Preparing to make an offer to purchase a small business

[Sandy D]

A small business making decent money is up for grabs.

Couple is retiring and was just going to close it up and leave it sit.

Screen printing business.

They did golf balls hats t shirts etc.

Employee is willing to stay and do the work.

For me I would want to expand it into screen printing on blank I phone and other phone cases.
Can be done with the equipment they have.

Sourcing blanks now.

What do you all think?

Good idea?

Can do anything on the phone case.

[Stealth4]

Hi sandy. How us the business doing in terms of profit at the moment

[getshirty]

Hi sandy, I do a similar kind of business and am looking to expand in the new year to other areas as its such a massive market for anyone with a bit of imagination. Obviously your not going to be able to retire off this income but its very good and very steady and the kind of business that attracts repeat custom, good luck.

[Dmshark25]

Great idea with the phone cases, thats a great in demand item with so many different phones and than a new upgraded one every year , a nice unique designed phone case will always be needed, lot of potential.

My girlfriend was hand making them a couple years ago and selling then for $150-200 a case.

She purchased the cases and made unique designs on them , she had lot of orders even started a website but making something by hand can take u only so far

But definitely like the business good luck

[Dunersdunes]

Good money in it. I have friends here in norcal cali that do this. They make 6 figures easily. Good investment. I fronted them the capital and 16 months later they had paid me back in full. Id say go for it

Www.Skinit.com does the phone cases as well with tv ads promoting. Theyre getting like 35.00 usd to 70 I think per case.

[Sandy D]

Originally Posted by getshirty

Hi sandy, I do a similar kind of business and am looking to expand in the new year to other areas as its such a massive market for anyone with a bit of imagination. Obviously your not going to be able to retire off this income but its very good and very steady and the kind of business that attracts repeat custom, good luck.

Actually they have made a living off this business and retiring in their late 50's.

I dont need any retirement income from it only the love of buying, selling and being creative and of course taking a risk is what I like about it.

And cell phone accessories is the hottest thing going.

I think I can take this business up another level easily.

[Sandy D]

Originally Posted by Stealth4

Hi sandy. How us the business doing in terms of profit at the moment

They made close to 100k profit last year.

They have contracts with some college and local high school teams etc.

They also are working on contracts for t shirts and hoodies for the NFL teams and were close to getting licensing so that could be big also.

I think with my cell phone idea I can double that with some creativity and better wholesaling techniques I have in mind.

LOL---- I have a sales rep I buy New Era items from who just might come in handy.

[Sandy D]

Originally Posted by Dunersdunes

Good money in it. I have friends here in norcal cali that do this. They make 6 figures easily. Good investment. I fronted them the capital and 16 months later they had paid me back in full. Id say go for it

iPhone 5 Cases, Custom Phone Covers & Skins For Electronics | Skinit does the phone cases as well with tv ads promoting. Theyre getting like 35.00 usd to 70 I think per case.

Thanks.

Just a thought at this point and saw on etsy some of the ugly cell phone cases people are actually selling for 30-40 each.

I also want to add in NFL, NBA MLB and college sports on the phones once I get an attorney and get that figured out on the licensing part of it. The owners already have some of that started so that is a good thing.

[MM78]

So Sandy might eventually start Vero'ing us on Ebay! lol.... I want to be your 1st legit reseller online Sandy!

[Sandy D]

Originally Posted by Dunersdunes

Good money in it. I have friends here in norcal cali that do this. They make 6 figures easily. Good investment. I fronted them the capital and 16 months later they had paid me back in full. Id say go for it

iPhone 5 Cases, Custom Phone Covers & Skins For Electronics | Skinit does the phone cases as well with tv ads promoting. Theyre getting like 35.00 usd to 70 I think per case.

Wow awesome stuff.

Exactly what I am looking at doing with some twist of things that are hot like black ops, minecraft, bling etc. on these types of items.

Might even move into some signs or posters of some kind as well.

[Dunersdunes]

Id try www.legalzoom.com for all ur legal questions and problems. The founder robert shapiro "I think thats his name" is one of the top rated american attorneys ever. Part of oj simpson case etc. Anything legal with any documents etc can be done there at 80% cheaper then an attorney in person.

[Sandy D]

Originally Posted by Dunersdunes

Id try LegalZoom: Online Legal Document Services: LLC, Wills, Incorporation, Divorce & More for all ur legal questions and problems. The founder robert shapiro "I think thats his name" is one of the top rated american attorneys ever. Part of oj simpson case etc. Anything legal with any documents etc can be done there at 80% cheaper then an attorney in person.

