We are interested in buying a small business doing repairs at car lots on fabric, leather, dashboard cuts, etc. The seller is willing to owner finance with 10% down. It grosses approximately $75,000 with little overhead. The sale would include all the supplies, a truck, air compressor and assorted equipment and all the training. The problem is, I have no idea what a fair price would be for that business. Can you give me any suggestions. Thanks

Hello cece:

I don't know. Seems to me the entirety of the business is based upon HIM. He's da MAN. It's HIS sewing skills. It's HIS sales skills. It's HIS customer base.

His customers may not like you. Even if you do a great job, they still might not like you. If so, the business isn't worth anything. What if you can't sell? What if you can't sew as well as he can? What if this, and what if that?

In actuality, you're buying a truck, some stuff, and an OPPORTUNITY to make money. How much is that worth? In my view, the cost of the truck and the stuff, and maybe 10% on top of that for the opportunity and training.

excon

PS> If you buy, make sure your agreement includes a non-compete clause.

Originally Posted by excon
In my view, the cost of the truck and the stuff, and maybe 10% on top of that for the opportunity and training.

Sounds fair enough to me for starter offers on the business.