[USER]

I need to learn about how to run a business ASAP. No more husband, I didn’t finish college, I’ve been a SAHM forever, and now need to do everything on my own.

am buying a smoothie store but didn’t even know about getting business insurance or how to do payroll, taxes, etc.

He used to take care of everything and I need someone to explain this to me like I’m 5 years old.

[Kristin]

What state are you in? I do bookkeeping. Register with SOS, insurances, get an FEIN, set up all your payroll tax liability accounts, register with BOI, set up sales tax accounts, open a business bank account…

this is very state dependant.

[Cathy]

Blunt honestly.
Please don’t do it unless you have a business partner that will teach you.

Most businesses fail when the business owner knows what they’re doing.

This isn’t something you can just figure out on the way unless you want to burn tons of $$$

[Anna]

Good job! You learn business by doing business, like anything else in life. And as they say, “Start before you’re ready”. It’s the only way.

People can digest information and books, but it really just takes DOING it and going all in.

You seem motivated and driven to do this, so good on you to take initiative.

Don’t listen to naysayers.

You do you! Good luck. You’ve got this.

[Mark]

Don’t buy the smoothie store until you have a better understanding

[Summer]

I don’t know your situation so I’m just speaking from recent experience. I honestly asked ChatGPT questions and when I had more questions, I typed those in and it answered.

It’s been super helpful to understand things and I tell it to tell me like I’m 15.

From there, I will talk to my tax CPA with the past financial documents provided to me (Profit & Loss, Balance Sheet, Tax return, etc.

depending on if you’re taking over an existing business) and then if I decide to move forward to actually purchase, I will likely hire a business consultant and maybe use CPA my as an accountant, if I needed to, until I can get things under control or hire a team.

I hope this helps, good luck!! Stay positive. You can do this.

[Kathy]

Sounds like you’ve made up your mind. Or that you’re stuck now since you put this in escrow already.

You MAY become “married” to this business. Where you can’t leave because you’re not making enough to pay employees.

Where you’re always at work. Never being a mom.

If your kids begin to resent you, it’s time to quit if you’re not making enough $.

Cali is not an easy or cheap place to run a biz. You may find the tax man gets more of your $ than you do.

Give it a try. If you could go home with more $ if you worked at any job, then give up early. Not later.

Small holes are easier to dig out of than large ones.

And you should be getting $ from the kids father!!! Don’t let him get out of his responsibility no matter what.

There’s been a lot of good advice here. Small biz owner 30 years here. 5 kids. My biggest client ran me.

I didn’t run the biz. The stress he caused me and my husband just wasn’t worth it and I think led to my husband’s early death.

So much more to think about with biz ownership. Is it worth the stress vs your pride?

To some saying they own a biz is all about that. Pride. But owning a biz that doesn’t make money is worse than having a job!!!

Maybe when times are slow, you can take free college classes? Get a degree where you could make more $?

Hopefully this biz will make $ but likely it didn’t or you wouldn’t have been able to afford to buy it.

If it was a cash cow, would the owner really sell??? They may have found an easy out.

If they did, you can one day too.
Also, a franchisee has the right to get help from the franchisor. Get it! All you can get!! They want you to be successful!

Two weeks isn’t enough. See how badly the owner wants out????? In a hurry so you don’t have time to realize it’s a bad decision maybe?
Be careful.

Some biz sellers are like used car salesmen. Don’t believe a word they say til you have proof. And have gotten a second opinion.

I wish you hadn’t leaped into this so quickly. But if it’s done, it’s fine. Just put your kids before your pride and realize when enough is enough.

Whatever you do, pay the taxes!!!!! Not late. Don’t get in trouble there!!! And in Cal, there’s so many. And rules.

Obey them!!! No shortcuts!!!

And put cameras on the cash register. And watch them. Employees steal if not watched.

Maybe not all. But enough. Fire right away when you see it. No pity. Be tough!!

The right biz can make you rich. The wrong one can make you feel like you’re in prison. This is America.

There’s no reason to be in prison if you’re smart.

[Chetna]

I applaud you for doing something but please do your homework first before buying a business. You have to understand the basics first an existing or new business.

