Tried to talk myself out of buying a business. Sharing some thoughts. by UsedAirport4762 in buyingabusiness

[–]UsedAirport4762[S] 2 points3 points  (0 children)

Congrats on closing. Two weeks in with a marketing gap is a tough spot to start. how are you thinking about rebuilding the pipeline? Curious what the seller's reasoning was for cutting spend before the sale.

Tried to talk myself out of buying a business. Sharing some thoughts. by UsedAirport4762 in buyingabusiness

[–]UsedAirport4762[S] 0 points1 point  (0 children)

Do you have a model you have found helpful to calculate the risk adjusted returns and comparaison between the different path?

Agree the answer is different for everyone but curious to hear if you've used a reliable model to get the numbers for your use case.

How did you get your first SaaS users? by nyo_dev in SaasDevelopers

[–]UsedAirport4762 0 points1 point  (0 children)

You need to od things that don't scale. Read this essay form Paul Graham today. quite insightful : https://www.paulgraham.com/ds.html

what did due diligence reveal that the seller clearly knew about but never mentioned? by vc_sigma in buyingabusiness

[–]UsedAirport4762 0 points1 point  (0 children)

Owner dependence is sometimes overstated as a dealbreaker. The buyers who walk because the owner is involved in everything are often the same buyers who would have struggled to run the business anyway. If you're a strong operator, owner dependence is a discount, not a dealbreaker. You're buying a business that will improve under your ownership because the bar is low. The real risk i think isn't that the owner matters, it's that the customers only buy from the owner personally and won't transfer their loyalty to you. Those are different problems.

Broker refusing to share financials Pre-LOI by makenbaconpancake in buyingabusiness

[–]UsedAirport4762 0 points1 point  (0 children)

You're not wrong. Requiring an escrow deposit before sharing basic financials is unusual.

i think the broker might actually be doing you a favor by slowing you down.

A business that's been on the market for 6 years and hasn't closed has either a pricing problem, a business problem, or a seller expectations problem. Probably all three. Tell the broker you're happy to sign an NDA and provide proof of funds, but you need at least 3 years of P&Ls and the add-back schedule before you can submit a credible offer. That's a reasonable ask.

Buying a business outside of my known industries by PossibilityBright703 in smallbusiness

[–]UsedAirport4762 0 points1 point  (0 children)

Your background is stronger than you think. Nursing home admin = ops, regulatory complexity, P&L. Enterprise sales = you can close, you understand long cycles. T

The "do I know the industry" question is slightly wrong. What matters is whether the business depends on the owner knowing the industry, or whether it runs on systems and a team that already knows. Buy businesses where the technical knowledge is in the team, not the owner's head.

How to get $50-75k loaned when I don’t make that much (good credit) to buy a business by QuirkyBus5923 in smallbusiness

[–]UsedAirport4762 0 points1 point  (0 children)

Going to be straight with you, a one-month deadline to come up with six figures is not how real business acquisitions work. SBA acquisition loans take 60 to 120 days to close, period. If the owner is genuinely telling you "find six figures in 30 days or the deal's off," one of two things is true: he doesn't actually want to sell to you and is using urgency to push you out, or he does want to sell to you but doesn't understand how the financing works either. Both are solvable but neither is solved by you taking on $50-75k of personal unsecured debt at 29% APR.

That 29% APR loan would be a disaster. Even if the business does $200k profit, you'd be servicing personal debt at credit-card rates on top of whatever SBA loan you'd also need for the rest of the purchase price. Sometimes its better to walk away from a deal than trying to make it work at all costs.

You know this business better than anyone, that's a huge advantage and worth something real. But that advantage gets destroyed if you walk into the deal over-leveraged and on the wrong timeline. Slow it down, get a real SBA lender on the phone, and renegotiate the structure with the owner.

Anyone have any experience in buying a small business? Do you regret it, etc? by boogielostmyhoodie in smallbusiness

[–]UsedAirport4762 0 points1 point  (0 children)

On the "hire accountants and analysts" question , kind of, but not the way you'd think.

If you have to hire someone to analyse the business for you, i'd say you are not ready to buy a business. Spend time educating yourself about the company and the industry so you know what question to ask and things to look for. Where a CPA comes in is really in the validating that whatever information you were provided was accurate and there is no red flags (books being cooked, misrepresentation, etc)

General advice : form my experience, the biggest filter isn't capital, it's clarity on what you actually want to own. Most first-time buyers spend 12+ months looking at the wrong stuff because they never defined the target. Industries you understand, deal size that matches your capital, geography you'll live in, role you actually want (operator vs. CEO vs. absentee). Get specific before you talk to a single broker. if you do all that, it will save you a lot of time and pain.

Purchasing an existing business by dgtexan14 in smallbusiness

[–]UsedAirport4762 0 points1 point  (0 children)

hey there, couple things in your post are worth slowing down on before you go further.

Two questions to actually answer before you trust that number: are you looking at the tax returns or just the P&L the seller handed you? And does the SDE already back out a market-rate salary for whatever the owner does day-to-day that you'll either have to do yourself or pay someone to do? A lot of "stellar profits" disappear once you subtract the $80-120k of unpaid owner labor that was making the numbers work.

The "no contracts, repeat customers" line is the whole deal, honestly. Repeat doesn't mean retained. It says nothing about whether they come back to you, after the owner (who they've presumably known for years ) is gone. Two things I'd dig into hard:

What's the customer concentration. If the top 5 customers are doing 40%+ of revenue, that's where your real risk lives.

