[SEL] OT (way OT!) advice on how to sell business needed

[Bill Dickerson]

>>how to get food on the table after you no longer have an income from your
wife's quilt shop<<

I've now got a full time job. I start Friday, decent job, though not as good
as I'm used to, the benefits will be good.
That means that BOTH of us will have full time jobs and thus little time to
put into the things that it takes to own a business.

The building is leased from the Masonic Lodge (they are not-for-profit as
far as IRS is concerned and have always kept rent LOW)
It's in Valley Junction - a tourist area of West Des Moines.

There has been profit in each of the 5 years we've had it.
Inventory - it's packed to the gills. Inventory has grown in each of the 5
years we've had it. 

Bill

-----Original Message-----
From: sel-bounces at lists.stationary-engine.com
[mailto:sel-bounces at lists.stationary-engine.com] On Behalf Of Dave Rotigel
Sent: Wednesday, July 28, 2004 11:43 PM
To: The SEL email discussion list
Subject: Re: [SEL] OT (way OT!) advice on how to sell business needed


Hi Bill,
    One thing that you need to plan for is how to get food on the table
after you no longer have an income from your wife's quilt shop. That, it
seems to me, is the most important thing that needs to be considered!
    As to the value of the business, start out with the value of the
inventory and then multiply it by 0.75. Add to that the replacement cost of
the building. Be honest here--we all think that what we own is worth more
that any buyer will! (75% of your estimate, again, is probably right unless
you get a professional agent to evaluate the structure.)
    As to the value of the business itself, if it's only "paid it's own way"
(that is, if there is no profit at the end of the year) it's not worth
anything. If there has been a profit, I believe the rule of thumb is 10
times the yearly profit. Perhaps someone in business can comment on this "10
rule."
    In any event, good luck with the selling venture. Let us know how it
goes and how you intend to put food on the table once the business is sold!
    Dave
PS, You might want to consider carrying the mortgage yourself on a land
contract. That way if the buyer defaults you get the business/building back.

> Since there are so many great minds out here, thought I would ask this 
> group. I know there are doctors, mechanics, judges and heaven forbid, 
> probably
even
> lawyers out here.
> Time to sell - wife wants to get back to normal life.
> We've done this for 5.5 years and it's time to move on.
> She wants to sell the quilt store.
> Running it was easy compared to what it seems to take to sell. Anyone 
> know how to value the thing and how to go about it - or more 
> importantly, how to NOT go about it?
>
> Anyone know what SDCF and/or EBITDA cash flow are and how to get to 
> that? It's been successful, it's paid its own way and has survived 
> competition
and
> economic downturn but we want our time back!
>
> So what do we do - or not do?
>
> Bill
> Runnells, Iowa, USA
>
> "and tho my race was thought immune,
> Themselves they did consume.
> So be warned, or be mourned tomorrow"
>
>
> _______________________________________________
> SEL mailing list
> SEL at lists.stationary-engine.com 
> http://www.stationary-engine.com/mailman/listinfo/sel
>

_______________________________________________
SEL mailing list
SEL at lists.stationary-engine.com
http://www.stationary-engine.com/mailman/listinfo/sel