Wedding in 10 weeks and suddenly offered a business!!

Darocketeer · 24-08-2017 9:11am #1

Hi,

We're getting married in 10 weeks. So far we've bought all the suits and dresses. We paid a total of €1,000 in deposits for the band, photographer and hotel (wine reception, dinner, and dj). The remaining balance due on these is €4,800. We still have to get flowers and rings. I'm hoping to spend no more than €1,000 on these combined. Family members are covering cars, bus and cake. We've budgeted in another €1,000 for miscellaneous extras (eg. toast round). So total left to pay is €6,800. Firstly, any thoughts or input on this?

We have €4,000 saved and in laws giving €3,300. €7,300. So where's the problem right?

Well, I've just been offered a business for €5,000. It's not very profitable right now (€1,200 per month) but has good potential. However, I have too much going on with the wedding and honeymoon (straight afterwards - only flights paid for!!) to put any investment in for advertising/marketing. So I would only make what it's making now until I can. It's wrecking my head what to do. Is it too risky??

Also, the owner has other offers and wants out within 3 weeks from now for personal reasons.

Help!!!

DeltaDelta · 24-08-2017 9:32am

Personally, if I was in your position I would focus on your wedding! Opportunities come and go. There will always be another one to come your way.

bren2002 · 24-08-2017 9:33am

5k personal loan.

PhoenixParker · 24-08-2017 9:46am

Offer a bit more to be paid in installments from the businesses earnings?

Offer a deposit and agree to take it over post wedding? It's likely you'll have the money after the wedding but you need to agree it with your spouse.

bren2002 · 24-08-2017 9:58am

Are those figures right?

Business makes 12,000pa profit and is for sale for 5,000?

Darocketeer · 24-08-2017 10:02am

PhoenixParker wrote: »

Offer a bit more to be paid in installments from the businesses earnings?

Offer a deposit and agree to take it over post wedding? It's likely you'll have the money after the wedding but you need to agree it with your spouse.

She's in the same frame of mind as me. Any other time she'd say go for it because she knows I'll try anything and everything to make it work but the timing is terrible.

BarryD2 · 24-08-2017 10:04am

bren2002 wrote: »

Are those figures right?

Business makes 12,000pa profit and is for sale for 5,000?

Maybe OP means 1,200 turnover per month?

bren2002 · 24-08-2017 10:07am

Possibly. Still seems very low. To price it at 10 times earnings it makes a profit of less than €50 a month on a turnover of 1,200 per month.

Something doesnt fit right with this.

24-08-2017 10:07am

Darocketeer wrote: »

Hi,

Well, I've just been offered a business for €5,000. It's not very profitable right now (€1,200 per month) but has good potential. However, I have too much going on with the wedding and honeymoon (straight afterwards - only flights paid for!!) to put any investment in for advertising/marketing. So I would only make what it's making now until I can. It's wrecking my head what to do. Is it too risky??

Also, the owner has other offers and wants out within 3 weeks from now for personal reasons.

Help!!!

The business will pay for itself in 20 weeks! I'll take it.

OP, if it is kosher, find a way.

Darocketeer · 24-08-2017 10:09am

bren2002 wrote: »

Are those figures right?

Business makes 12,000pa profit and is for sale for 5,000?

The owner hasn't done any advertising in 3.5 years and has let a lot of his customer base be snatched away without response. I know advertising is not guaranteed to increase business but it's very cost effective (€80 for 1,500 leaflets and €150 for small ad in local paper) and wouldn't hurt. I estimate an increase of 15 - 20% in revenue just by telling people we're here.

Darocketeer · 24-08-2017 10:13am

BarryD2 wrote: »

Maybe OP means 1,200 turnover per month?

€1,200 "profit" would be closer to reality. However, I need to take a wage out of this and it's a full time venture.

BarryD2 · 24-08-2017 10:13am

Several factors that only you can decide. On face of it, €5000 is not a lot to put in, if you think you can get it back in a few months and take it from there. But does it fit you? Can you deliver the service/ product? How much competition? Will you keep the customers? What overheads? And so on.

bren2002 · 24-08-2017 10:15am

I'll just restate my point.

On the figures provided something is wrong.

Are you buying debt too?

Darocketeer · 24-08-2017 10:18am

[Deleted User] wrote: »

The business will pay for itself in 20 weeks! I'll take it.

OP, if it is kosher, find a way.

