How can I convince someone not to buy into a business? Serious Question?

March 1, 2010 by admin · 5 Comments
Filed under: Other - Business & Finance 
business
gregb asked:

Someone I care a great deal about is on the verge of buying into a small business. I know the individual exreamly well and am certain this will be a disaster for both the business and their family. A couple hundred-thousand dollars is the cost to “buy in” to become co-owner of the service business. I don’t want to see this person loose that much money over a mid-life crisis notion to own their own business.

What can I possibly say or do to convince them that while owning your own business is a dream that everyone has, it is not meant to be fulfilled by everyone.

Th current owner has glorified his business and essentially “suckered” my friend into thinking that owning and operating the business is a walk in the park. In addition, the owner is planning on retiring (and moving to another country) in a few years. Why can’t my friend see that the current owner is just trying to get “top dollar” for his business then leave it all on the “new guy”.. What can I do to persuade him?

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Comments

5 Responses to “How can I convince someone not to buy into a business? Serious Question?”
  1. HonestBizPro says:
    March 2, 2010 at 8:33 am

    hmmmm sticky one…..You really could be saving your friend alot of frustration and financial hardships……or……you could be standing in the way of realizing his/her dreams and at worse they learn and build on their enterprising adventure. I think a 3rd party business analyst would help even if it only gets a better negotiated price for the venture its worth it to have someone check the books and future market potential. If there is alot of other people interested that is a sign…if no one else is interested in buying this business that could be a warning sign if your friend ever tries to sell it. HonestBizPro

  2. lil southern girl says:
    March 4, 2010 at 6:29 pm

    Somehow, you have got to make him see what you just said in your last paragraph.

    If he’s got that kind of money to sink into a business venture, he needs to stop and think “Okay, what do I love to do? And can I turn what I love to do into a business for myself?”

    Try to make him think of it this way. lil southern girl

  3. Precious Gem says:
    March 5, 2010 at 4:34 am

    You could check with the Better Business Bureau to
    see if there are any complaints and check with your local City of Commerce to see if there has been any
    complaints against the business. Then show this to your friend. Precious Gem

  4. Retired says:
    March 5, 2010 at 7:35 am

    You didn’t say how you know all this information about the business. I think it would come down to who has studied the business more you or your friend. Retired

  5. lorina i says:
    March 5, 2010 at 10:34 pm

    Your friend would need to ask the owner of his business to see his past 4 years of tax records. lorina i

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