I'm taking over my friend's detailing business!

[brawl]

It looks like a pretty good deal if what he meant is 60% of the gross receipts and the current clientele produces good income.

 

[Rsurfer]

Exactly, if the overhead and material is 20% then the op gets 60% and his friend gets 20%.

It looks like a pretty good deal if what he meant is 60% of the gross receipts and the current clientele produces good income.

 

[Tony L]

What happens it the business grows (double or triple, New clients) will he get 40% of that business? What if 40% doesn't cover expenses? There should be a time frame where the business evolves into a partnership where you get paid for your labor hours, then expenses get taken out and then profits get split. That is after you figure what value you put on 1/2 the business. And you pay him off the top a certain amount each month. Or you can put a price on it and buy it outright over time with an agreed on percentage. Seems like if you didn't take it he would leave and dissolve the business. What if the other job doesn’t work out are you going to give the business back to him? You need to work out all the variables; you don’t want to ruin a friendship over something that wasn’t agreed on.

 

[rustytruck]

It sounds like your Buddie is either going to get 40 percent or lose his business. If he's going to lose his business because he's moving to take another job then that's a decision he has made. Why don't you just start your own business. You can get a small operation going for like $5000 and you happen to know of a good pool of people who just lost their favorite detailer because he moved. All these questions everyone is asking are good questions and should be addressed in writing with a lawyer. Start your own business and do it your way. Your young so you should have the the and energy. You said you just moved back in with your parents so your personal expenses should be low. It takes a while for the money to roll in so now might be the best time to take the plunge.

 

[Flash Gordon]

If thats the case I wouldn't split anything with him :/

Why is that?

Because it is a bad business move

The smartest move you both could make would be for him to contact his existing customers and tell them what the deal is (moving away to mantain a collection) He should then give them your contact information and tell them you are someone they can trust. He should also tell them if things don't pan out the way he was hoping, he might be back. It will be up to him to regain the customer. Some will go back to him but most will stick with who their using at the present time (that should be you unless you hack up the business)

If things go well, you might chip off a few hundred dollars or buy him a nice gift every once in awhile

Are you for real Flash!

It is I

Often imitated, never duplicated

So you'll essentially be playing the role of an employee, full time detailer/manager/marketing specialist/purchasing agent/janitor etc. Not too bad if you just want to coast with his current clientele and trade in your spare time. I've also heard it said if it seems too good to be true it probably is. Deals like this usually mark the end of the friendship in one way or another.

You left out accts recievable, accts collectible, accountant, secretary, shuttle driver, and babysitter for some of the whiny customers you're sure to encounter

Exactly, if the overhead and material is 20% then the op gets 60% and his friend gets 20%.

When the trucks transmission falls out who pays that bill?

It sounds like your Buddie is either going to get 40 percent or lose his business. If he's going to lose his business because he's moving to take another job then that's a decision he has made. Why don't you just start your own business. You can get a small operation going for like $5000 and you happen to know of a good pool of people who just lost their favorite detailer because he moved. All these questions everyone is asking are good questions and should be addressed in writing with a lawyer. Start your own business and do it your way. Your young so you should have the the and energy. You said you just moved back in with your parents so your personal expenses should be low. It takes a while for the money to roll in so now might be the best time to take the plunge.

You sure do give a lot of good advice. Nice to have you here @ Autogeekonline.net

 

[Jab1719]

Your friend isn't going to just give away his customers. He earned them and there is value in that. If he told them to go to you they would go cause they trust him. This he earned and it has value. You don't just buy assets when you buy a company. You buy a customer list too. This list is usually the most important and could be the most expensive.

 

[arack]

I am not trying to be a downer, but day trading is not a job. You are taking some big risks if you think you can be rich based on Wall Street's shady financial information.

You are basically gambling, just not at the casino. As for your detailing business, make sure that you do not sign anything. Business and friendships usually do not mix. You sound like a hard worker, maybe you should start your own business after you figure out some things with your friends money.

 

[tuscarora dave]

You left out accts recievable, accts collectible, accountant, secretary, shuttle driver, and babysitter for some of the whiny customers you're sure to encounter

I knew I was forgetting a bunch of things. Thanks for filling in the blanks Flash.

[ame=http://www.youtube.com/watch?v=T0E0tpzwQJE]Dave (Staples) - YouTube[/video]

 

[A-train]

I am not trying to be a downer, but day trading is not a job. You are taking some big risks if you think you can be rich based on Wall Street's shady financial information.

You are basically gambling, just not at the casino. As for your detailing business, make sure that you do not sign anything. Business and friendships usually do not mix. You sound like a hard worker, maybe you should start your own business after you figure out some things with your friends money.

Why isn't it a job? My brother does it and is very successful at it. They work normal hour, pay taxes, do research. How is that different from any other job? Of course there's risk involved but who says you have to put your life savings or house up for collateral. It's not like your making it out to be.

 

[bmwgalore]

I am not trying to be a downer, but day trading is not a job. You are taking some big risks if you think you can be rich based on Wall Street's shady financial information.

You are basically gambling, just not at the casino. As for your detailing business, make sure that you do not sign anything. Business and friendships usually do not mix. You sound like a hard worker, maybe you should start your own business after you figure out some things with your friends money.

I make over 7 figures trading for myself (outside USA). Trading is a gamble indeed, but a controlled gamble if you know what you're doing.

If you work for a trading company dealing with someone else's money, you will never get rich indeed.
But if you buy options and funds for yourself, there's nothing holding you back... Also, get a citizenship from tax heaven country and you're set.

Have you actually done the walk?

 

[timaishu]

Not to hijack. Maybe I am just young or ignornant, or both. What is day trading?