You're like the little devil on my shoulder! Or maybe the king of common sense. I still don't know!!! I mean the timing is just terrible

Darocketeer · 24-08-2017 10:31am

BarryD2 wrote: »

Several factors that only you can decide. On face of it, €5000 is not a lot to put in, if you think you can get it back in a few months and take it from there. But does it fit you? Can you deliver the service/ product? How much competition? Will you keep the customers? What overheads? And so on.

As it stands the overheads are €900 per week and turnover is between €1,150 and €1,230 per week. The staff and equipment are all long term so no real concerns there. The customer base is very very small at the moment hence the urgent need for advertising and after that I'll have to look at ways of retaining these new customers. As for fitting me, yeh I have experience at it and some great mentors at my disposal. What do u think? Is it worth risking or is a loan essential. Or is it even worth thinking about? Thanks in advance

Darocketeer · 24-08-2017 10:32am

bren2002 wrote: »

I'll just restate my point.

On the figures provided something is wrong.

Are you buying debt too?

No debt. Just on the face of it a floundering business but imo has potential.

Darocketeer · 24-08-2017 10:34am

DeltaDelta wrote: »

Personally, if I was in your position I would focus on your wedding! Opportunities come and go. There will always be another one to come your way.

The voice of reason! Tbh I'm swaying this way too. It's very risky

Darocketeer · 24-08-2017 10:57am

Actually, on closer evaluation advertising is more likely to increase turnover by 15% not 20% as stated. Without increasing overheads except for the cost of advertising (around €50 pm). So profit would (I hope) increase from €1,256 pm to €1,445 pm less the €50. So nearly €1,400 for me. Not great

bren2002 · 24-08-2017 11:01am

OP I'm on a phone so can't multi quote.

Twice you've written that it makes a profit of 1200 pm and once you've written turnover of 1200. You've also said the business needs anything and everything to make it work and alluded to it having employees. You believe it can grow 15-20%

I think you need to step back from this.

Even best case scenario on your figures this will earn you half minimum wage on an hourly basis.

tp25 · 24-08-2017 11:04am

Darocketeer wrote: »

Can you say to the current business owner:

Yes I will take it but in 12 weeks time after the wedding, and I will pay you 6k for it.

before December 1st you will have 6k and we take it from there

(it will give you time to re-think if you really want to jump into it... - also as others stated, it isn't making really a lot... it is not nothing though)

Sue Pa Key Pa · 24-08-2017 11:09am

From what I read in the Weddings Forum, you'll make some serious dosh getting married. If you're covering the cost of the wedding yourself, the money given as gifts will cover a short term loan

jennyhayes123 · 24-08-2017 11:19am

What field is the business in? Hard to give advice when no details

Bandara · 24-08-2017 11:43am

My own personal standpoint in business is that if someone puts a gun to my head and says it's now or never I always choose never.

Why the rush from this guy? If your not been given enough time to do due diligence walk away.

There's always another opportunity and this one doesn't sound like it will be life changing so why take a risk. And it very much has red flags associated to it

Enjoy the wedding the honeymoon and come back fresh and move at your own pace

BarryD2 · 24-08-2017 12:00pm

Darocketeer wrote: »

As it stands the overheads are €900 per week and turnover is between €1,150 and €1,230 per week. The staff and equipment are all long term so no real concerns there. The customer base is very very small at the moment hence the urgent need for advertising and after that I'll have to look at ways of retaining these new customers. As for fitting me, yeh I have experience at it and some great mentors at my disposal. What do u think? Is it worth risking or is a loan essential. Or is it even worth thinking about? Thanks in advance

So you're only hoping to clear €300 a week - you have concerns over keeping/ getting new customers, there are possibly staff involved and it's a full time project for you. IMHO you'd want to be very interested in the core activity that this business delivers. But as others say, try and get some extra time to consider, research the competition and examine your customer base. Then decide but always remember that sales are the lifeblood - keeping customers, getting new customers, getting work, getting paid by customers.

Darocketeer · 24-08-2017 12:05pm

bren2002 wrote: »

OP I'm on a phone so can't multi quote.

Twice you've written that it makes a profit of 1200 pm and once you've written turnover of 1200. You've also said the business needs anything and everything to make it work and alluded to it having employees. You believe it can grow 15-20%

I think you need to step back from this.

Even best case scenario on your figures this will earn you half minimum wage on an hourly basis.

When I said turnover of 1250 it pw. Where as I've only talked about profit pm. Yeh the take home at first isn't great at all but I think it should increase steadily but slowly to 50% extra turnover (pw) by year 1.

Darocketeer · 24-08-2017 12:18pm

jennyhayes123 wrote: »

What field is the business in? Hard to give advice when no details

It's a sex shop. Nah only messing, can u imagine the leaflets!!

