The business of business is business - not woodworking.

If you want to explore a potential business opportunity purchase, find and
accountant business opportunity agent and maybe a good book on buying an
existing business.

Don't ask craftsmen on the wreck!

You need to determine what your motivation(s) is/are. Then if the
opportunity will supply what you desire emotionally, and economically in
exchange for the commitment(s) demanded.

Sometimes, its simpler to work for another to earn money for your expertise
in wood working.

But, if you're a businessman(person) the thrill of the markup may prove more
satisfying than the sound of the saw and the aroma of freshly cut Oak or
Hickory.

Purchasing an existing operation offers an existing customer base and "good
will" that can save you the long (sometimes five years or so) startup
agonies.

The difference between the Fair Market Value of the stock, supplies and
hardware offered and the purchase price demanded equates to the charge for
this intangible aspect of a business venture.

Yu want to figure in a salary for the "owner" commensurate with the time
demanded of him/her as part of the operational cost PAY YOURSELF FIRST.

The remaining net is divided by the purchase price to determine the Return
on Invested Capital.

If you can do better buying a CD, adjust your offer downward accordingly to
reach the return (on a risky venture as all business' are) you demand.





"Art Greenberg" wrote in message
...
On 11 Dec 2006 10:02:05 -0800, Never Enough Money wrote:

I appreciate all the advice and insight I got on the original posting
called "Is it worth a career change?"
But let's suppose I'm either dumb or stubborn or both and wanted to
open up a business despite your admonishments not to. Yes, I've decided
a Woodcraft store is probably not the right thing to do. But now I'm
"kinda sorta" stuck on a place that sells exotic lumber. Let me pursue
that idea a little .....

I've found a place for sale. I don't know the details, we've arranged
to meet December 28'th. Or would it be better to not buy an existing
business and start fresh? Note, if I buy the business, part of the deal
would be to show me the ropes for a few months.

Nothing wrong with buying a running business, especially if its been run
well
and is paying the owner a decent take-home amount. You gain significant
advantages doing so, including an existing customer base, and established
supplier relationships (and maybe even existing credit with them). And
that
the current owner will provide some education is a plus.

You do need to be certain that the business has been run reasonably well.
You
don't want to find that suppliers refuse to sell to you because of shoddy
past
business practices, for example.

You don't mention if you'd be assuming any existing debt. Check into that,
too. You have to be comfortable with -all- of the things associated with
the
business.

Is real estate (warehouse and offices) part of the deal, too? If it is,
you'll
need to become familiar with the local regulations that govern this type
of
business.

Are you thinking of running this until you retire? Have you thought about
a
succession plan?

Where to turners usually buy their wood? (I'm not a turner.)

Nor am I. Maybe ask at rec.crafts.woodturning?

Do a lot of you use mail-order or internet ordering?

I do, from time to time. There are no really good suppliers of exotics
local
to me, so for some species that's my only choice (either that, or drive 2
hours or more each way).

Does anyone know where to find suppliers?

Is exotic woods next on Home Depot's expansion plans?

What's the mark-up on exotic lumber? How much just never gets sold
because it's "not pretty enough?"

These are all great questions, and the current owner should be able to
answer
all of them, perhaps with the exception of the one regarding possible
future
competition. I'd expect him to know at least a little about his current
competition. You should not just consider Big Box stores as potential
competitors, BTW.

--
Art Greenberg
artg at eclipse dot net