I think some in this thread aren’t aware why SBA-guaranteed business loans (not disaster loans) were created. SBA lending’s purpose is not to back loans to save lenders money by subsidizing lower rates. SBA’s purpose is backing loans made “at the margin” to small businesses that would not otherwise be able to get loans from banks. SBA’s mandate is to help more businesses get business loans. SBA backed loans are riskier and therefore will carry higher rates.
In addition to what u/BizWhizPro said, artist may want his name on the art. Be prepared for your answer to that.
See your local SBDC or SCORE office. They will coach you at no cost.
Sad their dream was squashed, but this was probably a really valuable learning experience for them.
Best outcome = start successful business
Second best outcome = avoiding losing your life savings on a failure.
I’ll give you 3:
There is some business you don’t want. Either bexause of the customer or the price. On average businesses lose $ on 10% of customers. Identify and fire them. Make more profit on less sales.
It’s much better to do fewer things well than more things less well.
Ask customers some questions:
3a. Are there other products you would buy here if we had them?
3b. Ask every new face how they found about you. Beat to know what promotion works.
Tell him “$5 is a great deal and I can’t beat that price. Thanks for the opportunity to bid. Goodbye.”
This demonstrates a very important small business lesson: there IS some business you don’t want. The people who try to nickel and dime you will be the worst customers.
Businesses on average lose money on 10% of customers. By ditching this goober that you would lose money on YOU WILL SIMULTANEOUSLY INCREASE PROFITS AND REDUCE WORKLOAD.
I’ll just say that a minority owner never has the final say. No offense at all taken. I wouldn’t share details here either.
You have offered no details that would enable anyone here to give an informed opinion other than “it depends.”
We aren’t mind readers.
Isn’t the clear trend shorter and shorter exclusive theater runs before movies stream? I would want to research this very thoroughly before going ahead.
8-10X cashflow for a shrinking market is stupidly high pricing. At that price I wouldn’t even touch it with YOUR 10-foot pole.
Make sure to get at least 3 years worth of both Financials and tax returns.
Watch out for tricks that can be done to boost profits (like foregoing an owner salary) or expenses they don’t have that you will (like if they own real estate outright they won’t have a mortgage, but you will).