Its a taxi company. Currently with 15 drivers and they're my only source of revenue. So the increase I hope for will come from attracting more drivers by increasing business through advertising. Wish it was a sex shop

Darocketeer · 24-08-2017 12:22pm

tp25 wrote: »

Can you say to the current business owner:

Yes I will take it but in 12 weeks time after the wedding, and I will pay you 6k for it.

before December 1st you will have 6k and we take it from there

(it will give you time to re-think if you really want to jump into it... - also as others stated, it isn't making really a lot... it is not nothing though)

Worth a shot but he's unlikely to go for it. He wants out soon due to ill health. I'll let u know how this goes anyway...

missmatty · 24-08-2017 12:28pm

I'd be wary. This person is offering you a now-or-never deal at a time when they know you are distracted with your wedding. Maybe they are hoping there is some detail you will overlook in the middle of things and they will be long gone with the 5k by the time you figure it out. Generally if something sounds too good to be true, it is.

Oink · 24-08-2017 1:00pm

missmatty wrote: »

I'd be wary. This person is offering you a now-or-never deal at a time when they know you are distracted with your wedding. Maybe they are hoping there is some detail you will overlook in the middle of things and they will be long gone with the 5k by the time you figure it out. Generally if something sounds too good to be true, it is.

I agree with this. It sounds like a great opportunity on paper, and very exciting, but you'd want a rock-solid backup plan in case it all goes wrong.

jennyhayes123 · 24-08-2017 1:17pm

Darocketeer wrote:

It's a sex shop. Nah only messing, can u imagine the leaflets!!

Darocketeer wrote:

Its a taxi company. Currently with 15 drivers and they're my only source of revenue. So the increase I hope for will come from attracting more drivers by increasing business through advertising. Wish it was a sex shop

Hahaha. I was about to put in an order

I've no business experience but Taxis are always going to be needed.
For your â‚¬5000 what are you getting? Just a taxi plate?

Bandana boy · 24-08-2017 1:41pm

Are you currently out of work ?

If so and your husband can pay back the loan if it goes belly up , I would take the risk.
Its a minimal enough investment to get back to work.

If you have a job ,I would consider very carefully ,is 1200 a drop or increase in earnings ?

You think the business is failing due to lack of advertisement , I would guess its rarely that simple .
You have massive competitors with a significant competitive advantage in Hailo/My Taxi and Uber about to start to investing in Ireland.
you also have Brexit around the corner and if that causes a mini recession the first hit are luxury's like taxi's

Bandara · 24-08-2017 2:17pm

Have to be honest and say this really isn't a good idea in my opinion.

You are buying nothing. No assets, nothing of value. The drivers can walk tomorrow. MyTaxi and other technology is killing the taxi base model. and it's an industry that's notoriously difficult to 'manoeuvre' in. For various unsavoury reasons.

This guy is getting out quickly for a reason. Don't jump into his problems.

minikin · 26-08-2017 3:27pm

Just to be blunt:
You're getting help to pay for your wedding, indicates to me that you're not that great at managing personal finances.
How will you successfully manage the finances of a business?
More importantly - have you any experience managing a business?
If the answer is no then do your future-self a favour and don't even consider it.

Darocketeer · 28-08-2017 3:32am

minikin wrote: »

Just to be blunt:
You're getting help to pay for your wedding, indicates to me that you're not that great at managing personal finances.
How will you successfully manage the finances of a business?
More importantly - have you any experience managing a business?
If the answer is no then do your future-self a favour and don't even consider it.

I had 10k saved but the in laws wanted to contribute as per tradition so I spent 7k on a car. I saved that 10k in 6 months as well as keeping my small family in decent living. So your assessment of me is pretty assumptive.

I don't think I'm being assumptive by stating you hold yourself in very high regard if you can judge people with so little info. And yes I have run a business before and was relatively successful (never needed to borrow).

Darocketeer · 28-08-2017 3:36am

Bandara wrote: »

Have to be honest and say this really isn't a good idea in my opinion.

You are buying nothing. No assets, nothing of value. The drivers can walk tomorrow. MyTaxi and other technology is killing the taxi base model. and it's an industry that's notoriously difficult to 'manoeuvre' in. For various unsavoury reasons.

This guy is getting out quickly for a reason. Don't jump into his problems.

Summed up almost perfectly. If the drivers all, or most of them, walked then I'm up the creek. Well, to a certain extent as I can walk away too with some radio equipment which I can sell.