 

[SkateForGirl]

Sounds amazing. Good luck with everything!

 

[HotWhipT/A]

It looks like a pretty good deal if what he meant is 60% of the gross receipts and the current clientele produces good income.

I get 60% gross

Exactly, if the overhead and material is 20% then the op gets 60% and his friend gets 20%.

Pretty much. The overhead is strictly gas and supplies. The shop is paid for.

What happens it the business grows (double or triple, New clients) will he get 40% of that business? What if 40% doesn't cover expenses? Seems like if you didn't take it he would leave and dissolve the business. What if the other job doesn’t work out are you going to give the business back to him? You need to work out all the variables; you don’t want to ruin a friendship over something that wasn’t agreed on.

It'll only grow if I make it grow. It can't get much bigger than in is with a one man show. It's a good opportunity for my lifestyle. I'd give him his business back. I don't absolutely need it.

It sounds like your Buddie is either going to get 40 percent or lose his business. If he's going to lose his business because he's moving to take another job then that's a decision he has made. Why don't you just start your own business. You can get a small operation going for like $5000 and you happen to know of a good pool of people who just lost their favorite detailer because he moved. All these questions everyone is asking are good questions and should be addressed in writing with a lawyer. Start your own business and do it your way. Your young so you should have the the and energy. You said you just moved back in with your parents so your personal expenses should be low. It takes a while for the money to roll in so now might be the best time to take the plunge.

I don't want to start my own business. His is already established, so I'm just stepping in with no cost to me. I've got plenty enough in the bank. He has a steady flow of cash every month that I'll be taking over. My cut will be more than enough to cover my bills. Not to mention when I can really start trading and making even more.

Because it is a bad business move

The smartest move you both could make would be for him to contact his existing customers and tell them what the deal is (moving away to mantain a collection) He should then give them your contact information and tell them you are someone they can trust. He should also tell them if things don't pan out the way he was hoping, he might be back. It will be up to him to regain the customer. Some will go back to him but most will stick with who their using at the present time (that should be you unless you hack up the business)

Very sound advice. This is pretty much what he is doing.

I am not trying to be a downer, but day trading is not a job. financial information.

Sure it's a job and it CAN be risky, especially IF you don't know what you are doing. You have to be very good and careful, both of which I am. I've been practicing for a long time now.

Not to hijack. Maybe I am just young or ignornant, or both. What is day trading?

Trading the stock market. It specifically means that you don't usually hold a position over night. You are in and out of a trade in the same day. You can do multiple trades, some times only being in them for a few minutes. You can do this at home on your computer. Good stuff!

 

[rustytruck]

Ok I must be missing something?? So he has a real nice one man show and he makes a pretty good living at it. I get that part. I you won't be able to grow it because you won't have the time or whatever. How are you going to make a living at it earning 40% less? It's the same business now trying to support 2 people. Right?

 

[HotWhipT/A]

What's really the difference if I got all of it? I'd have to pay all the expenses and I'd be left with roughly 60% in my pocket anyways. The key thing here is I'm using his shop, van and equipment/supplies. For him at the end of the day after he pays the business expenses, might only get 10-15% in his pocket. I think that's fair for everything. He'll be working for that rich guy now. This business would just be on the side now for him.

 

[Rsurfer]

It's hard to determine if this is a good deal for the OP as he did not tell us what the business is grossing. Obviously it meets his needs at this time. The split sounds ok, not great, but fair. The key for the OP is that the customers are already established. Every detailer that started out knows how difficult it is to get new customers. This is a turn key operation for him.

Ok I must be missing something?? So he has a real nice one man show and he makes a pretty good living at it. I get that part. I you won't be able to grow it because you won't have the time or whatever. How are you going to make a living at it earning 40% less? It's the same business now trying to support 2 people. Right?

 

[arack]

I make over 7 figures trading for myself (outside USA). Trading is a gamble indeed, but a controlled gamble if you know what you're doing.

If you work for a trading company dealing with someone else's money, you will never get rich indeed.
But if you buy options and funds for yourself, there's nothing holding you back... Also, get a citizenship from tax heaven country and you're set.

Have you actually done the walk?

I am calling you out on your supposed 7 figure richness. Prove it by posting a picture of your Bugatti or Ferrari with a product from AG in the picture in the Cayman Islands or wherever you claim to be. Consider it proof of richness.

icture:

I have INVESTED in stocks before and have made some good money. However. there is a huge difference with day trading and investing. I challenge anyone to provide me with some real examples of people who have day traded for decades and was successful year in and year out. No one beats the market on a consistent basis.

Even the hedge fund managers lose their shirt.

 

[Flash Gordon]

Not to hijack. Maybe I am just young or ignornant, or both. What is day trading?

Day trading is like if you're suppose to mow your lawn on Saturday, but decide to do it on Tuesday instead

Make sense?!?

 

[Flash Gordon]

I am calling you out on your supposed 7 figure richness. Prove it by posting a picture of your Bugatti or Ferrari with a product from AG in the picture in the Cayman Islands or wherever you claim to be. Consider it proof of richness.

icture:

I have INVESTED in stocks before and have made some good money. However. there is a huge difference with day trading and investing. I challenge anyone to provide me with some real examples of people who have day traded for decades and was successful year in and year out. No one beats the market on a consistent basis.

Even the hedge fund managers lose their shirt.

I make 7 figure richness if we include this part > .00

 

[maximus20895]

Day trading is like if you're suppose to mow your lawn on Saturday, but decide to do it on Tuesday instead

Make sense?!?

I wouldn't expect anything less from you. :dblthumb2: