I have a client who is looking for a small business in Tenerife, he would even consider a bar!
However there is one proviso, and that is the intial set up has to be on a rental purchase basis. That is he will rent the business for an agreed period of time, and if it's producing the figures it should be a purchase will be agreed.
This is not for everyone, as some selling a business will want the cash, but for anyone with a business who is wanting to retire/return to UK then it could be a good option, as it will keep the business going, and also give the prospective purchaser the opportunity of checking it out prior to purchase. (Too many stories of fudged figures about I'm afraid).
This is also a possibility for someone with a business, being able to generate an income without having to put in the hours, a good precursor to winding down.
This client has a reputation for bringing ailing businesses up to speed, so the worst case scenario might be that even if you could not agree a deal after the probationary period, you might have a healthier business than when you started.
There are obviously implication on leases and other legalities, but bin the first instance let me know what you might have.
and what if he runs a very good business into the ground is there any recourse.
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The present business owner could work alongside my client in order to reassure himself of my clients abilities. Or have my client as an unpaid manager for an agreed period in the first instance.
There is of course the possibility my client might be offered a business which is going to run into the ground without any help from him, in which case it might be an opportunity for someone to off-load an old dog!
Your site looks and is brilliant and i hope it works but this business idea sounds a bit too dodgy, i like the sound of it and if i thought i could get someone to hand a business over to me to try and make a go of it with no comebacks then i certainly would muscle you out of the way to get it! Lets get real nobody is gonna do it! If this is the situation then you don't have one client wanting this you have two, me included!
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I have to agree with Andy0210 on this one. No one in their right mind is going to let a complete stranger come in and run their business.
The person coming in obviously wants a no risk way of assessing a business with no come back. They obviously only want a successful business, so the idea of selling them a pup is fatuous, as they would soon see the real situation, which is of course the whole point of the exercise.
Any business is for sale at the right price, but having spent several years building up a successful one, who would risk this option. It is win win for the client and lose lose for the business owner.
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The real advantage is, that if you have a business which you are no longer able to make a go of, perhaps for personal or financial reasons, and you have been unable to sell because perhaps you don't have trading history, then for someone to take that burden off your hands, and pay you an income MUST be a GOOD deal.
I know of, (in the the last month), someone who no longer wanted the stress of running a bar, in an area where there was so many already strugling, and yet that owner is now receiving a regular rent, without any of the daily hassles of being hands-on.
Taking the worst case scenario, that my client makes a complete mess of things, then if that business was going to the wall, the owners have lost nothing.
However ask yourselves, why should my client pay good money up front for rental and costs etc, if he was only going to "play" at it?
If someone is prepared to put money into an ailing business, they must be serious (or mad).
The other option for the owner would be to wait until they have used up all their two months deposit on the local/business and then walk away.....what have they gained from that?
There are business on Tenerife which have been up for sale for more than 3 years, that I know of. It's like trying to sell your house, when it gets into years and it's still on the market, how would you feel........slighty depressed, perhaps.
An offer to share the risk, with the possibility of a regular "residual" income would come like a breath of fresh air.
I think they say you have to think outside the box....lateral thinking, puts a different perspective on matters.
Perhaps this will provide additional clarity to the concept.
My clients specialty is in turning ailing businesses around, or expanding smaller businesses which have potential for expansion.
The usually game plan is to have an initial rental period, so that both parties can get a feel for how things would move, and then at a later stage agree a purchase, and in most cases this would be on a lease/purchase agreement.
This concept is targeted at those who are wanting to dispose of a business, but where recouping capital is not a priority, therefore providing the seller with a sound monthly income in parallel with the staged business purchase. This obviously protects all involved.
In the situation where the realisation of capital is required to fund other business ventures, this concept is NOT suitable, however where someone is wanting to retire, or not be as active in a hands-on capacity, this concept is ideal. It's down to whatever the personal circumstances are.
This is not new, or rocket science, and it may not suit every situation, but for some it's ideal.
Last edited by KirstyJay; 25th July 2008 at 12:42.
Brillant business for lease.Renters leaving island
An excellent business, already running successfully. An internet cafe, with telephone lines, selling snacks and ice cream with potential to add bar ,restaurant, mini market etc. Renters wishing to traspaso/lease . Wishing to leave island and have dropped the traspaso price to only xxxx, as they have just had a new baby and wish to go back to their home country, Argentina. Willing to help, teach new renters the business, I am the owner who is happy to rent with a condition to sell. This property is situated in Torreviscas next door to La Pinta. For viewing Pm me as I tried to Pm you but it was refused. Shirley
I have to agree with Andy0210 on this one. No one in their right mind is going to let a complete stranger come in and run their business.
The person coming in obviously wants a no risk way of assessing a business with no come back. They obviously only want a successful business, so the idea of selling them a pup is fatuous, as they would soon see the real situation, which is of course the whole point of the exercise.
Any business is for sale at the right price, but having spent several years building up a successful one, who would risk this option. It is win win for the client and lose lose for the business owner.
I too would be very interested in an offer like this. Unfortunately, opportunites like this are very rare. Normally there is some sort of financial commitment involved. I recently looked at a business that was for rent that initially looked good. But, they wanted 20,000 euros unreturnable deposit, 2200 rent a month with six months rent up front so from the start I was looking at an outlay of well over 30,000 euros!
The present business owner could work alongside my client in order to reassure himself of my clients abilities. Or have my client as an unpaid manager for an agreed period in the first instance.
There is of course the possibility my client might be offered a business which is going to run into the ground without any help from him, in which case it might be an opportunity for someone to off-load an old dog!
Business and trust is a two person deal!
Please get real JdC...we are all trying to scrape a living at the moment.
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