I have an attorney already for all legal issues.

That site is good for papers etc but when it comes down to buying real estate, business etc you need to sit down in person with your trusted attorney.

Oh yea, he is one of those guys who got him off knowing full well he was guilty.

[Sandy D]

Will be making an offer end of this week once I have a clear vision of what I would do with it and if I have enough time to keep up with it.

16 hour days now might turn into 20 hour days real quick.

If you are like me you want to me involved in every part of something and with the ideas I have I can visualize this being very big someday.

Even though the employee wants to stay and do the work I would want my hands on everything from start to finish.

[oompaloompa]

customised items, eg. names things for school are big now. lunchboxes, bottles, pencil cases, bags, picture frames etc etc.....

[jeffweico]

Originally Posted by Sandy D

16 hour days now might turn into 20 hour days real quick.

If you are like me you want to me involved in every part of something and with the ideas I have I can visualize this being very big someday.

Even though the employee wants to stay and do the work I would want my hands on everything from start to finish.

I see this as being your biggest problem - we ARE alike in this regard. It would be good to know the business inside and out, but at some point you HAVE TO delegate to others, or else YOU become the biggest stumbling block to your own success. I have learned this the hard way.

Also, I would want to learn what their business is doing now, so that employee could be VERY VALUABLE if they stay. The value in this purchase would be their business methods, their contracts and their way of doing business and the income that comes along with that. If you just want screen-printing ability, buy some equipment on eBay - it is cheap.

Of course, I wish you the best of luck whatever you decide to do.

[Sandy D]

Agreed.

I am looking at it all. Equipment value, employee wages, expenses etc.

Going to sit down with them soon and go over their profit loss statements for the past 5 years.

Contracts and current communications with possible nfl, ncaa, mlb and nba is in the works right now which could be huge.

I am a hand on person. I will want me hands on it all.

They have done very well for a 3 person show for many years and never really went outside of their area much to market their products.

Making 100k profit year after year as they explained with any website, any outside marketing and no big time licensing contracts tells me it has larger potential.

Lots to look at and look into.

LOL Jeff you think a lot like I do.

I actually took my cell phone and took pictures of their equipment and looked up the cost of those items already.

[Sandy D]

Originally Posted by oompaloompa

customised items, eg. names things for school are big now. lunchboxes, bottles, pencil cases, bags, picture frames etc etc.....

They do some local high schools.

So much potential with this.

Even though of fund raising side of things to get others pushing the products for me and they benefit.

[Sandy D]

They are extremely organized which impressed me a lot.

[123]

Thats awesome Sandy!! That sounds like a dream situation to stumble upon like that with them retiring and all. I've been looking into buying some established businesses as well, curious as to how you stumbled upon them just luck of the draw or you knew them?

[Sandy D]

Originally Posted by 123

Thats awesome Sandy!! That sounds like a dream situation to stumble upon like that with them retiring and all. I've been looking into buying some established businesses as well, curious as to how you stumbled upon them just luck of the draw or you knew them?

I go to antique auctions a couple times a week and overheard someone saying they are going to retire from their business and do antiques etc as a hobby.

I was all ears.

When they were asked what kind of business do you have they said a screen printing business, we print logo stuff, high school items, band items, shirts, sweaters, hats etc.

After that discussion was done I asked them do you do this in your spare time etc. They said no, we do it for a living.

I asked if they are going to retire what are they going to do with the equipment? He said we are going to sell it all, equipment, licensing, products, stock, building, contacts, contracts etc.

It went from there.

We made an appointment to see it and was extremely impressed.

Offer is on the table and they are taking offers until Dec 31.

If they dont like the offers they are going to list it with a realtor as a business and with land and building.

I would like to turn it into doing screen printing on phone cases, laptop covers, fund raising at schools and go further with getting NFL, NBA, MLB licensing.

I already buy new era items from a sales rep and have spoken with him about connections etc.

Will wait and see.

Their profit-loss statements alone impressed me.

[123]

Awesome stuff, wish you the best on your potential new investment!

[Sandy D]

Thanks.

We were told they have 6 other offers so flip a coin.

They did tell us 2 of them dont want the real estate which could go either way.

If there offer is close to what they are looking for and can keep and sell the real estate separately they will make out.

They also never really made good use of the location they have.

They dont have a retail outlet which they should.

Retail dollars in this location would bring them some decent money esp if the new owner can get the NFL etc licensing.