Where do I find equity partners?

[sangisinacoma]

Hi all- I am looking to acquire existing small businesses in my local area (ei. gas stations & laundromats, car washes) and I am new to the game. While I am currently working with SCORE & the SBA to get up to speed in learning how to evaluate and operate these businesses, I am still a novice to the world of entrepreneurship. That being said, this is a route that I am serious about pursuing but seems incredibly risky for my first venture considering I have no direction in the event that something happens. My thought is that if I can do a deal with a local investor (I have one in mind) that it would allow me to learn the business and also share in the profits so that I can continue on in my journey to do this for myself. Does anyone have suggestions as to where I can find a partner or majority equity investor?

My thoughts were the following:
1- Contact local SBA lenders
2- Local entrepreneur groups (I cannot find any in Boston)
3- Cold call similar businesses and see if the owner wants to expand
4- Family/ friend network (not really an option)
Any other ideas?

 

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[Kung Fu Steve]

Hi all- I am looking to acquire existing small businesses in my local area (ei. gas stations & laundromats, car washes) and I am new to the game. While I am currently working with SCORE & the SBA to get up to speed in learning how to evaluate and operate these businesses, I am still a novice to the world of entrepreneurship.

I got my start with SCORE. I only did 2 "business plan" calls with them but because I did I immediately got that checkmark for the SBA loan to bring to the bank. I needed a co-signer (my "equity investor") because I was a kid with no money, no collateral, and no background.

I received the loan and things worked out for me... but if I had to go back again I'd ask a question: Do you really need a loan? ... REALLY?

Can you get slightly more creative in your startup phase?

That being said, this is a route that I am serious about pursuing but seems incredibly risky for my first venture considering I have no direction in the event that something happens.

“I’ll tell you what changed my whole life: I finally discovered that it’s all risky. The minute you got born it got risky. If you think trying is risky, wait until they hand you the bill for not trying”

– Jim Rohn

My thought is that if I can do a deal with a local investor (I have one in mind) that it would allow me to learn the business and also share in the profits so that I can continue on in my journey to do this for myself. Does anyone have suggestions as to where I can find a partner or majority equity investor?

Again, the question is -- do you really need an investor? You've given no clue as to what business this is but if it needs equipment, could you lease it? If you need advertising, could you come up with an affiliate deal? If you need product could you find 90-day terms?

My thoughts were the following:
1- Contact local SBA lenders

There are local SCORE chapters... that would be a better bet.

2- Local entrepreneur groups (I cannot find any in Boston)

Oh buddy... did you even try with this one?



I've spent a lot of time in Boston. There's so much going on up there it's ridiculous.

3- Cold call similar businesses and see if the owner wants to expand

Great idea. There are millions of businesses in the U.S. currently owned by boomers who have no exit plan. No children to leave it to and nobody to buy it because it's not a real business. You could pick something up for pennies on the dollar if you had the knowledge.

4- Family/ friend network (not really an option)

Maybe it's time to make some new friends?

Any other ideas?

Get clear on your goals. Stop letting fear get in the way. Do the basics. Google is your friend. Meet people. It'll help.