But yeh, I'm entirely reliant on having drivers.

joejobrien · 28-08-2017 9:19am

Just picking up on the thread now.

My comment, vendor in a hurry for quick sale .....let him off is my answer. Let them all flock to his door.
If this is as good as it sounds others will pick it up. However I dont believe there will be many takers. You may find after the honeymoon the option might be still there. Dont dream of offering inexcess of asking price to just hold it, your on the backfoot from there on. Some time can often wash out a persons cards allowing you to make an informed decicison Use that time wisely.
I also think you are buying a wage, Zero assets, any equipemet you may think you have is valueless.

Finally, if its gone, there WILL be other opportunities, Use time to research other industries.

minikin · 28-08-2017 10:05am

Darocketeer wrote: »

I had 10k saved but the in laws wanted to contribute as per tradition so I spent 7k on a car. I saved that 10k in 6 months as well as keeping my small family in decent living. So your assessment of me is pretty assumptive.

I don't think I'm being assumptive by stating you hold yourself in very high regard if you can judge people with so little info. And yes I have run a business before and was relatively successful (never needed to borrow).

Don't take my post so personally, we don't know each other from Adam. My opinion was based purely on the information you supplied. Sorry if you didn't find it helpful, it was meant as cold hard truthful advice.

The problem when you're starting up is that friends and family will be helpful and supportive, but if you don't get contrary opinions you're at risk of not objectively analysing the opportunity.

Your assessment of me is quite wrong (but I won't take it personally, as you are making it based on one post on an Internet forum - just like I did!) I was in EXACTLY your position a few years ago - offered a business opportunity right before getting married. All I could hear was positive encouragement around me from friends and family. There was one contrary view from a businessman who advised me not to touch it with a barge pole. He was making his judgement based on the figures I gave him and on his assessment of me.

I went ahead anyway, worst decision I ever made. Still trundling along in business but would have been much better off in employment. Running a business is not a good idea unless you're ruthlessly motivated.
But at the end of the day it's your call and you'll be the one left carrying the can.

p.m. me if you like, more than happy to have ideas hopped off me!

stingray555 · 28-08-2017 8:07pm

The future of the taxi game is the apps. I am a taxi driver, and i know a lot of drivers who have left traditional taxi bases for the apps. There is nothing to prevent the 15 drivers you have from leaving your base overnight. Literally.

I would walk away, especially if my big day was around the corner!!

Darocketeer · 29-08-2017 1:19am

joejobrien wrote: »

Just picking up on the thread now.

My comment, vendor in a hurry for quick sale .....let him off is my answer. Let them all flock to his door.
If this is as good as it sounds others will pick it up. However I dont believe there will be many takers. You may find after the honeymoon the option might be still there. Dont dream of offering inexcess of asking price to just hold it, your on the backfoot from there on. Some time can often wash out a persons cards allowing you to make an informed decicison Use that time wisely.
I also think you are buying a wage, Zero assets, any equipemet you may think you have is valueless.

Finally, if its gone, there WILL be other opportunities, Use time to research other industries.

Spoken like a great poker player. I know it's negative from the outset but what if?

Darocketeer · 29-08-2017 1:21am

minikin wrote: »

Don't take my post so personally, we don't know each other from Adam. My opinion was based purely on the information you supplied. Sorry if you didn't find it helpful, it was meant as cold hard truthful advice.

The problem when you're starting up is that friends and family will be helpful and supportive, but if you don't get contrary opinions you're at risk of not objectively analysing the opportunity.

Your assessment of me is quite wrong (but I won't take it personally, as you are making it based on one post on an Internet forum - just like I did!) I was in EXACTLY your position a few years ago - offered a business opportunity right before getting married. All I could hear was positive encouragement around me from friends and family. There was one contrary view from a businessman who advised me not to touch it with a barge pole. He was making his judgement based on the figures I gave him and on his assessment of me.

I went ahead anyway, worst decision I ever made. Still trundling along in business but would have been much better off in employment. Running a business is not a good idea unless you're ruthlessly motivated.
But at the end of the day it's your call and you'll be the one left carrying the can.

p.m. me if you like, more than happy to have ideas hopped off me!

Damn son! Sorry for d judgement. Thanks I'll PM u later

Darocketeer · 29-08-2017 1:23am

stingray555 wrote: »

The future of the taxi game is the apps. I am a taxi driver, and i know a lot of drivers who have left traditional taxi bases for the apps. There is nothing to prevent the 15 drivers you have from leaving your base overnight. Literally.

I would walk away, especially if my big day was around the corner!!

Bring it on apps!!!

