How can I convince someone not to buy into a business? Serious Question?
Posted by Dolores
gregb asked:
Someone I care a great deal about is on the verge of buying into a small business. I know the individual exreamly well and am certain this will be a disaster for both the business and their family. A couple hundred-thousand dollars is the cost to buy in to become co-owner of the service business. I don’t want to see this person loose that much money over a mid-life crisis notion to own their own business.
Someone I care a great deal about is on the verge of buying into a small business. I know the individual exreamly well and am certain this will be a disaster for both the business and their family. A couple hundred-thousand dollars is the cost to buy in to become co-owner of the service business. I don’t want to see this person loose that much money over a mid-life crisis notion to own their own business.
What can I possibly say or do to convince them that while owning your own business is a dream that everyone has, it is not meant to be fulfilled by everyone.
Th current owner has glorified his business and essentially suckered my friend into thinking that owning and operating the business is a walk in the park. In addition, the owner is planning on retiring (and moving to another country) in a few years. Why can’t my friend see that the current owner is just trying to get top dollar for his business then leave it all on the new guy.. What can I do to persuade him?
Kansieo.com
September 2nd, 2009 at 12:01 am
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hmmmm sticky one…..You really could be saving your friend alot of frustration and financial hardships……or……you could be standing in the way of realizing his/her dreams and at worse they learn and build on their enterprising adventure. I think a 3rd party business analyst would help even if it only gets a better negotiated price for the venture its worth it to have someone check the books and future market potential. If there is alot of other people interested that is a sign…if no one else is interested in buying this business that could be a warning sign if your friend ever tries to sell it.
September 2nd, 2009 at 3:57 am
Kansieo.com
Somehow, you have got to make him see what you just said in your last paragraph.
If he’s got that kind of money to sink into a business venture, he needs to stop and think Okay, what do I love to do? And can I turn what I love to do into a business for myself?
Try to make him think of it this way.
September 4th, 2009 at 2:56 pm
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You could check with the Better Business Bureau to
see if there are any complaints and check with your local City of Commerce to see if there has been any
complaints against the business. Then show this to your friend.
September 7th, 2009 at 1:34 pm
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You didn’t say how you know all this information about the business. I think it would come down to who has studied the business more you or your friend.
September 8th, 2009 at 12:58 pm
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Your friend would need to ask the owner of his business to see his past 4 years of tax records.