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Posted: 2/22/2006 12:46:13 PM EDT
So, been doing research for months, and building the business plan, etc
the current business makes zero money (in fact it loses money) and the books are terrible. (notice the correlation)
BUT
it has potential, the principals want out really bad (bad family partnership plus the losses) and it comes with land and a building.

I'm basically figuring on just paying for the land and building and the equipment comes along and put it into my own business and their business just folds up and ends operations this year.

So, big open ended question.
any thoughts?
how do you justify your numbers on your business plan (to say I think we can make business go up 50% or whatever)

TIA

Link Posted: 2/22/2006 7:08:56 PM EDT
pour money into advertising, try to shuck the bad image of the predecessors. it'd help if i knew what business it is/was, and if you're thinking of staying in the same business, expand, contract, whatever.
Link Posted: 2/22/2006 10:52:34 PM EDT
[Last Edit: 2/22/2006 10:53:16 PM EDT by PeteCO]
.
Link Posted: 2/23/2006 7:28:00 AM EDT
same business, figure do it with a new name, although slightly the same so as not to lose all of the name recognition built up, but different enough to remove teh bad cannotations.
what kinds of advertisting?
it's gun related, although not a gunstore.
Link Posted: 2/24/2006 10:02:12 AM EDT
well if you keep secret what product or service you'll be selling - we can't help you. If it is gun related, you have thousands of potential customers right here, no?
Link Posted: 2/24/2006 3:06:52 PM EDT
[Last Edit: 2/24/2006 3:08:03 PM EDT by krpind]
This is a no brainer.
If you are buying the real estate at current market value,and getting the equipment and "business" for free, buy the real estate and move the operation to your current location and sell the newly aquired building and come out with the business and equipment for free.

As far as your business plan, if you are rolling the old operation into your existing operation, cut all of the management, accounting, lease, and utilities expenses out of the P&L of the company you are aquiring.

Go ahead and add the added revenue you think you can achieve and work toward that goal.

I have been saying for years the sales projections that people use for business plans are pulled out of thin air and banks know it. They just need some figures to look at.

Hell, if it is like you describe....if you don't do it, I will.
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