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superdog
I Need A Drink
Premium,MVM
join:2001-07-13
Lebanon, PA
| Re: Buying competitor's company said by gmcintire  :I guess I'm basically just looking for anyone else's input. As I said, I don't have capital lying around, so I'd most likely need to get a small business loan to do the acquisition. This is my first business and the thought of doing anything high-dollar right now makes me very nervous. Besides the question John Galt asked, my question would be How are You going to handle tech support and billing etc?. If this network You want to acquire is in bad shape, keep in mind that You will need to upgrade it, AND deal with all of the support calls until You can get it fixed. Once You figure the time and total cash flow needed to make this venture work, I would sit down and talk with the wife or any other person whose life this will affect and see if they are also ready for the commitment required to make this work?. Something tells me that this will be a pretty big bite to swallow?. 
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gmcintire
Graham
Premium
join:2005-08-09
Blue Ridge, TX
| Re: Buying competitor's company Yes, my wife is a full-time elementary school teachers and I work part-time (5-6 hours a day, I'm off by noon to 1-ish) doing support for an online learning company. Our day jobs are how I've been able to finance my existing business.
My current billing system is totally manual with quickbooks, which isn't bad with less than 10 customers but would kill me with 80. The other business has a PowerNOC automatic billing system for his customers (he had used sputnik in the past.)
I'd handle the tech support myself and have a few contractors to handle new installs. I know how much work it is already, and I'm willing to handle it.
What I'd really hate to have happen is another larger company buying out his company, fixing everything, then totally clobbering me. I've done well so far with offering slightly lower prices and better service (and support) to clients, along with referral incentives.
However, right now I see my survival based on either buying out the other company or working on growing my own very rapidly, both of which require capital I don't have. | |
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John Galt
Forward, March
Premium
join:2004-09-30
Happy Camp
 ·CenturyLink
| Re: Buying competitor's company said by gmcintire :However, right now I see my survival based on either buying out the other company or working on growing my own very rapidly, both of which require capital I don't have. The proverbial "rock and a hard place"...
Since he approached you it would seem to indicate that he is wanting to escape from his particular situation. Perhaps you could arrange a phased payment to him and a loan to do the most obvious system upgrades (sectorization and such).
A sharp pencil and an eagle eye would be two valuable assets at this point in time.
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gmcintire
Graham
Premium
join:2005-08-09
Blue Ridge, TX | Re: Buying competitor's company Very wise advice John, thanks. I know he wants out and wants to sell to someone local. The neighboring WISP I've worked with in the past would sell if someone offered them the right price, so I know they wouldn't go after it. | |
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PersComp
Premium
join:2005-08-17
Cayce, SC
| said by superdog :I would sit down and talk with the wife or any other person whose life this will affect and see if they are also ready for the commitment required to make this work?. Don't overlook this point. There is a big difference between being willing work the hours to put in the effort and being unable to be there for your wife, kids, or other family. My wife got very tired of going to bed alone every night because I was up working until midnight! I was also unable to go to my sons baseball and soccer games either. This was mainly due to my PC shop and had very little to do with wireless (other than me hanging out here until late at night  ) I have made a commitment to her to not expand any more quickly than WE can handle it (not just ME).
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Are these instructions or corrections??? | |
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