I had previously mentioned that I am looking for a tried and true process for evaluating an opportunity that has recently come my way.
Well here is the opportunity:
Mid last week, my good friend Adam, asked me to run his family's business with him. He has worked part-time in the business for years. I would have a 50% split in the ownership. The business is a 50 year old wholesaler to small mom and pop convienence stores in the central PA area. The company only handles dry goods (i.e. They do not sell beverages of any kind). The mom and pop niche is significant since they cannot meet the minimums of larger wholesalers.
A little bit about the business (well as much as I know now):
-Gross revenues are around $15 million-Margins are very slim resulting in relatively low profitability aproximately $100,000-About $500,000 are currently being paid to the owners (Due to the owners wanting to milk the business for all it is worth before they sell it)-There is a division of the business that services all the Slush Puppy machines in 17 counties in PA. This division makes up 15% of the gross revenues.
-There are 2 owners (married)-30 employees (mostly delivery people and service techs)-1 Operations manager (handles the warehouse and helps with back office paperwork)-3 Sales people that handle specific regions
I have done much thinking about the company and have a laundry list of ideas from improving the IT infrastructure (currently everything is paper intensive), reevaluate the trucking routes, going to a full service wholesaler (selling cold beverages). etc.
The biggest question I will have to answer will be whether I can handle owning a company at the age of 21 given that I will only have had a formal business education and limited management experience.
I will be meeting later in the week to go over actual documentation and financials. I am sure I will have more thoughts about it later this week.
Video Of The Week: Three Freedoms For The Future
9 hours ago