If existing, you need to evaluate past 3 yrs income & expenses at a minimum and see future income potential to determine if it is profitable and at what price.

Are you taking a loan to pay for it? Is it a franchise?

Take some time to do your research before you spend any money.

[Moore]

Is the smoothie shop part of a franchise? If so, you can talk to them about how things are supposed to run. The usually have courses, trainers, online support for franchise owners.

Another place to check is the local library. A librarian can help point you in the right direction and recommend websites, books, local organizations that can help.

There are actually small business consultants too that can help you look at the big picture and figure out all the small details.

I think you’re buying the smoothie shop from your ex, can you stipulate that you need 6-12 months of training and support for the business (not from the ex, but maybe they find someone to help you)?

[Amber]

Oh is it one of those MLM smoothie stores? Honestly I would avoid a lot of them get a bad rap and I’m not even in the US and know about them

if you’ve never run a business before even if it isn’t one of those MLM ones it’s going to be a big financial investment and if you don’t know how to do all those things you’ve mentioned I do not think this is the best option for you and will be stressful and not provide a stable income which it sounds like you would benefit from, can you apply for regular work and be an employee so you don’t have the stress of being a business owner?

Businesses are hard enough to be successful a lot of of the time even for people who know how to do all those things you’ve mentioned.

[Ashley]

Your county/city likely has small business assistance available for free. There are typically tons of resources that will walk you through it, as well as connect you with other small business owners.

Also look up local small business networks and get involved.

There are so many mentors.
Don’t listen to the negativity.

There is a learning curve but it’s absolutely doable!!

[Stephanie]

Why are you buying a store right now?
Take some accounting classes.

Marketing will be good too.

[Tricia]

Hire a bookkeeper and tax professional. Learn from them directly than do it yourself after a year or two if you want to

[Jimmy]

I would like to congratulate you on this bold move. BUT you should at least quietly work in a similar shop or booth for a while to understand how things work.

To the customer, you are just a smoothie booth – but behind that cash register, there are tons of food preparation work, legal documents & hygiene requirements etc that are not visible beyond that “$14.99 + tips” price tag.

[Christine]

Invest that money in Vanguard ETFs so it can grow for you hassle free. Or buy a rental property to generate income.

Anything but buying a business with zero experience

[Jaime]

Running a business that you are purchasing will need all the attention that a baby and toddler do – it is like having kids who just don’t grow up and put you into debt if younarent always active in their lives.

As a single mother, getting a regular job would be a far better bet.

I’d look into which jobs don’t require a degree and pay well, but don’t need you to to do extensive training beforehand (like certain computer programming courses.) Best of luck – you’ll find something that clicks.

[Jaime]

Running a business that you are purchasing will need all the attention that a baby and toddler do – it is like having kids who just don’t grow up and put you into debt if younarent always active in their lives.

As a single mother, getting a regular job would be a far better bet.

I’d look into which jobs don’t require a degree and pay well, but don’t need you to to do extensive training beforehand (like certain computer programming courses.) Best of luck – you’ll find something that clicks.

[Alaina]

I mean absolutely no disrespect, but learn your industry before investment.

You should be asking yourself why you’re making this type of investment with no understanding of the business or the projections.

[Jamie]

The reason so many people are saying not to buy it is not only because it’s too much of a risk of not being successful if you don’t know what you’re doing, but more so because if you try and fail you not only fail at trying you will also significantly impact your ability to sell it. Let’s suppose that happened.

You tried and later decide “this isn’t working, this isn’t for me.

I need to sell this” whereas now the business is functioning and thriving I’m assuming, if the business numbers start to fail we ch quarter no one will want to buy it at market value because it looks like it’s going under.

So let suppose you could have sold it for $100k now and invested that in a business or venture you know a lot about, if the business is going down that number is half or less (especially in this economy).

[Sue]

You need a mentor. I believe SCORE is still around to assist women in business.

You need a business plan and jumping into a business without an attorney to help, especially if you have never done this before and desperate to jump into quickly.

Don’t set yourself up too quickly for disaster.

[Gen]

No. Now is not the time to be starting a business. Most businesses fail in the first year. You have no idea what you are doing.

Go work for someone.

Gain some managerial experience, take some accounting classes.

[Author]

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