can you help me with buying a business?

Question

http://www.bizbuysell.com/listing-information-q315847.html

this is something that i would like to get into...

i have about $80,000-100,00 USD to work with. i dont really understand the whole cash flow thing.

is it a good idea to buy a business or just simply buy a franchise?

thnx.

well i want something that i can profit for about 2-5 years then sell that business and start one from ground zero, which is going to be a design agency.

i'm 20 years old.

the Subway and 7 11 was what i have been actuallly looking at buying.

Answer 1

NOT a very informative presentation.

Cash flow as stated means to me total income or sales for a year.

You should have a statement by a CPA or other outside accountant, showing Sales each month.
You also need to know how much Expenses are each month and Total year. And for the past 3-5 years.
Within Expenses, you need to know the Fixed Expenses and Descretionary Expenditures.
You also need COGS, Cost of Goods Sold, Gross Profits, less Expenses, and the Net Profits. Net profits should be the profit, after, Owner Draws. If Owner Draws are not listed separately, then you can assume it is part or all of the Net Profits.

You should have a complete accounting of all expenses, listed.

In most cases, Descretionary expenses may be added to the Gross profits, if they are truly descretionary and totally under the owner's control. Such as, Auto expenses for any personal use, cell phone for personal use, magazines which may or may not be necessary, personal travel and entertainment.
Those may or may not be necessary or ongoing expenses.
You should have several tax returns for the business or a persoanl return.
You don't have enough information to make a buying decision. And, worse, the necessary records may not be available through poor accounting, or, are being witheld.

Tread carefully without proper and honest information.

There's nothing wrong with buying a profitable business. Be sure the location is right. Consider that a new owner may lose some accounts. This is common. The best I can suggest here is for the seller to accompany you and visit all established accounts.
Another hazard is that the seller can/may re-open a similar business and take the accounts with him/her. To avoid that needs an attorney to prevent it within a minimum distance from the existing business, maybe not even in the same city.

If the business is in a Lease Contract, you need to know if it will continue in your name, the length of the lease or remaining time left, what the terms are for renewal, and even if you can renew. This can be detrimental to you financially and to continuing in the same location.
AT THE VERY LEAST, hire a Business Attorney. DO NOT attempt to go it alone.

Answer 2

Go to http://www.score.org/template_gallery.html and download the Excel template for estimating cash flow.

Answer 3

You should take the time and take a class on business.

Answer 4

it all matter's on what business u r buying and what age u r. also don't buy a big companion a small one.

Answer 5

Find something in which you can apply your passion. If you aren't sure, don't do it.