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  1. #1
    Join Date
    Jan 2008
    Location
    wisconsin
    Posts
    587

    Default Buying an established business

    I am interested in possibly partnering with or buying an established business. What questions should I ask an owner? And what should I ask to see? Financials, etc. I should add that this is a school of pet grooming and I would also be consisting moving it's location closer to my home.

  2. #2
    Join Date
    Jul 2008
    Location
    Orlando, FL
    Posts
    1,076

    Default

    I don't know any details of this kind if stuff, but it wouldn't make sense to me to buy a business and then move it.

  3. #3
    Join Date
    Nov 2010
    Location
    WI
    Posts
    149

    Default

    Is Dee not wanting to groom anymore? I'd be curious to know what all buying the business entails... Her tables and equipment, her clientele including breeders, her literature... If it did include her (copy written) book, how could you update it for the future?
    What a cool prospect!

  4. #4
    Join Date
    Dec 2006
    Location
    Washington state
    Posts
    7,984

    Tech Cat

    Personally I have been part of hundreds of sales. I enjoy that process a lot. I actually recommend not buying sometimes, you know, the ones that want to own but not groom, or even learn to. There is a way to do that but they need additional sources of sales revenue beyond grooming, such as the models in Pet Grooming Business Plan Helper and Sampler.

    In the upcoming issue of eGroomer I am writing a specialty article on Zero Down or Low Down purchases of grooming businesses. Doesn't work for all sellers but it does happen.

    Also there is a fireside chat audio I did on buying and selling. It is not a "course." But hopefully you will find some info helpful. The link is www.groomwise.com/html_radio.htm and look for the fireside chat section.

    If by any chance you own a copy of PetGroomerCD (now out of stock, more ciming, 7,500 ordered free, just s/h) that chat is also on that CD.

    We do have a course coming on this topic from Grooming Business in a Box, CD #4 is almost done, we are at the proofreading stage, and then the new From Problems to Profits edition with a bonus course on buying and selling. I have worked with dozens, maybe 100 plus CPA's who just don't understand how to value grooming businesses. They tend to OVER VALUE not understanding our compensation systems, which is one reason we did CD #4. I get calls monthly now from commercial opportunity and CPA's on valuing process, but with the disclaimer I am NOT licensed appraiser as such so I don't do that, but if you don't know how a trade works, they tend to over value. But you can do that and never be able to sell your business...so I like to assist and transform the numbers into the language of pet groomers, and realize like many of you know, if you own a grooming business but don't groom, the value of the business TO YOU in that case, is much less, and then all the exceptions.

    It actually gets a little complicated but can be made much simpler in "groomer language." So try the audio and those looking for insider tips on buying with low down to a willing seller, see eGroomer Journal.
    Most questions regarding GroomerTALK are answered in the FAQ section, or in the Board Help Forum. Thanks for coming to PetGroomer.com http://www.petgroomer.com.

  5. #5

    Oops I need some advice. on purchaseing a business or starting my own

    I would love to chat with someone. I ll even pay a fee for some one on one conversation.. My biggest question is I have tried to stay in my town or out side of my town a few towns away to start my own grooming shop. Its so hard finding aplace that will take grooming its that theydont want a groomer the noise the water issue. Thinking about buying a existing business in another state Say north carolina florida just hard to just move to a town that I have to go to and not a town where i dont want to go to or a state that I dont want to go to. How to do start a business where you have to buy a home or aprtment and look around for a place that will let you in. and that town doesnt have a place for you DOnt know how this all works out My husband business is done after june we have no other income just retirement money and such. Need to make a move of some kind i realllly need to talk to someone nnnnnnnnneeed advice thanks sssoooo muchhh

  6. #6
    Join Date
    Dec 2007
    Location
    Humboldt
    Posts
    2,646

    Default

    Quote Originally Posted by LouLouLou View Post
    I would love to chat with someone. I ll even pay a fee for some one on one conversation.. My biggest question is I have tried to stay in my town or out side of my town a few towns away to start my own grooming shop. Its so hard finding aplace that will take grooming its that theydont want a groomer the noise the water issue. Thinking about buying a existing business in another state Say north carolina florida just hard to just move to a town that I have to go to and not a town where i dont want to go to or a state that I dont want to go to. How to do start a business where you have to buy a home or aprtment and look around for a place that will let you in. and that town doesnt have a place for you DOnt know how this all works out My husband business is done after june we have no other income just retirement money and such. Need to make a move of some kind i realllly need to talk to someone nnnnnnnnneeed advice thanks sssoooo muchhh
    What about going mobile. Start with a used vehicle and grow from there.

  7. #7

    Default

    Quote Originally Posted by petpalswi View Post
    I am interested in possibly partnering with or buying an established business. What questions should I ask an owner? And what should I ask to see? Financials, etc. I should add that this is a school of pet grooming and I would also be consisting moving it's location closer to my home.
    Hi, I've bought into established grooming salons in the past. I've also had great experiences when I've done so far. You need to ask for financial details of at least the last year. Along with finding out current and past advertising methods. You need to look at profit and loss, are they just barely breaking even or growing each month? In towns where it's hard to get approved or just difficult to find a space for a salon...I would buy an existing one if possible. Some groomers make it seem that with 2k and a card table you'd be in business. Yet, everyone I talk to in the real world has spent at least 25 to 100k on building out and opening costs. Sometimes buying existing shops makes so much sense.

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