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Expert
Posts: 1477
  
Location: In the land of peanuts and cotton | One of my best friends has a western store. I was given the opportunity to co-own it with her. It's been open about 6 months. Right now it's not gonna make anyone rich but it supports it's self. I've been friends with her for a long time and I don't want to mess it up but this is something I've always wanted to do. I know that if something happens and the store goes belly up we both will loose a lot. There's only 2 western stores within driving distance but there's also not a huge demand for western items. Financially I can do it but I don't know if I want to. What's everyone's thoughts. |
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 Midget Lover
  
Location: Kentucky | No, no, and more no. |
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 Good Grief!
Posts: 6343
Location: Cap'n Joan Rotgut.....alberta | i wouldn't co-own a toothbrush with anyone..let alone a western store ....
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 Googly Goo
Posts: 7053
| Depending on the amount of earnings, I'd want to be able to project a 3 to 5 year return on cash investment. I'd want control of daily operations, equal decision making on capital investments and equal oversight of financial division. Otherwise, I wouldn't be interested. |
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 Hugs to You
Posts: 7550
Location: In The Land of Cotton | TessBelle - 2015-01-14 1:39 PM One of my best friends has a western store. I was given the opportunity to co-own it with her. It's been open about 6 months. Right now it's not gonna make anyone rich but it supports it's self. I've been friends with her for a long time and I don't want to mess it up but this is something I've always wanted to do. I know that if something happens and the store goes belly up we both will loose a lot. There's only 2 western stores within driving distance but there's also not a huge demand for western items. Financially I can do it but I don't know if I want to. What's everyone's thoughts.
Being a little nosey - but is it in GA? |
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Expert
Posts: 1477
Location: In the land of peanuts and cotton | 3canstorun - 2015-01-14 1:11 PM
TessBelle - 2015-01-14 1:39 PM One of my best friends has a western store. I was given the opportunity to co-own it with her. It's been open about 6 months. Right now it's not gonna make anyone rich but it supports it's self. I've been friends with her for a long time and I don't want to mess it up but this is something I've always wanted to do. I know that if something happens and the store goes belly up we both will loose a lot. There's only 2 western stores within driving distance but there's also not a huge demand for western items. Financially I can do it but I don't know if I want to. What's everyone's thoughts.
Being a little nosey - but is it in GA?
No. Alabama
Edited by TessBelle 2015-01-14 1:18 PM
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Hungarian Midget Woman
Location: Midwest |  |
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  That's White "Man" to You
Posts: 5515
| I've financed several and only 1 has survived. They have to be big with lots of extra money to float the inventory. If she is bringing in a partner I would be willing to bet it isn't because she is making so much money that she needs someone to share it with. |
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Midget Lover
Location: Kentucky | Whiteboy - 2015-01-14 2:25 PM I've financed several and only 1 has survived. They have to be big with lots of extra money to float the inventory. If she is bringing in a partner I would be willing to bet it isn't because she is making so much money that she needs someone to share it with.
Exactly. Mom and Pop western stores just cannot compete with the online stores.
Plus mixing business and friendship doesn't work. Ever. Like, ever, ever. |
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Expert
Posts: 1477
Location: In the land of peanuts and cotton | Whiteboy - 2015-01-14 1:25 PM
I've financed several and only 1 has survived. They have to be big with lots of extra money to float the inventory. If she is bringing in a partner I would be willing to bet it isn't because she is making so much money that she needs someone to share it with.
I didn't think about that. |
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 Warmblood with Wings
Posts: 27846
Location: Florida.. | half partner means need $$$.lol to survive |
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 Fact Checker
Posts: 16572
Location: Displaced Iowegian | Bibliafarm - 2015-01-14 1:37 PM half partner means need $$$.lol to survive
My thoughts EXACTLY......no one really "offers" a "buy-in" IF they are making money.......They want somebody to BRING money in to the business cash flow....Additionally, more friendships have been ruined by "going into business" together......NOT a good idea! |
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 Proud to be Deplorable
Posts: 1929
| Someone needs to own 51% you or her. I've had several partnerships and would never get involved in a 50/50 partnership. And family and friends is never a good idea. |
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Googly Goo
Posts: 7053
| NJJ - 2015-01-14 1:40 PM Bibliafarm - 2015-01-14 1:37 PM half partner means need $$$.lol to survive My thoughts EXACTLY......no one really "offers" a "buy-in" IF they are making money.......
Sure they do. The best key employees are the ones that have their skin in the game with you. |
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Warmblood with Wings
Posts: 27846
Location: Florida.. | I guess I should go more in detail.. if store is profitable and you can see the records and all the legal mumbo jumbo and you have the extra money that you can absolutely be Ok with out it.. then go for it.. I personally would not.. friendships can be ruined or taken advantage of.. I have seen success happen but it could be years before you see any profit.. with that said.. make sure you have a great attorney and contract.. |
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She's a Tough One
Posts: 3199
| jbhoot - 2015-01-14 1:41 PM
Someone needs to own 51% you or her. I've had several partnerships and would never get involved in a 50/50 partnership. And family and friends is never a good idea.
Couldn't agree more with this. I honestly wouldn't recommend it, hate to be a negative nancy but if you value your friendship best to keep business not involved. Always sounds fun, and always think it will work but usually doesn't. |
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 Undercover Amish Mafia Member
Posts: 9991
Location: Kansas | barrelracr131 - 2015-01-14 1:22 PM
HA! |
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 Cinnamon Honey One
Posts: 6549
Location: between here and there | I'm with the majority. I owned a store for 20 yrs. and in todays economy, it is bad. In the western industry I have heard anywhere from 30-50% of our business' have closed! That's a lot. There is such a volatile market with the leather industry, and I can tell you it is going to get worse.
Then there's the "don't go into business with family or friends" thing and that is SO TRUE. I wished I would have taken that advice - and I knew better at the time. |
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Expert
Posts: 1477
Location: In the land of peanuts and cotton | Ok. I'm going to tell her I'll pass on it. Sounds like there's too much that could go wrong. |
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Tried and True
Posts: 21185
Location: Where I am happiest | My advice, if you have always wanted to own a western store, then do a online store yourself. WAY less expences incured. |
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 Sock eating dog owner
Posts: 4553
Location: Where the pavement ends and the West begins Utah | The store is probably making money and all but the owner is not putting back into it as much as taking out of it. it must cover all basis before being paid yourself. I would pass on Co-owning you'll just agree to disagree. Say no and remain friends...friends are hard to come by keep the ones that are good for you.  |
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Opinions on Co-owning a western store.