Re: Purchasing an existing business in MN, what do I need to know
Well, you said any comments would be appreciated.
I have represented owners of serveral small motels. At one time my clients owned as many as 25 motels or hotels. One by one, for one reason or another, most of them went broke.
The only exception was a family where everyone had been in the hospitality business for generations. They ran hotels, motels and eating places as their parents and grandparents had done. They grew up working in these places and knew nothing else. The secret to their success was that they were willing to work around the clock, seven days a week. They were also willing to put the business first when things were slow and accept few comforts, living a spartan lifestyle.
Few of us wish to live that way any more. Unless that is your intent, I suggest you look for other ideas. You can hire managers and other help, but you must not rely on them. You must stick around to keep an eye on them or they will rob you blind - always. You must also watch the guests - who will attempt to walk off with everything from towels to TVs. Nobody will watch the place like you can. Since it is your place, you will see things that the employess tend to not care about or just miss.
Yes there are all sorts of things a lawyer needs to check out before you enter into a deal like this, but the first question is why are you doing this in the first place. Going anywhere near such a deal without practically handcuffing yourself to a lawyer and and accountant would be a big mistake. I also suggest praying a lot.
Good luck.
