Any business owners in here?

[k5dvw]

Just about to buy an operating manufacturing business and run it. Would like to hear from Miscers who own their own company... what do you do, ups, downs, advice.

[Phattso]

Many employees do not like change and long-time employees may feel a sense of entitlement. You have to make sure they understand who is writing the checks, but in a kind and professional way. Prepare for lean times. Always pay creditors on time. Check all expenses/liabilities to see if there is any excess. Just to name a few.

[Dave1958]

The advantage of buying vs startup is instant income with less peaks but fewer valleys. Never get behind on what is owed to government( mostly payroll taxes), make sure you understand what is covered under your insurance( don't forget workmanship comp), and have a business accountant look and make sure the money fits. Example a going business may be dept free and make 100000/ year, but you add dept service Italy lose 50000/ year because of loan payments.

Last thing you will probably have to purge some workers. As was said older feel entitled, but if you do make sure cuts made will be in all levels. No age discriminization

[DuracellBunny]

Look at your senior people and decide who you are keeping and who you are replacing as quickly as possible. In spite of you owning and running the business, the majority of your employees will have zero or negligible contact with you, so you don't set the tone, your senior people do. You need to take input from people as they know the place better than you do, but they have to understand that the buck stops with you and not with them. If you are going to have to constantly fight people to get things done, remove them.

I don't know if you have run a business before or not, but here are a few things even more pertinent to owning one.

Increase your planned investment of time in the first year by 25%; things will take more of your time than you think they are going to.

You will be tempted to micromanage; fight the temptation.

Employees are going to bitch about you no matter what you do, get used to it.

Meet all of your biggest customers/suppliers yourself as soon as is practical. Change of ownership always makes people uneasy. Reassure customers that you can still do what needs to be done and get to grips with your suppliers as it's a good time to renegotiate prices if contracts allow.

[Old-Time-Lifter]

How many employees? Who is handling the sales? If it was the old owner you need to make arrangements to have them help introduce you to the clients.

Make sure everything is on the up and up with any and all government obligations taxes etc. The last thing you want is the government coming after you.

[DieselsMom]

How many employees? Who is handling the sales? If it was the old owner you need to make arrangements to have them help introduce you to the clients.

Make sure everything is on the up and up with any and all government obligations taxes etc. The last thing you want is the government coming after you.

This and make sure you know the situation with the bank. Many companies can look good on paper but they are over leveraged and on the verge of the downslope not uphill. Depending on how your purchasing the company - assets sale, share acquisition there can be more complicated issues arising. I'm a Canadian accountant so rules may be different but there is a lot of little loopholes and financial traps you can fall into.

Don't rush, ensure you look everything over and trust your gut.

[JOHN GARGANI]

someone pointed out promptness on here: our OP has been absent for 2 days, in spite of both terrific advice AND, some very good suggestions.....as well as questions that need to be answered to keep the dialogue going in a meaningful way.

I hope he is not as tardy attending to matters concerning this business of his....

[Brackneyc]

someone pointed out promptness on here: our OP has been absent for 2 days, in spite of both terrific advice AND, some very good suggestions.....as well as questions that need to be answered to keep the dialogue going in a meaningful way.

I hope he is not as tardy attending to matters concerning this business of his....

Most guys (imo) should work for similar types of businesses which they are considering buying.

I have only owned mine for 26 years, so I may be off base.

[Fishman15]

Had one for 5 years in addition to my regular job but had to shut it down thanks to the economy. Thanks Obama...

[JOHN GARGANI]

Most guys (imo) should work for similar types of businesses which they are considering buying.

I have only owned mine for 26 years, so I may be off base.

this is two threads we got involved in Brac, both of which the OP has not returned to us, despite a lot of input....in my humble opinion, it is rudeness......

[Brackneyc]

this is two threads we got involved in Brac, both of which the OP has not returned to us, despite a lot of input....in my humble opinion, it is rudeness......

I concur. I wish him luck in his business venture.

[jeffaus]

Owned 3 businesses ( all start ups ). First was very successful, got an offer to buy it from a much larger company after 5 years of operation that I couldn't refuse. 2nd business I still own and it is very healthy, 3rd is a business I just started 2 months ago ( in this one, I have a partner who is 49% shareholder, with me holding 51% ). Already have some large customers on board and first container loads ship out before end of Jan 15.

So Op, if you do come back to this thread, my only advice on buying an already established business is this: DUE DILIGENCE. And don't do it yourself. Get professionals to do it, it might cost you a bit, but could save you from buying a noose for your neck. Don't get emotional about the business if the advice you get back is NOT to buy, don't ignore the advice. There will other businesses that will come along. Other than that, good luck.

[Phattso]

Owned 3 businesses ( all start ups ). First was very successful, got an offer to buy it from a much larger company after 5 years of operation that I couldn't refuse. 2nd business I still own and it is very healthy, 3rd is a business I just started 2 months ago ( in this one, I have a partner who is 49% shareholder, with me holding 51% ). Already have some large customers on board and first container loads ship out before end of Jan 15.

Awesome.