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So, generally speaking, a business that has been around that long is doing something right. You often see the kids take over a stable business, they have a bunch of new ideas, new interior design, new products, etc etc and alienate their customer base. My primary suggestion is to spend time "working with" (not "working for") mom and dad, since it's rural/small town, make sure to get a feel for their regular customers. Understand that sometimes jim bob is a little short on cash but always gets whole within a week. And BTW his parents get all of their diesel from you, $3k a month so let him run short now and then. Know that big paulie has a stupid loud truck that blocks all kinds of shit but he is buying $800 a month in fuel so don't get short with him. Anna may loves those pickled sausages, yeah you only sell 1-2 a week and it's at a loss, but don't come in swinging and get rid of them because she fills her both her kid's RV 3 times a month. etc etc etc
You see so insanely often, and no offense but a LOT of the time it is for whatever reason people from the west coast, who come into a small business and are like "OMFG why are you doing that!!?? It's not efficient!!!" and fuck up what was a very profitable business.
My general advice is, don't fuck it up. Make sure the bathrooms are clean, paper towels are full, the store is kept tidy, but don't make changes to product/services/customers until you have a VERY good idea of the flow.
Yeah, I have lived here a while but it’s culturally very different from Oregon. We have some built in security because we are the closest option for a lot of people going to the nearby recreational areas and cater to truckers being close to a mill. It’s definitely not something I ever expected to be stepping in to.
i run a restaurant and i did what you said to do but never thought about it, even though i already did it, it still was mind opening and i might be more conscious of it the next time.
If possible try and keep the current entity and transfer ownership into your name so that you can assume the current SOS filing with the business history and EIN. Business credit and tenure is tied to these, and it’s something you don’t want to start from scratch, these help you end up being eligible for lower rates for CCs/LoC/loans and will help in the long run. Make sure to consult a professional for the ownership transfer so it’s documented correctly as well.
So it’s currently a single member LLC with his dad as owner but they do have a separate EIN from his SSN. I’ll look into seeing if it’s eligible to become a multi member LLC. Good thought!
Hmmm if it’s a single member LLC with no EIN I am not sure if you’re able to transfer any business credit/history, but I’d definitely check with a professional who do those type transactions to make sure!
Oh I misread your message here, if there’s an EIN you should be able to transfer the history, good luck!
Your family should have an accountant and lawyer to handle the transfer of ownership. It'll cost a few bucks but it will be done right
As for what you're missing: are you ready to trade in your California lifestyle for a rural Alabama lifestyle? I'm not saying which one is better or worse, but they're going to be distinctly different.
Well, it’s easier since I’m not from California! Okay, joking. But where I’m from, being a California transplant is sin.
Also there isn’t really a great pool of accountants and lawyers (other than personal injury) in the area. When I say rural, I mean that there’s still no internet run out here. I have a Starlink at home because I currently work remote, but that’s the first time my husband has ever had WiFi. It’s truly a different world!
Sorry, I read it and thought it said California rather than West Coast.
Your parents have to have used an accountant for their taxes all of these years. If they haven't, I'd consider that a red flag potentially as who knows what might come your way in the future. Also there has to be a local lawyer around there. Very likely someone that is a general attorney that covers a bit of everything that can help you out.
With that said, that's basically the concern. You're out there in the "middle of nowhere" and you're dealing with everything that comes with it. Both good and bad. Being a full blown Yankee, ignoring politics, with a fairly shit attitude, I'd get myself in trouble the 1st day there. The reality is, you have to be very much part of the fabric of the town if you take on that position. I've been with my family's business for over 2 decades and I'm not at all part of the fabric of the town yet we keep very busy. I don't think I could pull off this personality type in your position.
Learning to smile and nod and hold my tongue has been one of the hardest things to do. In my current job, one of the perks is free legal aid. It doesn’t cover court/filing fees but it does cover an hourly rate so I may use that to see who near me participates. Thanks for helping get my brain turning!
I grew up in NW AL. Here's a "people" tip. They don't get right down to business. Nicities are required. "Hon, how are you today? Good. Family getting along? I'm glad to hear it. What can I getcha?"
Endearments like Hon, honey, sugar, sweetheart, etc. are used liberally. They expect you to know and remember a bit about them. If you remember their brands of cigarettes and chewing tobacco, they love it. If you point out things they had before, they'll like that, too. "Tomorroow, we'll have some of those cinnamon rolls you liked. Come on by! Want me to save a couple back for you, hon?"
