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Discussion Starter · #1 ·
Basically what the title says...

I have $150,000 to spend on our next business venture. I was looking at purchasing a local business, but the broker is a pain in the *** to deal with, and I just don't know if we will be able to put a deal together. I've looked at a few other businesses, but at the end of the day, I am starting to seriously consider just taking a chunk of the money and buy the equipment myself, find a nice retail location and open a shop myself. Then put some decent money down on a website and focus on marketing. I should have enough money within the budget to float a few months before work starts coming in... Plus, I had already set aside some money in addition to the $150k to function as working capital.

Hmm...what to do.

What I would like to do is focus on screenprinting for groups/teams/organizations, but also cater to the small orders (DTG might be good here?).

We would also incorporate a trophy and awards business into the storefront since we still have the equipment and expertise from our prior business. This would essentially add an additional source of income with virtually $0 invested.

The BIG hurdle to overcome, is that I do not feel that I know the equipment enough to go out and buy used equipment. I won't really know what I am looking at. Is it a good brand, a bad brand, etc. My original intention was to buy a business with an existing workforce and their expertise would make up for my lack of experience and I learn the trade better.
 

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Discussion Starter · #2 ·
Hmm...lot of views and no posts. Maybe I need to make it a little clearer what I am trying to accomplish with this post. Looking for feedback.

A) I could try to acquire a local business with ~$250-300k gross (already looked at 3 that fit this model)

B) Buy the equipment needed to put together a shop of similar size, have a website designed, etc...and pocket the rest of the cash. This would require less money, but most likely higher risk because I would have to build a customer base from scratch.

With good quality and pricing and above average marketing efforts, what does a typical growth model look like? We live in a market that is not over saturatated with shops. Or in other words...saturated at the same level as other cities. (We live in a very large city/metro area, so we would have a huge potential client base).

I have been looking at retail locations in high traffic areas, strip malls, busy streets, etc...the typical "location, location, location" thought process. Of course I won't SOLELY rely on our "sign out front", but drive by traffic should help.
 

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A) I could try to acquire a local business with ~$250-300k gross (already looked at 3 that fit this model)

B) Buy the equipment needed to put together a shop of similar size, have a website designed, etc...and pocket the rest of the cash. This would require less money, but most likely higher risk because I would have to build a customer base from scratch.

With good quality and pricing and above average marketing efforts, what does a typical growth model look like? We live in a market that is not over saturatated with shops. Or in other words...saturated at the same level as other cities. (We live in a very large city/metro area, so we would have a huge potential client base).

I have been looking at retail locations in high traffic areas, strip malls, busy streets, etc...the typical "location, location, location" thought process. Of course I won't SOLELY rely on our "sign out front", but drive by traffic should help.
Personal opinion only....

I'd choose A depending on the circumstances or conditions, are the businesses you looked at for sale? and if so why? if their not for sale I'd think you would have to pay a premium (above market value) to get the owners motivated.

I would always rather buy an existing business with all the right criteria, ie location, customer base, reputation, brand name, good equipment and employees. Starting from scratch is quite a up hill battle, sure it can be done and you sound highly motivated to succeed regardless of which direction you choose. To me given the current economic situation of the country I'd rather buy an existing business with cash flow already in place, it would seem to be a jump start to profitability or a quicker ROI.

But there are people out there that will tell you that right now there is no better time to invest in a new business and ride the next up-turn in the economy, sell at the top of the next peak and walk away with a lot of profit.....kinda' like buying stocks it's all in the timing and just like stocks there are a lot of outside forces that you have no control over influencing what happens, myself I'd rather have as much control as I can get over my own destiny.

Hope this helps.
 

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if i had 150 thousand now to start a business? hmmm

first i would see what kind of customer base i could get. u have to provide a multitude if services to be successful in this field. i still would not spend more than 50 thousand. for around 23 thousand u could get a small automatic screen printer.and for around 18 thousand u could get a small sing shop setup and finally the rest goes towards a small embroidery machine.u still need a lot, i mean a ton of training to even begin to produce work suitable for customers.and u have to hire skilled people. if i were u i would bank my money a look a job a the company i want to open.u will learn a lot. and if wanted bigger equipment i wold have 100 thousand to trade in and upgrade equipment.
 
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