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His books reflect 44,000.00 average in income and about 12,000 in expenses.
You are buying at best a mediocre job. 44,000 less 12,000 expenses is 32,000 out of which you would have to pay self employment taxes which would put you under 30,000 before income tax. You will have to buy your own health insurance or pay the "tax".
If you have to buy a 15,000 dollar van in addition to purchasing this "job" and consider this van will wear out in under five years what are you getting? A job that pays you 28,000 dollars a year +/- gross LESS the cost of the van (replaced every five years @15k a pop or 3000 dollars per year) . You are buying a 12 dollar an hour job with no benefits for your "investment".
His books reflect 44,000.00 average in income and about 12,000 in expenses.
You are buying at best a mediocre job. 44,000 less 12,000 expenses is 32,000 out of which you would have to pay self employment taxes which would put you under 30,000 before income tax. You will have to buy your own health insurance or pay the "tax".
If you have to buy a 15,000 dollar van in addition to purchasing this "job" and consider this van will wear out in under five years what are you getting? A job that pays you 28,000 dollars a year +/- gross LESS the cost of the van (replaced every five years @15k a pop or 3000 dollars per year) . You are buying a 12 dollar an hour job with no benefits for your "investment".
quite possibly I agree but I could grow the business, write off fuel expenses, I would assume I would have a loss at tax time my first year. and a mediocre job is better than none I honestly will have absolutely """"""""""""0.00""""""""""""" in just a few months. No one will interview me, accept McDonald's and I got rejected, I have a degree, and alot to offer but for the past 13 months I have had no job offers, and now that my unemployment ran out I am 100% living off my savings. If I am going to go down I might as well try to find a career I can do. But I just do not know what to do.
I feel IF I can convince the owner to go 5 grand now, 5 more in 3 months and then the other 5 three months after that it would make me more receptive.
I am going to as mentioned work daily with him for the next two weeks and IF it looks "OK" I really hope he would take my offer as stated above.
I also am sending out more applications DAILY!!... I did get 2 rejection letters this past week.. Par for the course!!!! I have never EVER seen things this tough!!!! I do not get it...
I have a buddy he is a UPS driver he earns $31 a hour, benefits are OUTSTANDING one of the last union jobs out there and the risk of loosing his job ""slim to none"""he is set for life and has been there 30 years!! I tell him to count his blessings!! because "aint no jobs like that out there anymore!""
You were looking into something like this back in 2010. This guy is selling a cat in the bag. A city not issuing a contract to a regular vendor? Meeting the competition?
OT: Sending out applications does not seem to work so my question why? Is it your location, your resume, your job skills?
My opinion is you are paying too much. I have bought several businesses.
It sounds to me like he is just as desperate to sell as you are to buy. Hes barely walking with a cane? That business is not worth more than $7500 in my opinion.
You were looking into something like this back in 2010. This guy is selling a cat in the bag. A city not issuing a contract to a regular vendor? Meeting the competition?
OT: Sending out applications does not seem to work so my question why? Is it your location, your resume, your job skills?
I hate to see all of these other people that haven't been in our situation try to give you advice. I was in your shoes about 5 years ago. I lost a really good paying job when the economy crashed. My degree is in finance, which wasn't a very popular degree when most banks in the nation were closing their doors. I was better off than most. I was able to survive 6 months without an income. Unfortunately, I couldn't find a job. At 30 years old I had to move into my mom's house with my wife who was pregnant at the time. Even with a B.S. Degree in accounting, I couldn't land a job flipping burgers.
Nobody seems to understand that you just want to work. Look, I totally understand you 100%. And the only way that I was finally able to find a job was when I hired myself. I started a resell business from home with $500. Today, my wife and I live in a wealth area, in a large house, in one of the best school districts in the country.
I personally think there are better opportunities out there for you. I think that courier route will damage you much like it did the old man. But like you said, it is better to have income coming in then only expenses going out.
If you decided to do this deal, hopefully you can use it as a stepping stone to get your life back on track. I know you don't want to take advantage of this gentlemen, but does he have any other potential buyers? If not, I would do a multiple offer. Offer him $8,000 for the business, or $12,000 if he takes it in payments. I wish you luck my friend.
In my opinion, it sounds like you are making a business decision with your emotion.
You are buying his current clients. Only problem is, these clients have no written contracts with him. So you are buying his words and the words of his clients or people who know him. So it has no value. If he has contracts with these people, then yes. It has value. If you take over, these clients are not obligated to you.
This old man want to sell more than you need to buy. In my opinion, his business has no value.
If you want to be nice, offer him 5k to take over. I would not.
Why are you buying a service business that you can start yourself? You were a medical sales rep correct?
You can walk talk and smile like any sales rep right? Go start your own service.
With your background. You can. You re just not thinking straight.
If you need some ideas. Message me. My brain is getting tired.
In my opinion, it sounds like you are making a business decision with your emotion.
You are buying his current clients. Only problem is, these clients have no written contracts with him. So you are buying his words and the words of his clients or people who know him. So it has no value. If he has contracts with these people, then yes. It has value. If you take over, these clients are not obligated to you.
This old man want to sell more than you need to buy. In my opinion, his business has no value.
If you want to be nice, offer him 5k to take over. I would not.
Why are you buying a service business that you can start yourself? You were a medical sales rep correct?
You can walk talk and smile like any sales rep right? Go start your own service.
With your background. You can. You re just not thinking straight.
If you need some ideas. Message me. My brain is getting tired.
Good luck
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