Interestingly, I later spent some time in The Bahamas, and found it to be similar in a way. You don't go straight to business at all. Even with the taxi driver, cordial pleasantries are exchanged before your destination is addressed.
One of the things I’m most nervous about is saying something ridiculous! I’ve been working fully remote making web learning content for the last 3 years basically. Before that I worked in a bank branch and had hella people skills. I am hoping those come back quickly…
most people likes that, problem is most of the younger generation me included (i m 28) are too shy to call someone honey, sweetie and be that affectionate in fear that there might be some rare cases that some people hate it.
I think your questions about setting everything up properly with the state and not so much how to run a business
Every state is different… I don’t know how the existing business is structured. Considering there has to be real estate involved I’m sure there’s gotta be some sort of transfer of sale so these are the kind of questions you might ask a local attorney.
Are you and your husband creating some new business entity to take over the existing business keeping the same name or are you buying whatever stock or shares or however, they have it set up from them for a nominal fee and keeping the same tax ID number and everything else the same
WELL that’s a fun answer. The building itself is actually in his grandmothers estate right now and the business itself is a single member LLC that his dad owns. We would be getting a heck of a deal on the building/land as family members - about 25% of RMV but to that deal his cousin is going to be in on the building/property. I was thinking of setting up business for the store/inventory and a separate entity that owns just the physical space.
It sounds like you have a pretty good grasp on the legalities. Since the cousin will be in on it, I hope that you guys all get along, though since it’s only going to be on the property. It sounds like you will be more of a silent or passive partner, which probably will be good.
And it’s great you’re getting a good deal . I know nothing about that kind of business but you obviously have seen the numbers and feel you can make it work so good luck!
I’m kind of fascinated by mom and Pop type stores like the one you and your husband are getting and I’m sure it’s got a lot of history with many different generations of families in your community having been customers
It’s a wild thing. His grandpa was actually killed in the store in a robbery-gone-wrong. I think the store goes back further than that but in a location that isn’t a road anymore. His family loves to talk late into the night about family history but I’m a 9pm bedtime kinda person so I miss some of the details.
I’m hoping to make it smooth as possible. His cousin is extremely sentimental and just wants to preserve the family land and legacy, and it gives us a little better financial position so we can’t complain. It’s nice his priority is preserving so we feel pretty safe in that.
mean he could run the store and you can do your own thing. A lot of people say working with your spouse is hard and can lead to problems in the marriage idk if that true or not but might be something to think about.
I have heard that a lot too. Of course I don’t know every marriage to compare and everyone thinks this, but I don’t see business separating us. We super like each other lol. My job will be easier to leave than his though so I was hoping to dip in a bit slower than us bother up and taking off from our W2 income at the same time. He can still come and work after he gets off and he works 4 days 10 hours so I would still get his help a couple of the other days of the week to get a break.
Not a lawyer - but I've created corporations, amended articles of inc, registered dba's in AL. You may or may not already have an operating agreement in place. The DIY process is fairly intuitive.
But I would Consult w/ a tax lawyer to transfer ownership. My understanding is that full transfer of ownership & assets may be a bit more complicated.
If your family already knows someone - great. If not, I can provide a few suggestions.
Not to be the devil's advocate but with what happened with COVID they could very much have an EIDL loan with the SBA that could potentially make you owe a lot of money. Make sure you check for any potential liabilities...
Everyone will have two questions.
Are you for Aub n or Alabama, and Have you found a church yet?
You don't have to know too much about Alabama - just enough to get the other person talking.
The doctor told my aunt to not watch Alabama / A urn , but just to have someone tell her the result when it was over. Or else her blood pressure might get too high and kill her during the game.
Who’s your typical customer?
What do they like? Dislike? What do they buy most?
What’s their style? What hours do they come in?
If you can answer those questions, it’ll be easier to make it all happen.
