How Much Money Do I “NEED”?
As much as possible! The biggest mistake new owners make is not having enough liquid cash for emergency needs or needed repairs or expansion.
The key to a successful purchase is to expect the unexpected. Something will break – some glaring hole in service will be discovered that you will want to fix quickly. Having cash on hand for these things can make the first year more successful.
25% – 30% down is required by most banks. HOWEVER, this is not always the hard and fast rule. With great credit and other assets, many times I can get you financed with 15% down, sometimes less – depending on:
- Seller Financing Help
- Other Assets that can be collateralized
- 401-K (ROBS program can sometime be used to get 401-k money to be used to start up a new business).
- Appraisal of the property
- Strength of the Business Plan (which I can help you develop)