Buying an existing business

[Chris_29]

Hello Everyone,

I am looking to get into the business world, I am 25 and know that I want to be an entrepreneur. I have been looking at purchasing an existing business as there is already an infrastructure and clients in place. The problem I have is that I don't have a massive amount of money to spend (£20k in savings). I have recently seen that a Hairdressers is up for sale in my local area for £10k with a gross revenue of £70 per year trading only 4 days a week, I am looking for some advise about whether this is a good deal and something that is good to start off with generating cash flow and learning about business hands on, or is there another way to start me on my journey?

Any advice would be greatly appreciated.

Thank you.

 

[japancool]

Forget the revenue. What's the profit?

 

[mattk]

Do you know on what model the hairdressers operates? Usually, it is either salaried or pay per chair.

 

[John Hemming]

At that sort of budget you are really looking at buying a job. If you are going to buy a job it is best to buy a job you know.

 

[MarkOnline]

What has lead you to the conclusion you want to be an entrepreneur? Thats a serious question BTW.
Being an entrepreneur has a high cost, especially in the begining when your cash is tight and your hours are excessively long.

 

[Mark T Jones]

As an entrepreneur you'll be looking at taking the business in a new direction, so pretty much everything will revolve around that plan - and the relevance of what you are buying to that plan

If you plan just to buy a job/business, then you really need to beblookjng very closely at why/what they are selling - quite often the answer is a whole load of trouble

 

[Deleted member 335660]

Hello Everyone,

I am looking to get into the business world, I am 25 and know that I want to be an entrepreneur. I have been looking at purchasing an existing business as there is already an infrastructure and clients in place. The problem I have is that I don't have a massive amount of money to spend (£20k in savings). I have recently seen that a Hairdressers is up for sale in my local area for £10k with a gross revenue of £70 per year trading only 4 days a week, I am looking for some advise about whether this is a good deal and something that is good to start off with generating cash flow and learning about business hands on, or is there another way to start me on my journey?

Any advice would be greatly appreciated.

Thank you.

My first advice is go for something that you have knowledge of and passion for, business is hard enough and your funds are limited.

My experience of the hairdressing industry is that customers go with the hairdresser so, especially if it’s a ladies hairdresser, you could see all the clients going elsewhere. If you are not a hairdresser or have no experience in this business then I would advise against it.

 

[Mike Godwin]

Unless you want to adopt the 'fly by the seat of your pants' model I suggest you give strong consideration to what interests you business wise and then create a good business plan. Remember Fail to Plan, Plan to fail!

 

[Paul Kelly ICHYB]

I am looking for some advise

Don't do it.

Unless you have experience, knowledge or passion, your chances of failure are sky high.

Work in one/some of these businesses and see what you like. Then work in them a little more.

 

[SillyBill]

I started my first business in my early 20s for about £3k total. My life savings. Was a leaflet distribution/print business. After 18 months to 24 months I was earning about £12k a year (£1k/month) take home but working stupid hours. I learned a lot but it was brutally competitive and my hourly rate was not worth calculating. I then went to work for others for a few years when I was initially offered £22k to go work for someone else for 40 hours a week. That was good money at the time. I also learned a lot in those jobs. Working for others allowed me to build the contacts to ultimately raise finance to buy into something worth buying (i.e. with a barrier to entry). Rest is history.

I value that first business and experience greatly. I don't think you need to buy a business to have that, you can set up a website, do some basic marketing and (likely) not make much money for £10k or so today. With some luck and a bit of graft you may get onto something. Without experience you are likely paying to gain it though.

TBH not many businesses I'd buy these days except direct competitors, you can replicate most with a fraction of the capital. I'd only buy direct competitors to effectively shutter competition with a view to putting my own prices up, no interest in their people, plant or products etc. Only got 2 left in the UK now, bought 2 already and got my eye on another!

 

[Stuart_Walker]

The failure rate for SMEs is around 80% in the first 5 years depending on who you listen to so I would say that you should expect to fail and use it as a learning experience.

The key is to make sure you do so with as little risk as possible, that way you live to fight again and build a new business with a better chance of success using all the lessons you have learned.

 

[Lisa Thomas]

Do you know anything about hairdressing?

 

[MarkOnline]

The OP may appreciate the replies so much that he actually comes back and answers some of the questions asked. This business malarkey is easy peasy lemon squeezey. As an aside, I am nearly 60 and know I am destined to be an astronaut, any pointers?

 

[UKSBD]

As an aside, I am nearly 60 and know I am destined to be an astronaut, any pointers?

Per aspera ad astra

 

[Mark T Jones]

The OP may appreciate the replies so much that he actually comes back and answers some of the questions asked. This business malarkey is easy peasy lemon squeezey. As an aside, I am nearly 60 and know I am destined to be an astronaut, any pointers?

Posted Sat evening, last seen Sunday Morning

It's always rewarding giving input to someone who doesn't care.

 

[Paul Norman]

I think the OP has done one of two things.

1. Bought the hairdressers. Is currently up to their neck in buyer's remorse and empty wine bottles.

2. Took the valid advice about and is currently cracking on with gainful employment.

For what it is worth, there is insufficient information, without the answers to the questions above, to say anything beyond the established fact that hairdressing is a competitive game and most people in it do not own a Lear Jet.

 

[japancool]

'Seasy, if Vidal Sassoon can do it....

 

[Ozzy]

It's always rewarding giving input to someone who doesn't care.

None of the existing members like yourself would be aware of this as it's an email I send to every new member who registers, but I've started emphasising the "lifetime value" of contributions and input on the UKBF community.
The stats for this site is really interesting to a data nerd like myself, still after all this time this thread is is one of the most visited threads from Google searches with 3,852 people having read the thread entirety in the past 3 months;
https://www.ukbusinessforums.co.uk/threads/putting-unexplained-cash-in-bank.359641/

This person may or may not return to thank you for your help, but many thousands of people will benefit from the input here over the lifetime of this thread and the question they asked.

 

[japancool]

The stats for this site is really interesting to a data nerd like myself, still after all this time this thread is is one of the most visited threads from Google searches with 3,852 people having read the thread entirety in the past 3 months;
https://www.ukbusinessforums.co.uk/threads/putting-unexplained-cash-in-bank.359641/

I think that says a lot about what people are doing...

I notice I contributed to that thread.

 

[Ozzy]

Yes I noticed
I do need to revisit why the previous management opted to lock threads automatically after a short period of time...I'd love to know what all these people need to ask who visit that thread.

 

[Mark T Jones]

Yes I noticed
I do need to revisit why the previous management opted to lock threads automatically after a short period of time...I'd love to know what all these people need to ask who visit that thread.

I believe it was to do with spammers digging them up.