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9/22/2017 12:11:25 AM
Posted: 8/6/2005 7:22:17 AM EDT
After negotiations to purchase a business fell through, (my lack of $$, his lack of organization) the guy I'm dealing with wants to give me a sales job selling a new product with the idea that I would eventually buy that business line and perhaps one ot two others.

I believe that I should have a contract written up, but I really don't know what to watch out for. I know I'll need some way of verifying sales, but I don't know how, plus I'll need some provision for the purchase of "equity options".

I'll have the assistance of a lawyer, but I want to go into a meeting with him prepared.

Any suggestions on how to approach this?
Link Posted: 8/6/2005 7:54:34 AM EDT
If I am reading this right, it seems that the guy is too unorganized to keep proper sales records?

If this is the case.....is he organized enough to pay his bills?

Is he organized enough to handle the purchase/manufacture and shipping of the goods you will be selling?

Is he organized enough to PAY YOU???

This is a tough decision for anyone. Do you have a family to support?
We and you need more info, before a sound decision can be made.


Good Luck
Link Posted: 8/6/2005 9:17:49 AM EDT

Originally Posted By krpind:
If I am reading this right, it seems that the guy is too unorganized to keep proper sales records?



That is a concern. He's an old guy who wants to retire. He does everything on paper. NOTHING is computerized.



If this is the case.....is he organized enough to pay his bills?

Is he organized enough to handle the purchase/manufacture and shipping of the goods you will be selling?


He has been in business for a long time and has a good credit rating.




This is a tough decision for anyone. Do you have a family to support?
We and you need more info, before a sound decision can be made.


Good Luck



Yes, I have a family.

Thank you for your suggestions.
Link Posted: 8/6/2005 9:40:00 AM EDT
If he has records, but they are paper records, you should be able to decipher them.

Does he have monthly P&L's? If not get him to hire a CPA and generate the last 2 years of P&L's.

This will help you in more ways than can be posted here.

Talk him in to "helping you" convert him over to a computerized accounting system. This will track your sales, making your commission correct.

Finally if it is a lack of money on your part, and he is a good guy(?)........go to work for him. Learn everything about his business, and ask him to owner finance the business to you.

Simple....huh????
Link Posted: 8/14/2005 2:20:28 PM EDT
Look into a small business loan, the gov. wants you to succeed so they can tax your ass

what this will do for you is the banks will run all of the guys paperwork to see if the company makes $ so you get someone to organize his books in a pro fashion
Link Posted: 8/16/2005 4:05:11 PM EDT
WIth each sale there must be a written contract/sales order. I keep all my sales orders and compare them against my commission and bonuses.
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