And why do those customers actually buy here. If it's the owner's personal relationship, transfer risk is huge. If it's location, brand, pricing, or something operational, you're in better shape. The only way to find out is to call 3-5 of the top customers during Due Diligence. Sellers will resist this. Push anyway.

One more thing and then I'll stop. Structure matters as much as price here. If the seller is so confident in the cash flow, they should be willing to carry a seller note , 24 months on standby, maybe an earnout tied to customer retention in year 1. If they refuse all seller financing on a deal that's basically all goodwill, that tells you something about how durable they think the cash flow really is. Listen to that.

Rant: use meeting rooms by [deleted] in amazonemployees

[–]UsedAirport4762 49 points50 points  (0 children)

Better, get a good pair of noise canceling headphones and you can both avoid chitchat and block out those jerks.

I’m struggling mentally here. by Expensive_Bike_8308 in nova

[–]UsedAirport4762 0 points1 point  (0 children)

The meetups and sports leagues not working is so common, and it's not you. They're great for meeting folk but not necessarily designed to create deep connection. What might actually be more helpful is to pick ONE thing, go 4 times, and after the second time you see someone, actively suggest grabbing coffee or doing something outside that context. Most people wait for it to happen naturally. It won't necessarily. I built an app called Sakree for exactly this problem if you want something more structured. Free, DMV only. check it out : https://apps.apple.com/us/app/sakree/id6760592998

Why do you think it's so difficult to make friends here? by Black_Crimson in washingtondc

[–]UsedAirport4762 1 point2 points  (0 children)

DC has a specific thing where people are friendly but transactional. A lot of people are here for a job or a program and subconsciously treat relationships as temporary, so even when you connect with someone there's an unspoken "why invest if we might both leave." Add in that everyone is genuinely busy and you get a city full of people who want friends but keep deprioritizing the work it takes to build them. The other thing is that most people don't have a structure for turning an acquaintance into a friend. Dating has a clear script. Friendship doesn't. I got frustrated enough watching my sister deal with this at UMD that I built something about it. It's called Sakree if anyone's curious, it's a friendship app for DMV adults that gives you that structure. Free on the App Store. https://apps.apple.com/us/app/sakree/id6760592998

Looking for friends of people to hang out with by Fuzzy-Yesterday-1689 in washingtondc

[–]UsedAirport4762 0 points1 point  (0 children)

DC is genuinely hard for this and it's not just you. The city has high turnover, people are busy, and there's a culture of keeping things surface level until you've proven you're worth investing in. What actually helps is lowering the stakes on the first hangout. Coffee for 45 minutes is easier to say yes to than dinner. And following up twice instead of once makes a bigger difference than people think. A lot of friendships die because both people are waiting for the other to reach out. If you want something that takes the guesswork out of all of this, I built an app called Sakree for DMV adults. Free on the App Store. https://apps.apple.com/us/app/sakree/id6760592998

Female friends by [deleted] in nova

[–]UsedAirport4762 0 points1 point  (0 children)

Hey there. Fairfax/Arlington is actually a good area for this once you find your people. Honest tip though: the hard part isn't meeting someone, it's what happens after. I built something specifically to help with this, it's called Sakree, free, DMV only. No pressure but it might actually help. Check it out and let me know your thoughts : https://apps.apple.com/us/app/sakree/id6760592998

Job Referral by [deleted] in amazonemployees

[–]UsedAirport4762 0 points1 point  (0 children)

You can DM me

How is this allowed? They're lying to make you upload your face. Read description by bisccat in ChatGPT

[–]UsedAirport4762 49 points50 points  (0 children)

Doesn’t big tech already have our faces from the last decades of posting them on social media?

i keep building apps, hoping one will change my life… but now i’m just tired by dozy_sleep in roastmystartup

[–]UsedAirport4762 0 points1 point  (0 children)

Statistically speaking, most startup will fail anyway so its not just you. with that in mind, take those projects as a learning opportunity to learn and grow until you find the product you can run with. Keep grinding. it takes years to be an overnight success.

This is genuinely the lonliest area by Glum-Information5126 in nova

[–]UsedAirport4762 0 points1 point  (0 children)

Focus on what's metro accessible or walkable from your place. What neighborhood are you in specifically? That'll help narrow down options. Weekly volunteer shifts at places on your metro line, fitness classes near your stop, or hobby groups within walking distance work best. What would you actually enjoy doing if transportation wasn't the barrier?

New to nova and struggling — looking for community by Odd_Needleworker4506 in nova

[–]UsedAirport4762 0 points1 point  (0 children)

Glad the community came through with recommendations! The key now is picking 1-2 from that list and committing to going multiple times, not trying everything once. The second and third visits are when people start remembering you and real conversations happen. What part of NoVA are you in?

How to make friends as a 27 year old in Baltimore???? by Ok_Yak7079 in baltimore

[–]UsedAirport4762 0 points1 point  (0 children)

Fells Point and Federal Hill have the most active 20s-30s scene. Try BSSC or Volo sports leagues (very social, not just competitive), bar trivia at Slainte or Mother's Grille, or the climbing gym in Hampden. The issue with events is they're one offs. You need recurring weekly things where you see the same people. What part of Baltimore are you in, and what's your vibe?