im 19 and i earn 37000. im looking into buy a business. but im a bit scepitcal. i dont think that i wll be taken seriously. im eyeing a business at the moment. the lease is around 70k pa and the shop turns over around 1.1mil. to buy the shop it will cost 150k + SAV which i estiamte at around 100k to 150k. i would like some advice on whether some one my age and in my financial positsion will be taken seriously. as well as being able to afford this too. any adivce with be very helpful.
thanks
i wanted to buy a pub when i was your age.
The bank told me that they would only give me 10%, i only had 10% (short 80%)
The reason is, if it goes bankrupt and you need to sell, all you can sell is a crappy old building, not a business. They based the pub on 90% of the costs being buying the business and the license.
I am not sure what the bank managers would say today??
I would say keep working, and come back when you have a decent deposit. Sorry to sound so bad, but that is what i was faced with.Hi goryrory, and welcome to the forum. First, got to congratulate you for the drive and goals. I sold a business to a young fella once, and he was not taken overly seriously by a lot of the suppliers – but with a bit of backing, and a year or so of trading he is now taken very seriously, and gone from strenght to strength. Doing a great job. So……what you are going to need is finance and money – ie Unless you have real estate to draw against, or family to help out (and they would love to help you if they are able I’m sure) you will not be taken seriously unless you do. For example, if you had a third, or half of the purchase price, you can look at trying to organise finance (some will lend up to half the price for a business I believe if you can prove it is profitable, and have a business plan. Don’t laugh, I used to think a business plan was for idiots, my plan being to earn money, and have some nice things – ah hindsight! Anyway, I digress. You of course could also apply for a personal loan as a ‘gap’ between what money you have, and the purchase price. The loan would likely be for a ‘car’ or ‘holiday’ if you know what I mean……Other than that, all I can say is all the best, and of course this is purely an opinion, and not any sort of financial advice. [biggrin][strum]
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