Well for one, I keep hearing that there is going to be a recession this year in the U.S., that gas prices might reach $4.00 a gallon, and that there might be some inflation.
Basically this means that people will have less spending money for fun stuff and they will be doing things to cut their spending. Playing pool, eating out, going to movies, etc. are all things which can be cut from the family budget. Something to consider.
Besides that, run the numbers...
What are the current options with the present owner? It sounds as if he would not be able to sell the business and his only option would be to close the doors?
Then what? Would he sell off the inventory, tables, etc.? If he did this, how much money could he expect to receive? Note that he would receive this money once, then not receive any more money after that as everything would be gone.
How about his financial situation? Is he currently making money from the business? How much each month? Can he manage his personal finances OK without this income? Would half of that income each month from here on and his not having to deal with the business be a better option for him than selling everything and having no income after that?
Would he be willing for you to take over the business without any down payment and pay him half of what he is making now until a set amount is paid to him? And he would retain ownership of the inventory, tables, etc. until this was paid off? (He would lose nothing. If the business went belly-up, he could always sell off everything like he is intending to do now.)
Basically anything is negotiable. Just need to make a deal you can live with and he can live with. Maybe a little income each month would be better to him than selling everything now and not having any income?
So far as you are concerned, how much of your time would this require? How much money will you be making? If you are going to be spending 100 hours a week working and will be making half of what you could be making working at a regular job 40 hours a week, then this idea would be silly!
Also is the business paying rent? Would the landlord have a difficult time re-renting the building? Perhaps you could go to the landlord and say business is bad and you are going to close the doors unless he can reduce the rent. Anything is negotiable!
Basically this means that people will have less spending money for fun stuff and they will be doing things to cut their spending. Playing pool, eating out, going to movies, etc. are all things which can be cut from the family budget. Something to consider.
Besides that, run the numbers...
What are the current options with the present owner? It sounds as if he would not be able to sell the business and his only option would be to close the doors?
Then what? Would he sell off the inventory, tables, etc.? If he did this, how much money could he expect to receive? Note that he would receive this money once, then not receive any more money after that as everything would be gone.
How about his financial situation? Is he currently making money from the business? How much each month? Can he manage his personal finances OK without this income? Would half of that income each month from here on and his not having to deal with the business be a better option for him than selling everything and having no income after that?
Would he be willing for you to take over the business without any down payment and pay him half of what he is making now until a set amount is paid to him? And he would retain ownership of the inventory, tables, etc. until this was paid off? (He would lose nothing. If the business went belly-up, he could always sell off everything like he is intending to do now.)
Basically anything is negotiable. Just need to make a deal you can live with and he can live with. Maybe a little income each month would be better to him than selling everything now and not having any income?
So far as you are concerned, how much of your time would this require? How much money will you be making? If you are going to be spending 100 hours a week working and will be making half of what you could be making working at a regular job 40 hours a week, then this idea would be silly!
Also is the business paying rent? Would the landlord have a difficult time re-renting the building? Perhaps you could go to the landlord and say business is bad and you are going to close the doors unless he can reduce the rent. Anything is negotiable!
