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So if someone buys a business....

justmjc

LawnSite Senior Member
Location
michigan
How do you make the transition from your full time job over to full time lawn care? Since your primary job is the source of your income, I see a few problems with this.

First, you lose your income for about a 4-5 weeks until the money from the business kicks in.

Second, unless you have some creative financing in place, or someone willing to work with you, you will have to make payments on the business purchase as well.

Aside from paying cash, which many people are usually cash poor, what other means are there in regards to acquiring the business without that delay with no income.

Anyone have any ideas?

Is it possible to get small business loans for this if you already have a part time gig going? Any information is helpful.
 

michindi

LawnSite Member
Location
Brandon FL
It is possible because i did it.... I just bought my business back in December. I did take a pay decrease, but the money will come. A real close friend of mine loaned me the money and he also keeps my books. I pay him back by taking the money right out of the money I get from my company. And then pay myself. Like I said things are tight right now but it will pick up. Good Luck
 

DiscoveryLawn

LawnSite Senior Member
Location
Dayton, Oh
justmjc,
I responded to you in another post and told you that I paid for the assets of the business I bought with cash. What I did was financed most of it and gave him the cash. As for the customer base, he was willing to work with me on a monthly payment schedule. My first payment for the customers is not due until long after I have finished the first billing cycle. The previous owner was very flexible and great to work with on this.
 
OP
J

justmjc

LawnSite Senior Member
Location
michigan
Discovery, how many of the accounts did you happen to retain upon transfer, and how did the owner handle the transfer? Was he there with you working, did he send a letter, or did he introduce you to them?

Thanks for the replies guys.
 

DiscoveryLawn

LawnSite Senior Member
Location
Dayton, Oh
justmjc, I do not know how many I will retain. We just finallized this deal this week. I will let you know how it goes.
 

Buddy Markley

LawnSite Member
Location
Xenia, Ohio
In that first year or two of being part time you should have put some cash into the bank for your startup year. You should be able to carry your operations for at least 30 days.

Now on the other hand if you had a full time job first then you might have to role reverse this and take a part time job while you are growing.

Now, one other thing, and I stress this if you are frugal and ca budget your money really well then get some accounts started at your local suppliers for materials that you need to for your operation. Then get a credit card JUST FOR THE BIZ ONLY... for gas and/or office supplies. This way the card will cary the cost for 30 days and not you, thus increase your cash flow.

But you got to pay it off each and every month if not why pay interest? or get in dept even more..
 
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