Tails142 · 29-08-2017 1:36am

As someone who only gets a taxi a couple of times a month, I just use mytaxi to get one to the house and jump in one on the street to get home. I can't ever see myself phoning for a taxi ever again, the taxi base business in going the way of the dodo.

HeidiHeidi · 29-08-2017 8:25am

Tails142 wrote: »

As someone who only gets a taxi a couple of times a month, I just use mytaxi to get one to the house and jump in one on the street to get home. I can't ever see myself phoning for a taxi ever again, the taxi base business in going the way of the dodo.

+1

uck51js9zml2yt · 29-08-2017 8:52am

Tails142 wrote: »

As someone who only gets a taxi a couple of times a month, I just use mytaxi to get one to the house and jump in one on the street to get home. I can't ever see myself phoning for a taxi ever again, the taxi base business in going the way of the dodo.

Have to agree. Im the same. Any drivers I talk to tell me the app brings in most of their business.

TechieOldie · 29-08-2017 11:39am

Darocketeer wrote: »

Hi,

We're getting married in 10 weeks. So far we've bought all the suits and dresses. We paid a total of €1,000 in deposits for the band, photographer and hotel (wine reception, dinner, and dj). The remaining balance due on these is €4,800. We still have to get flowers and rings. I'm hoping to spend no more than €1,000 on these combined. Family members are covering cars, bus and cake. We've budgeted in another €1,000 for miscellaneous extras (eg. toast round). So total left to pay is €6,800. Firstly, any thoughts or input on this?

We have €4,000 saved and in laws giving €3,300. €7,300. So where's the problem right?

Well, I've just been offered a business for €5,000. It's not very profitable right now (€1,200 per month) but has good potential. However, I have too much going on with the wedding and honeymoon (straight afterwards - only flights paid for!!) to put any investment in for advertising/marketing. So I would only make what it's making now until I can. It's wrecking my head what to do. Is it too risky??

Also, the owner has other offers and wants out within 3 weeks from now for personal reasons.

Help!!!

I would agree with all the posters telling you to walk away. Please take their advice. Some guy wanting 5000k for a supposed business with no assets and falling customer numbers makes no sense and he/she wants a quick sale.

Walk away, no run!

Best wishes for the pending nuptials.

beauf · 29-08-2017 12:02pm

missmatty wrote: »

I'd be wary. This person is offering you a now-or-never deal at a time when they know you are distracted with your wedding. Maybe they are hoping there is some detail you will overlook in the middle of things and they will be long gone with the 5k by the time you figure it out. Generally if something sounds too good to be true, it is.

I'd be wary of the timing of asking you as well. They know you have money for the wedding, they conveniently choose that moment to ask you. Bit too coincidental.

antoinolachtnai · 01-09-2017 8:15am

You can buy a second hand taxi dispatching company any week of the year, easier and cheaper than a Skoda Octavia probably. I would not get too anxious about this opportunity.

Darocketeer · 02-09-2017 12:37am

Really appreciate all d advise guys n gals. Far from having my head in d sand on d apps vs calling a taxi company (it even takes more time to write!) I'm standing on d highest dune because I'm surrounded by taxi drivers in and out of work. Majority have tried "well known taxi app" n have given it up. Most also have said they will never give up radio work as its more financially beneficial than said app. New drivers n city drivers I know are d exception to this though.

Anyway, no update for u yet. Still up in d air...

antoinolachtnai · 02-09-2017 10:35am

It doesn't really matter what taxi drivers (or anybody on the supply side) think at the end of the day. The issue is what the customers think and how they behave, and where the growth is.

If you think it is a good business to get into, I would leave it off until after the wedding, and buy a taxi dispatching company when you get back.

zig · 04-09-2017 2:37pm

The figures don't add up here to justify the investment.

If €1200 a month requires a full time worker which still has to be paid after the €1200, then even if the full time worker is only on minimum wage the company is losing almost €300 a month.

This means you'll have no choice but to work even longer hours to make up the €300 meaning you will start to be on even less than minimum wage from an hourly rate point of view.

Unless Im missing some sort of sudden growth opportunity which requires no extra work then I think you'd be better off with a job in Tesco.

Being down €5000 and then down another €300 a month doesnt sound very appealing to me, especially right after getting married.

Darocketeer · 26-09-2017 1:20am

No update yet. Quite close to happening though. Good news for me that mycaborsomething.ie are charging €2 call out now though. Feel really isolated mentally at this stage but have managed to seperate it from other things and even managing to get excited about wedding most of the time.

Wedding in 10 weeks and suddenly offered a business!!

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