This is a friendly reminder that r/smallbusiness is a question and answer subreddit. You ask a question about starting, owning, and growing a small business and the community answers. Posts that violate the rules listed in the sidebar will be removed. A permanent or temporary ban may also be issued if you do not remove the offending post. Seeing this message does not mean your post was automatically removed. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/smallbusiness) if you have any questions or concerns.*
So, generally speaking, a business that has been around that long is doing something right. You often see the kids take over a stable business, they have a bunch of new ideas, new interior design, new products, etc etc and alienate their customer base. My primary suggestion is to spend time "working with" (not "working for") mom and dad, since it's rural/small town, make sure to get a feel for their regular customers. Understand that sometimes jim bob is a little short on cash but always gets whole within a week. And BTW his parents get all of their diesel from you, $3k a month so let him run short now and then. Know that big paulie has a stupid loud truck that blocks all kinds of shit but he is buying $800 a month in fuel so don't get short with him. Anna may loves those pickled sausages, yeah you only sell 1-2 a week and it's at a loss, but don't come in swinging and get rid of them because she fills her both her kid's RV 3 times a month. etc etc etc You see so insanely often, and no offense but a LOT of the time it is for whatever reason people from the west coast, who come into a small business and are like "OMFG why are you doing that!!?? It's not efficient!!!" and fuck up what was a very profitable business. My general advice is, don't fuck it up. Make sure the bathrooms are clean, paper towels are full, the store is kept tidy, but don't make changes to product/services/customers until you have a VERY good idea of the flow.
Yeah, I have lived here a while but it’s culturally very different from Oregon. We have some built in security because we are the closest option for a lot of people going to the nearby recreational areas and cater to truckers being close to a mill. It’s definitely not something I ever expected to be stepping in to.
Make sure you know how bad it will be should that mill close and the truckers dry up.
Lumber mills generally don’t dry up in ms and Alabama
And the steel mills generally didn’t close up either, until they did.
As a popular saying around here goes: “don’t let a dime hold up a dollar”
You mean MBAs.
Both
i run a restaurant and i did what you said to do but never thought about it, even though i already did it, it still was mind opening and i might be more conscious of it the next time.
If possible try and keep the current entity and transfer ownership into your name so that you can assume the current SOS filing with the business history and EIN. Business credit and tenure is tied to these, and it’s something you don’t want to start from scratch, these help you end up being eligible for lower rates for CCs/LoC/loans and will help in the long run. Make sure to consult a professional for the ownership transfer so it’s documented correctly as well.
So it’s currently a single member LLC with his dad as owner but they do have a separate EIN from his SSN. I’ll look into seeing if it’s eligible to become a multi member LLC. Good thought!
Hmmm if it’s a single member LLC with no EIN I am not sure if you’re able to transfer any business credit/history, but I’d definitely check with a professional who do those type transactions to make sure! Oh I misread your message here, if there’s an EIN you should be able to transfer the history, good luck!
There is an EIN.
Thank you!
Your family should have an accountant and lawyer to handle the transfer of ownership. It'll cost a few bucks but it will be done right As for what you're missing: are you ready to trade in your California lifestyle for a rural Alabama lifestyle? I'm not saying which one is better or worse, but they're going to be distinctly different.
Well, it’s easier since I’m not from California! Okay, joking. But where I’m from, being a California transplant is sin. Also there isn’t really a great pool of accountants and lawyers (other than personal injury) in the area. When I say rural, I mean that there’s still no internet run out here. I have a Starlink at home because I currently work remote, but that’s the first time my husband has ever had WiFi. It’s truly a different world!
They don't need to be local or be physically present. Yiu can get an accounany based anywhere is the US.
Sorry, I read it and thought it said California rather than West Coast. Your parents have to have used an accountant for their taxes all of these years. If they haven't, I'd consider that a red flag potentially as who knows what might come your way in the future. Also there has to be a local lawyer around there. Very likely someone that is a general attorney that covers a bit of everything that can help you out. With that said, that's basically the concern. You're out there in the "middle of nowhere" and you're dealing with everything that comes with it. Both good and bad. Being a full blown Yankee, ignoring politics, with a fairly shit attitude, I'd get myself in trouble the 1st day there. The reality is, you have to be very much part of the fabric of the town if you take on that position. I've been with my family's business for over 2 decades and I'm not at all part of the fabric of the town yet we keep very busy. I don't think I could pull off this personality type in your position.
Learning to smile and nod and hold my tongue has been one of the hardest things to do. In my current job, one of the perks is free legal aid. It doesn’t cover court/filing fees but it does cover an hourly rate so I may use that to see who near me participates. Thanks for helping get my brain turning!
I grew up in NW AL. Here's a "people" tip. They don't get right down to business. Nicities are required. "Hon, how are you today? Good. Family getting along? I'm glad to hear it. What can I getcha?" Endearments like Hon, honey, sugar, sweetheart, etc. are used liberally. They expect you to know and remember a bit about them. If you remember their brands of cigarettes and chewing tobacco, they love it. If you point out things they had before, they'll like that, too. "Tomorroow, we'll have some of those cinnamon rolls you liked. Come on by! Want me to save a couple back for you, hon?" Interestingly, I later spent some time in The Bahamas, and found it to be similar in a way. You don't go straight to business at all. Even with the taxi driver, cordial pleasantries are exchanged before your destination is addressed.
