Listen: California, Brenda And Fedex discussed on Business Beware
"Back to the show. Southbound song is always makes you. Yeah. The be ten into this show on Saturday. See they're making some moves. I'm pretty sure you did down from that. I look at escaping. You know, we've been talking about only talking about a lot of things, but we were just talking about in the last thing with somebody's sitting in about making sure you do a agreements. Operating agreements or agreement between your partners on business partners or customer versus and business and everything else. We have this question from Brenda in California. And. Says in your opinion, what is the better and already established business or one started from scratch? Are you going to answer? The Dow lecture. You did go ahead and answer. Well, all right. Now, I. I think that. Purchase businesses and have been running up and running and I've started business. I started businesses than a purchased up. And I can tell you that. I believe the best thing to do is start your own business. And what did we always said fine the niche if you take a business and this business at about? It was a service related business. And it was just, you know, just a regular business but tied in well with the other businesses that we already have. Sure. And it was a compliment to those. So it worked out really well, but it was hard for me to find for the first few years the niche part of that type of business that I wanted to to gravitate the business towards because of any. Ever look into business. I want to I want to be doing something that in that type of business that nobody else is doing, and I think that's the strongest part of that business. And I think it's easier to do that. If you start one up now, I will say the negative to that is if you if you buy visit already his customers customer base. It is easier to have that foundation. And. Mold that business into towards that niche that you want it to go into. So that would be that would be my way I would look at each one individually before purchased it. But still I would say probably more times than not I would look at starting a business from scratch because. Another thing we talked about many times shows if you Bob if you purchase a business, especially if businesses in our LLC's or corporations, if they have stock you don't want to purchase the stock you want to purchase the name the phone number and things like that. Because you purchase the stock of the business, then you're purchasing all of the things that can come back in a year or two or more things you could be sued because of the previous owner or the owner of that corporation, right because the things that have been done. So a lot of things consider there. It's a lot of things. I think there's a lot of. To both of them will. So what do you say? Well, I'm not as old as you. I know. And I haven't bought a business like you have. But with starting like what I've gone through and watching watching family like when you bought the other businesses in the ins, and now I mean, I got I was put into it. So watching like the owner transition. Well. Both of. They were characters I'll say that. But and what you kind of think about this like something struck me every day. 'cause like when we're a church, but as you've been talking about the church takeover, and even though it's not a business per se. But it is it's not even like a lot of people didn't like how maybe they were gonna take an different direction. I kind of think about that like a business. Sometimes like if you take over a new business. I mean, you may have a little bit just like you're talking about the niche or you're trying to pay the different wave. And now you're taking those customers. You may have some customers ago. I'm not really liking this and go somewhere else. You know, what I mean, employee's, right? Well, yeah. And or so almost I kind of think that it's like, okay. If you start from scratch you start yourself, and you start you have an idea. What your what's your kind of where you're going and everything else? I mean, you start that brand where you may have to take something else completely rebranded to the point. Where it's like, you know, what I mean? Like, you're having to clean house. And take all this other stuff. But I think it'd be careful there because if you're looking at the business where you have to completely rebrand almost starting from scratch footsie Houston about right? Unless the dealer century because believe me, whenever I say, this if you have to do all that you might as well start from scratch because not only not only going from square one Ford, you're going back then back to square one then forward, right? Well, there's a lot of people that go buy it. They'll buy it even they have their own by it because they want the customers. But again what I'm saying? What just what basically we're we're meeting in the middle is going. Okay. So you might as well start from scratch. If you have all these things you wanna do in you already know the Patty wanna go down unit. I have the business plan together, shall we say? Well, here's the thing is depends on. Bound bound visit from someone else. So it depends on if they want out of it, really bad for retirement health. Complications or something like that. You may be able to get a good price, which you what you're inheriting is. You're inheriting a customer base that from day one. When you first if you if you purchase it may, I may may I you're you're you're you have you have money coming through the door because at custom bikes, and so then you're able to take that in you're over to use it in Uber leverage. Many different things to get it to where you want to that niche type business that you want what you're looking for. We look for everything. So there's there's pros and cons both ways. Just like you said, there's no doubt about it. So it depends. Visit depends on it forward. What type of business do what you want to do with it? It depends on whether you about the chromium. Old would stop Hickey hippie like bought one from you know, one time. Everything. I didn't realize I have trouble with one of the business. You know, it shows head sooner or later, it was it was it was tough for awhile. It really was right. Where you already have all the other shows the deal with that. You have that down the road on top of it. It doesn't make it any better. But I was going to say to you is that sometimes it depends on to like if you're starting a business. Let's say, and it's something it's it's not even online. It's not much online. I mean, you're having a really like, okay. What are you gonna do cold calling people? Are you doing? Like where mine is more like a focus more on the online audience, which gradually went to the local markets and everything else. But when you have something that you can really focus on line. I think that's easier. Especially now with all the tools that you have. So I mean, that's something I consider to. So if you buy business that like maybe easier, if you already have established customer base, that's like local if you're going to local like, let's say service business or something versus something that's going to be, you know, I don't think. So there's there's want to think about it has to be the right business because let's face it. If you're going to online business where you don't shipping. Let's say, you know, if you're gonna if you're gonna ship aches. It's hard enough to get eggs. Right, right. I mean, load them in your car. They put them in a bag put them in your car, your vehicle, then put them in refrigerator by the time. You do let you hit four five opportunity break fix. But if you're going to ship the over know. Oh line. Which you know FedEx. Tim's breaks whippings and metal things at times. So yeah, he exactly so what getting it is. Is it depends on what type of business is going to be a what what you're going to offer your customers to write a lot of things lovely is going to. But the biggest thing is don't make the decision until you think all these things through and especially if you're going to buy a business from someone else. Then go in there and found out to the employee's talked to some of the customers. Depends on what side of business. If it's if it's something like a copy shop, you think about buying it. Gordon, sit down and watch the customers. Don't get weird or anything. But there's a lot of things that you can do there will there will help help not calls. You a lot of heartache in the future. Yeah. Well, there's a lot of things to consider pros and cons of both sides. But I mean, I think I agree with you as far as starting from scratch. I mean. You know in everybody's so different too. I mean, it may be better for somebody else to do the other thing where they do have a personality thing too. Because a lot of people don't want to have they don't want to build that customer base. But you're never stopped building customer base. Well, say that let me back up on that. Sometimes you you do stop. Because if you don't want to you know. Go on with your customer base. But you don't want to expand your business. Then you need the new start colon. Nabet customers in the coastal monsters, and you start getting bottom line it up in the upper you wanted to be right. You'd be you'd be very surprised how much you can how much money you could make it. We've proven that. Weirdo customer. I'll the creepers. Okay. Well, we go back. We are. We are. We really are going to talk about. The businesses are most likely to fail. And it's very surprising. The percentages of businesses that fail. The first I five hundred ten years. Grow back.."