Notorious

Well today I found out that my offer for a business I was looking at buying has been accepted....I am 24 and it is a big step for me,but i am sure it will be worth it, the business is in the supply of office stationery/equipment, ID card systems, lanyards, security wristbands, id card printing, laminating, printing and wedding stationery. It was a friend of the family that owned it and due to retirement..and the small fact his wife has been left £250,000 by a relative!!


It is a big step and although I am relishing the challenge I am also ****ting myself!!

The business has been going for 16 yrs and I know it has the potential to grow. Book keeping etc are my main concerns lol!


Any words of wisdom would be much appreciated!!



ps...still trying to sell my scoob tooif anyone is interested pm me and ill forward pics (my99 DBM UK turbo)

jods

Congratulations and good luck. I take it you bought the premises plus all stock / goodwill etc ?? Where are you based ? Do you post within the UK ? Do you have a T'Internet website ?

paulr

No words of wisdom,but good luck.

Notorious

I bought the name, stock(which is not much tbh), customer database and also the current owner as he is a friend of the family will liase with me for the first six months introducing me to his existing clients. I also have quite a few contacts etc from my current line of work...or should I say former line of work(feels great to say that).

Currently there is no website however that is something I will be changing very quickly. I will be based Just outside Glasgow, I have a 869 page catalogue which i will transfer to the web. Posting within Uk no probs.

The company is called Strathmore Supply Co.


Iam hoping to secure the contract for "T" In the Park next year for all the id cards, lanyards and wristbands. The company supplied a few last year at the last minute due to a supplier muck up.

unclebuck

Never been a better time.

Ask Charles Clark

speednut

You want advice...It doesn't matter what business you're in, they all suceed or fail due to financial management. The best thing you can do is get a good accountant (and it doesn't have to cast you the earth) involved from the begining. Good luck, it'll be fun...

DPat

Cash flow is the real problem - you could sell £1m worth of stuff, but not get paid for 3-6 months, that's where the real trouble starts

The Chief

Simple advice.

1. Get your marketing sorted and that website up asap!!! the more people know about you the better.

2. Offer true value for money over your competitor's

3. A trustworthy accountant!!! - hopefully use the current one so you'll be ok.

4. The most important i feel is this - keep a strict control of all overheads and costs, from the top end purchasing to the bog-rolls you wipe your a*se on.
and check religeously your invoices every month, you'd be amazed how many companies overcharge and try it on.

The last 3 bits of advice were also given to my Dad when he asked a guy in a meeting once what was his secret. Oh his name by the way is Albert Gubay and he's worth something in the region of £700 million, he started the Total Fitness chainm of gyms.

Oh and good luck.

scoobypreza

Congratulations and good luck with it!!

Cath

The Chief

When you buy your Lear jet and are flying out to your Carribean retreat remember who gave you advice

MikeCardiff

iTrader: (2)

Agree with the above - one good rule I have always used in my businesses - DONT USE CREDIT !

You may be looking to expand, with the belief it'll make more money, but only expand using money you have saved, not taking out loans or increasing overdrafts to pay for it. I assume you will be paying for the purchase out of the business from future profits, or have borrowed money to buy it in the first place ? so that is already something that has to be paid out each month more than the previous owner had.

Most small to medium size businesses fail because they over expand too quickly, and get into problems with debt and cashflow.

Especially as the area you are working in is VERY competitive, it would only take a couple of similar companies to undercut you and bang go all your customers. There are always nutters out there who will work for peanuts to undercut competitors - they generally go under pretty quickly, but do a lot of damage while they are around.

David Lock

1) Join FSB

2) Get free help from local chamber commerce, enterprise groups etc

3) Duplicate all databases and keep them off site. Obvious but so often forgotten

4) Get insured

5) Use good accountant.

6) Think laterally

Very best of luck

dl

J4CKO

iTrader: (1)

Credit Control, only give credit to customers who earn it and pusue non payers vigourously, dont deliver one more pencil until the outstanding bill has been paid. My mate watches his directors ignore bad debtors cos they are to much trouble to pursue whilst they worry about the overdraft.