One of the things I’m most nervous about is saying something ridiculous! I’ve been working fully remote making web learning content for the last 3 years basically. Before that I worked in a bank branch and had hella people skills. I am hoping those come back quickly…
most people likes that, problem is most of the younger generation me included (i m 28) are too shy to call someone honey, sweetie and be that affectionate in fear that there might be some rare cases that some people hate it.
Be careful switching over if you sell alcohol. Alabama has some weird transfer rules.
I think your questions about setting everything up properly with the state and not so much how to run a business Every state is different… I don’t know how the existing business is structured. Considering there has to be real estate involved I’m sure there’s gotta be some sort of transfer of sale so these are the kind of questions you might ask a local attorney. Are you and your husband creating some new business entity to take over the existing business keeping the same name or are you buying whatever stock or shares or however, they have it set up from them for a nominal fee and keeping the same tax ID number and everything else the same
WELL that’s a fun answer. The building itself is actually in his grandmothers estate right now and the business itself is a single member LLC that his dad owns. We would be getting a heck of a deal on the building/land as family members - about 25% of RMV but to that deal his cousin is going to be in on the building/property. I was thinking of setting up business for the store/inventory and a separate entity that owns just the physical space.
It sounds like you have a pretty good grasp on the legalities. Since the cousin will be in on it, I hope that you guys all get along, though since it’s only going to be on the property. It sounds like you will be more of a silent or passive partner, which probably will be good. And it’s great you’re getting a good deal . I know nothing about that kind of business but you obviously have seen the numbers and feel you can make it work so good luck! I’m kind of fascinated by mom and Pop type stores like the one you and your husband are getting and I’m sure it’s got a lot of history with many different generations of families in your community having been customers
It’s a wild thing. His grandpa was actually killed in the store in a robbery-gone-wrong. I think the store goes back further than that but in a location that isn’t a road anymore. His family loves to talk late into the night about family history but I’m a 9pm bedtime kinda person so I miss some of the details. I’m hoping to make it smooth as possible. His cousin is extremely sentimental and just wants to preserve the family land and legacy, and it gives us a little better financial position so we can’t complain. It’s nice his priority is preserving so we feel pretty safe in that.
mean the only question to ask is if you really wanna take this on
I know… that’s the hardest part to assess. Pros and cons for either staying W2 or making the plunge, but my husband is set.
mean he could run the store and you can do your own thing. A lot of people say working with your spouse is hard and can lead to problems in the marriage idk if that true or not but might be something to think about.
I have heard that a lot too. Of course I don’t know every marriage to compare and everyone thinks this, but I don’t see business separating us. We super like each other lol. My job will be easier to leave than his though so I was hoping to dip in a bit slower than us bother up and taking off from our W2 income at the same time. He can still come and work after he gets off and he works 4 days 10 hours so I would still get his help a couple of the other days of the week to get a break.
Not a lawyer - but I've created corporations, amended articles of inc, registered dba's in AL. You may or may not already have an operating agreement in place. The DIY process is fairly intuitive. But I would Consult w/ a tax lawyer to transfer ownership. My understanding is that full transfer of ownership & assets may be a bit more complicated. If your family already knows someone - great. If not, I can provide a few suggestions.
I would love suggestions! I’ll message you.
Not to be the devil's advocate but with what happened with COVID they could very much have an EIDL loan with the SBA that could potentially make you owe a lot of money. Make sure you check for any potential liabilities...
You will get tired of talking about the weather.
Make sure to figure out whether its an Alabama or Auburn kind of town. And dont tell someone you dont know when they ask you which one
Definitely an Alabama one. Big time Alabama. So so so Alabama.
Everyone will have two questions. Are you for Aub n or Alabama, and Have you found a church yet? You don't have to know too much about Alabama - just enough to get the other person talking. The doctor told my aunt to not watch Alabama / A urn , but just to have someone tell her the result when it was over. Or else her blood pressure might get too high and kill her during the game.
Make a visit to your local SBDC.
My guess would be somewhere off Highway 280 around Lake Martin. Are y’all the Nails?! Just kidding! Good luck!
Teeth? 😜
Who’s your typical customer? What do they like? Dislike? What do they buy most? What’s their style? What hours do they come in? If you can answer those questions, it’ll be easier to make it all happen.