This is a hard question to answer specifically without any knowledge of the business. What kind of car wash it is (auto, self-serve, or full service)?, How many bays does the car wash have? Is there any other streams of revenue? We discuss this topic regarding car washes on this BizBen Discussion.
Comments & Feedback From Pro Intermediaries & Pro Advisors On BizBen:
This is a good topic to discuss "hidden" or unreported cash income. A car wash is one of the businesses that are sometimes attractive to potential buyers because they think a lot of cash changes hands and a lot can end up in the owner's pocket without paying state and federal taxes.
BEWARE!
A seller who is going to tell you all about the taxes he hasn't paid on cash is telling you that he routinely steals, cheats, and lies -- but, he wants you the buyer to believe him when he tells you about his business. How trustworthy is that?
Material non-reporting of income distorts the entire system.--Those of us who are honest about our earnings are consequently paying a disproportionately higher amount of government expenses. How fair is that?
And, taking over a business with the intention of becoming an immediate tax felon can cost you bundles in legal fees, fines, and lost income, no to mention the prospect of looking through bars for several years.
How smart is that?
Car washes, laundromats, vending routes ... these can all be good businesses. But, they must be sound businesses based on actual reported income, not based on being a criminal enterprise.
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Financing a business purchase, or getting cash for a down payment can take many forms. Hopefully the options listed below will give you some ideas where you can find the money to buy a California business!
A potential small business owner/seller asks the question: I have a preschool and am thinking about selling it but my lease is ending soon. What would be the best thing to do? Do I renew the contract or do I act the landlord to sign a contract to the new buyer? and is it a good time to sell?
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Chuck Post a laundry consultant, specialty broker, buyer representative & due diligence advisor starts this discussion on why it's important to have an exit strategy in mind while buying a laundromat! He & others explain why this concept is so important for buyers especially in the laundry business.
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This is a hard question to answer specifically without any knowledge of the business. What kind of car wash it is (auto, self-serve, or full service)?, How many bays does the car wash have? Is there any other streams of revenue? We discuss this topic regarding car washes on this BizBen Discussion.
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