Should I buy into a break even business and try to built it up?

Submitted by Pheonix on Tue, 19/08/2008 - 11:57.

Hi,

Background:
Had my own video production business making TV commercials & corporate videos for 7 years, which pretty much made me a wage. Shut shop with no debt.
Have always had the entrepreneurial bug never stop coming up with ideas.

What I got into:
I'm now managing a video production business (6 staff) with no procedures, no staff handbook, no biz plan, 2 awkward staff, insufficient advertising and clients, running break even with a business loan.
Specialized niche market. This is how it was when I started. I am gradually making changes and fixing all of the above.

Opportunity or peril?:
The opportunity has arisen to buy another small video business with an existing client base in a complimentary areas. This other business is making a modest profit. It works well to merge the two -
gaining approx one and a half wages revenue (by consolidation), plus the modest profit and the new client base.
If I put up half the $, I get 50%of both businesses (merged). Question is can I turn it around and make a profit? I have learnt a lot about business in the last while and am on a very steep learning curve reading and absorbing details every day. I need marketing and would put on a sales person with the saved wages if I go ahead. Obviously there is a lot to fix structurally and policy wise also.

Would love to hear your comments?

Buy it?

Submitted by Sparkatrician on Sun, 24/08/2008 - 15:39.

Hi Pheonix,
Without having more details and knowing the business it's hard to say, obviously it's your decision but I would go for it. It sounds like a good opportunity and it would seem you know what needs to be done to turn it around.
If you don't do it you'll always be wondering what if? but it would seem you have already made your mind up and do want to do it.

What does your gut feeling tell you?

Paul

ELECTRICAL CONCEPTS
Design, Install, Maintenance.
Domestic & Commercial

www.electrical-concepts.co.uk

call 0800 458 9118

ELECTRICAL CONCEPTS
Design, Install, Maintenance.
Domestic & Commercial

www.electrical-concepts.co.uk

call 0800 458 9118

Personal Development

Submitted by Pheonix on Fri, 29/08/2008 - 12:45.

Hi Sparkatrician,

Thanks for the comment re; buying into a breakeven biz. Turns out there's a level of debt too,
so its back to the think tank for now at least.

Your "just go for it" approach is great. Stick with it and go with your intuition and you'll go far.
Glad to see you listed 'Entrepreneur' first on your list of professions!

Talking about personal development.
I hit the second hand book shop last Saturday and came back with a whole pile of inspirational and business books. have ploughed through Gerber's E-Myth process approach to business (too many anecdotes, could have got the point across in 5 pages) and just finished 'You inc.' by John McGrath (OK, but pieced together from a lot of other people's inspiorations). I actually ended up downloading a live lecture with Deepak Chopra and Wayne Dyer, very entertaining and it got into a bit of meditation. I'm not the alternative type, but I found finding time everyday for 'silent time' is great to focus and unwind. Most of their stuff is a bit deep and meaningful, so you've got to be into that kind of think for it to appeal. They are great public speakers though if you can get hold of the live workshop recordings, but Id give the rest of their deep and meaningful a swerve as its a bit over the top.

Check out Flying Solo: How to Go It Alone in Business (Paperback)
by Robert Gerrish & Sam Leader I thought it was great.

Cheers

Phoenix