advice on investing into an autoshop

Discussion in 'Growing and Managing a Business' started by bleu, Oct 2, 2010.

  1. bleu

    bleu
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    a friend of mines came to me with an offer of 25% of an auto shop. he says the autoshop is a 3 car garage with basically everything inside.he is an mechanic himself and what he wants is really not much.bu the profits he speak of and the layout sound good to me.
     
  2. Fergal

    Fergal
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    Welcome to our business forum bleu. Would you be an active partner in the business or is the plan that you will just be an investor? Do you know much about the business and how it makes a profit?

    You would need to know a lot more about the business in question before making any decision on investing in it. The first thing to do would be to visit it and get background info on it's financial position (have a look at its financial accounts and bank statements if available). Then get a clear picture of what your friend is offering you in return for your investment, how he will use the money you invest in the business and how you will get paid back and make a return on the investment.

    Please post back with a little more info and we will help you further.
     
  3. Jahan Choudhry

    Jahan Choudhry
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    Many people whilst making business offers make it sound as attractive as possible, making you feel that if you don't take up their offer then you will be missing out and regretting it.

    Business needs to operate on a cool mind.

    1. Have a look at the finances, the money coming in and coming out including any statements they have.

    2. Have a plan B for anything that happens wrong, including if the worst happens.

    If after that you think the offer is a good idea then you may want to take the offer. I agree with everything Fergal says as well.

    However numbers (if they are reliable) matter more than smooth-talking businessmen.
     
  4. GekiDan

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    Welcome to BAF, bleu! Thanks for posting your questions here.
    I'm just wondering why you are saying "he says..."? Haven't you already seen the said autoshop to inspect it?
    If not, I suggests you to take a look at the shop first before agreeing with his offer. And inspect the site first on how the business is going.

    Hoping to hear a reply on you soon.
     

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