hospital, you're not aggressively running a business or advertising campaign.
     
  9. Dustin_m

    Dustin_m Active Member

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    exactly what i was thinking
     
  10. reckedracing

    reckedracing TTIWWOP VIP

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    hmmm, i wanna see the financials, P and L and balance sheet
    i would also suggest your mom do numerous drive bys, and stop ins as a customer

    see how busy they are and see how she likes the products
     
  11. phyregod

    phyregod !!YTINASNI

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    Wow, looks pretty key, with a Chiropractor, Dentist, Supermarket, and Fitness place (fat free yogurt) 10 minutes from the college is pretty cool too.

    Tell your mom, when shopping there, to look at the ice cream. If more than half of the flavors look "dried out" or are freezer burned, that means the Ice cream part of the business isnt doing so hot.

    Another thought is to get a few friends together and visit the place every once in a while. Don't say anything to your friends as to why you picked that place.. See what they think of it.

    And those industrial freezers last more than 5-7 years. I've seen them still alive and kicking from the 70's. They're built alot different than the home units.

    The only other thing I can think of right at the moment is there is only seating for 18-20 people inside. Maybe 4 tables? Sounds TINY. If there is room to re-arrange, I'd go for a larger dining area. 20 people is plenty, but thats only room for 4 couples to sit and eat ice cream. (not everyone travels in packs of 4-5)
     
  12. Dustin_m

    Dustin_m Active Member

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    well, she just called me and said she is driving to Sac right now and is meeting with the owner tomorrow morning. I guess its an older man thats selling it, so i'm guessing the health thing is the real reason its being sold. shes gonna go over all the financial reports and stuff in the morning, so i guess i'll know pretty soon.

    It's pretty cool actually, because this is a total change. She has worked full time and raised me by herself, and now that i'm gone she has finally decided to do something totally different. Not sure if you guys remember the money i was talking about inheriting a while back, that i got fucked out of. well my mom got a 200,000 part of it. She had also just sold our old house, cashed out with about $120,000, and is selling the mobile home she moved into afterwards, which will turn a profit also. She finally said fuck it, and quit her job and said she was gonna do something different, but didn't know what to do. then this oppurtunity came up day before yesterday.

    She has done accounting, bookkeeping, payrol shit, all that stuff for like 20 years so she knows her way around all that stuff. I guess she is looking to take this place, improve what needs to be improved, then if all goes well, possibly set up anohter business down here in SD.

    i just think its cool because none of my family has the balls to be an entreprenuer (sp?), so its something totally new.
     
  13. Dustin_m

    Dustin_m Active Member

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    what i'm thinking is that its basically like a Baskin Robbins, Coldstone, Jamba Juice kind of shop. most people come in and get stuff and leave, not like starbucks where they sit around for hours. who knows though
     
  14. reckedracing

    reckedracing TTIWWOP VIP

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    how far does she live from the business right now?
    i'm guessing she'll be moving closer?

    i can take a look at the financials if you want...
    PM me or something
    how much is the lease for? terms?
     
  15. Dustin_m

    Dustin_m Active Member

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    She lives in Porterville, about an hour south of Fresno. It's about a 4.5 hour drive to Sac. My mom was already planning on moving up there because my grandma wants to move there with my aunt, so basically all my family could live close to each other. Thats why she was looking in that area.
     
  16. Dustin_m

    Dustin_m Active Member

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    Well she bought it, it will be hers in 30 days. the reason they were selling was that the owners mother has alzheimers and he is taking care of her, and his daughter who is in college just had a baby so they have to take care of the baby while she's in school i guess.

    They went and checked everything out, all is good, the place stays relatively busy, and its in a nice shopping center i guess. Blanco, this place is apparently just outside Davis, so i guess a lot of the customers are college kids, so it is close to the college
     
  17. pissedoffsol

    pissedoffsol RETIRED

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  18. Dustin_m

    Dustin_m Active Member

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    Thnaks. hopefully all goes well and it doesn't go under. I really don't think it will. the worst case scenario i think will be that it will be too difficult to grow and raise profits. Oh well, there's always risks, and thats the only way to make money i guess.
     
  19. pissedoffsol

    pissedoffsol RETIRED

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    get some coffee machines, and host some open mic and comedy nights on the weekends. post flyers on the college campus.
     
  20. Dustin_m

    Dustin_m Active Member

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    well thats what she is thinking about right now, what she can do to make it different form the other places. and btw, the majority of the sales don't come from the espreesso andstuff, its not really a coffee shop, more of an ice fream and yogurt place.

    I'll let her know about your ideas, i think it would be cool. i don't really know the area, so i'm not sure what would be good around there. the bands you are talking about that might play, what type of music is it? theres a cool place here in SD like that, its a cafe during the day, but at nights turns into a really small venue, and has the longest running weekly drum and bass event around here.

    that might be a cool idea to keep it open later on some nights, I'm sure there's gotta be some guitarists or whatever in the area that would want to get their stuff out there.
     
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