Buying A Business-Advice/Comments! - Kawasaki ZX-10R.net
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post #1 of 12 Old 08-15-2012, 05:38 PM Thread Starter
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Buying A Business-Advice/Comments!

Hey guys,

My wife and I spent a week in the Tampa Bay, Fl area visiting her dad a couple weeks ago. Absolutely loved it down there. We did some looking for possible housing and employment. Met some people who own and operate a boat and waverunner rental business and kind of fell in love with the idea of doing that ourselves.

I have never bought or owned a business and I'm not really sure on how to get started. My parents own and operate a crop dusting service and I've been talking with them. I also have an appointment to speak with my account early next week.

Any advice you guys have on questions to ask, things to look for, and stuff to avoid would be appreciated! I don't want to sound too ignorant when speaking with my account lol.

Strictly for the GEN2's Sporting the undertail with pride!
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post #2 of 12 Old 08-15-2012, 05:46 PM
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I'm looking to buy a business also, but never have owned one before .. so i can you some advice also.
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post #3 of 12 Old 08-15-2012, 08:01 PM
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Do yourself a favor and find a good accountant that knows the laws in FL. That's what I did and he saved me a bunch of start up money. Also helped me set up my company properly from the start.

Next download a business plan template (you can find them free all over the internet). And then sit down with your wife and actually fill the damn thing out! It will make you answer all the questions you need answered and make you realize if this is something you guys really want to do. Plus if you plan on getting any kind of a loan you must have a business plan to be taken seriously.

And last dont even THINK of making any money off of your business for at least the first year! Between start up costs and lack of business you'll be in the hole out of the gate.

Good luck!

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post #4 of 12 Old 08-15-2012, 08:59 PM
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Hey man - - not sure if you remember me, but we rode together awhile back.

Anyway, I personally wouldn't buy into the boat/wave runner rental business. My wife and I thought of it a few years back and after doing my due diligence, it ended up being more work than what it seemed to be worth.

One of the biggest things you have to worry about is insurance and maintenance. With their constant use and majority of customers not knowing what they're doing, you're bound to find yourself with some hefty maintenance costs. Every few years or every "x" amount of hours, you'll have to invest in newer equipment as their heavy usage will wear them out a lot quicker.

In beach communities, these types of businesses are very common. Most of them are ran by people trying to chase the dream of getting away from the regular 9-5 but end up finding themselves upside down and wishing they'd never done it. I've spoken with some owners who have tried to sell me their businesses... this is why I started looking into it.

Now, I'm not saying it isn't possible to make a living off of doing it... people do it all the time. However, if you start looking around, there are forums where many people own the same types of businesses and you'll come across the horror stories.

I currently run my own business doing IT consulting. I spent the past few years working the normal jobs with IT companies but recently went back to being independent. Before I came to Dallas, I was a partner in a software company; I cashed out and moved down here.

Running a business can be rewarding, but you have to really ask yourself if the risk is worth it in the end.

But yeah, talk to that accountant and trust your gut. A business is only as good as the people running it.
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post #5 of 12 Old 08-16-2012, 04:01 AM
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Good advice from evallarta and squid both. One thing I would add is if your considering the rental business make sure you have enough capital behind you to do at least a year without making a nickel and also be able to do ALL the mechanical work yourself. Im not sure how you could ever make it otherwise.

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post #6 of 12 Old 08-16-2012, 08:00 AM
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It will take a lot of time and energy, but if done right and you put %100 into it, the rewards can be HUGE later on down the road.
GIGANTIC tax savings for one.

If you work for someone making 100k, you spend approx 40-45k in taxes.
You own the bus and make 100k, you spend around 10k in taxes.
Now do the math for 300k, 500k, etc and you get the picture.
You'll invest a LOT in advertising if you want to generate bus and constantly paying out in advertisement. Although somethings just sell themselves. You'll net an web site built, ad's online, directories, fliers, maybe local stations, newspapers, magazines, catalogues etc and this can add up FAST!

Second, DO NOT do a DBA, either INC. or LLC or have your accountant walk you through.

Oh and last but not least, offer Starbucks coffee.

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post #7 of 12 Old 08-16-2012, 08:36 AM
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Thinking about opening a business as well. In my area there are NO IT companies, in a city that's in great need to IT support. I'm an IT tech at an oil company now, I would love to know someone that could run the company for me while I work a day job haha. But that isn't happening.

Last edited by ChrisK; 08-16-2012 at 08:53 AM.
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post #8 of 12 Old 08-16-2012, 08:51 AM
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post #9 of 12 Old 08-16-2012, 09:04 AM
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Quote:
Originally Posted by Static IP View Post
It will take a lot of time and energy, but if done right and you put %100 into it, the rewards can be HUGE later on down the road.
GIGANTIC tax savings for one.

If you work for someone making 100k, you spend approx 40-45k in taxes.
You own the bus and make 100k, you spend around 10k in taxes.
Now do the math for 300k, 500k, etc and you get the picture.
You'll invest a LOT in advertising if you want to generate bus and constantly paying out in advertisement. Although somethings just sell themselves. You'll net an web site built, ad's online, directories, fliers, maybe local stations, newspapers, magazines, catalogues etc and this can add up FAST!

Second, DO NOT do a DBA, either INC. or LLC or have your accountant walk you through.

Oh and last but not least, offer Starbucks coffee.

Agreed on the INC or LLC. I ended up doing a S Corp. It has the same benefits of a LLC but cost me 500 dollars less to register (thanks to my accountant's advice).

Stupidity and Motivation are a dangerous combination

Velocity Calibrations
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post #10 of 12 Old 08-16-2012, 12:36 PM Thread Starter
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I should add that I'm not going to start a business per say; I want to buy into an already established business. One that already has nice equipment and a good location and such.

Evallarts: I will start looking into a business plan here directly! Sounds like a good thing to take with me to the accounts office. I'm going to talk with my local account and then my wife's dad knows a good account in Fl who I'm going to talk with as well.

Squidward: You sure you're not thinking of someone else you used to ride with? I've only had a sport bike for 2 years lol. I live in Lubbock, Tx and don't really know many riders here in town? Anyway! Yeah, I agree that maintenance is a big issue. I'm fairly good with a wrench and plan to learn how to do all the basic maintenance on the equipment. Certainly something I need to look into.

or10r: I agree 100% and plan to do my own maintenance anyway. I have some money put back that I've been saving since high school for something like this. My parents advised me to do it, so that'll help get me going. My parents are also willing to give us a boost until we're on our feet.

Static IP: Advertising is def a big part of it for sure. That's something I will look into as this progresses. And I planned for you to come down and join partnership with me. Rental shop on one side; refreshments on the other

Skydork: Rentals are on the house, my friend!

Thanks for all the replies guys!

Strictly for the GEN2's Sporting the undertail with pride!
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