My Dad was approached with an idea to buy a business from a friend of ours who is very familiar with the industry. My Dad asked me to research the market and let him know what I find (I’m an economics major). My Dad said that the goal is to buy this business and use the profits to buy another one and so on until we have like 5.
The guy who approached him is invaluable because he knows a lot about the industry and has a lot of connections. He’s also got experience in marketing, accounting, entrepreneurship, etc. My dad is a certified entrepreneur. He wants to do the due diligence and if everything checks out, he’ll get the loan and put the money down... then NOT do any work.
But he said he doesn’t want another partner right now? He said my job would be to keep the business running, manage the managers, be on call for any emergencies, and expand from 1 location to several, not to mention help his partner with everything he needs.
Basically, he’s buying a business with his partner (the licenses and loan will be in there names), and my job is to help build it (basically do the work for my dad alongside his partner while my dad works his day job). My dad said that once the business is built and expanding and they start taking money off the table (as opposed to reinvesting it into more locations), then I would earn “sweat equity”... whatever the F*ck that means.
That’s as far as we’ve gotten. I feel like my dad would see it disrespectful if I approached him to get written terms but I don’t want to blindly spend my time and energy doing this so that he can give me a small percentage of the company since he put up the money, or worse, just treat me like an employee. I feel like that is way too stupid, childish, and naive.
However, in our meetings thus far, he’s said that I’ll be the one running it mostly. His partner is old and is expected to die within like 5 years. Either way, I’m kind of going in blind and we’ve done all the investigating... we’re just waiting on the previous owners bank statements to verify the P&L.
We have all agreed that when it comes to making decisions, we all three have to agree... so that gave me some relief knowing ill have some control.
My dad isn’t gonna want to do any work. I know him. He just wants to put up the money, hold the license so he has to sign off on everything, point his finger when he wants to change something, and collect as big a share as possible. I don’t know if I’m being dramatic or delusional being a little afraid that he might F*ck me out of money.
Either way, I know Could learn a lot from both of these guys and apply it to my next roadmap if this one doesn’t work out.
Does anyone have any advice or experience or input on this?
The guy who approached him is invaluable because he knows a lot about the industry and has a lot of connections. He’s also got experience in marketing, accounting, entrepreneurship, etc. My dad is a certified entrepreneur. He wants to do the due diligence and if everything checks out, he’ll get the loan and put the money down... then NOT do any work.
But he said he doesn’t want another partner right now? He said my job would be to keep the business running, manage the managers, be on call for any emergencies, and expand from 1 location to several, not to mention help his partner with everything he needs.
Basically, he’s buying a business with his partner (the licenses and loan will be in there names), and my job is to help build it (basically do the work for my dad alongside his partner while my dad works his day job). My dad said that once the business is built and expanding and they start taking money off the table (as opposed to reinvesting it into more locations), then I would earn “sweat equity”... whatever the F*ck that means.
That’s as far as we’ve gotten. I feel like my dad would see it disrespectful if I approached him to get written terms but I don’t want to blindly spend my time and energy doing this so that he can give me a small percentage of the company since he put up the money, or worse, just treat me like an employee. I feel like that is way too stupid, childish, and naive.
However, in our meetings thus far, he’s said that I’ll be the one running it mostly. His partner is old and is expected to die within like 5 years. Either way, I’m kind of going in blind and we’ve done all the investigating... we’re just waiting on the previous owners bank statements to verify the P&L.
We have all agreed that when it comes to making decisions, we all three have to agree... so that gave me some relief knowing ill have some control.
My dad isn’t gonna want to do any work. I know him. He just wants to put up the money, hold the license so he has to sign off on everything, point his finger when he wants to change something, and collect as big a share as possible. I don’t know if I’m being dramatic or delusional being a little afraid that he might F*ck me out of money.
Either way, I know Could learn a lot from both of these guys and apply it to my next roadmap if this one doesn’t work out.
Does anyone have any advice or experience or input on this?
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